Company: SMNR
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077047
Chunk: 70

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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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. We adopted ASU 2023-09 on January 1, 2025, and the adoption did not have a material
impact on our 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, 2027. Early adoption and retrospective application is permitted. We are currently assessing
the impact of this guidance; however, we do not expect a material impact on our unaudited condensed consolidated financial statements.

Management does not believe that any other recently
issued, but not effective, accounting standards, if currently adopted, would have a material effect on our consolidated financial statements. 

Item 3. Quantitative and Qualitative Disclosures
About Market Risk

Until June 4, 2024, the net proceeds of our IPO
and the Private Placement held in the Trust Account were invested in U.S. government securities with a maturity of 185 days or less or
in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government
treasury obligations. However, on June 4