Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2023

☐ 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)		(I.R.S. 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) (Zip Code)

971 4 3966949

(Registrant’s telephone number, including area code)

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,” “smaller reporting company” and “emerging growth 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 January 12, 2024, there were 7,306,609 shares of the registrant’s Class A common stock, par value $0.0001 per share, issued and outstanding, and 0 shares of the registrant’s Class B common stock, par value $0.0001 per share, issued and outstanding.

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IRIS ACQUISITION CORP

TABLE OF CONTENTS

		Page
PART I- FINANCIAL INFORMATION

Item 1.	Condensed Financial Statements

	Condensed Balance Sheets as of September 30, 2023 (Unaudited) and December 31, 2022	1

	Unaudited Condensed Statements of Operations for the three and nine months ended September 30, 2023 and 2022	2

	Unaudited Condensed Statements of Changes in Stockholders’ Deficit for the three and nine months ended September 30, 2023 and 2022	3

	Unaudited Condensed Statements of Cash Flows for the nine months ended September 30, 2023 and 2022	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

IRIS ACQUISITION CORP

CONDENSED BALANCE SHEETS


	September 30, 2023		December 31, 2022
	(Unaudited)
Assets
Current assets
Cash	$	337,721	$	280,640
Due from Sponsor		1,256		1,256
Prepaid expenses and other current assets		17,500		78,753
Total current assets		356,477		360,649
Cash and cash equivalents held in Trust Account		4,201,546		15,127,621
Total Assets	$	4,558,023	$	15,488,270

Liabilities, Common Stock Subject to Possible Redemption and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses	$	2,219,220	$	1,489,462
Due to related party		75,000		75,000
Franchise tax payable		56,400		447,133
Income taxes payable		366,365		539,823
Excise tax payable		103,587		—
Promissory note – related party		1,433,720		1,040,000
Promissory note - Liminatus		350,000		—
Total current liabilities		4,604,292		3,591,418
Deferred underwriting fee payable		9,660,000		9,660,000
Warrant liability		499,920		942,646
Total Liabilities		14,764,212		14,194,064

Commitments and Contingencies (Note 7)
Class A common stock subject to possible redemption, 406,609 and 1,413,104 shares at $9.82 and $10.71 redemption value at September 30, 2023 and December 31, 2022, respectively		3,991,065		15,127,621

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 and 0 shares issued and outstanding (excluding 406,609 and 1,413,104 shares subject to possible redemption) at September 30, 2022 and December 31, 2022, respectively		690		—
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 0 and 6,900,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		—		690
Additional paid-in capital		140,000		140,000
Accumulated deficit		(14,337,944)		(13,974,105)
Total Stockholders’ Deficit		(14,197,254)		(13,833,415)
Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders' Deficit	$	4,558,023	$	15,488,270

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		Nine Months Ended		Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2023		2022		2023		2022
Formation and operating costs	$	(676,321)	$	(258,685)	$	(1,943,512)	$	(1,135,308)
Forgiveness of unrelated vendor payables		—		579,989		275,000		579,989
(Loss) income from operations		(676,321)		321,304		(1,668,512)		(555,319)

Other income (expense):
Unrealized (loss) gain on fair value of warrant liabilities		(45,822)		1,261,428		442,726		9,866,638
Interest income on marketable securities held in Trust Account		421,853		36,037		506,550		203,947
Unrealized gain on investments held in Trust Account		—		1,256,457		—		888,375
Total other income, net		376,031		2,553,922		949,276		10,958,960
(Loss) income before provision for income taxes		(300,290)		2,875,226		(719,236)		10,403,641
Provision for income taxes		(23,601)		(143,750)		(20,387)		(143,750)
Net (loss) income	$	(323,891)	$	2,731,476	$	(739,623)	$	10,259,891

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption		1,977,122		27,600,000		1,603,176		27,600,000
Basic and diluted net income (loss) per share, Class A common stock subject to possible redemption	$	(0.04)	$	0.08	$	(0.09)	$	0.30
Basic and diluted weighted average shares outstanding, Class B common stock		6,150,000		6,900,000		6,647,253		6,900,000
Basic and diluted net income (loss) per share, Class B common stock	$	(0.04)	$	0.08	$	(0.09)	$	0.30

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 NINE MONTHS ENDED SEPTEMBER 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)
Remeasurement of Class A common stock to redemption amount		—		—		—		—		—		—		—
Net income		—		—		—		—		—		232,984		232,984
Balance at June 30, 2023		—		—		6,900,000	$	690	$	140,000	$	(14,090,992)	$	(13,950,302)
Remeasurement of Class A common stock to redemption amount		—		—		—		—		—		180,526		180,526
Excise tax payable attributable to redemption of common stock		—		—		—		—		—		(103,587)		(103,587)
Conversion of Class B common stock to Class A common stock		6,900,000		690		(6,900,000)		(690)		—		—		—
Net loss		—		—		—		—		—		(323,891)		(323,891)
Balance at September 30, 2023		6,900,000	$	690		—	$	—	$	140,000	$	(14,337,944)	$	(14,197,254)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2022


