Form 10-Q/A - Quarterly report [Sections 13 or 15(d)]: [Amend]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-40167

IRIS ACQUISITION CORP

(Exact name of registrant as specified in its charter)


Delaware		85-3901431
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

3rd Floor Zephyr House

122 Mary Street, George Town

PO Box 10085

Grand Cayman KY1-1001, Cayman Islands

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: 971 4 3966949

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of Class A Common Stock and one-fourth of one Redeemable Warrant	IRAAU	The Nasdaq Capital Market LLC

Class A Common Stock, par value $0.0001 per share	IRAA	The Nasdaq Capital Market LLC

Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50	IRAAW	The Nasdaq Capital Market LLC

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☒ NO ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). YES ☒ NO ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by the check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☒ NO ☐

As of August 22, 2024 there were 7,187,037 shares of the registrant’s Class A common stock, par value $0.0001 per share, issued and outstanding, and no shares of the registrant’s Class B common stock, par value $0.0001 per share, issued and outstanding.

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EXPLANATORY NOTE

Iris Acquisition Corp (the “Company”) is filing this Amendment No. 1 on Form 10-Q/A (this “Form 10-Q/A”) to amend and restate its unaudited condensed consolidated financial statements previously included in its Quarterly Report on Form 10-Q for the period ended June 30, 2024, originally filed with the Securities and Exchange Commission (the “SEC”) on August 23, 2024 (the “Original Report”). This Form 10-Q/A also amends certain other Items in the Original Report, as listed in “Items Amended in this Form 10-Q/A” below.

Restatement Background

As described in the Company’s Current Report on Form 8-K filed with the SEC on December 18, 2024, on December 13, 2024, Columbass Limited (“Columbass”), the managing member of the Company’s sponsor Iris Acquisition Holdings, LLC (“Sponsor”), informed the Company of its resignation and appointment of Iris Equity Holdings LLC as the new managing member in connection with the sale of Columbass’ interest in the Sponsor to Gaius Investment Partners (“Gaius”). In its notice to the Company, Columbass indicated that a portion of the purchase price paid by Gaius to acquire the Columbass interest was paid by Hana Immunotherapeutics LLC, an affiliate of Chris Kim, the Chief Executive Officer of Liminatus Pharma, LLC, the counterparty to the Company’s business combination announced by the Company on December 1, 2022. The payment was a loan to Gaius in the approximate amount of $1.216 million (the “Loan”) to facilitate the acquisition of Columbass by Gaius (the “Acquisition”).

Following a review of the Acquisition and the Loan transaction, the Company determined that the Loan was a material related party transaction under applicable accounting standards and should have been disclosed as a subsequent event in the financial statement disclosures for the period ending June 30, 2024.

In connection with the restatement, the Company has identified an additional material weakness in internal control over financial reporting. The Audit Committee concluded that management’s report on the effectiveness of internal control over financial reporting as of December 31, 2023, should no longer be relied upon. Management has also concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2024, because of this material weaknesses in its internal control over financial reporting. For a discussion of management’s evaluation of our disclosure controls and procedures and the material weaknesses identified, see “Part I, Item 4 - Controls and Procedures” of this Form 10-Q/A.

Items Amended in this Form 10-Q/A

This Form 10-Q/A presents the Original Report, amended and restated in its entirety, with modifications as necessary to reflect the aforementioned restatement. The following items have been amended to reflect the restatement:

●

Part I, Item 1. Financial Statements

●

Part I, Item 4. Controls and Procedures

In addition, in accordance with applicable SEC rules, this Form 10-Q/A includes new certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 from our principal executive officer and our principal financial officer dated as of the filing date of this Form 10-Q/A.

Except as described above, this Form 10-Q/A does not amend, update or change any other items or disclosures in the Original Report. As such, this Form 10-Q/A speaks only as of the date the Original Report was filed, and we have not undertaken herein to amend, supplement or update any information contained in the Original Report to give effect to any subsequent events other than those disclosed in this Form 10-Q/A. Among other things, forward-looking statements made in the Original Report have not been revised to reflect events, results or developments that occurred or facts that became known to us after the date of the filing of the Original Report other than those disclosed in this Form 10-Q/A. Accordingly, this Form 10-Q/A should be read in conjunction with our filings made with the SEC subsequent to the filing of the Original Report, including any amendments to those filings.

The restatement is more fully described in Note 1: Background and Basis of Presentation of the notes to the condensed consolidated financial statements included herein.

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IRIS ACQUISITION CORP

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		Page
PART I- FINANCIAL INFORMATION

Item 1.	Condensed Financial Statements

	Condensed Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023	1

	Unaudited Condensed Statements of Operations for the Three and Six months ended June 30, 2024 and 2023	2

	Unaudited Condensed Statements of Changes in Stockholders’ Deficit for the Three and Six months ended June 30, 2024 and 2023	3

	Unaudited Condensed Statements of Cash Flows for the Six months ended June 30, 2024 and 2023	4

	Notes to Unaudited Condensed Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	26

Item 4.	Controls and Procedures	26

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	28

Item 1A.	Risk Factors	28

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28

Item 3.	Defaults Upon Senior Securities	28

Item 4.	Mine Safety Disclosures	28

Item 5.	Other Information	28

Item 6.	Exhibits	29

SIGNATURES		30

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PART I—FINANCIAL INFORMATION

Item 1. CONDENSED FINANCIAL STATEMENTS (UNAUDITED)

IRIS ACQUISITION CORP

CONDENSED BALANCE SHEETS


	June 30, 2024		December 31, 2023
	(Unaudited)
Assets
Current assets
Cash⁽¹⁾	$	339,203	$	156,425
Due from Sponsor		1,256		1,256
Franchise tax receivable		23,200		53,200
Prepaid expenses and other current assets		45,500		—
Total current assets		409,159		210,881
Cash and Investments held in Trust Account		3,126,546		4,291,332
Total Assets	$	3,535,705	$	4,502,213

Liabilities, Common Stock Subject to Possible Redemption and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses	$	2,486,477	$	2,326,918
Due to related party		75,000		75,000
Income taxes payable		18,757		379,965
Excise tax payable		116,244		103,587
Derivative liability		—		2,202
Promissory note – related party		1,453,720		1,452,381
Promissory note - Liminatus		2,318,500		818,500
Total current liabilities		6,468,698		5,158,553
Deferred underwriting fee payable		9,660,000		9,660,000
Warrant liability		476,533		376,444
Total Liabilities		16,605,231		15,194,997

Commitments and Contingencies (Note 7)
Class A common stock subject to possible redemption, 287,037 and 406,609 shares at redemption value of $10.18 and $9.96 at June 30, 2024 and December 31, 2023, respectively		2,921,309		4,049,650

Stockholders’ Deficit
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding		—		—
Class A common stock, $0.0001 par value; 280,000,000 shares authorized; 6,900,000 shares issued and outstanding (excluding 287,037 and 406,609 shares subject to possible redemption, respectively) at June 30, 2024 and December 31, 2023		690		690
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2024 and December 31, 2023		—		—
Extension deposits due from Sponsor		(68,888)		—
Additional paid-in capital		71,560		140,000
Accumulated deficit		(15,994,197)		(14,883,124)
Total Stockholders’ Deficit		(15,990,835)		(14,742,434)
Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders’ Deficit	$	3,535,705	$	4,502,213

^{(1) As of June 30, 2024 and December 31, 2023, includes}^$36,203^and^$85,084^{, respectively of the restricted cash to be used for tax payments only.}

The accompanying notes are an integral part of these unaudited condensed financial statements.

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IRIS ACQUISITION CORP

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2024		2023		2024		2023
Formation and operating costs	$	642,082	$	650,699	$	1,363,836	$	1,267,191
Forgiveness of unrelated vendor payables		—		(275,000)		—		(275,000)
Loss from operations		(642,082)		(375,699)		(1,363,836)		(992,191)

Other income (expense):
Unrealized gain (loss) on change in fair value of warrant liabilities		78,645		598,183		(100,089)		488,548
Unrealized gain on change in fair value of derivative liability		—		—		2,202		—
Interest income on investments held in Trust Account		33,363		—		80,604		84,697
Accretion of discount on related party loans		—		—		(1,339)		—
Total other income (expense)		112,008		598,183		(18,622)		573,245

Income (loss) before provision for income taxes		(530,074)		222,484		(1,382,458)		(418,946)
Provision for income taxes		(4,780)		10,500		(10,627)		3,214
Net income (loss)	$	(534,854)	$	232,984	$	(1,393,085)	$	(415,732)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption		7,187,037		1,413,104		7,231,055		1,413,104
Basic and diluted net loss per share, Class A common stock subject to possible redemption	$	(0.07)	$	0.03	$	(0.19)	$	(0.05)
Basic and diluted weighted average shares outstanding, Class B common stock		—		6,900,000		—		6,900,000
Basic and diluted net loss per share, Class B common stock	$	—	$	0.03	$	—	$	(0.05)

The accompanying notes are an integral part of these unaudited condensed financial statements.

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IRIS ACQUISITION CORP

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024


	Class A Common Stock				Class B Common Stock				Extension deposits		Additional		Accumulated		Total Stockholders’
	Shares		Amount		Shares		Amount		due from Sponsor		Paid-in Capital		Deficit		Deficit
Balance as of January 1, 2024		6,900,000	$	690		—	$	—	$	—	$	140,000	$	(14,883,124)	$	(14,742,434)
Remeasurement of Class A common stock to redemption amount		—		—		—		—		—		(86,389)		—		(86,389)
Excise tax payable attributable to redemption of Class A common stock		—		—		—		—		—		—		(12,657)		(12,657)
Tax claim adjustment from redeeming stockholders		—		—		—		—		—		—		294,669		294,669
Net loss		—		—		—		—		—		—		(858,231)		(858,231)
Balance as of March 31, 2024		6,900,000	$	690		—	$	—	$	—	$	53,611	$	(15,459,343)	$	(15,405,042)
Deemed contribution for extension deposit from related party		—		—		—		—		(68,888)		68,888		—		—
Remeasurement of Class A common stock to redemption amount		—		—		—		—		—		(50,939)		—		(50,939)
Net loss		—		—		—		—		—		—		(534,854)		(534,854)
Balance as of June 30, 2024		6,900,000	$	690		—	$	—	$	(68,888)	$	71,560	$	(15,994,197)	$	(15,990,835)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023


	Class A Common Stock			Class B Common Stock			Additional		Accumulated		Total Stockholders’
	Shares	Amount		Shares	Amount		Paid-in Capital		Deficit		Deficit
Balance as of January 1, 2023	—	$	—	6,900,000	$	690	$	140,000	$	(13,974,105)	$	(13,833,415)
Remeasurement of Class A common stock to redemption amount	—		—	—		—		—		298,845		298,845
Net loss	—		—	—		—		—		(648,716)		(648,716)
Balance as of March 31, 2023	—		—	6,900,000		690		140,000		(14,323,976)		(14,183,286)
Net income	—		—	—		—		—		232,984		232,984
Balance as of June 30, 2023	—	$	—	6,900,000	$	690	$	140,000	$	(14,090,992)	$	(13,950,302)

The accompanying notes are an integral part of these unaudited condensed financial statements.

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IRIS ACQUISITION CORP

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Six Months Ended		Six Months Ended
	June 30, 2024		June 30, 2023
Cash Flows from Operating Activities:
Net loss	$	(1,393,085)	$	(415,732)
Adjustments to reconcile net loss to net cash used in operating activities:
Unrealized gain (loss) on change in fair value of warrant liabilities		100,089		(488,548)
Unrealized gain on change in fair value of derivative liability		(2,202)		—
Forgiveness of unrelated vendor payables		—		(275,000)
Interest income on investments held in Trust Account		(80,604)		(84,697)
Accretion of discount on related party loans		1,339		—
Deferred taxes		—		(3,214)
Changes in operating assets and liabilities:
Franchise tax receivable		30,000		—
Prepaid expenses and other current assets		(45,500)		12,083
Franchise taxes payable		—		(347,133)
Income taxes payable		(361,208)		—
Accounts payable and accrued expenses		159,559		679,515
Net cash used in operating activities		(1,591,612)		(922,726)

Cash Flows from Investing Activities:
Proceeds from Trust Account for redemptions		1,265,669		—
Proceeds from Trust Account for tax payments		354,519		745,563
Extension deposits to Trust Account		(80,129)		(63,590)
Net cash provided by investing activities		1,540,059		681,973

Cash Flows from Financing Activities:
Redemption of Class A common stock		(1,265,669)		(298,431)
Proceeds from related party loan		—		400,000
Repayment of related party loan		—		(400,000)
Proceeds from promissory note - related party		—		373,720
Proceeds from promissory note - Liminatus		1,500,000		—
Net cash provided by financing activities		234,331		75,289

Net Change in Cash		182,778		(165,464)
Cash, beginning of period		156,425		280,640
Cash, end of period	$	339,203	$	115,176

Supplemental disclosure of non - cash operating and financing activities:
Remeasurement of Class A common stock subject to redemption value	$	137,328	$	298,845
Excise tax paid	$	12,657	$	—
Income taxes paid	$	371,835	$	—
Deemed contribution for extension deposit from related party	$	68,888	$	—

The accompanying notes are an integral part of these unaudited condensed financial statements.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Iris Acquisition Corp (the “Company”) formally known as Tribe Capital Growth Corp I (name of the Company changed on July 27, 2022), is a blank check company incorporated in Delaware on November 5, 2020. The Company was incorporated for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”).

As of June 30, 2024, the Company had not commenced any operations. All activity for the period from November 5, 2020 (inception) through June 30, 2024 relates to the Company’s formation and the initial public offering described below (the “IPO”), and subsequent to the IPO identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the IPO and unrealized gains and losses and the change in fair value of its warrants.

The Company’s sponsor is Iris Acquisition Holdings LLC (formerly known as Tribe Arrow Holdings I LLC), a Delaware limited liability company (the “Sponsor”). The registration statement for the Company’s IPO was declared effective on March 4, 2021 (the “Effective Date”). On March 9, 2021, the Company consummated the IPO of 27,600,000 units (the “Units”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 3,600,000 Units, at $10.00 per Unit, generating gross proceeds of $276,000,000, which is discussed in Note 3.

