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Iris Acquisition p(IRAA) - 2023 Q3 - Quarterly Report
IRAAIris Acquisition p(IRAA)2024-01-12 21:20

Financial Performance - For the three months ended September 30, 2023, the company reported a net loss of 323,891,whichincluded323,891, which included 421,853 of interest income on marketable securities held in the Trust Account [151]. - For the nine months ended September 30, 2023, the company had a net loss of 739,623,withformationandofferingcostsamountingto739,623, with formation and offering costs amounting to 1,943,512 [153]. - For the nine months ended September 30, 2023, net cash used in operating activities was 1,462,079,primarilyduetothenetlossandunrealizedgainsonfairvalueofwarrantliabilities[156].−ThecompanyhasnotgeneratedanyoperatingrevenuestodateandwillnotdosountilthecompletionofitsinitialBusinessCombination[150].−Thecompanyhasincurredsignificantcostsrelatedtoitsacquisitionplans,raisingdoubtsaboutitsabilitytocontinueasagoingconcern[162].CashandWorkingCapital−AsofSeptember30,2023,thecompanyhad1,462,079, primarily due to the net loss and unrealized gains on fair value of warrant liabilities [156]. - The company has not generated any operating revenues to date and will not do so until the completion of its initial Business Combination [150]. - The company has incurred significant costs related to its acquisition plans, raising doubts about its ability to continue as a going concern [162]. Cash and Working Capital - As of September 30, 2023, the company had 337,721 in its operating bank account and a working capital deficit of 4,191,415[155].−Thecompanyhadcashprovidedbyinvestingactivitiesof4,191,415 [155]. - The company had cash provided by investing activities of 11,432,625 for the nine months ended September 30, 2023, resulting from cash proceeds from the Trust Account [158]. - For the nine months ended September 30, 2023, net cash used in financing activities was 9,913,465,primarilyduetoClassACommonStockredemptions[159].BusinessCombinationandOperations−ThecompanyexecutedaBusinessCombinationAgreementwithLiminatusPharma,LLConNovember30,2022,intendingtousecashfromtheIPOproceedsforthebusinesscombination[135].−Stockholdersredeemed26,186,896PublicSharesforapproximately9,913,465, primarily due to Class A Common Stock redemptions [159]. Business Combination and Operations - The company executed a Business Combination Agreement with Liminatus Pharma, LLC on November 30, 2022, intending to use cash from the IPO proceeds for the business combination [135]. - Stockholders redeemed 26,186,896 Public Shares for approximately 10.08 per share, totaling an aggregate redemption amount of $263,963,913 [140]. - The company extended the deadline for consummating a business combination to December 9, 2023, with the possibility of an additional three-month extension [145]. - If the company cannot complete a Business Combination by March 9, 2024, it will cease operations except for liquidation purposes [163]. - The company has not made adjustments to the carrying amounts of assets or liabilities in the event of liquidation after the Combination Period [163]. Accounting and Financial Reporting - Common stock subject to possible redemption is classified as temporary equity and presented at redemption value outside of stockholders' equity [165]. - Derivative financial instruments, including warrants, are recorded at fair value and re-valued at each reporting date [166]. - The company applies the residual method to allocate IPO proceeds between Class A common stock and warrants [167]. - Management does not believe that recently issued accounting standards will have a material effect on the financial statements [168]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [169].