	Class B Common Stock			Additional		Accumulated		Total Stockholders’
	Shares	Amount		Paid-in Capital		Deficit		Deficit
Balance as of January 1, 2022	6,900,000	$	690	$	—	$	(21,131,825)	$	(21,131,135)
Net income	—		—		—		3,815,727		3,815,727
Balance at March 31, 2022	6,900,000		690		—		(17,316,098)	$	(17,315,408)
Forgiveness of payable due to an affiliate of the Sponsor	—		—		140,000		—		140,000
Remeasurement of Class A common stock to redemption amount	—		—		—		183,329		183,329
Net income	—		—		—		3,712,688		3,712,688
Balance at June 30, 2022	6,900,000	$	690	$	140,000	$	(13,420,081)	$	(13,279,391)
Remeasurement of Class A common stock to redemption amount	—		—		—		(1,292,494)		(1,292,494)
Net income	—		—		—		2,731,476		2,731,476
Balance at September 30, 2022	6,900,000	$	690	$	140,000	$	(11,981,099)	$	(11,840,409)

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)


	Nine Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	2023		2022
Cash Flows from Operating Activities:
Net income (loss)	$	(739,623)	$	10,259,891
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Unrealized gain on fair value of warrant liability		(442,726)		(9,866,638)
Interest income on marketable securities held in Trust Account		(506,550)		(203,947)
Unrealized gain on Investments held in Trust Account		—		(888,375)
Deferred taxes		—		141,518
Forgiveness of unrelated vendor payables		(275,000)		(579,989)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		61,253		(122,397)
Franchise tax payable		(390,733)		150,829
Income taxes payable		(173,458)		2,232
Due to related party		—		125,000
Accounts payable and accrued expenses		1,004,758		(63,687)
Net cash used in operating activities		(1,462,079)		(1,045,563)

Cash Flows from Investing Activities:
Proceeds from Trust Account for redemptions		10,657,185		—
Proceeds from Trust Account for tax payments		853,261		—
Advances to Trust Account		(77,821)		—
Net cash provided by investing activities		11,432,625		—

Cash Flows from Financing Activities:
Redemption of Class A Common Stock		(10,657,185)		—
Proceeds from related party loan		400,000		—
Repayment of related party loan		(400,000)		—
Proceeds from promissory note - related party		393,720		840,000
Proceeds from promissory note - Liminatus		350,000		—
Net cash (used in) provided by financing activities		(9,913,465)		840,000

Net Change in Cash		57,081		(205,563)
Cash, beginning of period		280,640		336,228
Cash, end of period	$	337,721	$	130,665

Supplemental disclosure of cash and non - cash operating and financing activities:
Income taxes paid	$	193,845	$	—
Excise tax payable	$	103,587	$	—
Conversion of Class B common stock to Class A common stock	$	690	$	—
Accretion of Class A common stock subject to redemption value	$	479,371	$	1,109,165
Forgiveness of payable due to an affiliate of the Sponsor	$	—	$	140,000

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” or “Iris”) formerly 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 September 30, 2023, the Company had not commenced any operations. All activity for the period from November 5, 2020 (inception) through September 30, 2023 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, 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. 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 24 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 24 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 and on the conditions described herein. The amount in the Trust Account is initially approximately $10.00 per public share. The per share amount the 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.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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 had 24 months from the closing of the IPO to complete the initial Business Combination which has been extended to March 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, 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 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 a clinical stage life sciences and pre-revenue company developing Guanylyl Cyclase C (“GCC”) chimeric antigen receptor (“CAR”)-T products and a GCC cancer vaccine, known as Ad5.F35-hGCC-PADRE (“Ad5hGCC-PADRE”), which it has licensed from

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Targeted Diagnostics & Therapeutics, Inc. (“TDT”). The Company is developing GCC CAR-T cell therapies to treat metastatic gastrointestinal cancers. The safety of Ad5hGCC-PADRE was established in a successful U.S. Food and Drug Administration (“FDA”) phase I clinical trial in November 2015 and the vaccine began an FDA phase IIa clinical trial in the fourth calendar quarter of 2019.

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.

On December 20, 2022, the Company, filed with the Secretary of State of the State of Delaware an amendment (the “Extension Amendment”) to the Company’s amended and restated certificate of incorporation to change the date by which the Company must consummate a business combination from March 9, 2023 to June 9, 2023 (subject to an additional three month extension at the discretion of the Board of Directors of the Company (the “Board”)). The Company’s stockholders approved the Extension Amendment at a special meeting of stockholders of the Company (the “Special Meeting”) on December 20, 2022.

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. During the nine months ended September 30, 2023, the redemption price was adjusted which resulted in the net payment of $298,431 of the second tranche redemption payment.

