Company: SMNR
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027319
Chunk: 1449

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-04-02
Form: 10-K
Item: Item 9A
Chunk 1449
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 both the redeemable shares and non-redeemable shares, the Company first considered the undistributed income allocable to both the
redeemable shares and non-redeemable shares and the undistributed income is calculated using the total net loss less dividends paid.
The Company then allocated the undistributed income based on the weighted average number of shares 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 years ended December 31, 2024
and 2023, 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.

F-20

Denali
Capital Acquisition Corp.

Notes
to Consolidated Financial Statements

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

    For the year ended December 31, 2024  
    For the year ended December 31, 2023 
  
    Net (loss)/income 
    $(167,306)