Simultaneously with the closing of the IPO, the Company consummated the sale of 5,013,333 warrants (the “Private Warrants”) to the Sponsor and Cantor Fitzgerald & Co. (“Cantor”), the representative of the underwriters of the IPO, at a price of $1.50 per Private Warrant, generating gross proceeds of $7,520,000, which is discussed in Note 4. Each warrant (including the Private Warrants and the warrants included as part of the Units) entitles the holder to purchase one share of common stock at a price of $11.50 per share.

Transaction costs for the IPO amounting to $15,627,893 (consisting of $5,520,000 of underwriting discount, $9,660,000 of deferred underwriting discount, and $447,893 of other offering costs ) were recognized, of which $606,622 was (i) allocated to the public warrants and Private Warrants and (ii) included in the statements of operations, and $15,021,271 was charged directly to stockholders’ equity.

Following the closing of the IPO on March 9, 2021, $276,000,000 (approximately $10.00 per Unit) from the net proceeds of the sale of the Units in the IPO, including the proceeds from the sale of the Private Warrants, was deposited in a trust account (“Trust Account”), located in the United States with Continental Stock Transfer & Trust Company acting as trustee (the “Trustee”), and was invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations. In December 2022, the Company instructed the Trustee with respect to the Trust Account, to liquidate the U.S. government treasury obligations or money market funds held in the Trust Account and thereafter to hold all funds in the Trust Account in an interest bearing cash account. In September 2023, the Company further instructed the Trustee to move the funds held in the Trust Account to an interest bearing bank deposit program until the earlier of the consummation of a business combination or the liquidation of the Company. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay franchise taxes, the proceeds from the IPO and the sale of the Private Warrants will not be released from the Trust Account until the earliest of (i) the completion of initial Business Combination, (ii) the redemption of the Company’s public shares if the Company does not complete an initial Business Combination within 42 months from the closing of the IPO, subject to applicable law, or (iii) the redemption of the Company’s public shares properly submitted in connection with a stockholder vote to amend its amended and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of its public shares if the Company has not consummated an initial Business Combination within 42 months from the closing of the IPO or with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the Company’s public stockholders.

The Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) without a stockholder vote by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, in its sole discretion. The stockholders will be entitled to redeem their shares for a pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (which interest shall be net of income taxes payable), divided by the number of then outstanding public shares, subject to the limitations. The amount in the Trust Account is initially approximately $10.00 per public share. The per share amount the

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Company will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the representative of the underwriters. As of June 30, 2024 and December 31, 2023, the income taxes payable of $222,459 and $241,682 represents the difference between the Class A common stock subject to possible redemption and the Cash and Investments held in Trust Account and an outstanding extension deposit due from Sponsor presented on the condensed balance sheets.

The shares of common stock subject to redemption are recorded at redemption value and classified as temporary equity upon the completion of the IPO, in accordance with Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity (“ASC 480”). In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the issued and outstanding shares voted are voted in favor of the Business Combination.

The Company has extended the time to complete the initial Business Combination to September 9, 2024 as described below (the “Combination Period”). However, if the Company is unable to complete the initial Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (which interest shall be net of income taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish the public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject, in each case, to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.

The Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to any Founder Shares and public shares they hold in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their Founder Shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation, (iii) waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares they hold if the Company fails to complete the initial Business Combination within the Combination Period, and (iv) vote any Founder Shares held by them and any public shares purchased during or after the IPO in favor of the initial Business Combination.

The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per public share and (ii) the actual amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per share, due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act. However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor would be able to satisfy those obligations. None of the Company’s officers or directors will indemnify the Company for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

Business Combination Agreement

On November 30, 2022, Iris Acquisition Corp, a Delaware corporation (“we,” “our,” or “Iris”), Iris Parent Holding Corp., a Delaware corporation (“ParentCo”), Liminatus Pharma, LLC, a Delaware limited liability company (“Liminatus”), Liminatus Pharma Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of ParentCo (“Liminatus Merger Sub”), and SPAC Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of ParentCo (“SPAC Merger Sub” and together with Liminatus Merger Sub, the “Merger Subs”), entered into a business combination agreement (as it may be amended, supplemented or otherwise modified from time to time, the “Business Combination Agreement”): (a) Liminatus Merger Sub will merge with and into Liminatus (the “Liminatus Merger”), with Liminatus surviving the Liminatus Merger as a direct wholly-owned subsidiary of ParentCo, and (b) simultaneously with the Liminatus Merger, SPAC Merger Sub will merge with and into Iris (the “SPAC Merger” and, together with the Liminatus

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Merger, the “Mergers”), with Iris surviving the SPAC Merger (the “SPAC Surviving Subsidiary”) as a direct wholly-owned subsidiary of ParentCo (the transactions contemplated by the foregoing clauses (a) and (b) the “Business Combination,” and together with the other transactions contemplated by the Business Combination Agreement, the “Transactions”).

Liminatus is an early stage single-asset biotech company focused on oncology. The company is looking to develop a next generation CD 47 checkpoint inhibitor targeting various solid tumors. CD 47 is a potent ‘do not eat me’ signal that enables cancer cells to evade detection by the immune system. The CD 47 next generation antibody has shown to preferentially bind to immune cells, but negligibly to red blood cells and platelets without inducing destruction of red blood cells which is a key differentiating feature. The next generation of anti CD 47 monoclonal antibodies have catalysed a resurgence of interest in the field. Currently IND enabling studies are underway to progress the asset into clinical trials.

Liminatus is actively reviewing opportunities to in-license or acquire other clinical candidates that match the area of expertise of the company.

The aggregate consideration to be paid in the Transactions to the direct or indirect owners of Liminatus will consist of 25.0 million shares of ParentCo’s common stock. The number of shares of the equity consideration was determined based on $10.00 per share value for ParentCo’s common stock.

Concurrently with the execution of the Business Combination Agreement, ParentCo and Iris have entered into an equity subscription agreement (the “PIPE Equity Subscription Agreement”) with one accredited investor (the “PIPE Investor”) pursuant to which the PIPE Investor has committed to purchase 1,500,000 shares of ParentCo Common Stock at a purchase price per share of $10.00 (the “PIPE Shares”), for an aggregate purchase price of $15,000,000 (the “PIPE Equity Investment”). The obligations to consummate the transaction contemplated by the PIPE Equity Subscription Agreement are conditioned upon, among other things, customary closing conditions and the consummation of the transactions contemplated by the Business Combination Agreement.

Simultaneously with the PIPE Equity Subscription Agreement, ParentCo and Iris have entered into a convertible note subscription agreement (the “Convertible Note Subscription Agreement”) with one accredited investor (the “PIPE Subscriber”) pursuant to which the PIPE Subscriber has committed to subscribe for and purchase 8% convertible notes (the “Convertible Notes”) of and from ParentCo in an aggregate principal amount of $25,000,000 (the “Convertible Notes Investment”) due three years after the Closing of the Business Combination, with an initial conversion price of $11.50 per share of ParentCo Common Stock, which is subject to future downward adjustment based upon the market price of the publicly traded ParentCo Common Stock. The obligations to consummate the transactions contemplated by the Convertible Note Subscription Agreement are conditioned upon, among other things, customary closing conditions and the consummation of the transactions contemplated by the Business Combination Agreement.

From time to time, the Company has amended and restated the certificate of incorporation to change the date by which the Company must consummate a business combination, which is September 9, 2024.

From time to time, the parties to the Business Combination Agreement amended the Business Combination Agreement to extend the date by which the parties thereto can terminate the Business Combination Agreement, which is September 3, 2024. Concurrently with the Fourth Amendment to the Business Combination Agreement on July 19, 2024, the PIPE Equity Subscription Agreement was amended to extend the date by which the PIPE Subscriber can terminate the agreement to September 3, 2024. The parties to the Convertible Note Subscription Agreement terminated the Convertible Note Subscription Agreement on July 23, 2024.

On December 20, 2022, stockholders holding 26,186,896 Public Shares properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.08 per share, for an aggregate redemption amount of $263,963,913. Following such redemptions, 1,413,104 Public Shares remained outstanding in the Trust Account. During the year ended December 31, 2023, the redemption price was adjusted due to tax deductions which resulted in the net payment of $298,431 of the second tranche redemption payment.

On September 7, 2023, stockholders holding 1,006,495 Public Shares properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.29 per share, subject to adjustment for applicable taxes, including, but not limited to, franchise tax, excise tax and income tax, for an aggregate redemption amount of $10,358,754. Following such redemptions, 406,609 Public Shares remained outstanding.

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On March 7, 2024, stockholders holding 119,572 Public Shares properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.58 per share, adjusted for applicable taxes in the amount of $60,000, including, but not limited to, franchise tax, excise tax and income tax, for an aggregate redemption amount of $1,265,669. Following such redemptions, 287,037 Public Shares remained outstanding. The redemptions were settled on April 2, 2024.

Nasdaq Delisting Notice

On May 2, 2024, the Company received a written notice from the Listing Qualifications Department of Nasdaq, notifying the Company that because it no longer meets the minimum 500,000 publicly held shares requirement for The Nasdaq Capital Market, pursuant to Listing Rule 5810(d)(2) of the Rules this deficiency now becomes an additional basis for delisting and the Company must address this deficiency. The Company timely requested a hearing before the Nasdaq Hearings Panel (the “Hearing”). On May 21, 2024, the Company received a response from the Nasdaq Hearings Panel granting the Company’s request for continued listing on the Nasdaq Capital Market. The Company has until September 3, 2024 to demonstrate compliance with all applicable requirements for initial listing on the Nasdaq Global Market.

Liquidity, Capital Resources and Going Concern

The Company consummated its IPO on March 9, 2021. As of June 30, 2024, the Company had $339,203 of cash in our operating bank account, which includes $36,203 of restricted cash to be used for tax payments only in its operating bank account, and working capital deficit of approximately $6,059,539, respectively. In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company with Working Capital Loans (see Note 5). As of June 30, 2024 and December 31, 2023, there were no Working Capital Loans outstanding.

In connection with the Company’s assessment of going concern considerations in accordance with FASB ASC 205-40, Presentation of Financial Statements—Going Concern, management has determined that the Company has and will continue to incur significant costs in pursuit of its acquisition plans which raises substantial doubt about the Company’s ability to continue as a going concern. Moreover, we may need to obtain additional financing either to complete our initial Business Combination or because we become obligated to redeem a significant number of our public shares upon consummation of our initial Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of our initial Business Combination. If we are unable to complete our initial Business Combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the Trust Accounts. In addition, following our initial Business Combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

Management has determined that if the Company is unable to complete a Business Combination by September 9, 2024, then the Company will cease all operations except for the purpose of liquidating. The date for mandatory liquidation and subsequent dissolution as well as the Company’s working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after the Combination Period. The Business Combination Agreement provides that if the transaction is not closed by September 3, 2024, either party can terminate the Business Combination Agreement.

Restatement of Financial Statements

The Company determined that a loan transaction between Gaius Investment Partners, the buyer of the former managing member of our Sponsor and an affiliate of the current managing member of our Sponsor, and Hana Immunotherapeutics, LLC, an affiliate of Chris Kim, Chief Executive Officer of Liminatus Pharma, LLC, in the approximate amount of $1.216 million, was a material related party transaction that was not disclosed in our financial statements for the period ending ending June 30, 2024. Due to the material nature of the loan transaction, the Company determined it was appropriate restate the financial statements for the period presented in this Form 10-Q/A. Note 11: Subsequent Events, has been updated to reflect the loan transaction.

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NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K as filed with the SEC on April 17, 2024. The interim results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future interim periods.

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Class A ordinary shares subject to possible redemption and the valuation of the Private Placement Warrants required management to exercise significant judgement in its estimates.

Cash

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, the Company had operating cash (i.e., cash held outside the Trust Account) of $339,203 and $156,425, respectively. As of June 30, 2024 and December 31, 2023, there were certain amounts that are restricted as they were withdrawn from the trust account for income tax payments, which totaled $36,203 and $85,084, respectively.

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Cash and Cash Equivalents held in Trust Account

As of June 30, 2024 and December 31, 2023, the Company had a total of $3,126,546 and $4,291,332, respectively in the Trust Account held in money market funds cash equivalents.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the federal depository insurance coverage of $250,000. As of June 30, 2024 and December 31, 2023, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Forgiveness of Unrelated Vendor Payables

During the three and six months ended June 30, 2023, the Company negotiated and a certain vendor agreed to forgive outstanding payables, which totaled $350,000 for cash payments totaling $75,000. As the Company was unable to provide payment in full, a compromise for a one-time lump-payment was agreed upon. For the three and six months ended June 30, 2023, the net unpaid amount of the outstanding payables totaling $275,000 was recorded in the statements of operations.

Common Stock Subject to Possible Redemption

The Company accounts for its shares of common stock subject to possible redemption in accordance with the guidance in ASC 480. Common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as a component of temporary equity. At all other times, shares of common stock are classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value of $10.18 and $9.96 as of June 30, 2024 and December 31, 2023, respectively, as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance sheets.