On May 30, 2023, the Board held a meeting and extended the date by which the Company must consummate a Business Combination for a three month period from June 9, 2023 to September 9, 2023. Consistent with this extension by the 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, the Company filed a preliminary proxy statement with the SEC containing a proposal to stockholders to amend the Company’s amended and restated certificate of incorporation to, among other things, extend the date by which the Company 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, the Company filed with the Secretary of State of the State of Delaware an amendment to the Company's amended and restated certificate of incorporation to: (i) to change the date by which the Company must consummate a business combination to December 9, 2023 (the “Second Extension Amendment”) (subject to an additional three month extension at the discretion of the Board); (ii) to remove from the charter the limitation on share repurchases prior to the consummation of a business combination that would cause the Company's net tangible assets to be less than $5,000,001 following such repurchases, and the limitation that the Company shall not consummate a business combination if it would cause the Company's 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

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provide for the right of a holder of shares of the Class B common stock of the Company, par value $0.0001 per share, to convert such shares into shares of the Company's 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”).

The Company's stockholders approved the Charter Amendments at a special meeting of stockholders of the Company (the “ Second Special Meeting”) on September 7, 2023.

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 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.

Liquidity, Capital Resources and Going Concern

The Company consummated its IPO on March 9, 2021. As of September 30, 2023 and December 31, 2022, the Company had $337,721 and $280,640 in its operating bank account, and a working capital deficit of $4,191,415 and $2,783,636, respectively, which excludes $56,400 and $447,133 of franchise taxes payable which may be paid from interest earned on the Trust Account. 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 September 30, 2023 and December 31, 2022, there were no Working Capital Loans outstanding.

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.

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 if the Company is unable to complete a Business Combination by March 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 March 9, 2024, either party can terminate the Business Combination Agreement.

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.

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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 18, 2023, as amended. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 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. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liabilities. Actual results could differ from those 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 September 30, 2023 and December 31, 2022. As of September 30, 2023 and December 31, 2022, the Company had operating cash (i.e. cash held outside the Trust Account) of $337,721 and $280,640, respectively.

Cash and Cash Equivalents Held in the Trust Account

As of September 30, 2023, the Company had a total of $4,201,546 in the Trust Account held in cash equivalents. As of December 31, 2022, the Company had a total of $15,127,621 in the Trust Account held in cash.

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 September 30, 2023 and December 31, 2022, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

On May 1, 2023, JPMorgan Chase & Co. acquired all deposit accounts and substantially all the assets and assumed certain of the liabilities of First Republic Bank (“FRB”) following a seizure by the U.S. Federal Deposit Insurance Corporation. The Company maintained cash deposits with FRB. The Company experienced no material impact on its condensed financial statements or day-to-day operations as a result of these developments.

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Forgiveness of Unrelated Vendor Payables

The Company negotiated and certain vendors agreed to forgive outstanding payables. For the nine months ended September 30, 2023, the outstanding balance totaled $350,000 was settled for cash payments totaling $75,000. For the nine months ended September 30, 2022, the outstanding payables totaled $829,989 and was settled for cash payments totaled $250,000. As the Company was unable to provide payment in full, a compromise for a one - time lump - payment was agreed upon for each vendor. For the nine months ended September 30, 2023 and 2022, the amount forgiven of the outstanding payables totaled $275,000 and $579,989, respectively, and were 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 $9.82 and $10.71 as of September 30, 2023 and December 31, 2022, respectively, as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheets.

Net (Loss) Income 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. 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 per share, since their exercise is contingent upon future events. As a result, diluted net (loss) income per share of common stock is the same as basic net income 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 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 per share for each class of common stock:

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	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share
Numerator:
Net income (loss)		(78,794)		(245,097)		2,185,181		546,295		(143,719)		(595,904)		8,207,913		2,051,978
Denominator:
Basic and diluted weighted average shares outstanding		1,977,122		6,150,000		27,600,000		6,900,000		1,603,176		6,647,253		27,600,000		6,900,000
Basic and diluted net income (loss) per common share	$	(0.04)	$	(0.04)	$	0.08	$	0.08	$	(0.09)	$	(0.09)	$	0.30	$	0.30

Offering Costs

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A—Expenses of Offering. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the IPO. Offering costs are charged to stockholders’ equity or the statement of operations based on the relative value of the Public Warrants to the proceeds received from the Units sold upon the completion of the IPO. Offering costs totaled $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 included in the statement of operations and (ii) $15,021,271 was charged directly to stockholders’ equity.

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.

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.

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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 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 condensed 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.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s condensed 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 September 30, 2023 and December 31, 2022. 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.

The Company files income tax returns in the U.S. federal jurisdiction in various state and local jurisdictions, and is subject to examination by the various taxing authorities. The Company was incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis.

