Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 60

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 interest
expense – related party of $17,209 and increase in accrued interest expense – others of $9,766. In addition, net cash used
in operating activities includes non-cash adjustments to reconcile net loss from income on the Trust Account of $78,971.

For the three months ended March 31, 2024, net
cash used in operating activities was $374,151, primarily due to net income of $264,330 for the period and the changes in current assets
and liabilities of $15,404 due to prepaid expenses of $59,423, accounts payable and accrued expenses of $53,524, accrued interest expense
– related party of $11,430 and accrued interest expense – others of $9,873. In addition, net cash used in operating activities
includes adjustments to reconcile net income from income on the Trust Account of $653,885.  

32

Cash Flows from Financing Activities 

For the three months ended
March 31, 2025, net cash provided by financing activities was $100,000 primarily due to proceeds from issuance of promissory note to related
party of $100,000.

For the three months ended
March 31, 2024, net cash provided by financing activities was $170,700 primarily due to proceeds from issuance of promissory note to related
party. 

Liquidity and Capital Resources 

Our liquidity needs prior
to the consummation of the IPO were satisfied through a payment from the sponsor and the loan under an unsecured promissory note from
the sponsor of up to $400,000 (the “Promissory Note”), which was repaid after the IPO. 

On April 11, 2022, we consummated
the IPO of 8,250,000 Units, inclusive of 750,000 Units issued pursuant to the partial exercise by the underwriters of their over-allotment
option. The Units were sold at a price of $10.00 per Unit, generating gross proceeds of $82,500,000. Simultaneously with the closing of
the IPO, we consummated the sale of 510,000 Private Placement Units, inclusive of 30,000 Private Placement Units sold to the sponsor pursuant
to the underwriters’ partial exercise of their over-allotment option. Each whole Private Placement Unit consists of one Class A
ordinary share and one warrant, each whole warrant entitling the holder