Company: SMNR
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001213900-25-044889
Chunk: 46

Company: Semnur Pharmaceuticals, Inc.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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 redemption right even if it is unable to register or qualify the underlying
securities for sale under all applicable state securities laws.

If the Company
calls the warrants for redemption as described above, its management will have the option to require all holders that wish to exercise
warrants to do so on a “cashless basis.” In determining whether to require all holders to exercise their warrants on a “cashless
basis,” the Company’s management will consider, among other factors, the cash position, the number of warrants that are outstanding
and the dilutive effect on the Company’s shareholders of issuing the maximum number of ordinary shares issuable upon the exercise
of the Company’s warrants. In such event, each holder would pay the exercise price by surrendering the warrants for that number
of Class A ordinary shares equal to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares
underlying the warrants, multiplied by the excess of the “fair market value” over the exercise price of the warrants by (y)
the fair market value. The “fair market value” shall mean the volume weighted average price of the Class A ordinary shares
for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of
warrants.

24

Denali Capital Acquisition Corp.

Notes to Unaudited Consolidated Financial Statements

NOTE
8 – FAIR VALUE MEASUREMENTS

The fair
value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have
received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction
between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company
seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable
inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is
used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

    Level 1:
    Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

    Level 2:
    Observable inputs other than Level 1 inputs. Examples of