Recent Accounting Pronouncements

In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, “Debt -- Debt with Conversion and Other Options” (Subtopic 470-20) and “Derivatives and Hedging - Contracts in Entity’s Own Equity” (Subtopic 815-40): “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU 2020-06 also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception, and it simplifies the diluted earnings per share calculation in certain areas. The Company adopted ASU 2020-06 on January 1, 2021. Adoption of ASU 2020-06 did not impact the Company’s financial position, results of operations or cash flows.

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

Management continues to evaluate the impact of the COVID - 19 pandemic on the Company's business objectives and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company's financial position, results of its operations, and/or search for a target company, the specific impact is not readily determinable as of the date of these condensed financial statements. The condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Additionally, as a result of the military action commenced in February 2022 by the Russian Federation and Belarus in the country of Ukraine and related economic sanctions, the Company’s ability to consummate a Business Combination, or the operations of a target business with which the Company ultimately consummates a Business Combination, may be materially and adversely affected. Further, the Company’s ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the Company’s financial position, results of operations and/or ability to consummate a Business Combination are not yet determinable. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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. However, 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.

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. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change.

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 September 30, 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.

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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.

On December 20, 2022, the Company, filed with the Secretary of State of the State of Delaware the Extension Amendment to the Company’s amended and restated certificate of incorporation to change the date by which the Company must consummate a business combination from March 9, 2023 to June 9, 2023 (subject to an additional three month extension at the discretion of the Board). The Company’s stockholders approved the Extension Amendment at the Special Meeting on December 20, 2022.

On May 30, 2023, the Board held a meeting and extended the date by which the Company must consummate a Business Combination for a three month period from June 9, 2023 to September 9, 2023. Consistent with this extension by the Board, the parties to the Business Combination Agreement amended the Business Combination Agreement on June 1, 2023, to extend the Outside Date from June 7, 2023, to September 30, 2023.

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

The Company’s stockholders approved the Charter Amendments the Second Special Meeting on September 7, 2023.

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NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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.

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.

As of September 30, 2023 and December 31, 2022, 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, 2022	$	15,127,621
Less: Remeasurement of carrying value to redemption value		(298,845)
Less: Adjustment to share price for shares redeemed in December 2022		(305,008)
Class A common stock subject to possible redemption as March 31, 2023		14,523,768
Less: Adjustment to share price for shares redeemed in December 2022		6,577
Class A common stock subject to possible redemption as June 30, 2023		14,530,345
Less: Remeasurement of carrying value to redemption value		(180,526)
Less: Shares redeemed in September 2023		(10,358,754)
Class A common stock subject to possible redemption as September 30, 2023	$	3,991,065

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, 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.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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 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.

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.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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 by December 31, 2022. As of September 30, 2023 and December 31, 2022, the outstanding note was not repaid.

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 March 1, 2023. 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 September 30, 2023 and December 31, 2022, 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 payable on the earlier of June 22, 2023 or the consummation of a business combination. 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 September 30, 2023 and December 31, 2022, the Company’s outstanding balance was $593,720 and $200,000, respectively under this loan.

The total balance outstanding on the promissory notes - related party is $1,433,720 and $1,040,000 at September 30, 2023 and December 31, 2022, 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 would 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 nine months ended September 30, 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 September 30, 2023 and December 31, 2022, the Company had no borrowings under the Working Capital Loans.

Administrative Support Agreement

Subsequent to the closing of the IPO, the Company began paying an affiliate of the Sponsor, Tribe Capital Markets LLC (“Tribe”) $10,000 per month for office space, secretarial and administrative services provided to members of the Company’s management team. Upon completion of the initial Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2023, the Company did not incur any expenses. For the three and nine months ended September 30, 2022, the Company incurred $0 and $50,000, respectively of administrative service fees, respectively, which are included in formation and operating costs on the condensed statements of operations. As of September 30, 2023 and December 31, 2022, $0 related to this agreement is recorded in due to related party on the condensed balance sheets. As of September 30, 2023 and December 31, 2022, the due to related party consists of $75,000 from the Sponsor to a vendor to pay for consulting services on behalf of the Company.

On June 1, 2022, Tribe withdrew as a member of the Sponsor. In conjunction with its withdrawal as a member, Tribe resigned as the managing member of the Sponsor effective June 1, 2022. Members holding a majority of the membership interest in the Sponsor appointed Arrow Multi Asset Fund – Arrow SP6 (“Arrow”) as the managing member of the Sponsor effective June 1, 2022. Following the withdrawal of Tribe as a member of the Sponsor, the $140,000 of administrative expense payable as of June 1, 2022 was forgiven and reclassified as a capital contribution.

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 August 2, 2023 and September 11, 2023, Liminatus advanced amounts totaling $350,000, which are acknowledged as principal under the Note. As of September 30, 2023, the Company's outstanding balance was $350,000 from the advances.

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.

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 both September 30, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding.

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 September 30, 2023 and December 31, 2022, there were 7,306,609 and 1,413,104 shares issued and outstanding, and only 406,609 shares are subject to possible redemption.

