Iris Acquisition Corp, a blank check company formed to pursue a business combination, reported a net loss of $2.9 million for the fiscal year ending December 31, 2024, compared to a loss of $1.2 million in the previous year. The company's total assets decreased to approximately $2.83 million from $4.50 million in 2023, primarily due to significant redemptions of Class A common stock and operational costs. As of December 31, 2024, the company had $65,343 in cash and a working capital deficit of approximately $7.87 million, raising concerns about its ability to continue as a going concern.
The company has been actively pursuing a business combination with Liminatus Pharma, LLC, which focuses on developing a next-generation CD47 checkpoint inhibitor for oncology applications. The business combination agreement was initially signed on November 30, 2022, and has undergone several amendments to extend the deadline for completion to June 30, 2025. The agreement includes provisions for a PIPE investment, which has been adjusted from $15 million to $25 million, reflecting changes in the commitment from the PIPE investor.
Operationally, Iris Acquisition Corp has faced challenges, including a significant number of redemptions by stockholders. In the latest special meeting held on March 4, 2025, stockholders redeemed 59,844 shares at a price of approximately $11.74 per share. This trend of redemptions has impacted the funds available in the trust account, which decreased to $2.02 million by the end of 2024. The company has also reported a material weakness in its internal controls over financial reporting, which could affect its ability to accurately report financial results in the future.
Looking ahead, Iris Acquisition Corp's management has expressed optimism about completing the business combination with Liminatus, which they believe will create long-term value for shareholders. However, the company must navigate various risks, including market conditions, regulatory approvals, and the potential for further redemptions that could hinder its financial stability. The management team is actively working on remediation plans to address identified weaknesses in internal controls and is focused on securing the necessary financing to support the business combination and ongoing operations.
About Iris Acquisition Corp
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