Company: LIMN
Filing Date: 2025-01-16
Form Type: POS AM
Source: 0001104659-25-003835
Chunk: 345

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-16
Form: POS AM
Chunk 345
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 combination, in which case Iris may issue additional securities or incur debt in connection with such business combination. Subject to compliance with applicable securities laws, Iris would only complete such financing simultaneously with the completion of its initial business combination. If Iris is unable to complete its initial business combination because it does not have sufficient funds available to it, Iris will be forced to cease operations and liquidate the Trust Accounts. In addition, following its initial business combination, if cash on hand is insufficient, Iris may need to obtain additional financing in order to meet its obligations.

Management has determined that if Iris is unable to complete a business combination or amend the Iris Certificate of Incorporation by December 31, 2024 (the “Combination Period”), then Iris will cease all operations except for the purpose of liquidating. The date for mandatory liquidation and subsequent dissolution as well as Iris’s working capital deficit raise substantial doubt about Iris’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should Iris be required to liquidate after the Combination Period.

#### Critical Accounting Policies and Estimates
Management’s discussion and analysis of Iris’s financial condition and results of operations is based on Iris’s consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements and related disclosures requires Iris to make estimates, assumptions and judgments that affect the reported amount of assets, liabilities, costs and expenses and related disclosures.

Iris considers an accounting estimate to be critical if: (i) the accounting estimate requires Iris to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. The critical accounting estimates, assumptions, judgements and the related policies that Iris believes have the most significant impact on its consolidated financial statements are described below:

Fair Value of Warrants

In determining the fair value of Iris’s Private Placement Warrants, the Iris Board used the most observable inputs available. The valuation approach utilizes Monte Carlo simulation model. Some of the inputs used in the model include the expected common stock price volatility, risk-free interest rate, expected Business Combination date and probability of completing the Business Combination. Several of these

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inputs are known and several use judgement. For instance, the probability of