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 September 30, 2023 and December 31, 2022, there were 0 and 6,900,000 shares of Class B common stock outstanding.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

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 are 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 nine months ended September 30, 2023 and 2022 was (2.8)% and 1.4%, respectively. The Company’s effective tax rate for the three months ended September 30, 2023 and 2022 was (7.9)% and 5.0%, 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, non-deductible transaction costs, prior year return to provision adjustment, and change in the valuation allowance. The Company has used a discrete effective tax rate method to calculate taxes for the nine months ended September 30, 2023. The Company believes that, at this time, the use of the discrete method for the nine months ended September 30, 2023 is appropriate as the estimated annual effective tax rate method.

NOTE 10. RECURRING FAIR VALUE MEASUREMENTS

As of September 30, 2023 and December 31, 2022, the Company’s warrant liabilities were valued at $499,920 and $942,646, 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 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. During the year ended December 31, 2021, the Public Warrants were reclassified from a Level 3 to a Level 1 classification.

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

The following table presents fair value information as of September 30, 2023 and December 31, 2022 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
September 30, 2023 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	4,201,546	$	4,201,546	$	—	$	—
Liabilities:
Public Warrants	$	276,000	$	276,000	$	—	$	—
Private Warrants	$	223,920	$	—	$	—	$	223,920
December 31, 2022
Assets:
Cash held in Trust Account:	$	15,127,621	$	15,127,621	$	—	$	—
Liabilities:
Public Warrants	$	524,400	$	524,400	$	—	$	—
Private Warrants	$	418,246	$	—	$	—	$	418,246

Measurement - The Company established the initial fair value for the warrants on March 9, 2021, the date of the consummation of the IPO. On September 30, 2023 and December 31, 2022, 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 September 30, 2023 and December 31, 2022. For September 30, 2023 and December 31, 2022, 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, September 30, 2023 and December 31, 2022:



	September 30, 2023
	(Unaudited)		December 31, 2022
Risk-free interest rate	5.48	%	4.75	%
Expected term (years)	0.83		0.69
Expected volatility	4.2	%	11.1	%
Exercise Price	11.50		11.50

The change in the fair value of the warrant liabilities classified as Level 3 for the three and nine months ended September 30, 2023 and the year ended December 31,2022 is summarized as follows:


Fair value at January 1, 2022	$	4,594,820
Change in fair value		(1,977,860)
Fair value at March 31, 2022		2,616,960
Change in fair value		(1,789,760)
Fair value at June 30, 2022		827,200
Change in fair value		(536,427)
Fair value at September 30, 2022		290,773
Change in fair value		127,473
Fair value at December 31, 2022		418,246
Change in fair value		42,015
Fair value at March 31, 2023		460,261
Change in fair value		(255,943)
Fair value at June 30, 2023		204,318
Change in fair value		19,602
Fair value at September 30, 2023	$	223,920

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IRIS ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 11. SUBSEQUENT EVENTS

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

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.

On November 27, 2023, December 11, 2023, December 21, 2023, and January 5, 2023, the Company obtained additional advances under the Liminatus unsecured promissory note totaling $1,168,500, which resulted in a total outstanding principal balance of $1,518,500.

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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 “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 the 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 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 our IPO was declared effective by the SEC on March 4, 2021. On March 9, 2021, we 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, we 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 us of $7,520,000.

On June 1, 2022, Tribe Capital Markets LLC (“Tribe”) withdrew as a member of our Sponsor. In connection with the withdrawal of Tribe as a member of our Sponsor: (1) on July 26, 2022 the following actions occurred: (i) Arjun Sethi resigned in his capacity as our Chairman and Chief Executive Officer, (ii) Henry Ward resigned from his role as an independent director of the Company, (iii) Omar Chohan resigned from his role as our Chief Financial Officer, and (v) Ted Maidenberg resigned from his role as our Secretary; and (2) on July 27, 2022 the following actions occurred (i) our Sponsor changed its name from Tribe Arrow Holdings I LLC, to Iris Acquisition Holdings LLC, and (ii) our strategy to identify a target business was revised as described in Item 8.01 of its Form 8-K filed on July 27, 2022. The director and officer departures were not the result of any disagreement between us and such individuals on any matter relating to our operations, policies, or practices.

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Effective July 26, 2022, the board of directors of the Company appointed (i) Sumit Mehta to serve as our Chief Executive Officer, (ii) Lisha Parmar to serve as our Chief Financial Officer, and (iii) Omkar Halady to serve as our Vice President. Also, Rohit Nanani was elevated from member to Chairman of the board of directors of the Company.

On August 30, 2022, the board appointed Manish Shah to serve as a director until our next annual meeting of stockholders.