Net Loss Per Common Stock

The Company complies with accounting and disclosure requirements of ASC Topic 260, Earnings Per Share. The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock (see Note 8 for more details). Earnings and losses are shared pro rata between the two classes of shares. The Company has not considered the effect of the warrants sold in the IPO and the Private Placement to purchase an aggregate of 11,913,333 of the Company’s Class A common stocks in the calculation of diluted income (loss) per share, since their exercise is contingent upon future events. As a result, diluted net income (loss) per share of common stock is the same as basic net income (loss) per share of common stock for the periods. Accretion of the carrying value of Class A common stocks to redemption value is excluded from net income (loss) per common stock because the redemption value approximates fair value. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share for each class of common stock:

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	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income
Numerator:
Net loss	$	(534,854)	$	—	$	39,604	$	193,380	$	(1,393,085)	$	—	$	(70,668)	$	(345,064)
Denominator:
Basic and diluted weighted average shares outstanding		7,187,037		—		1,413,104		6,900,000		7,231,055		—		1,413,104		6,900,000
Basic and diluted net loss per share	$	(0.07)	$	0.00	$	0.03	$	0.03	$	(0.19)	$	0.00	$	(0.05)	$	(0.05)

Debt Discount

The Company presents the debt discount in the balance sheets as a direct reduction from the carrying amount of debt and are amortized over the term of the related debt using the effective yield method. For the three and six months ended June 30, 2024, the Company accreted the debt discount for $0 and $1,339, respectively, which is included in interest expense on the accompanying condensed statements of operations.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), approximates the carrying amounts in the balance sheets, excluding the warrants, primarily due to their short-term nature.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”). Derivative instruments are recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the condensed statements of operations. Derivative assets and liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined that the warrants are a derivative instrument.

The Company evaluates all of its financial instruments, including notes payable, to determine if such instruments contain features that qualify as embedded derivatives.

Embedded derivatives must be separately measured from the host contract if all the requirements for bifurcation are met. The assessment of the conditions surrounding the bifurcation of embedded derivatives depends on the nature of the host contract. Bifurcated embedded derivatives are recognized at fair value, with changes in fair value recognized in the statement of operations each period. The Company has determined that the promissory note - related party included an embedded derivative for the redemption feature for the amount equal to 150% of the principal amount upon the consummation of a business combination. See Note 5.

ASC Topic 470-20, Debt with Conversion and Other Options, addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate IPO proceeds from the Units between Class A common stock and warrants, using the residual method by allocating IPO proceeds first to fair value of the warrants and then the Class A common stock.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs

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used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Income Taxes

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carryforwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. Management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore maintained a full valuation allowance.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. There were no tax accruals relating to uncertain tax positions.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2024 and December 31, 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income tax examinations by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Advances due from Sponsor

The Company accounts for advances due from the Sponsor as a contra equity balance unless payment has been received subsequent to period end. As of June 30, 2024 and December 31, 2023, the Company has $68,888 and $0 of extension deposit advances due from the Sponsor. See Note 5.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. ASU 2023-09 will become effective for Annual periods beginning after December 15, 2024. The Company is still reviewing the impact of ASU 2023-09.

The Company’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 condensed financial statements.

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Risks and Uncertainties

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. For purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. In April 2024, the Treasury issued proposed regulations providing guidance with respect to the excise tax. Taxpayers must rely on these proposed regulations until final regulations are issued. Under the proposed regulations, liquidating distributions made by publicly traded domestic corporations are exempt from the excise tax. In addition, any redemptions that occur in the same taxable year as a liquidation is completed will also be exempt from such tax.

On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. On June 28, 2024, the Treasury finalized certain of the proposed regulations (those relating to procedures for reporting and paying the Excise Tax). The remaining regulations (largely relating to the computation of the Excise Tax) remain in proposed form. The Treasury intends to finalize these proposed regulations at a later date and, until such time, taxpayers may continue to rely on the proposed regulations.

Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by us, in connection with a business combination, extension vote, or otherwise, may be subject to this excise tax. Because any such excise tax would be payable by us and not by the redeeming holder, it could cause a reduction in the value of our Class A common stock, cash available with which to effectuate a business combination or cash available for distribution in a subsequent liquidation. Whether and to what extent we would be subject to the excise tax in connection with a business combination will depend on a number of factors, including (i) the structure of the business combination, (ii) the fair market value of the redemptions and repurchases in connection with the business combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with the business combination (or any other equity issuances within the same taxable year of the business combination) and (iv) the content of any subsequent regulations, clarifications, and other guidance issued by the Treasury. Further, the application of the excise tax in respect of distributions pursuant to a liquidation of a publicly traded U.S. corporation is uncertain and has not been addressed by the Treasury in regulations, and it is possible that the proceeds held in the trust account could be used to pay any excise tax owed by us in the event we are unable to complete a business combination in the required time and redeem 100% of our remaining Class A common stock in accordance with our amended and restated certificate of incorporation, in which case the amount that would otherwise be received by our public stockholders in connection with our liquidation would be reduced.

On September 7, 2023, the Company’s stockholders redeemed 1,006,495 shares of Class A shares of common stock for a total of $10,358,754. As of December 31, 2023, the Company recorded $103,587 of excise tax liability calculated as 1% of the fair market value of the shares redeemed on September 7, 2023. The liability does not impact the accompanying unaudited condensed statements of operations and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available.

On March 7, 2024 the Company stockholders holding 119,572 shares properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.58 per share, for an aggregate redemption amount of $1,265,669. As of June 30, 2024, the Company recorded $12,657 of excise tax liability calculated as 1% of the fair market value of the shares redeemed on March 7, 2024. The liability does not impact the accompanying unaudited condensed statements of operations and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available.

During the second quarter of 2024, the Internal Revenue Service issued final regulations with respect to the timing and payment of the excise tax. Pursuant to those regulations, the Company would need to file a return and remit payment for any liability incurred during the period from January 1, 2023 to December 31, 2023 on or before October 31, 2024.

The Company is currently evaluating its options with respect to payment of this obligation. If the Company is unable to pay its obligation in full, it will be subject to additional interest and penalties which are currently estimated at 10% interest per annum and a 5%

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underpayment penalty per month or a portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024, until paid in full.

NOTE 3. INITIAL PUBLIC OFFERING

On March 9, 2021, the Company sold 27,600,000 units, which includes 3,600,000 units issued pursuant to the full exercise by the underwriters of their over-allotment option, at a purchase price of $10.00 per Unit, generating gross proceeds of $276,000,000. Each Unit consists of one share of Class A common stock, and one-fourth of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The warrants will become exercisable on the later of 30 days after the completion of the initial Business Combination or 12 months from the closing of the IPO, March 9, 2021, and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation (see Note 7).

The Company paid an underwriting fee at the closing of the IPO of $5,520,000. As of March 9, 2021, an additional fee of $9,660,000 (see Note 7) was deferred and will become payable upon the Company’s completion of an initial Business Combination. The deferred portion of the fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its initial Business Combination.

All of the 27,600,000 shares of Class A common stock sold as part of the units in the IPO contain a redemption feature which allows for the redemption of such shares of Class A common stock in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity.

The Class A common stock is subject to SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company recognizes changes in redemption value immediately as they occur. Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable common stock resulted in charges against additional paid-in capital and accumulated deficit.

During the year ended December 31, 2023, with respect to the December 20, 2022 redemption discussed in Note 1 to the unaudited condensed financial statements, the Company had not finalized its calculation of taxes required to be withheld and had inadvertently distributed $294,669 of funds to redeeming stockholders. Upon completion of the tax calculation, the redemption price was adjusted and funds in the amount of $294,669 were paid back into the Trust Account from the redeeming stockholders during the three months ended March 31, 2024.

As of June 30, 2024 and December 31, 2023, the common stock reflected on the condensed balance sheets are reconciled in the following table:


Class A common stock subject to possible redemption as December 31, 2023	$	4,049,650
Less: Shares redeemed in March 2024		(1,265,669)
Plus: Remeasurement of carrying value to redemption value		86,389
Class A common stock subject to possible redemption as March 31, 2024		2,870,370
Plus: Remeasurement of carrying value to redemption value		50,939
Class A common stock subject to possible redemption as June 30, 2024	$	2,921,309

Warrants — Each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed herein. In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the initial stockholders or their affiliates,

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

without taking into account any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s Class A common stock during the 20 trading day period starting on the trading day after the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

The warrants will become exercisable on the later of 12 months from the closing of the IPO or 30 days after the completion of its initial Business Combination, and will expire five years after the completion of the Company’s initial Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

The Company has agreed that as soon as practicable, but in no event later than fifteen (15) business days after the closing of the initial Business Combination, it will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A common stock issuable upon exercise of the warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Company’s Class A common stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, it will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

Once the warrants become exercisable, the Company may call the warrants for redemption for cash:

●

in whole and not in part;

●

at a price of $0.01 per warrant;

●

upon not less than 30 days’ prior written notice of redemption to each warrant holder (the “30-day redemption period”); and

●

if, and only if, the closing price of the common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period commencing once the warrants become exercisable and ending three business days before the Company sends to the notice of redemption to the warrant holders.

If and when the warrants become redeemable by the Company for cash, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

NOTE 4. PRIVATE PLACEMENT

Simultaneously with the closing of the IPO, the Sponsor and Cantor purchased an aggregate of 5,013,333 Private Warrants at a price of $1.50 per Private Warrant, for an aggregate purchase price of $7,520,000, in a private placement. Each Private Warrant entitles the holder to purchase one share of common stock at a price of $11.50 per share. A portion of the proceeds from the private placement was added to the proceeds from the IPO held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Warrants will expire worthless.

The Private Warrants are identical to the public warrants included as part of the Units sold in the IPO except that they will be non-redeemable and exercisable on a cashless basis for as long as the Private Warrants are held by the Sponsor or Cantor, the representative

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NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

of the underwriters, or its permitted transferees. Additionally, for so long as the Private Warrants are held by Cantor or its designees or affiliates, they may not be exercised after five years from the commencement of sales of the IPO.

On November 30, 2022, the Sponsor entered into a Sponsor Forfeiture Agreement (the “Sponsor Forfeiture Agreement”) with the Company and Liminatus, pursuant to which, contingent upon the closing of the Business Combination, the Sponsor agreed to forfeit all 4,177,778 of its Private Placement Warrants to purchase shares of the Company’s Class A common stock, exercisable at $11.50 per share (the “Forfeited Private Placement Warrants”), acquired by the Sponsor in March 2021 in connection with the Initial Public Offering. At the closing of the Business Combination, the Forfeited Private Placement Warrants shall be transferred from the Sponsor to the Company for cancellation in exchange for no consideration and the Company shall retire and cancel all of the Forfeited Private Placement Warrants.

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

In December 2020, the Sponsor paid $25,000, or approximately $0.004 per share, to cover certain offering costs in consideration for 5,750,000 Class B common stock, par value $0.0001 (the “Founder Shares”). In February 2021, the Company effected a stock dividend of 0.2 shares for each share of Class B common stock outstanding, resulting in the Sponsor holding an aggregate of 6,900,000 Founder Shares (up to an aggregate of 900,000 of which were subject to forfeiture depending on the extent to which the underwriters’ over-allotment option is exercised). All shares and associated amounts have been retroactively restated to reflect the stock dividend. As a result of the underwriters’ election to fully exercise their over-allotment option, the 900,000 shares were no longer subject to forfeiture.

On September 20, 2023, the Sponsor converted all of its Class B common stock on a one-for-one basis into Class A common stock. The Sponsor will not have any redemption rights in connection with the Converted Shares, and the Converted Shares will be subject to the restrictions on transfer entered into by the Sponsor in connection with the IPO.

The Sponsor has agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination and (B) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction after the initial Business Combination that results in all of its stockholders having the right to exchange their Class A common stock for cash, securities or other property (the “lock-up”). Notwithstanding the foregoing, if the closing price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lock-up.

Promissory Note — Related Party

On May 27, 2022, the Sponsor agreed to loan the Company up to $300,000 for working capital purposes. These loans are non-interest bearing, unsecured and are due on demand. As of June 30, 2024 and December 31, 2023, the outstanding note is due on demand.

On October 10, 2022, the Company issued an unsecured promissory note in the aggregate principal amount up to $550,000 to Iris Acquisition Holdings LLC, the Company’s Sponsor. Pursuant to the Note, the Sponsor agreed to loan to the Company an aggregate amount up to $550,000 payable on demand. The Note does not bear interest. 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 June 30, 2024 and December 31, 2023, the Company’s outstanding balance was $540,000 under this loan.

On December 20, 2022, the Company issued an unsecured promissory note in the aggregate principal amount up to $750,000 to the Company’s Sponsor. Pursuant to the Note, the Sponsor agreed to loan to the Company an aggregate amount up to $750,000, which was due the earlier of six months or the consummation of a business combination. As of June 30, 2024 and December 31, 2023, the Note is due and payable 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 Company’s trust account, if any. The proceeds of the Note will be used by the Company for working capital purposes. As of June 30, 2024 and December 31, 2023, the Company’s outstanding balance was $613,720 under this loan. As of June 30, 2024, and December 31, 2023, $28,463 and $120,515 of the total $613,720 outstanding balance was used for extension payments to the trust account, and the remaining balance was advanced for working capital purposes.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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 June 30, 2024 and December 31, 2023. As of June 30, 2024 and December 31, 2023, the fair value of the derivative liability was $0 and $2,202 respectively. The Company recorded a decrease in fair value of the derivative liability of $2,202 and $0 for the six months ended June 30, 2024 and June 30, 2023, respectively. At issuance the debt discount for derivative liability was $104,428. As of June 30, 2024 and December 31, 2023, the debt discount for derivative liability was $0 and $1,339, respectively. For the three and six months ended June 30, 2024, the Company recorded accretion of the debt discount of $1,339 and $0, respectively, which is included in interest expense on the accompanying condensed statements of operations.

In March 2023, during the United States banking crisis, the Company held cash in First Republic Bank 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.

The total balance outstanding on the promissory notes - related party amounted to $1,453,720, net of the debt discount of $0 and $1,452,381, net of the debt discount of $1,339, at June 30, 2024 and December 31, 2023, respectively.

Related Party Loans

In addition, in order to fund working capital deficiencies or finance transaction costs in connection with an intended Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required on a non-interest bearing basis (“Working Capital Loans”). If the Company completes the initial Business Combination, the Company will repay the Working Capital Loans. In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to 1,500,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.50 per warrant at the option of the lender. Such warrants would be identical to the Private Warrants. During the year ended December 31, 2023, the Company obtained proceeds of $400,000 from the Sponsor to use for the payment of vendors. Before these proceeds were disbursed to vendors, Management decided to repay the outstanding balance in full. As of June 30, 2024 and December 31, 2023, the Company had no borrowings under the Working Capital Loans.

