Company: LIMN
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001104659-25-010605
Chunk: 526

Company: Liminatus Pharma, Inc.
Filing Date: 2025-02-07
Form: 424B3
Chunk 526
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’s anticipated life.

Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair values requires more judgement. Accordingly, the degree of judgement exercised by management in determining fair value is greatest for instruments categorized as Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The carrying values reported in the Company’s balance sheets for advances for research and development, due from related party, accounts payable and accrued expenses, accrued interest, related party and due to related party are reasonable estimates of their fair values due to the short-term nature of these items.

#### Research and Development Expenses
Research and development expenses consist of costs incurred by TDT who is performing the research and development activities for the Company in accordance with the license agreements with TDT and the annual fee paid to TDT and are recorded as research and development expenses as incurred (see Note 3).

#### Income Taxes
The Company is taxed as a partnership for United States income tax purposes for the years ended December 31, 2023 and 2022, thus the income or loss of the Company flows to the members. As a partnership for income tax purposes, the Company is not subject to tax and any tax liability is the responsibility of the members of the Company. Prior to April 2021, the Company’s only member was a corporation, thus the Company was a wholly owned subsidiary of the corporation and considered a disregarded entity for United States tax purposes. Accordingly, no provision for federal and state income taxes is included in the financial statements for the years ended December 31, 2023 and 2022.

#### Comprehensive Loss
Comprehensive loss is equal to net loss as presented in the statements of operations for the years ended December 31, 2023 and 2022.

#### Net Loss per Member Unit
The Company calculates basic and diluted net loss per member unit in accordance with the two-class method required for participating securities. The Company has two classes of member units, which are referred to as Class A member units and Class B member units. Class B member units are allocated 51% of earnings and losses, and Class A member units are allocated 49% of earnings and losses. The two-class method requires net loss for the period to be allocated between the member units.