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

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

On September 7, 2023, the Company filed with the Secretary of State of the State of Delaware an amendment to the Company’s amended and restated certificate of incorporation to: (i) to change the date by which the Company must consummate a business combination to December 9, 2023 (the “ Second Extension Amendment”) (subject to an additional three month extension at the discretion of the Board); (ii) to remove from the charter the limitation on share repurchases prior to the consummation of a business combination that would cause the Company’s net tangible assets to be less than $5,000,001 following such repurchases, and the limitation that the Company shall not consummate a business combination if it would cause the Company’s 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 of the Company, par value $0.0001 per share, to convert such shares into shares of the Company’s 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”).

The Company’s stockholders approved the Charter Amendments at a special meeting of stockholders of the Company (the “ Second Special Meeting”) on September 7, 2023.

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.

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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 September 30, 2023 were organizational activities, those necessary to prepare for our IPO, and identify a target company for our initial Business Combination. We generate non-operating interest income from 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 September 30, 2023, we had a net loss of $323,891, which consisted of income of $45,822 unrealized loss on fair value of warrants, $676,321 of formation and offering costs, and provision for income taxes of $23,601 and partially offset by $421,853 of interest income on marketable securities held in Trust Account.

For the three months ended September 30, 2022, we had a net income of $2,731,476, which consisted of income of $579,989 for the forgiveness of unrelated vendor payables, a $1,261,428 unrealized gain on fair value of warrants, unrealized gain on investments held in the Trust Account of $1,256,457 and interest income on investments held in the Trust Account of $36,037, partially offset by $258,685 of formation and operating costs and provision for income taxes of $143,750.

For the nine months ended September 30, 2023, we had a net loss of $739,623, which consisted of $1,943,512 of formation and offering costs, offset by an unrealized gain on fair value of warrant liabilities of $442,726, forgiveness of unrelated payables for $275,000, interest income on marketable securities held in the Trust Account of $506,550 and income tax provision of $20,387.

For the nine months ended September 30, 2022, we had a net income of $10,259,891, which consisted of an unrealized gain on the fair value of warrant of $9,866,638 and interest income on marketable securities held in the Trust Account of $203,947, unrealized gain on investments held in the Trust Account of $888,375, and forgiveness of unrelated vendor payables of $579,989 partially offset by $1,135,308 of formation and operating costs and provision of income taxes of $143,750.

Liquidity and Capital Resources

We consummated our IPO on March 9, 2021. As of September 30, 2023 and December 31, 2022, we had $337,721 and $280,640 in our operating bank account, working capital deficit of $4,191,415 and $2,783,636, which excludes franchise taxes payable which may be paid from interest earned on the Trust Account. 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 September 30, 2023 and December 31, 2022, there were no Working Capital Loans outstanding.

For the nine months ended September 30, 2023, net cash used in operating activities was $1,462,079, which was due to our net loss of $739,623, unrealized gain on fair value of warranty liability of $442,726, forgiveness of unrelated vendor payables of $275,000, and interest earned on cash and Investments held in Trust Account of $506,550, partially offset by changes in operating assets and liabilities of $501,820.

For the nine months ended September 30, 2022, net cash used in operating activities was $1,045,563, which was due to a unrealized gain on fair value of warrant liability of $9,866,638, an unrealized gain on investments held in the Trust Account of $888,375, interest earned on investments held in the Trust Account of $203,947, and forgiveness of unrelated vendor payables of $579,989, which was partially offset by our net income of $10,259,891, deferred taxes of $141,518, and a change in operating assets and liabilities of $91,977.

For the nine months ended September 30, 2023, there was cash provided by investing activities of $11,432,625, which was the result of cash proceeds from Trust Account for tax payments and redemption adjustments of $11,510,446, offset by advances to the Trust Account of $77,821.

For the nine months ended September 30, 2022, there were no cash flows from investing activities.

For the nine months ended September 30, 2023, net cash used in financing activities was $9,913,465, which was a result of Class A Common Stock that was redeemed in December 2022 and September 2023 for $10,657,185, which was offset by proceeds from the promissory note from a related party for $393,720 and the proceeds from the promissory note from Liminatus for $350,000.

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For the nine months ended September 30, 2022, net cash provided by financing activities was $840,000 which was a result of the proceeds from the promissory note from a related party for $840,000.

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.

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 if the Company is unable to complete a Business Combination by September 30, 2023 (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. On August 14, 2023, the parties to the Business Combination Agreement amended the Business Combination Agreement to extend the Combination Period from September 30, 2023 to March 9, 2024.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our financial condition and results of operations is based on our condensed financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these condensed financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our condensed financial statements. On an ongoing basis, we evaluate our estimates and judgments, including those related to fair value of financial instruments and accrued expenses. We base our estimates on historical experience, known trends and events and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We have identified the following as our critical accounting policies:

Common Stock Subject to Possible Redemption

We account for shares of common stock subject to possible redemption in accordance with the guidance in FASB Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity. 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 temporary equity. At all other times, shares of common stock are classified as a component of stockholders’ equity. Our 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 as temporary equity, outside of the stockholders’ equity section of the condensed balance sheets.

Derivative Financial Instruments

We evaluate our 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. 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. We have determined the warrants are a derivative instrument.