In addition, in order to fund the extension payments, the Sponsor or its designees has agreed to loan to the Company the lesser of: (x) $30,000 and (y) $0.06 per month for each public share that is not redeemed (the “Extension Payments Loan”). The Extension Payments Loan will only be made on a month - to - month basis at the end of every month and until the consummation of the business combination transaction. The amount of the Extension Payments Loan will not bear interest and will be repayable by the Company to the Sponsor or its designees upon consummation of an initial business combination, in cash, at the option of the Sponsor. As of June 30, 2024, the Company had $34,444 recorded as Due from Sponsor and Due to Related Party on the accompanying condensed balance sheet for unfunded extension payments from the Sponsor that were funded by the Company.

Administrative Support Agreement

On March 11, 2024, the Company entered into an administrative support agreement (the “Agreement”) with Arrow Capital Management LLC (“Arrow”). Pursuant to the Agreement, Arrow will provide certain office space, utilities and secretarial and administrative support (the “Services”) to the Company. In exchange for the Services, the Company will pay to Arrow $10,000 per month, beginning January 1, 2024, and continuing until the earlier of the consummation by the Company of an initial business combination or the Company’s liquidation. For the three and six months ended June 30, 2024, the Company incurred $30,000 and $60,000, respectively, for the administrative support agreement, which is included in formation and operating costs on the condensed statements of operations.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Advances due from Sponsor

NOTE 6. LOAN PAYABLE - LIMINATUS

On October 4, 2023, the Company issued an unsecured promissory note in the aggregate principal amount up to $1,500,000 to Liminatus. Pursuant to the Note, the Sponsor agreed to loan to the Company an aggregate amount up to $1,500,000 payable following the earlier of (i) closing of the Business Combination, as defined in the Business Combination Agreement dated November 30, 2022, or (ii) thirty (30) days following the termination of the Business Combination Agreement; provided, however, in the event the Company commences liquidation proceedings, this Note shall be cancelled and all amounts due, including all principal and accrued interest, shall be forgiven. Interest on the Note compounds annually and accrues on each unpaid Advance made under this Note at the rate of 5% per annum.

On February 28, 2024, the Liminatus unsecured promissory note was amended and restated to increase the aggregate principal amount to up to $2,500,000, and add advances that occurred under the note. As of June 30, 2024 and December 31, 2023, the Company’s outstanding balance was $2,318,500 and $818,500 from the advances. For the three and six months ended June 30, 2024, the Company recorded interest expense of $28,902 and 47,352, respectively, which is included within formation and operating costs on the condensed statements of operations.

NOTE 7. COMMITMENTS AND CONTINGENCIES

Registration Rights

The holders of the (i) Founder Shares, which were issued in a private placement prior to the closing of the IPO, (ii) Private Warrants, which were issued in a private placement simultaneously with the closing of the IPO and the shares of Class A common stock underlying such Private Warrants and (iii) Private Warrants that may be issued upon conversion of Working Capital Loans will have registration rights to require the Company to register a sale of any of the Company’s securities held by them pursuant to a registration rights agreement to be signed prior to or on the Effective Date. The holders of these securities are entitled to make up to three demands, excluding Form S-3 demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company’s completion of its initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters are entitled to an underwriting discount of 2% (or $5,520,000) of the gross proceeds of the IPO and deferred underwriting discount of 3.5% (or 9,660,000) of the gross proceeds of the IPO upon the completion of the Company’s initial Business Combination.

On October 11, 2023, the Company executed a Fee Reduction Agreement with the underwriters to reduce the deferred underwriting discount of $9,660,000 to $8,000,000 in the event that the business combination with Liminatus is consummated. Pursuant to the terms of the agreement, the reduced deferred underwriting discount shall be payable by the Company to the underwriters in amount $1,000,000 in cash and $7,000,000 of the common equity securities of the public entity that survives the transaction. As of June 30, 2024, the deferred underwriting discount of $9,660,000 hasn’t been reduced to $8,000,000 because the release of the payable will occur upon the consummation of the business combination with Liminatus.

NOTE 8. STOCKHOLDERS’ DEFICIT

Preferred stock—The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 and with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At June 30, 2024 and December 31, 2023, there were no shares of preferred stock issued or outstanding.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Class A common stock—The Company is authorized to issue 280,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of June 30, 2024 and December 31, 2023, there were 7,187,037 and 7,306,609, respectively, shares issued and outstanding, of which 287,037 and 406,609 are subject to possible redemption, respectively.

Class B common stock—The Company is authorized to issue 20,000,000 Class B common stock with a par value of $0.0001 per share. At both June 30, 2024 and December 31, 2023, there were no shares of Class B common stock outstanding.

Stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders except as required by law. Unless specified in the Company’s amended and restated certificate of incorporation, or as required by applicable provisions of the Delaware General Corporation Law or applicable stock exchange rules, the affirmative vote of a majority of the Company’s shares of common stock that are voted is required to approve any such matter voted on by its stockholders.

The Class B common stock is convertible at any time and from time to time at the option of the holder thereof and will automatically convert into Class A common stock upon the consummation of the initial Business Combination on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in connection with the initial Business Combination, the number of Class A common stock issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 83% of the total number of Class A common stock outstanding after such conversion, including the total number of shares of Class A common stock issued, or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination, excluding (i) any shares of Class A common stock redeemed by public stockholders in connection with the initial Business Combination and (ii) any Class A common stock or equity-linked securities exercisable for or convertible into Class A common stock issued, or to be issued, to any seller in the initial Business Combination and any Private Warrants issued to the Sponsor, officers or directors upon conversion of Working Capital Loans; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis.

On September 20, 2023, the Sponsor converted all of its Class B common stock on a one - for - one basis into Class A common stock (such shares, the “Converted Shares”). The Sponsor will not have any redemption rights in connection with the Converted Shares, and the Converted Shares will be subject to the restrictions on transfer entered into by the Sponsor in connection with the IPO.

NOTE 9. INCOME TAXES

The Company’s effective tax rate for the six months ended June 30, 2024 and 2023 was (0.8)% and 0.8%, respectively. The Company’s effective tax rate for the three months ended June 30, 2024 and 2023 was (0.9)% and (4.7)%, respectively. The Company’s effective tax rate differs from the statutory income tax rate of 21% primarily due to the changes in the fair value of warrant liabilities, transaction costs and change in the valuation allowance. The Company has used a discrete effective tax rate method to calculate taxes for the six months ended June 30, 2024. The Company believes that the use of the discrete method is more appropriate than the estimated effective tax rate method as the estimated annual effective tax rate method is not reliable due to a high degree of uncertainty in estimating annual pretax earnings.

NOTE 10. RECURRING FAIR VALUE MEASUREMENTS

As of June 30, 2024 and December 31, 2023, the Company’s warrant liabilities were valued at $476,533 and $376,444, respectively. Under the guidance in ASC 815-40, the warrants do not meet the criteria for equity treatment. As such, the warrants must be recorded on the condensed balance sheets at fair value. This valuation is subject to re-measurement at each balance sheet date. With each re-measurement, the warrant valuation will be adjusted to fair value, with the change in fair value recognized in the Company’s condensed statements of operations.

All of the Company’s permitted investments are held in a money market fund. Fair values of these investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets. The Company’s warrant liability for the Private Placement Warrants is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the Private Placement Warrant liability is classified within Level 3 of the fair

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

value hierarchy. The Company’s warrant liability for the Public Warrants is based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. The fair value of the Public Warrant liability is classified within Level 1 of the fair value hierarchy.

The following table presents fair value information as of June 30, 2024 and December 31, 2023 of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.


	Amount at
Description	Fair Value		Level 1		Level 2		Level 3
June 30, 2024 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	3,126,546	$	3,126,546	$	—	$	—
Liabilities:
Public Warrants		276,000		276,000		—		—
Private Warrants		200,533		—		—		200,533
December 31, 2023
Assets:
Cash equivalents held in Trust		4,291,332		4,291,332		—		—
Liabilities:
Public Warrants		207,690		207,690		—		—
Private Warrants		168,754		—		—		168,754
Derivative liability	$	2,202	$	—	$	—	$	2,202

Measurement - The Company established the initial fair value for the warrants on March 9, 2021, the date of the consummation of the IPO. On June 30, 2024 and December 31, 2023, the fair value was remeasured. In May 2021, the Public Warrants were separately traded in the open market and the valuation for the Public Warrants was based on unadjusted quoted prices at June 30, 2024 and December 31, 2023. For June 30, 2024 and December 31, 2023, the Company used a Monte Carlo simulation model to value the Private Placement Warrants.

The key inputs into the Monte Carlo simulation model for the Warrants were as follows at initial measurement, June 30, 2024 and December 31, 2023:


	June 30, 2024
	(Unaudited)			December 31, 2023
Risk-free interest rate		5.16	%		4.91	%
Expected term (years)		0.86			0.87
Expected volatility		de minimis			5.7	%
Stock Price	$	11.67		$	10.33
Exercise Price	$	11.50		$	11.50

The change in the fair value of the warrant liabilities classified as Level 3 for the three months ended June 30, 2024 and the year ended December 31, 2023 is summarized as follows:


Fair value at January 1, 2024	$	168,754
Change in fair value		82,824
Fair value at March 31, 2024		251,578
Change in fair value		(51,045)
Fair value at June 30, 2024	$	200,533

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 11. SUBSEQUENT EVENTS

The Company’s management has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events other than the below that would have required adjustment or disclosure in the financial statements.

On July 19, 2024, the Company entered into the Fourth Amendment to the Business Combination Agreement to amend the Outside Date to September 3, 2024.

On July 19, 2024, the Company entered into a capital markets advisory agreement with Benjamin Securities, Inc. and Liminatus Pharma, LLC to perform certain services for the Company and Liminatus Pharma, LLC.

On July 23, 2024, the PIPE Equity Subscription Agreement was amended to increase the PIPE Investor’s committed purchase of PIPE Shares from 1,500,000 to 2,500,000, increase the PIPE Equity Investment from $15,000,000 to $25,000,000, and extend the date by which the PIPE Subscriber can terminate the agreement to September 3, 2024.

On July 23, 2024, the Convertible Note Subscription Agreement was terminated.

On August 2, 2024, the parties to the unsecured promissory note amended such promissory note to increase the principal amount from $2,500,000 to $3,500,000.

On August 5, 2024, $17,222 was deposited into the Trust Account representing an Extension Payment. The Extension Payment was deposited from the Company’s operating account and is Due from Sponsor.

On July 24, 2024, Hana Immunotherapeutics, LLC, an affiliate of Chris Kim, the Chief Executive Officer of Liminatus, agreed to loan Gaius Investment Partners (“Gaius”), the buyer of the managing member of the Company’s Sponsor, Columbass Limited (“Columbass”), approximately $1.216 million to facilitate Gaius’ acquisition of Columbass.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to Iris Acquisition Corp. References to our “Board,” “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to Iris Acquisition Holdings LLC (formerly known as Tribe Arrow Holdings I LLC). The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the condensed financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Special Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934 (the “Exchange Act”) that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.report. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company incorporated on November 5, 2020 as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On November 30, 2022, we executed a Business Combination Agreement with Liminatus Pharma, LLC. We intend to effectuate our initial business combination using cash from the proceeds of our initial public offering and the private placement of the private placement warrants, the proceeds of the sale of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may enter into following the consummation of our initial public offering or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, or a combination of the foregoing. The registration statement for the Company’s IPO was declared effective by the SEC on March 4, 2021 (the “Effective Date”). On March 9, 2021, the Company consummated the IPO of 27,600,000 units (the “Units”) at a price of $10.00 per Unit, for total gross proceeds of $276,000,000. Each Unit consists of one share of Class A common stock, $0.0001 par value, and one-fourth of one redeemable warrant entitling its holder to purchase one share of common stock at a price of $11.50 per share.

Simultaneously with the closing of the IPO, pursuant to the Warrant Purchase Agreements, the Company completed the private sale of an aggregate of 5,013,333 Warrants (each a “Private Placement Warrant”) to the Sponsor and Cantor Fitzgerald & Co. at a purchase price of $1.50 per Private Placement Warrant. The sale of the Private Placement Warrants generated gross proceeds to the Company of $7,520,000.

In connection with the Special Meeting, stockholders holding 26,186,896 Public Shares properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.08 per share, for an aggregate redemption amount of $263,963,913. Following such redemptions, 1,413,104 Public Shares remained outstanding in the trust.

On April 26, 2023, Dr. Borade, an Audit Committee member, notified us of his intent to resign as a member of our Board effective April 26, 2023. Dr. Borade’s decision to resign was not the result of any dispute or disagreement with us on any matter relating to our operation, policies (including accounting or financial policies) or practices.

On May 30, 2023, our Board appointed Nicholas Fernandez to serve as a director.

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On May 30, 2023, our Board held a meeting and extended the date by which we must consummate a Business Combination for a three month period from June 9, 2023 to September 9, 2023. Consistent with this extension by our Board, the parties to the Business Combination Agreement amended the Business Combination Agreement on June 1, 2023, to extend the date by which the parties thereto can terminate the Business Combination Agreement if the transaction has not closed by that date (the “Outside Date”) from June 7, 2023, to September 30, 2023.

On August 16, 2023, we filed a preliminary proxy statement with the SEC containing a proposal to stockholders to amend our amended and restated certificate of incorporation to, among other things, extend the date by which we must consummate a business combination from September 9, 2023, to March 9, 2024. On August 14, 2023, the parties to the Business Combination Agreement amended the Business Combination Agreement to extend the Outside Date from September 30, 2023 to March 9, 2024.

