Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 34

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 outstanding between the redeemable and non-redeemable shares.

Subsequent measurement adjustments recorded pursuant
to ASC 480-10-S99-3A related to redeemable shares are treated in the same manner as dividends on redeemable shares. Class A ordinary shares
are redeemable at a price determined by the Trust Account held by the Company. This redemption price is not considered a redemption at
fair value. Accordingly, the adjustments to the carrying amount are reflected in the Earnings Per Share (“EPS”) using the
two-class method. The Company has elected to apply the two-class method by treating the entire periodic adjustment to the carrying amount
of the Class A ordinary shares subject to possible redemption like a dividend.

Based on the above, any remeasurement of the redemption
value of the Class A ordinary shares subject to possible redemption is considered to be dividends paid to the Public Shareholders. Warrants
issued are contingently exercisable (i.e., on the later of 30 days after the completion of the initial Business Combination or 12 months
from the closing of the IPO). Further, Convertible Promissory Notes are also contingently exercisable upon the consummation of the initial
Business Combination. For EPS purpose, the warrants and notes are anti-dilutive since they would generally not be reflected in basic or
diluted EPS until the contingency is resolved. For the three months and six months ended June 30, 2025 and 2024, the Company did not have
any other dilutive securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share
in the earnings of the Company. As a result, diluted income per ordinary share is the same as basic earnings per ordinary share for the
periods presented.

The net (loss)/ income per share presented in
the consolidated statements of operations is based on the following:

    Three months ended June 30, 2025  
    Six months ended June 30, 2025  
    Three months ended June 30, 2024  
    Six months ended June 30, 2024 
  
    Net (loss) /income 
    $(385,122) 
    $(579,725) 
    $448,912  
    $713,242 
  
    Accretion of temporary equity to redemption value 
     (20,704) 
     (144,866) 
     (790,157) 
     (1,