Company: SMNR
Filing Date: 2025-06-11
Form Type: S-4/A
Source: 0001193125-25-139124
Chunk: 577

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-06-11
Form: S-4/A
Chunk 577
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 incorporates certain other assumptions, such as the volatility of the underlying shares and the expected term of the options. The expense to be recognized by New Semnur will depend on various factors, including the fair value of the New Semnur Common Stock and volatility thereof. Additionally, the timing of when the exercise contingency relating to payment of certain Scilex indebtedness is met may impact the amount of share-based compensation expense for these options because the awards would not be subject to be remeasured at fair value once the awards are classified in equity. Because management cannot predict these factors and the impact of such factors on the share-based compensation expense, the share-based compensation expense reflected in these pro formas assumes that the fair value of the options is unchanged from the assumptions described above. The preliminary estimated share-based compensation expense reflected in these unaudited pro forma condensed combined financial statements is presented for illustrative purposes and does not purport to represent the actual stock-based compensation to be recognized by New Semnur. |

| (3) | Represents non-recurring compensation expense relating to issuance of up to 8.0 million shares of New Semnur Common Stock to certain Semnur advisors. Pursuant to the Consulting Services Agreements, the advisors are collectively entitled to the lower of (a) 8.0 million shares of New Semnur Common Stock or (b) 4% of outstanding shares of New Semnur Common Stock, subsequent to closing of the Business Combination, in exchange for providing consulting and advisory services related to Semnur’s business, financing, and mergers and acquisitions opportunities for a period of 12 months. Based on the assumed redemption scenarios reflected within these unaudited pro formas, the advisors would be entitled to receive 8.0 million shares in all of the redemption scenarios. Additionally, the expense reflected above assumes that the fair value of the New Semnur Common Stock to be issued to the advisors is $10.00 and assumed to be recognized during the year ended December 31, 2024 as if the Business Combination had occurred on January 1, 2024. The expense related to the advisor shares will not have a continuing impact on the operations of New Semnur. |

| (AB) | Reflects the reversal of interest expense on Denali’s Notes Payable which are assumed to be settled as part of the Business Combination. |

(AC) Reflects the elimination of Income on Investments in Trust Account. Note 5 — Net Income (Loss) per Share Net income (