On September 7, 2023, we filed with the Secretary of State of the State of Delaware an amendment to our amended and restated certificate of incorporation to: (i) to change the date by which we must consummate a business combination to December 9, 2023 (the “Second Extension Amendment”) (subject to an additional three month extension at the discretion of our Board); (ii) to remove from the charter the limitation on share repurchases prior to the consummation of a business combination that would cause our net tangible assets to be less than $5,000,001 following such repurchases, and the limitation that we shall not consummate a business combination if it would cause our net tangible assets to be less than $5,000,001 either immediately prior or subsequent to the consummation of such business combination (the “NTA Amendment”); and (iii) to amend the charter to provide for the right of a holder of shares of the Class B common stock, par value $0.0001 per share, to convert such shares into shares of the Class A common stock on a one-for-one basis prior to the closing of a business combination (the “Founder Share Amendment” and, together with the Extension Amendment and the NTA Amendment, the “Charter Amendments”).

Our stockholders approved the Charter Amendments at a special meeting of stockholders (the “Second Special Meeting”) on September 7, 2023. The date by which we must consummate a business combination was subsequently extended to March 9, 2024.

In connection with the Second Special Meeting, stockholders holding 1,006,495 Public Shares properly exercised their right to redeem their shares for cash at a redemption price of $10.29 per share, subject to adjustment for applicable taxes, including, but not limited to, franchise tax, excise tax and income tax, for an aggregate redemption amount of $10,358,754. Following such redemptions, 406,609 Public Shares remained outstanding.

On February 7, 2024, we filed a preliminary proxy statement with the SEC containing a proposal to stockholders to amend our amended and restated certificate of incorporation to, among other things, extend the date by which we must consummate a business combination from to March 9, 2024, to June 9, 2024.

On March 7, 2024, we filed with the Secretary of State of the State of Delaware an amendment to our amended and restated certificate of incorporation to change the date by which we must consummate a business combination to June 9, 2024 (the “Third Extension Amendment”) (subject to an additional three month extension at the discretion of our Board). Our Board approved the additional three month extension on May 13, 2024 extending the date to consummate a business combination to September 9, 2024.

Our stockholders approved the Third Extension Amendment at a special meeting of stockholders (the “Third Special Meeting”) on March 7, 2024. The date by which we must consummate a business combination was subsequently extended to September 9, 2024.

In connection with the Third Special Meeting, stockholders holding 119,572 shares properly exercised their right to redeem their shares for cash at a redemption price of $10.58 per share, for an aggregate redemption amount of $1,265,669. Following such redemptions, 7,187,037 shares remained outstanding.

On March 9, 2024, the parties to the Business Combination Agreement amended the Business Combination Agreement to extend the Outside Date to July 31, 2024. Additionally, on March 9, 2024, the parties to the Subscription Agreement and Convertible Note Subscription Agreement entered into amendments to such agreements to extend the termination date of the respective agreements to July 31, 2024.

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On July 19, 2024 the parties to the Business Combination Agreement amended the Business Combination Agreement to extend the Outside Date to September 3, 2024.

A Registration Statement on Form S-4 relating to the Company’s business combination was declared effective by the SEC on August 9, 2024.

On August 15, 2024, Liminatus informed us that Targeted Diagnostics & Therapeutics, Inc., Liminatus’s license partner for the intellectual property and other rights related to GCC (CAR-T therapy and cancer vaccine), sent a notice to Liminatus terminating the License and Development Agreement, dated June 10, 2018, by and between Targeted Diagnostics & Therapeutics, Inc. and Liminatus. As a result of this termination, we expect to file a post-effective amendment to ParentCo’s Registration Statement on Form S-4 to disclose the change to Liminatus’s business and to reschedule a previously scheduled meeting of stockholders to a later date.

As a result of this development, we will not be able to complete the business combination by Septermber 9, 2024. Because we continue to believe the business combination would be in the best interest of our stockholders, the Board has determined to seek stockholder approval to extend the date by which we have to complete an initial business combination beyond September 9, 2024, to December 31, 2024, and on August 16, 2024, we filed a preliminary proxy statement with the SEC in this respect.

Results of Operations

We have neither engaged in any operations nor generated any revenues to date. Our only activities for the period from November 5, 2020 (inception) through June 30, 2024 were organizational activities, those necessary to prepare for the IPO, and identifying a target company for our initial Business Combination. We generate non-operating interest income form cash and cash equivalents marketable securities held in the Trust Account and changes in the value of warrant liabilities. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing), as well as for due diligence expenses. We will not be generating any operating revenues until the closing and completion of our initial Business Combination.

For the three months ended June 30, 2024, we had net loss of $534,854, which consisted of $642,082 of formation and offering cost and provision for income taxes of $4,780, which are offset by a $78,645 gain on the change in fair value of warrants and interest income on investments held in the Trust Account of $33,363.

For the three months ended June 30, 2023, we had a net income of approximately $232,984, which consisted of income of $275,000 for the forgiveness of unrelated vendor payables, $598,183 unrealized gain on fair value of warrants and provision for income tax benefit of $10,500, offset by $650,699 of formation and offering costs.

For the six months ended June 30, 2024, we had net loss of $1,393,085, which consisted of $1,363,836 of formation and offering costs, $100,089 loss on the change in fair value of warrants, $10,627 provision for income taxes, and $1,339 of interest expense and which are offset by interest income on investments held in the Trust Account of $80,604 and a gain on the fair value of derivatives of $2,202.

For the six months ended June 30, 2023, we had a net loss of $415,732, which consisted of $1,267,191 of formation and offering costs, offset by forgiveness of unrelated payables for $275,000, an unrealized gain on fair value of warrant liabilities of $488,548, interest income on marketable securities held in the Trust Account of $84,697 and provision of tax benefit of $3,214.

Liquidity and Capital Resources

We consummated our IPO on March 9, 2021. As of June 30, 2024, we had $339,203 in our operating bank account, which includes $36,203 of restricted cash to be used for tax payments only in its operating bank account, negative working capital of approximately $6,059,539. In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of the Sponsor or certain of our officers and directors may, but are not obligated to, provide us Working Capital Loans. As of June 30, 2024 and December 31, 2023, there were no Working Capital Loans outstanding.

For the six months ended June 30, 2024, net cash used in operating activities was $1,591,612, which was due to our net loss of $1,393,085, unrealized gain on change in fair value of derivative liability of $2,202, interest earned on investments held in the Trust Account of $80,604, changes in operating assets and liabilities of $217,149, which were offset by unrealized loss on change in fair value of warrant liabilities of $100,089 and the accretion of discount on related party loans of 1,339.

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For the six months ended June 30, 2023, net cash used in operating activities was $922,726, which was due to our net loss of $415,732, interest earned on investments held in the Trust Account of $84,697, changes in operating assets and liabilities of $344,465 offset by unrealized loss on change in fair value of warrant liabilities of $488,548.

For the six months ended June 30, 2024, there was cash provided by investing activities of $1,540,059,which was the result of proceeds from the Trust Account used for tax payments and redemptions in the amount of $354,519, which was offset by the advances to Trust account of $80,129.

For the six months ended June 30, 2023, there was cash provided by investing activities of $681,973, which was the result of proceeds from Investment held in the Trust Account in the amount of $745,563, which was offset by advances to the Trust Account for $63,590.

For the six months ended June 30, 2024, net cash provided by financing activities was $234,331 which was a result of the proceeds from Liminatus promissory note of $1,500,000.

For the six months ended June 30, 2023, net cash used in financing activities was $75,289 which was a result of adjustments to Class A Common Stock that was redeemed in December 2022 for the amount of $298,431, which was offset by proceeds from the promissory note from a related party for $373,720.

In connection with the Company’s assessment of going concern considerations in accordance with FASB Accounting Standards Update (“ASU”) 2014-15, Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern, management has determined that the Company has and will continue to incur significant costs in pursuit of its acquisition plans which raises substantial doubt about the Company’s ability to continue as a going concern. Moreover, we may need to obtain additional financing either to complete our initial Business Combination or because we become obligated to redeem a significant number of our Public Shares upon consummation of our initial Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of our initial Business Combination. If we are unable to complete our initial Business Combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the Trust Accounts. In addition, following our initial Business Combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

Management has determined that if the Company is unable to complete a Business Combination by September 9, 2024 (the “Combination Period”), then the Company will cease all operations except for the purpose of liquidating. The date for mandatory liquidation and subsequent dissolution as well as the Company’s working capital deficit raise substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after the Combination Period.

Critical Accounting Estimates

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

We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate 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 we believe have the most significant impact on its financial statements are described below:

Fair Value of Warrants

In determining the fair value of our Private Placement Warrants, our Board used the most observable inputs available. The valuation approach utilized the 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 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,

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impact our valuation of our 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 our derivative liability, our Board used the most observable inputs available. The valuation approach for our derivative liability utilizes a 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 our valuation as of each valuation date and may have a material impact on the valuation of the derivative liability.

Recent Accounting Standards

Our 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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. Our management evaluated, with the participation of our chief executive officer and chief financial officer (our “Certifying Officers”), the effectiveness of our disclosure controls and procedures as of June 30, 2024, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of June 30, 2024, our disclosure controls and procedures were not effective.

Specifically, management’s determination was based on the following material weaknesses which existed as of June 30, 2024, related to 1) we experienced difficulty in our accounting for complex financial instruments, 2) we lack the controls needed to assure that we are maintaining compliance with income tax regulations, including the timely filing of complete and accurate income tax returns, 3) we lack controls needed to assure the preparation of complete and accurate financial statement disclosures, 4) controls over income tax accounting, including those needed to identify, reconcile and properly account for difference between our book income tax provision and tax returns are ineffective, and 5) we lack controls needed to identify related party transactions, including, but not limited to, transactions involving our Sponsor and members of our Sponsor. The Company has begun to develop a remediation which is more fully described below.

After identifying the material weaknesses, we have commenced our remediation efforts by taking the following steps:

●

We have expanded and improved our review process for complex securities and related accounting standards.

●

We have increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications.

●

We are establishing additional monitoring and oversight controls designed to ensure the accuracy and completeness of our financial statements and related disclosures.

●

We plan to hire consultants to prepare and complete the filing of our tax returns.

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A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim condensed financial statements will not be prevented or detected on a timely basis. Notwithstanding the determination that our internal control over financial reporting was not effective, as of June 30, 2024 based on the material weaknesses described above, we believe that our condensed financial statements contained in this quarterly report fairly present our financial position, results of operations and cash flows for the years covered hereby in all material respects.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

There is no material litigation, arbitration or governmental proceeding currently pending against us or any of our officers or directors in their capacity as such, and we and our officers and directors have not been subject to any such proceeding in the 12 months preceding the date of this Quarterly Report on Form 10-Q.

Item 1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in the Company’s annual report on Form 10-K as filed with the SEC on April 17, 2024 and in the other reports the Company has filed, and will in the future file, with the SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in the Company’s Annual Report on Form 10-K as filed with the SEC on April 17, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

During the second quarter of 2024, none of the Company’s officers or directors adopted or terminated any “Rule 10b5- 1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

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Item 6. Exhibits, Financial Statement Schedules.

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

No.		Description of Exhibit
2.1		Third Amendment to Business Combination Agreement, dated as of March 9, 2024, by and among the Company, Iris Parent Holding Corp. and Liminatus Pharma, LLC.
2.2		Fourth Amendment to Business Combination Agreement, dated as of July 19, 2024, by and among the Company, Iris Parent Holding Corp. and Liminatus Pharma, LLC.
3.1		Certificate of Incorporation.
3.2		Amended and Restated Certificate of Incorporation.
3.3		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Tribe Growth Corp I.
3.4		Second Amendment to the Amended and Restated Certificate of Incorporation.
3.5		Third Amendment to the Amended and Restated Certificate of Incorporation
3.6		Fourth Amendment to the Amended and Restated Certificate of Incorporation
3.7		Amended and Restated Bylaws.
10.1		Second Amendment to Convertible Note Subscription Agreement, dated March 9, 2024, by and among Iris Acquisition Corp, Iris Parent Holding Corp., and the PIPE Subscriber.
10.3		Third Amendment to PIPE Subscription Agreement, dated July 23, 2024, by and among Iris Acquisition Corp and Iris Parent Holding Corp.
10.4		Termination Agreement to Convertible Note PIPE, dated July 23, 2024, by and among Iris Acquisition Corp, Iris Parent Holding Corp., and the PIPE Subscriber.
10.5		Second Amended and Restated Promissory Note, dated August 2, 2024, by and between Iris Acquisition Corp and Liminatus Pharma LLC.
31.1**		Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2**		Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

**Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Iris Acquisition Corp

Date: January 14, 2025	By:	/s/ Sumit Mehta
		Name: Sumit Mehta
		Title: Chief Executive Officer
		(Principal Executive Officer)

Date: January 14, 2025	By:	/s/ Lisha Parmar
		Name: Lisha Parmar
		Title: Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Sumit Mehta, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of Iris Acquisition Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 14, 2025
	By:	/s/ Sumit Mehta
		Sumit Mehta
		Chief Executive Officer
		(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Lisha Parmar, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A of Iris Acquisition Corp;

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 14, 2025
	By:	/s/ Lisha Parmar
		Lisha Parmar
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Iris Acquisition Corp (the “Company”) on Form 10-Q/A for the fiscal year ended June 30, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Sumit Mehta, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

Date: January 14, 2025
	By:	/s/ Sumit Mehta
		Sumit Mehta
		Chief Executive Officer
		(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Iris Acquisition Corp (the “Company”) on Form 10-Q/A for the fiscal year ended June 30, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Lisha Parmar, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

Date: January 14, 2025
	By:	/s/ Lisha Parmar
		Lisha Parmar
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 22, 2024
Document and Entity Information
Document Type	10-Q/A
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-40167
Entity Registrant Name	IRIS ACQUISITION CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	85-3901431
Entity Address, Address Line One	3rd Floor Zephyr House
Entity Address, Address Line Two	122 Mary Street
Entity Address, Address Line Three	Grand Cayman KY1-1001
Entity Address, City or Town	George Town
Entity Address State Or Province	KY
Entity Address, Postal Zip Code	10085
City Area Code	971
Local Phone Number	4 3966949
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	true
Entity Central Index Key	0001831874
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	true
Amendment Description	(Amendment No. 1)
Units, each consisting of one share of Class A Common Stock and one-fourth of one Redeemable Warrant
Document and Entity Information
Title of 12(b) Security	Units, each consisting of one share of Class A Common Stock and one-fourth of one Redeemable Warrant
Trading Symbol	IRAAU
Security Exchange Name	NASDAQ
Class A common stock
Document and Entity Information
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	IRAA
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		7,187,037
Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50
Document and Entity Information
Title of 12(b) Security	Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50
Trading Symbol	IRAAW
Security Exchange Name	NASDAQ
Class B common stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		0

