Iris Acquisition Corp Reports Q3 2024 Financial Results with Increased Net Loss

Iris Acquisition Corp has reported its financial results for the third quarter of 2024, revealing a net loss of $642,900 for the three months ending September 30, 2024, compared to a loss of $323,891 for the same period in 2023. The company incurred formation and operating costs of $1,019,694 during the quarter, which is a significant increase from $676,321 in the prior year. For the nine months ended September 30, 2024, the net loss totaled $2,035,985, up from $739,623 in the same period of 2023. The increase in losses is attributed to higher operating costs and a decrease in interest income from investments held in the Trust Account.

The company’s total assets decreased to $3,068,186 as of September 30, 2024, down from $4,502,213 at the end of 2023. This decline is primarily due to a reduction in cash and investments held in the Trust Account, which fell from $4,291,332 to $2,673,999. Current liabilities also increased significantly, rising to $7,535,622 from $5,158,553, largely driven by higher accounts payable and accrued expenses. The stockholders’ deficit widened to $16,707,161, compared to $14,742,434 at the end of the previous fiscal year.

Strategically, Iris Acquisition Corp is in the process of completing a business combination with Liminatus Pharma, LLC, a biotech company focused on oncology. The business combination agreement has been amended multiple times, with the latest extension allowing for completion by December 31, 2024. The company has also seen a reduction in the number of shares subject to redemption, with 238,930 shares outstanding as of September 30, 2024, down from 406,609 shares at the end of 2023. This reflects ongoing efforts to manage shareholder redemptions as the company approaches its business combination deadline.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on finalizing its merger with Liminatus. The company’s cash position as of September 30, 2024, was $358,181, which includes $32,580 of restricted cash for tax payments. The company has indicated that it may need to secure additional financing to complete the business combination or to address potential redemptions of public shares. Management has expressed concerns regarding the company’s ability to continue as a going concern if the business combination is not completed by the end of the year.

Looking ahead, Iris Acquisition Corp is actively pursuing the completion of its business combination with Liminatus, which is expected to enhance its operational capabilities in the biotech sector. The company is also evaluating its liquidity needs and may seek additional financing to support its operations and business combination efforts. The management remains focused on navigating the complexities of the merger process while addressing the financial challenges highlighted in its recent filings.