Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 37

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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), resulting in the Sponsor holding a balance of 1,932,500 founder shares.

The founder
shares are identical to the Class A ordinary shares included in the units sold in the IPO, except that the founder shares will automatically
convert into Class A ordinary shares at the time of the Company’s initial Business Combination (see Note 7). Also,
the Sponsor and each member of the Company’s management team have entered into an agreement with the Company, pursuant
to which they have agreed to waive their redemption rights with respect to any founder shares and Public Shares held by them.

The Sponsor and the Company’s directors
and executive officers have agreed not to transfer, assign or sell any of their founder shares until the earlier of (A) one year
after the completion of an initial Business Combination and (B) subsequent to the Company’s initial Business Combination, (x) if
the closing price of Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days
after an initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, share exchange or other similar
transaction that results in all Public Shareholders having the right to exchange their Public Shares for cash, securities or other property.
Any permitted transferees would be subject to the same restrictions and other agreements of the Sponsor and the Company’s directors
and executive officers with respect to any founder shares.

20

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

The sale of the founder shares to the Company’s
Chief Financial Officer and to certain members of the Company’s board of directors is in the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the grant date. The fair value of the 130,000 shares granted to the Company’s directors and executive
officers was $1,005,964 or $7.74 per share. The founder shares were granted subject to a performance condition (i.e., the occurrence
of a Business Combination). Compensation expense related to the founder shares is recognized only when the performance condition is of
probable occurrence