CONDENSED BALANCE SHEETS - USD ($)

Jun. 30, 2024

Dec. 31, 2023

Current assets

Cash

^[1]

$ 339,203

$ 156,425

Due from Sponsor

$ 1,256

Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]

Related party

Franchise tax receivable

$ 23,200

$ 53,200

Prepaid expenses and other current assets

45,500

Total current assets

409,159

210,881

Cash and Investments held in Trust Account

3,126,546

4,291,332

Total Assets

3,535,705

4,502,213

Current liabilities

Accounts payable and accrued expenses

2,486,477

2,326,918

Due to related party

$ 75,000

Other Liability, Current, Related Party [Extensible Enumeration]

Related party

Income taxes payable

$ 18,757

$ 379,965

Excise tax payable

116,244

103,587

Derivative liability

2,202

Total current liabilities

6,468,698

5,158,553

Deferred underwriting fee payable

9,660,000

Warrant liability

476,533

376,444

Total Liabilities

16,605,231

15,194,997

Commitments and Contingencies (Note 7)

Stockholders' Deficit

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding

Extension deposits due from Sponsor

(68,888)

Additional paid-in capital

71,560

140,000

Accumulated deficit

(15,994,197)

(14,883,124)

Total Stockholders' Deficit

(15,990,835)

(14,742,434)

Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders' Deficit

3,535,705

4,502,213

Related party

Current liabilities

Promissory note

$ 1,453,720

$ 1,452,381

Notes Payable, Current, Related Party, Type [Extensible Enumeration]

Related party

Liminatus

Current liabilities

Promissory note

$ 2,318,500

$ 818,500

Class A common stock subject to possible redemption

Current liabilities

Class A common stock subject to possible redemption, 287,037 and 406,609 shares at redemption value of $10.18 and $9.96 at June 30, 2024 and December 31, 2023, respectively

2,921,309

4,049,650

Class A common stock not subject to possible redemption

Stockholders' Deficit

Common stock

$ 690

[1]	^{(1) As of June 30, 2024 and December 31, 2023, includes}^$36,203^and^$85,084^{, respectively of the restricted cash to be used for tax payments only.}

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Redemption value per share	$ 10.18	$ 9.96
Preferred stock, par value, (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Restricted cash	$ 36,203	$ 85,084
Class A common stock
Common stock, par value, (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	280,000,000	280,000,000
Common stock, shares issued (in shares)	7,187,037	7,306,609
Common stock, shares outstanding (in shares)	7,187,037	7,306,609
Class A common stock subject to possible redemption
Class A common stock subject to possible redemption, outstanding (in shares)	287,037	406,609
Redemption value per share	$ 10.18	$ 9.96
Class A common stock not subject to possible redemption
Common stock, shares issued (in shares)	6,900,000	6,900,000
Common stock, shares outstanding (in shares)	6,900,000	6,900,000
Class B common stock
Common stock, par value, (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Formation and operating costs	$ 642,082	$ 650,699	$ 1,363,836	$ 1,267,191
Forgiveness of unrelated vendor payables		275,000		275,000
Loss from operations	(642,082)	(375,699)	(1,363,836)	(992,191)
Other income (expense):
Unrealized gain (loss) on change in fair value of warrant liabilities	78,645	598,183	(100,089)	488,548
Unrealized gain on change in fair value of derivative liability			2,202
Interest income on investments held in Trust Account	33,363		80,604	84,697
Accretion of discount on related party loans			(1,339)
Total other income (expense)	112,008	598,183	(18,622)	573,245
Income (loss) before provision for income taxes	(530,074)	222,484	(1,382,458)	(418,946)
Provision for income taxes	(4,780)	10,500	(10,627)	3,214
Net income (loss)	$ (534,854)	$ 232,984	$ (1,393,085)	$ (415,732)
Class A common stock subject to possible redemption
Other income (expense):
Basic weighted average shares outstanding	7,187,037	1,413,104	7,231,055	1,413,104
Diluted weighted average shares outstanding	7,187,037	1,413,104	7,231,055	1,413,104
Basic net loss per share	$ (0.07)	$ 0.03	$ (0.19)	$ (0.05)
Diluted net loss per share	(0.07)	$ 0.03	(0.19)	$ (0.05)
Class B common stock
Other income (expense):
Basic weighted average shares outstanding		6,900,000		6,900,000
Diluted weighted average shares outstanding		6,900,000		6,900,000
Basic net loss per share	0	$ 0.03	0	$ (0.05)
Diluted net loss per share	$ 0.00	$ 0.03	$ 0.00	$ (0.05)

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Class A Common Stock Common Stock	Class B Common Stock Common Stock	Extension deposits due from sponsor	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2022		$ 690		$ 140,000	$ (13,974,105)	$ (13,833,415)
Balance at the beginning (in shares) at Dec. 31, 2022		6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount					298,845	298,845
Net income (loss)					(648,716)	(648,716)
Balance at the end at Mar. 31, 2023		$ 690		140,000	(14,323,976)	(14,183,286)
Balance at the end (in shares) at Mar. 31, 2023		6,900,000
Balance at the beginning at Dec. 31, 2022		$ 690		140,000	(13,974,105)	(13,833,415)
Balance at the beginning (in shares) at Dec. 31, 2022		6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount						298,845
Net income (loss)						(415,732)
Balance at the end at Jun. 30, 2023		$ 690		140,000	(14,090,992)	(13,950,302)
Balance at the end (in shares) at Jun. 30, 2023		6,900,000
Balance at the beginning at Mar. 31, 2023		$ 690		140,000	(14,323,976)	(14,183,286)
Balance at the beginning (in shares) at Mar. 31, 2023		6,900,000
Increase (Decrease) in Stockholders' Equity
Net income (loss)					232,984	232,984
Balance at the end at Jun. 30, 2023		$ 690		140,000	(14,090,992)	(13,950,302)
Balance at the end (in shares) at Jun. 30, 2023		6,900,000
Balance at the beginning at Dec. 31, 2023	$ 690			140,000	(14,883,124)	(14,742,434)
Balance at the beginning (in shares) at Dec. 31, 2023	6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount				86,389		86,389
Excise tax payable attributable to redemption of common stock					(12,657)	(12,657)
Tax claim adjustment from redeeming stockholders					294,669	294,669
Net income (loss)					(858,231)	(858,231)
Balance at the end at Mar. 31, 2024	$ 690			53,611	(15,459,343)	(15,405,042)
Balance at the end (in shares) at Mar. 31, 2024	6,900,000
Balance at the beginning at Dec. 31, 2023	$ 690			140,000	(14,883,124)	(14,742,434)
Balance at the beginning (in shares) at Dec. 31, 2023	6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount						137,328
Net income (loss)						(1,393,085)
Balance at the end at Jun. 30, 2024	$ 690		$ (68,888)	71,560	(15,994,197)	(15,990,835)
Balance at the end (in shares) at Jun. 30, 2024	6,900,000
Balance at the beginning at Mar. 31, 2024	$ 690			53,611	(15,459,343)	(15,405,042)
Balance at the beginning (in shares) at Mar. 31, 2024	6,900,000
Increase (Decrease) in Stockholders' Equity
Deemed contribution for extension deposit from related party			(68,888)	68,888
Remeasurement of Class A common stock to redemption amount				50,939		50,939
Net income (loss)					(534,854)	(534,854)
Balance at the end at Jun. 30, 2024	$ 690		$ (68,888)	$ 71,560	$ (15,994,197)	$ (15,990,835)
Balance at the end (in shares) at Jun. 30, 2024	6,900,000

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2024	Jun. 30, 2023
Cash Flows from Operating Activities:
Net loss	$ (1,393,085)	$ (415,732)
Adjustments to reconcile net loss to net cash used in operating activities:
Unrealized gain (loss) on change in fair value of warrant liabilities	100,089	(488,548)
Unrealized gain on change in fair value of derivative liability	(2,202)
Forgiveness of unrelated vendor payables		(275,000)
Interest income on investments held in Trust Account	(80,604)	(84,697)
Accretion of discount on related party loans	1,339
Deferred taxes		(3,214)
Changes in operating assets and liabilities:
Franchise tax receivable	30,000
Prepaid expenses and other current assets	(45,500)	12,083
Franchise taxes payable		(347,133)
Income taxes payable	(361,208)
Accounts payable and accrued expenses	159,559	679,515
Net cash used in operating activities	(1,591,612)	(922,726)
Cash Flows from Investing Activities:
Proceeds from Trust Account for redemptions	1,265,669
Proceeds from Trust Account for tax payments	354,519	745,563
Extension deposits to Trust Account	(80,129)	(63,590)
Net cash provided by investing activities	1,540,059	681,973
Net cash provided by financing activities
Redemption of Class A common stock	(1,265,669)	(298,431)
Proceeds from related party loan		400,000
Repayment of related party loan		(400,000)
Net cash used in financing activities	234,331	75,289
Net Change in Cash	182,778	(165,464)
Cash, beginning of year	156,425	280,640
Cash, end of year	339,203	115,176
Supplemental disclosure of cash and non-cash operating and financing activities:
Remeasurement of Class A common stock to redemption amount	137,328	298,845
Income taxes paid	371,835
Excise tax paid	12,657
Deemed contribution for extension deposit from related party	68,888
Related party
Net cash provided by financing activities
Proceeds from promissory note		$ 373,720
Liminatus
Net cash provided by financing activities
Proceeds from promissory note	$ 1,500,000

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

6 Months Ended

Jun. 30, 2024

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Business Combination Agreement

Liminatus is actively reviewing opportunities to in-license or acquire other clinical candidates that match the area of expertise of the company.

From time to time, the Company has amended and restated the certificate of incorporation to change the date by which the Company must consummate a business combination, which is September 9, 2024.

Nasdaq Delisting Notice

Liquidity, Capital Resources and Going Concern

Restatement of Financial Statements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Emerging Growth Company Status

Use of Estimates

Cash

Cash and Cash Equivalents held in Trust Account

As of June 30, 2024 and December 31, 2023, the Company had a total of $3,126,546 and $4,291,332, respectively in the Trust Account held in money market funds cash equivalents.

Concentration of Credit Risk

Forgiveness of Unrelated Vendor Payables

Common Stock Subject to Possible Redemption

Net Loss Per Common Stock


	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income
Numerator:
Net loss	$	(534,854)	$	—	$	39,604	$	193,380	$	(1,393,085)	$	—	$	(70,668)	$	(345,064)
Denominator:
Basic and diluted weighted average shares outstanding		7,187,037		—		1,413,104		6,900,000		7,231,055		—		1,413,104		6,900,000
Basic and diluted net loss per share	$	(0.07)	$	0.00	$	0.03	$	0.03	$	(0.19)	$	0.00	$	(0.05)	$	(0.05)

Debt Discount

Fair Value of Financial Instruments

Derivative Financial Instruments

The Company evaluates all of its financial instruments, including notes payable, to determine if such instruments contain features that qualify as embedded derivatives.

Fair Value Measurements

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●

Income Taxes

Advances due from Sponsor

Recent Accounting Pronouncements

Risks and Uncertainties

underpayment penalty per month or a portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024, until paid in full.

INITIAL PUBLIC OFFERING

6 Months Ended

Jun. 30, 2024

INITIAL PUBLIC OFFERING

INITIAL PUBLIC OFFERING

NOTE 3. INITIAL PUBLIC OFFERING

As of June 30, 2024 and December 31, 2023, the common stock reflected on the condensed balance sheets are reconciled in the following table:


Class A common stock subject to possible redemption as December 31, 2023	$	4,049,650
Less: Shares redeemed in March 2024		(1,265,669)
Plus: Remeasurement of carrying value to redemption value		86,389
Class A common stock subject to possible redemption as March 31, 2024		2,870,370
Plus: Remeasurement of carrying value to redemption value		50,939
Class A common stock subject to possible redemption as June 30, 2024	$	2,921,309

Once the warrants become exercisable, the Company may call the warrants for redemption for cash:

●

in whole and not in part;

●

at a price of $0.01 per warrant;

●

upon not less than 30 days’ prior written notice of redemption to each warrant holder (the “30-day redemption period”); and

●

PRIVATE PLACEMENT

6 Months Ended

Jun. 30, 2024

PRIVATE PLACEMENT

PRIVATE PLACEMENT

NOTE 4. PRIVATE PLACEMENT

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

Promissory Note — Related Party

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.

