Company: LIMN
Filing Date: 2025-06-24
Form Type: S-1
Source: 0001410578-25-001432
Chunk: 287

Company: Liminatus Pharma, Inc.
Filing Date: 2025-06-24
Form: S-1
Chunk 287
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 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 Company’s trust account, if any. The proceeds of the Note will be used by the Company for working capital purposes. As of March 31, 2025 and December 31, 2024, the Company’s outstanding balance was $ 613,720 under this loan. 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 March 31, 2025 and December 31, 2024. As of March 31, 2025 and December 31, 2024, the fair value of the derivative liability was $ 0 . The Company recorded a decrease in fair value of the derivative liability of $ 0 and $ 2,202 for the three months ended March 31, 2025 and three months ended March 31, 2024, respectively. At issuance the debt discount for derivative liability was $ 104,428 . As of March 31, 2025 and December 31, 2024, the debt discount for derivative liability was $ 0 . For the three months ended March 31, 2025 and March 31, 2024, the Company recorded accretion of the debt discount of $ 0 and $ 1,339 , respectively, which is included in interest expense on the accompanying unaudited condensed statements of operations. In March 2023, during the United States banking crisis, the Company held cash in FRB and transferred $ 120,000 to the Sponsor to avoid delays in receiving funds from the bank in the event of collapse. In June 2023, this amount was still held by the Sponsor and used as a repayment of the outstanding principal balance. On March 13, 2024, the December 2022 unsecured promissory note with the Sponsor was amended and restated to eliminate the 150% that would have been due upon the closing of a business combination. At March 31, 2025 and December 31, 2024, the total balance outstanding on the promissory notes - related party amounted to $ 1