Company: LIMN
Filing Date: 2025-06-24
Form Type: S-1
Source: 0001410578-25-001432
Chunk: 326

Company: Liminatus Pharma, Inc.
Filing Date: 2025-06-24
Form: S-1
Chunk 326
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 on demand. The Note does not bear interest. Upon the closing of a business combination, the Company shall pay an amount equal to 150% of the principal amount. In the event that the Company does not consummate a business combination, the Note will be repaid only from amounts remaining outside of the Trust Account, if any. The proceeds of the Note will be used by the Company for working capital purposes. As of December 31, 2024 and December 31, 2023, the Company’s outstanding balance was $ 613,720under this loan. For the years ended December 31, 2024 and December 31, 2023, $ 28,463and $ 120,515of the total $ 613,720outstanding balance was used for extension payments to the Trust Account, and the remaining balance was advanced for working capital purposes. In accordance with ASC 815, the premium for the 150% of the principal upon a business combination was determined to be an embedded feature that is bifurcated from the notes and is recorded as derivative liability. Management used a probability weighted expected return model to estimate the fair value of the redemption features at issuance of the promissory note – related party and as of December 31, 2024 and December 31, 2023. As of December 31, 2024 and December 31, 2023, the fair value of the derivative liability was $ 0and $ 2,202, respectively. The Company recorded a decrease in fair value of the derivative liability of $ 2,202and $ 102,226for the years ended December 31, 2024 and December 31, 2023, respectively. At issuance, the debt discount for derivative liability was $ 104,428. As of December 31, 2024 and December 31, 2023, the debt discount for derivative liability was $ 0and $ 1,339, respectively. For the years ended December 31, 2024 and December 31, 2023, the Company recorded accretion of the debt discount of $ 1,339and $ 103,089, respectively, which is included in interest expense - related party on the accompanying statements of operations. In March 2023, during the United States banking crisis, the Company held cash in First Republic Bank and transferred $ 120,000to the Sponsor to avoid delays in receiving funds from the bank in the event of