Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 662

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 3
Chunk 662
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 value $0.0001 per share (the “Purchased Interests”), of the Company that are currently held
by the Sponsor. The aggregate consideration for the purchase and sale of the Purchased Interests is as follows: (i) $2,000,000 (the “Cash
Consideration”) and (ii) 300,000 shares of common stock, par value $0.0001 per share, of Scilex (the “Scilex Shares”).
Pursuant to the SIPA, Scilex has paid the Cash Consideration on the Signing Date and has agreed to issue the Scilex Shares to the Sponsor
contingent upon and following the occurrence of the Effective Time. The Purchased Interests will convert automatically, on a one-for-one
basis, into one New Semnur Common Share at the effective time of the Domestication pursuant to the terms of the Merger Agreement.

F-23

Denali
Capital Acquisition Corp.

Notes
to Consolidated Financial Statements

On
August 30, 2024, Scilex paid the Cash Consideration under the SIPA, and on September 3, 2024, the Sponsor transferred 500,000 Class B
Ordinary Shares to Scilex. The Company accounted for the SIPA in accordance with Staff Accounting Bulletin Topic 5T (“SAB Topic
5T”). The Company determined the SIPA represents a transfer of economic value that benefit to the Company as the SIPA is executed
on the closing of the Merger that was contemplates by the Merger Agreement. According to SAB Topic 5T, if the Sponsor is settling an
obligation or expense on behalf of the Company through a transfer of shares or other consideration, the fair value of the shares transferred
less the consideration received would be recognized as an expense by the Company.

The
Company estimated the fair value of the Company’s 500,000 Class B ordinary shares on September 3, 2024 transferred to Scilex by
the Sponsor, which was less than the $2,000,000 Cash Consideration plus the fair value of 300,000 Scilex Shares. The Company determined
that the 500,000 Class B ordinary shares were sold at premium and no expense should be recorded.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain
of the Company’s officers and directors,