Related Party Loans

Administrative Support Agreement

Advances due from Sponsor

LOAN PAYABLE - LIMINATUS

6 Months Ended

Jun. 30, 2024

LOAN PAYABLE - LIMINATUS

LOAN PAYABLE - LIMINATUS

NOTE 6. LOAN PAYABLE - LIMINATUS

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 7. COMMITMENTS AND CONTINGENCIES

Registration Rights

Underwriting Agreement

STOCKHOLDERS' DEFICIT

6 Months Ended

Jun. 30, 2024

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT

NOTE 8. STOCKHOLDERS’ DEFICIT

INCOME TAXES

6 Months Ended

Jun. 30, 2024

INCOME TAXES

INCOME TAXES

NOTE 9. INCOME TAXES

RECURRING FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2024

RECURRING FAIR VALUE MEASUREMENTS

RECURRING FAIR VALUE MEASUREMENTS

NOTE 10. RECURRING FAIR VALUE MEASUREMENTS


	Amount at
Description	Fair Value		Level 1		Level 2		Level 3
June 30, 2024 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	3,126,546	$	3,126,546	$	—	$	—
Liabilities:
Public Warrants		276,000		276,000		—		—
Private Warrants		200,533		—		—		200,533
December 31, 2023
Assets:
Cash equivalents held in Trust		4,291,332		4,291,332		—		—
Liabilities:
Public Warrants		207,690		207,690		—		—
Private Warrants		168,754		—		—		168,754
Derivative liability	$	2,202	$	—	$	—	$	2,202

The key inputs into the Monte Carlo simulation model for the Warrants were as follows at initial measurement, June 30, 2024 and December 31, 2023:


	June 30, 2024
	(Unaudited)			December 31, 2023
Risk-free interest rate		5.16	%		4.91	%
Expected term (years)		0.86			0.87
Expected volatility		de minimis			5.7	%
Stock Price	$	11.67		$	10.33
Exercise Price	$	11.50		$	11.50

The change in the fair value of the warrant liabilities classified as Level 3 for the three months ended June 30, 2024 and the year ended December 31, 2023 is summarized as follows:


Fair value at January 1, 2024	$	168,754
Change in fair value		82,824
Fair value at March 31, 2024		251,578
Change in fair value		(51,045)
Fair value at June 30, 2024	$	200,533

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2024

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 11. SUBSEQUENT EVENTS

On July 19, 2024, the Company entered into the Fourth Amendment to the Business Combination Agreement to amend the Outside Date to September 3, 2024.

On July 23, 2024, the Convertible Note Subscription Agreement was terminated.

On August 2, 2024, the parties to the unsecured promissory note amended such promissory note to increase the principal amount from $2,500,000 to $3,500,000.

On August 5, 2024, $17,222 was deposited into the Trust Account representing an Extension Payment. The Extension Payment was deposited from the Company’s operating account and is Due from Sponsor.

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (534,854)	$ (858,231)	$ 232,984	$ (648,716)	$ (1,393,085)	$ (415,732)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Basis of Presentation

Emerging Growth Company Status

Emerging Growth Company Status

Use of Estimates

Use of Estimates

Cash

Cash

Cash and Cash Equivalents held in Trust Account

Cash and Cash Equivalents held in Trust Account

As of June 30, 2024 and December 31, 2023, the Company had a total of $3,126,546 and $4,291,332, respectively in the Trust Account held in money market funds cash equivalents.

Concentration of Credit Risk

Concentration of Credit Risk

Forgiveness of Unrelated Vendor Payables

Forgiveness of Unrelated Vendor Payables

Common Stock Subject to Possible Redemption

Common Stock Subject to Possible Redemption

Net Loss Per Common Stock

Net Loss Per Common Stock


	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income
Numerator:
Net loss	$	(534,854)	$	—	$	39,604	$	193,380	$	(1,393,085)	$	—	$	(70,668)	$	(345,064)
Denominator:
Basic and diluted weighted average shares outstanding		7,187,037		—		1,413,104		6,900,000		7,231,055		—		1,413,104		6,900,000
Basic and diluted net loss per share	$	(0.07)	$	0.00	$	0.03	$	0.03	$	(0.19)	$	0.00	$	(0.05)	$	(0.05)

Debt Discount

Debt Discount

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Derivative Financial Instruments

Derivative Financial Instruments

The Company evaluates all of its financial instruments, including notes payable, to determine if such instruments contain features that qualify as embedded derivatives.

Fair Value Measurements

Fair Value Measurements

●

Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●

Income Taxes

Income Taxes

Advances due from Sponsor

Advances due from Sponsor

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Risks and Uncertainties

Risks and Uncertainties

underpayment penalty per month or a portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024, until paid in full.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of reconciliation of basic and diluted net income per share for each class of common stock


	Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income
Numerator:
Net loss	$	(534,854)	$	—	$	39,604	$	193,380	$	(1,393,085)	$	—	$	(70,668)	$	(345,064)
Denominator:
Basic and diluted weighted average shares outstanding		7,187,037		—		1,413,104		6,900,000		7,231,055		—		1,413,104		6,900,000
Basic and diluted net loss per share	$	(0.07)	$	0.00	$	0.03	$	0.03	$	(0.19)	$	0.00	$	(0.05)	$	(0.05)

INITIAL PUBLIC OFFERING (Tables)

6 Months Ended

Jun. 30, 2024

INITIAL PUBLIC OFFERING

Schedule of common stock reflected on the condensed balance sheets are reconciled


Class A common stock subject to possible redemption as December 31, 2023	$	4,049,650
Less: Shares redeemed in March 2024		(1,265,669)
Plus: Remeasurement of carrying value to redemption value		86,389
Class A common stock subject to possible redemption as March 31, 2024		2,870,370
Plus: Remeasurement of carrying value to redemption value		50,939
Class A common stock subject to possible redemption as June 30, 2024	$	2,921,309

RECURRING FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

RECURRING FAIR VALUE MEASUREMENTS

Schedule of company's financial assets and liabilities that were accounted for at fair value on a recurring basis


	Amount at
Description	Fair Value		Level 1		Level 2		Level 3
June 30, 2024 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	3,126,546	$	3,126,546	$	—	$	—
Liabilities:
Public Warrants		276,000		276,000		—		—
Private Warrants		200,533		—		—		200,533
December 31, 2023
Assets:
Cash equivalents held in Trust		4,291,332		4,291,332		—		—
Liabilities:
Public Warrants		207,690		207,690		—		—
Private Warrants		168,754		—		—		168,754
Derivative liability	$	2,202	$	—	$	—	$	2,202

Schedule of key inputs into the monte carlo simulation model for the warrants


	June 30, 2024
	(Unaudited)			December 31, 2023
Risk-free interest rate		5.16	%		4.91	%
Expected term (years)		0.86			0.87
Expected volatility		de minimis			5.7	%
Stock Price	$	11.67		$	10.33
Exercise Price	$	11.50		$	11.50

Schedule of change in the fair value of the warrant liabilities classified as level 3


Fair value at January 1, 2024	$	168,754
Change in fair value		82,824
Fair value at March 31, 2024		251,578
Change in fair value		(51,045)
Fair value at June 30, 2024	$	200,533

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) - USD ($)			1 Months Ended	6 Months Ended
	May 02, 2024	Mar. 09, 2021	Nov. 30, 2022	Jun. 30, 2024	Jun. 30, 2023	Mar. 07, 2024	Dec. 31, 2023	Sep. 07, 2023	Dec. 20, 2022
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Deferred underwriting fee payable				$ 9,660,000			$ 9,660,000
Investment of cash into trust account				$ 80,129	$ 63,590
Obligation to redeem public shares if entity does not complete a business combination (as a percent)		100.00%
Redemption of shares calculated based on business days prior to consummation of business combination (in days)		2 days
Threshold business days for redemption of public shares		10 days
Maximum net interest to pay dissolution expenses		$ 100,000
Cash redemption price				$ 10.18			$ 9.96
Publicly held threshold shares requirement	500,000
Restricted cash				$ 36,203			$ 85,084
Working capital				6,059,539
Operating bank account				339,203
Working capital loans outstanding				0			0
Minimum net tangible assets upon consummation of the business combination		$ 5,000,001
Class A common stock subject to possible redemption
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Applicable tax amount				$ 222,459			$ 241,682
Cash redemption price				$ 10.18			$ 9.96
Stock subject to possible redemption				287,037			406,609
Liminatus
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Aggregate consideration to be paid transactions			25,000,000
Aggregate equity consideration price			$ 10
Gaius Investment Partners
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Material related party transaction				$ 1,216,000
Equity subscription agreement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Applicable tax amount						$ 60,000
Common stock exercised						119,572			26,186,896
Cash redemption price						$ 10.58			$ 10.08
Aggregate redemption amount									$ 263,963,913
Stock subject to possible redemption						287,037			1,413,104
Temporary equity of redemption payment							$ 298,431
Redemptions left in trust						$ 1,265,669
Percentage of purchase convertible notes			8.00%
Aggregate principal amount			$ 25,000,000
After closing term of business combination			3 years
Initial conversion price			$ 11.5
Second extension amendment
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Common stock exercised								1,006,495
Cash redemption price								$ 10.29
Aggregate redemption amount								$ 10,358,754
Stock subject to possible redemption								406,609
IPO
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of units issued		27,600,000
Unit price per unit		$ 10
Gross proceeds from sale of units		$ 276,000,000
Transaction costs		15,627,893
Underwriting discount		5,520,000
Deferred underwriting fee payable		9,660,000
Other offering costs		447,893
Transaction costs allocated to warrants		606,622
Transaction costs included in equity		15,021,271
Investment of cash into trust account		$ 276,000,000
Redemption period upon closure		42 months
Private Placement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of warrants to purchase shares issued		5,013,333
Price of warrant		$ 1.5
Gross proceeds from issuance of warrants		$ 7,520,000
Private Placement \| Warrants
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of warrants to purchase shares issued		1
Price of warrant		$ 11.5
Over-allotment option
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of units issued		3,600,000
PIPE Equity Subscription Agreement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Aggregate purchase price of shares in subscription agreement			$ 15,000,000
Capital shares reserve for issuance			1,500,000
Stock purchase price per share			$ 10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)			3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 07, 2024	Sep. 07, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 20, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash held outside the trust account			$ 339,203		$ 339,203		$ 156,425
Restricted cash			36,203		36,203		85,084
Investments held in Trust Account			$ 3,126,546		$ 3,126,546		$ 4,291,332
Vendors agreed to forgive outstanding payables				$ 350,000		$ 350,000
Forgive of cash payments				75,000		75,000
Forgiveness of unrelated vendor payables				$ 275,000		$ 275,000
Redemption value per share			$ 10.18		$ 10.18		$ 9.96
Class A common stock in the calculation of diluted income per share					11,913,333
Interest expense			$ 0		$ 1,339
Embedded derivative for the redemption feature for the amount					150.00%
Unrecognized tax benefits			0		$ 0		$ 0
Unrecognized tax benefits accrued for interest and penalties			0		0		0
Extension deposits due from Sponsor			68,888		$ 68,888		$ 0
Percentage of excise tax on fair market value of shares redeemed					1.00%		1.00%
Excise tax payable			$ 12,657		$ 12,657		$ 103,587
Percentage of interest on additional interest and penalties					10.00%
Percentage of underpayment penalty					5.00%
Maximum underpayment penalty percentage of the total liability					25.00%
Equity subscription agreement
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Vendors agreed to forgive outstanding payables	$ 119,572
Redemption value per share	$ 10.58							$ 10.08
Common stock exercised	119,572							26,186,896
Redemptions left in trust	$ 1,265,669
Class A common stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Common stock redeemed (in shares)		1,006,495
Common stock redeemed amount		$ 10,358,754
Class A common stock subject to possible redemption
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Redemption value per share			$ 10.18		$ 10.18		$ 9.96

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of net income (loss) per common stock (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Class A common stock
Numerator:
Net (loss) income	$ (534,854)	$ 39,604	$ (1,393,085)	$ (70,668)
Denominator:
Basic weighted average shares outstanding	7,187,037	1,413,104	7,231,055	1,413,104
Diluted weighted average shares outstanding	7,187,037	1,413,104	7,231,055	1,413,104
Basic net (loss) income per share	$ (0.07)	$ 0.03	$ (0.19)	$ (0.05)
Diluted net (loss) income per share	(0.07)	$ 0.03	(0.19)	$ (0.05)
Class B common stock
Numerator:
Net (loss) income		$ 193,380		$ (345,064)
Denominator:
Basic weighted average shares outstanding		6,900,000		6,900,000
Diluted weighted average shares outstanding		6,900,000		6,900,000
Basic net (loss) income per share	0	$ 0.03	0	$ (0.05)
Diluted net (loss) income per share	$ 0.00	$ 0.03	$ 0.00	$ (0.05)

INITIAL PUBLIC OFFERING (Details) - USD ($)		3 Months Ended	12 Months Ended
INITIAL PUBLIC OFFERING (Details) - USD ($)	Mar. 09, 2021	Mar. 31, 2024	Dec. 31, 2023
INITIAL PUBLIC OFFERING
Purchase price, per unit	$ 10
Number of warrants in a unit	0.25
Distributed of funds			$ 294,669
Adjustment deposited into cash in trust account		$ 294,669
Warrants expiration term	5 years
Class A common stock
INITIAL PUBLIC OFFERING
Number of shares in a unit	1
Number of shares issuable per warrant	1
Public warrants
INITIAL PUBLIC OFFERING
Exercise price of warrants	$ 0.01
Warrants expiration term	5 years
Public warrants \| Class A common stock
INITIAL PUBLIC OFFERING
Exercise price of warrants	$ 11.5
Warrants exercisable term after the completion of a business combination	30 days
Warrants exercisable term from the closing of the public offering	12 months
IPO
INITIAL PUBLIC OFFERING
Number of units issued	27,600,000
Gross proceeds from sale of units	$ 276,000,000
Underwriting fee	5,520,000
Additional fee	$ 9,660,000
IPO \| Class A common stock
INITIAL PUBLIC OFFERING
Number of units issued	27,600,000
IPO \| Public warrants
INITIAL PUBLIC OFFERING
Number of shares issuable per warrant	1
Exercise price of warrants	$ 11.5
Over-allotment option
INITIAL PUBLIC OFFERING
Number of units issued	3,600,000

INITIAL PUBLIC OFFERING - Common stock reflected on the condensed balance sheets are reconciled (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
INITIAL PUBLIC OFFERING
Remeasurement of Class A common stock to redemption amount	$ 50,939	$ 86,389	$ 298,845	$ 137,328	$ 298,845
Class A common stock subject to possible redemption
INITIAL PUBLIC OFFERING
Class A common stock subject to possible redemption	2,870,370	4,049,650		4,049,650
Less: Shares redeemed		(1,265,669)
Remeasurement of Class A common stock to redemption amount	50,939	86,389
Class A common stock subject to possible redemption	$ 2,921,309	$ 2,870,370		$ 2,921,309

