Fri, May 16, 8:14 PM (38 days ago)
**Denali Capital Acquisition Corp. (DECA) Q1 2025 Financial Summary** **Company Overview:** Denali Capital Acquisition Corp. (DECA) is a Cayman Islands-based blank check company formed to effect a merger, share exchange, asset acquisition, or similar business combination. DECA focuses on technology, consumer, and hospitality sectors, excluding China-based targets. **Q1 2025 Financial Performance:** - **Revenue:** DECA reported no operating revenue for Q1 2025, as it has not yet completed its initial business combination. - **Net Loss:** DECA incurred a net loss of $194,603, primarily due to formation and operating expenses of $246,600 and interest expense of $26,974, partially offset by income earned on investments held in the Trust Account of $78,971. - **Cash Flow:** Net cash used in operating activities was $114,131, primarily due to the net loss and changes in current assets and liabilities. Net cash provided by financing activities was $100,000, from proceeds of a promissory note issued to a related party. **Financial Health and Trends:** - **Cash Position:** As of March 31, 2025, DECA had $2,736 in cash outside of the Trust Account. The Trust Account held $9,145,167 in cash, invested in an interest-bearing demand deposit account. - **Liquidity Concerns:** DECA's management believes the company may not have sufficient working capital to meet needs through the consummation of the initial business combination. Additional financing may be required to conserve liquidity. - **Shareholder Redemptions:** Shareholders have exercised their right to redeem shares, leading to significant withdrawals from the Trust Account. As of March 31, 2025, DECA had 43,739 public shares outstanding. **Future Operations and Uncertainties:** - **Business Combination:** DECA is in the process of completing a business combination with Semnur Pharmaceuticals, Inc. The merger agreement includes various conditions and extensions. - **Regulatory and Market Risks:** DECA faces uncertainties related to global economic conditions, regulatory changes, and market volatility. The company's securities were delisted from Nasdaq and now trade on the OTC markets. - **Going Concern:** DECA's financial statements indicate substantial doubt about its ability to continue as a going concern through December 11, 2025, if a business combination is not consummated. **Ticker:** DECAU (Pink), DECA (OTCQB), DECAW (OTCQB) **Note:** Amounts are in thousands, 000s.