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ASC 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. We apply 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.

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 condensed 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 September 30, 2023, pursuant to Rule 13a-15(b) under the Exchange Act. Based upon that evaluation, our Certifying Officers concluded that, as of September 30, 2023, our disclosure controls and procedures were not effective.

Specifically, management’s determination was based on the following material weakness which existed as of December 31, 2022. Our internal controls did not detect an error in the classification related to complex financial instruments. Also, there are not controls in place to ensure the timely and accurate filings of tax returns. The Company has begun to develop a remediation which is more fully described below.

After identifying the material weakness, 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.

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 September 30, 2023 based on the material weakness 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

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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 are no material pending legal proceedings to which we or any of our subsidiaries is a party or to which any of our property is subject.

Item 1A. Risk Factors.

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 18, 2023, as amended.

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.

None.

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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
3.1***		Certificate of Incorporation.
3.2***		Form of 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***		Amended and Restated Bylaws.
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.

***Previously filed

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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 12, 2024	By:	/s/ Sumit Mehta
		Name: Sumit Mehta
		Title: Chief Executive Officer
		(Principal Executive Officer)

Date: January 12, 2024	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 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, 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) 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 12, 2024
	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 of Iris Acquisition Corp;

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 12, 2024
	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 for the fiscal period ended September 30, 2023, 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.


Date: January 12, 2024
	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 for the fiscal period ended September 30, 2023, 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.


Date: January 12, 2024
	By:	/s/ Lisha Parmar
		Lisha Parmar
		Chief Financial Officer
		(Principal Financial and
		Accounting Officer)

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Jan. 12, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
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		7,306,609
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 (UNAUDITED) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 337,721	$ 280,640
Due from Sponsor	$ 1,256	$ 1,256
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration]	Related party	Related party
Prepaid expenses and other current assets	$ 17,500	$ 78,753
Total current assets	356,477	360,649
Cash and cash equivalents held in Trust Account	4,201,546	15,127,621
Total Assets	4,558,023	15,488,270
Current liabilities
Accounts payable and accrued expenses	2,219,220	1,489,462
Due to related party	$ 75,000	$ 75,000
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related party	Related party
Franchise tax payable	$ 56,400	$ 447,133
Income taxes payable	366,365	539,823
Excise tax payable	103,587
Total current liabilities	4,604,292	3,591,418
Deferred underwriting fee payable	9,660,000	9,660,000
Warrant liability	499,920	942,646
Total Liabilities	14,764,212	14,194,064
Commitments and Contingencies (Note 7)
Stockholders' Deficit
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Additional paid-in capital	140,000	140,000
Accumulated deficit	(14,337,944)	(13,974,105)
Total Stockholders' Deficit	(14,197,254)	(13,833,415)
Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders' Deficit	4,558,023	15,488,270
Liminatus
Current liabilities
Promissory note - related party	350,000
Other affiliates
Current liabilities
Promissory note - related party	$ 1,433,720	$ 1,040,000
Notes Payable, Current, Related Party, Type [Extensible Enumeration]	Related party	Related party
Class A common stock subject to possible redemption
Current liabilities
Class A common stock subject to possible redemption, 406,609 and 1,413,104 shares at $9.82 and $10.71 redemption value at September 30, 2023 and December 31, 2022, respectively	$ 3,991,065	$ 15,127,621
Class A common stock not subject to possible redemption
Stockholders' Deficit
Common stock	$ 690
Class B common stock
Stockholders' Deficit
Common stock		$ 690

CONDENSED BALANCE SHEETS (Parenthetical) (UNAUDITED) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Redemption value per share	$ 9.82	$ 10.71
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
Class A common stock
Class A common stock subject to possible redemption, outstanding (in shares)	7,306,609	1,413,104
Common stock, par value, (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	280,000,000	280,000,000
Class A common stock subject to possible redemption
Class A common stock subject to possible redemption, outstanding (in shares)	406,609	1,413,104
Redemption value per share	$ 9.82	$ 10.71
Class A common stock not subject to possible redemption
Common stock, shares issued (in shares)	6,900,000	0
Common stock, shares outstanding (in shares)	6,900,000	0
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	6,900,000
Common stock, shares outstanding (in shares)	0	6,900,000