INITIAL PUBLIC OFFERING - Warrants (Details)	Mar. 09, 2021 period D $ / shares shares
INITIAL PUBLIC OFFERING
Percentage of gross proceeds on total equity proceeds	60.00%
Warrants expiration term	5 years
Class A common stock
INITIAL PUBLIC OFFERING
Number of shares per warrant \| shares	1
Number of trading days on which fair market value of shares is reported \| D	20
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent)	115.00%
Class A common stock \| Maximum
INITIAL PUBLIC OFFERING
Exercise price of warrants	$ 9.2
Redemption of warrants when price per share of class common stock equals or exceeds $18.00
INITIAL PUBLIC OFFERING
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent)	180.00%
Share trigger price	$ 18
Threshold trading days for redemption of public warrants \| D	20
Threshold consecutive trading days for redemption of public warrants \| period	30
Threshold number of business days before sending notice of redemption to warrant holders \| D	3
Public Warrants
INITIAL PUBLIC OFFERING
Exercise price of warrants	$ 0.01
Warrants expiration term	5 years
Minimum threshold written notice period for redemption of public warrants	30 days
Redemption period	30 days
Public Warrants \| Class A common stock
INITIAL PUBLIC OFFERING
Exercise price of warrants	$ 11.5
Warrants exercisable term from the closing of the public offering	12 months
Warrants exercisable term after the completion of a business combination	30 days
Maximum threshold period for registration statement to become effective after business combination	60 days
Public Warrants \| Redemption of warrants when price per share of class common stock equals or exceeds $18.00
INITIAL PUBLIC OFFERING
Maximum period after business combination in which to file registration statement	15 days

PRIVATE PLACEMENT (Details) - USD ($)	Nov. 30, 2022	Mar. 09, 2021
PRIVATE PLACEMENT
Warrants expiration term		5 years
Private Warrants
PRIVATE PLACEMENT
Price of warrant		$ 1.5
Exercise price of warrants	$ 11.5
Warrants forfeited	4,177,778
Value of forfeited warrants	$ 0
Private Placement
PRIVATE PLACEMENT
Number of warrants to purchase shares issued		5,013,333
Exercise price of warrants		$ 1.5
Private Placement \| Warrants
PRIVATE PLACEMENT
Number of warrants to purchase shares issued		1
Exercise price of warrants		$ 11.5
Private Placement \| Private Warrants
PRIVATE PLACEMENT
Number of warrants to purchase shares issued		5,013,333
Proceeds from issuance of warrants		$ 7,520,000
Number of shares per warrant		1
Exercise price of warrants		$ 11.5
Warrants expiration term		5 years

RELATED PARTY TRANSACTIONS - Founder Shares (Details)		1 Months Ended	6 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS - Founder Shares (Details)	Sep. 20, 2023	Feb. 28, 2021 shares	Jun. 30, 2024 USD ($) D $ / shares shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2020 USD ($) $ / shares shares
Class B common stock
RELATED PARTY TRANSACTIONS
Common stock, par value (in dollars per share) \| $ / shares			$ 0.0001	$ 0.0001
Ratio to be applied to the stock in the conversion	1
Related party
RELATED PARTY TRANSACTIONS
Promissory note \| $			$ 1,453,720	$ 1,452,381
Founder Shares \| Class B common stock
RELATED PARTY TRANSACTIONS
Ratio to be applied to the stock in the conversion	1
Founder Shares \| Sponsor \| Class B common stock
RELATED PARTY TRANSACTIONS
Consideration received \| $					$ 25,000
Consideration received, per share \| $ / shares					$ 0.004
Consideration received in shares \| shares					5,750,000
Common stock, par value (in dollars per share) \| $ / shares					$ 0.0001
Share dividend \| shares		0.2
Aggregate number of shares owned \| shares		6,900,000
Restrictions on transfer period of time after business combination completion			1 year
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) \| $ / shares			$ 12
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D			20
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D			30
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences			150 days
Founder Shares \| Sponsor \| Class B common stock \| Over-allotment option
RELATED PARTY TRANSACTIONS
Shares subject to forfeiture \| shares		900,000
Shares no longer subject to forfeiture \| shares			900,000
Promissory Note with Related Party
RELATED PARTY TRANSACTIONS
Promissory note \| $			$ 613,720	613,720
Extension payments to the Trust Account \| $			28,463	120,515
Promissory Note with Related Party \| Sponsor
RELATED PARTY TRANSACTIONS
Promissory note \| $			$ 540,000	$ 540,000

RELATED PARTY TRANSACTIONS - Additional information (Details) - USD ($)

3 Months Ended

6 Months Ended

12 Months Ended

Dec. 20, 2022

Jun. 30, 2024

Jun. 30, 2023

Dec. 31, 2023

Mar. 13, 2024

Mar. 31, 2023

Dec. 31, 2022

Oct. 10, 2022

May 27, 2022

RELATED PARTY TRANSACTIONS

Embedded derivative for the redemption feature for the amount

150.00%

Unrealized gain on change in fair value of derivative liability

$ 2,202

Interest expense

$ 0

1,339

Cash

^[1]

339,203

$ 156,425

Other liabilities current

75,000

Unfunded extension deposit

34,444

Extension deposits due from Sponsor

68,888

Related party

RELATED PARTY TRANSACTIONS

Promissory note

1,453,720

1,452,381

Sponsor

RELATED PARTY TRANSACTIONS

Related party extension payment loan

$ 30,000

Non redeemed shares for extension payment loan

$ 0.06

Promissory Note with Related Party

RELATED PARTY TRANSACTIONS

Promissory note

613,720

$ 613,720

613,720

Extension payments to the Trust Account

$ 28,463

120,515

Embedded derivative for the redemption feature for the amount

150.00%

Derivative liability

$ 0

2,202

Unrealized gain on change in fair value of derivative liability

2,202

$ 0

Debt discount for derivative liability

1,339

$ 104,428

Interest expense

1,339

Percentage of principal removed

150.00%

Outstanding balance of related party note

1,453,720

Net of the debt discount

1,339

Promissory Note with Related Party | Sponsor

RELATED PARTY TRANSACTIONS

Maximum borrowing capacity of related party promissory note

$ 750,000

$ 550,000

$ 300,000

Aggregate principal amount

$ 750,000

$ 550,000

Promissory note

540,000

Percentage of purchase convertible notes

150.00%

Cash

$ 120,000

Promissory Note with Related Party | Other affiliates

RELATED PARTY TRANSACTIONS

Net of the debt discount

$ 0

1,452,381

Related Party Loans

RELATED PARTY TRANSACTIONS

Initial conversion price

$ 1.5

Related Party Loans | Sponsor

RELATED PARTY TRANSACTIONS

Proceeds from issuance of debt to payment of vendors

$ 400,000

RELATED PARTY TRANSACTIONS

Maximum number of loans convertible into warrants

1,500,000

Other liabilities current

$ 0

Unfunded Extension Payment from Sponsor

RELATED PARTY TRANSACTIONS

Other liabilities current

34,444

Administrative Support Agreement | Sponsor

RELATED PARTY TRANSACTIONS

Expenses per month

10,000

Administrative Support Agreement | Sponsor | Operating costs

RELATED PARTY TRANSACTIONS

Administrative fees expense

$ 30,000

$ 60,000

[1]	^{(1) As of June 30, 2024 and December 31, 2023, includes}^$36,203^and^$85,084^{, respectively of the restricted cash to be used for tax payments only.}

LOAN PAYABLE - LIMINATUS (Details) - USD ($)		3 Months Ended	6 Months Ended
LOAN PAYABLE - LIMINATUS (Details) - USD ($)	Oct. 04, 2023	Jun. 30, 2024	Jun. 30, 2024	Feb. 28, 2024	Dec. 31, 2023
Related party
LOAN PAYABLE - LIMINATUS
Promissory note		$ 1,453,720	$ 1,453,720		$ 1,452,381
Liminatus
LOAN PAYABLE - LIMINATUS
Promissory note		2,318,500	2,318,500		818,500
Promissory Note with Related Party
LOAN PAYABLE - LIMINATUS
Promissory note		613,720	613,720		613,720
Promissory Note with Related Party \| Liminatus
LOAN PAYABLE - LIMINATUS
Aggregate principal amount	$ 1,500,000			$ 2,500,000
Maximum borrowing capacity of related party promissory note	$ 1,500,000
Period to repay debt in case of termination of agreement	30 days
Debt instrument, interest rate during the period	5.00%
Promissory note		2,318,500	2,318,500		$ 818,500
Interest expense		$ 28,902	$ 47,352

COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2024 USD ($) item	Dec. 31, 2023 USD ($)	Oct. 11, 2023 USD ($)	Oct. 10, 2023 USD ($)
COMMITMENTS AND CONTINGENCIES
Maximum number of demands for registration of securities \| item	3
Underwriting discount (in percentage)	2.00%
Underwriting discount	$ 5,520,000
Deferred underwriting discount (in percentage)	3.50%
Deferred underwriting discount	$ 9,660,000	$ 9,660,000
Fee Reduction Agreement
COMMITMENTS AND CONTINGENCIES
Deferred underwriting discount	$ 8,000,000		$ 8,000,000	$ 9,660,000
Underwriting discount paid in cash			1,000,000
Underwriting discount paid in securities			$ 7,000,000

STOCKHOLDERS' DEFICIT - Preferred stock (Details) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
STOCKHOLDERS' DEFICIT
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0

STOCKHOLDERS' DEFICIT - Common stock (Details)		6 Months Ended
STOCKHOLDERS' DEFICIT - Common stock (Details)	Sep. 20, 2023	Jun. 30, 2024 Vote $ / shares shares	Dec. 31, 2023 $ / shares shares
STOCKHOLDERS' DEFICIT
Common shares, votes per share \| Vote		1
Class A common stock
STOCKHOLDERS' DEFICIT
Common stock, shares authorized (in shares)		280,000,000	280,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)		7,187,037	7,306,609
Common stock, shares outstanding (in shares)		7,187,037	7,306,609
Class A common stock subject to possible redemption
STOCKHOLDERS' DEFICIT
Class A common stock subject to possible redemption, issued (in shares)		287,037	406,609
Class A common stock subject to possible redemption, outstanding (in shares)		287,037	406,609
Class B common stock
STOCKHOLDERS' DEFICIT
Common stock, shares authorized (in shares)		20,000,000	20,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.0001	$ 0.0001
Common stock, shares issued (in shares)		0	0
Common stock, shares outstanding (in shares)		0	0
Ratio to be applied to the stock in the conversion	1
Conversion of shares upon business combination		1
Aggregated shares issued upon converted basis (in percent)		83.00%

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
INCOME TAXES
Effective tax rate	(0.90%)	(4.70%)	(0.80%)	0.80%
Statutory income tax rate			21.00%

RECURRING FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Assets:
Cash and Investments held in Trust Account	$ 3,126,546	$ 4,291,332
Liabilities:
Warrant liability	476,533	376,444
Recurring
Assets:
Cash and Investments held in Trust Account	3,126,546	4,291,332
Liabilities:
Derivative liability		2,202
Recurring \| Public Warrants
Liabilities:
Warrant liability	276,000	207,690
Recurring \| Private Warrants
Liabilities:
Warrant liability	200,533	168,754
Level 1 \| Recurring
Assets:
Cash and Investments held in Trust Account	3,126,546	4,291,332
Level 1 \| Recurring \| Public Warrants
Liabilities:
Warrant liability	276,000	207,690
Level 3 \| Recurring
Liabilities:
Derivative liability		2,202
Level 3 \| Recurring \| Private Warrants
Liabilities:
Warrant liability	$ 200,533	$ 168,754

RECURRING FAIR VALUE MEASUREMENTS - Key inputs into the Monte Carlo simulation model for the Warrants (Details)	Jun. 30, 2024 Y $ / shares	Dec. 31, 2023 Y $ / shares
Risk-free interest rate
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input	0.0516	0.0491
Expected term (years)
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input \| Y	0.86	0.87
Expected volatility
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input		0.057
Stock Price
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input \| $ / shares	11.67	10.33
Exercise Price
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input	0.115	0.115

RECURRING FAIR VALUE MEASUREMENTS - Change in the fair value of the warrant liabilities classified as Level 3 (Details) - Level 3 - USD ($)	3 Months Ended
	Jun. 30, 2024	Mar. 31, 2024
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Fair value at beginning of period	$ 251,578	$ 168,754
Change in fair value	(51,045)	82,824
Fair value at end of period	$ 200,533	$ 251,578

SUBSEQUENT EVENTS (Details) - USD ($)				1 Months Ended	6 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Aug. 05, 2024	Jul. 23, 2024	Jul. 22, 2024	Nov. 30, 2022	Jun. 30, 2024	Jun. 30, 2023	Aug. 02, 2024	Aug. 01, 2024	Jul. 24, 2024	Oct. 04, 2023
SUBSEQUENT EVENTS
Disbursal of payments to trust account					$ 80,129	$ 63,590
Gaius Investment Partners
SUBSEQUENT EVENTS
Material related party transaction					$ 1,216,000
PIPE Equity Subscription Agreement
SUBSEQUENT EVENTS
Capital shares reserve for issuance				1,500,000
Aggregate purchase price of shares in subscription agreement				$ 15,000,000
Subsequent Events \| Gaius Investment Partners
SUBSEQUENT EVENTS
Material related party transaction									$ 1,216,000
Subsequent Events \| PIPE Equity Subscription Agreement
SUBSEQUENT EVENTS
Capital shares reserve for issuance		2,500,000	1,500,000
Aggregate purchase price of shares in subscription agreement		$ 25,000,000	$ 15,000,000
Subsequent Events \| Liminatus
SUBSEQUENT EVENTS
Disbursal of payments to trust account	$ 17,222
Promissory Note with Related Party \| Liminatus
SUBSEQUENT EVENTS
Maximum Borrowing Capacity of Related Party Promissory Note										$ 1,500,000
Promissory Note with Related Party \| Subsequent Events
SUBSEQUENT EVENTS
Maximum Borrowing Capacity of Related Party Promissory Note							$ 3,500,000	$ 2,500,000

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