Denali Capital Acquisition Corp. reported a net loss of $385,122 for the three months ended June 30, 2025, compared to a net income of $448,912 for the same period in 2024. The loss for the six months ended June 30, 2025, was $579,725, a significant decline from the net income of $713,242 reported in the prior year. The company's formation and operating costs increased to $374,857 for the second quarter of 2025, up from $168,186 in the same quarter of 2024. Interest expenses also rose, totaling $28,345 for the second quarter of 2025, compared to $23,059 in the previous year.
The company experienced a substantial decrease in total assets, which fell to $562,462 as of June 30, 2025, from $9,037,873 at the end of 2024. This decline was primarily due to a significant reduction in cash and investments held in trust, which dropped from $9,021,005 to $548,318. The number of Class A ordinary shares subject to possible redemption also decreased from 751,837 to 43,739 during the same period. The company’s liabilities increased to $11,156,451, up from $10,434,584 at the end of 2024, largely driven by higher accounts payable and accrued expenses.
Denali Capital has been actively pursuing a business combination, specifically with Semnur Pharmaceuticals, Inc. The company entered into a merger agreement with Semnur on August 30, 2024, with a total consideration of $2.5 billion to be paid in shares of common stock of the new entity. However, the company has faced challenges, including a delisting from Nasdaq due to non-compliance with listing rules, which led to trading on the OTC markets starting April 17, 2025. The merger agreement has undergone amendments to extend the deadline for completing the business combination to December 11, 2025.
As of June 30, 2025, Denali Capital had a working capital deficit of $8,254,807 and limited cash resources outside of the trust account, totaling just $126. The company has indicated that it may need to secure additional financing to meet its operational needs and complete the proposed business combination. Management has expressed concerns about the company's ability to continue as a going concern if the business combination is not consummated by the extended deadline. The company is classified as a smaller reporting company and an emerging growth company, which allows it certain exemptions from various reporting requirements.
About Denali Capital Acquisition Corp.
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