Company: LIMN
Filing Date: 2025-01-27
Form Type: POS AM
Source: 0001104659-25-006325
Chunk: 343

Company: Liminatus Pharma, Inc.
Filing Date: 2025-01-27
Form: POS AM
Chunk 343
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 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 completing the Business Combination is derived by taking a sample of other special purpose acquisition companies and calculating the implied probability of completion for each company in the sample set. Changes in any or all of these estimates and assumptions, or the relationships between these assumptions, impact Iris’s valuation of its Private Placement Warrants as of each valuation date and may have a material impact on the valuation of these warrants.

Fair Value of Derivative Liability

In determining the fair value of Iris’s derivative liability, the Iris Board used the most observable inputs available. The valuation approach for Iris’s derivative liability utilizes probability weighted expected return model. Some of the inputs used in the model include the risk-free interest rate, expected Business Combination date and probability of completing the Business Combination. Several of these inputs are known and several use judgement. For instance, the probability of completing the Business Combination is derived by taking a sample of other special purpose acquisition companies and calculating the implied probability of completion for each company in the sample set. Changes in any or all of these estimates and assumptions, or the relationships between these assumptions, impact Iris’s valuation as of each valuation date and may have a material impact on the valuation of the derivative liability.

Recent Accounting Standards

Iris’s management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements.

Quantitative and Qualitative Disc