Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 37

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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uals or material deviation from its position.

The Company determined that the Cayman Islands
is the Company’s only major tax jurisdiction and the location of all members of management, sponsors, directors, any employees,
or assets to the extent employed is the United States.

The Company may be subject to potential examination
by federal and state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing
and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s
management does not expect that the total amount of unrecognized tax benefits will materially change over the next 12 months.

There is currently no taxation imposed on income
by the Government of the Cayman Islands for the six months ended June 30, 2025 and 2024.

Recent
Accounting Pronouncements

On December 14, 2023, the FASB issued a final
standard on improvements to income tax disclosures. The standard requires disaggregated information about a reporting entity’s effective
tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed
income tax disclosures that would be useful in making capital allocation decisions. ASU 2023-09, Improvements to Income Tax Disclosures,
applies to all entities subject to income taxes. For public business entities (PBEs), the new requirements will be effective for annual
periods beginning after December 15, 2024. For entities other than public business entities (non-PBEs), the requirements will be effective
for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis with the option to apply the
standard retrospectively. Early adoption is permitted. The Company had adopt the ASU 2023-09 on January 1, 2025, and the adoption does
not have material impact on its unaudited condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03,
“Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures” (“ASU 2024-03”), which
requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation,
amortization and depletion, in each relevant expense caption. ASU 2024-03 is effective for fiscal years beginning after December
15, 2026, and interim reporting periods beginning after December 15,