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Formation and operating costs	$ (676,321)	$ (258,685)	$ (1,943,512)	$ (1,135,308)
Forgiveness of unrelated vendor payables		579,989	275,000	579,989
(Loss) income from operations	(676,321)	321,304	(1,668,512)	(555,319)
Other income (expense):
Unrealized (loss) gain on fair value of warrant liabilities	(45,822)	1,261,428	442,726	9,866,638
Interest income on marketable securities held in Trust Account	421,853	36,037	506,550	203,947
Unrealized gain on investments held in Trust Account		1,256,457		888,375
Total other income, net	376,031	2,553,922	949,276	10,958,960
(Loss) income before provision for income taxes	(300,290)	2,875,226	(719,236)	10,403,641
Provision for income taxes	(23,601)	(143,750)	(20,387)	(143,750)
Net (loss) income	$ (323,891)	$ 2,731,476	$ (739,623)	$ 10,259,891
Class A common stock subject to possible redemption
Other income (expense):
Basic weighted average shares outstanding	1,977,122	27,600,000	1,603,176	27,600,000
Diluted weighted average shares outstanding	1,977,122	27,600,000	1,603,176	27,600,000
Basic net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30
Diluted net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30
Class B common stock
Other income (expense):
Basic weighted average shares outstanding	6,150,000	6,900,000	6,647,253	6,900,000
Diluted weighted average shares outstanding	6,150,000	6,900,000	6,647,253	6,900,000
Basic net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30
Diluted net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED) - USD ($)	Class A Common Stock Common Stock	Class B Common Stock Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2021		$ 690		$ (21,131,825)	$ (21,131,135)
Balance at the beginning (in shares) at Dec. 31, 2021		6,900,000
Increase (Decrease) in Stockholders' Equity
Net (loss) income				3,815,727	3,815,727
Balance at the end at Mar. 31, 2022		$ 690		(17,316,098)	(17,315,408)
Balance at the end (in shares) at Mar. 31, 2022		6,900,000
Balance at the beginning at Dec. 31, 2021		$ 690		(21,131,825)	(21,131,135)
Balance at the beginning (in shares) at Dec. 31, 2021		6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount					(1,109,165)
Net (loss) income					10,259,891
Balance at the end at Sep. 30, 2022		$ 690	$ 140,000	(11,981,099)	(11,840,409)
Balance at the end (in shares) at Sep. 30, 2022		6,900,000
Balance at the beginning at Mar. 31, 2022		$ 690		(17,316,098)	(17,315,408)
Balance at the beginning (in shares) at Mar. 31, 2022		6,900,000
Increase (Decrease) in Stockholders' Equity
Forgiveness of payable due to an affiliate of the Sponsor			140,000		140,000
Remeasurement of Class A common stock to redemption amount				183,329	183,329
Net (loss) income				3,712,688	3,712,688
Balance at the end at Jun. 30, 2022		$ 690	140,000	(13,420,081)	(13,279,391)
Balance at the end (in shares) at Jun. 30, 2022		6,900,000
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount				(1,292,494)	(1,292,494)
Net (loss) income				2,731,476	2,731,476
Balance at the end at Sep. 30, 2022		$ 690	140,000	(11,981,099)	(11,840,409)
Balance at the end (in shares) at Sep. 30, 2022		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	298,845
Net (loss) income				(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					(479,371)
Net (loss) income					(739,623)
Balance at the end at Sep. 30, 2023	$ 690		140,000	(14,337,944)	(14,197,254)
Balance at the end (in shares) at Sep. 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 (loss) income				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
Increase (Decrease) in Stockholders' Equity
Remeasurement of Class A common stock to redemption amount				180,526	180,526
Excise tax payable attributable to redemption of common stock				(103,587)	(103,587)
Conversion of Class B common stock to Class A common stock	$ 690	$ (690)
Conversion of Class B common stock to Class A common stock (in shares)	6,900,000	(6,900,000)
Net (loss) income				(323,891)	(323,891)
Balance at the end at Sep. 30, 2023	$ 690		$ 140,000	$ (14,337,944)	$ (14,197,254)
Balance at the end (in shares) at Sep. 30, 2023	6,900,000

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities:
Net income (loss)		$ (739,623)	$ 10,259,891
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Unrealized gain on fair value of warrant liability	$ (1,261,428)	(442,726)	(9,866,638)
Interest income on marketable securities held in Trust Account		(506,550)	(203,947)
Unrealized gain on Investments held in Trust Account			(888,375)
Deferred taxes			141,518
Forgiveness of unrelated vendor payables	(579,989)	(275,000)	(579,989)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		61,253	(122,397)
Franchise tax payable		(390,733)	150,829
Income taxes payable		(173,458)	2,232
Due to related party			125,000
Accounts payable and accrued expenses		1,004,758	(63,687)
Net cash used in operating activities		(1,462,079)	(1,045,563)
Cash Flows from Investing Activities:
Proceeds from Trust Account for redemptions		10,657,185
Proceeds from Trust Account for tax payments		853,261
Advances to Trust Account		(77,821)
Net cash provided by investing activities		11,432,625
Cash Flows from Financing Activities:
Redemption of Class A Common Stock		(10,657,185)
Proceeds from related party loan		400,000
Repayment of related party loan		(400,000)
Net cash (used in) provided by financing activities		(9,913,465)	840,000
Net Change in Cash		57,081	(205,563)
Cash, beginning of period		280,640	336,228
Cash, end of period	130,665	337,721	130,665
Supplemental disclosure of cash and non - cash operating and financing activities:
Income taxes paid		193,845
Excise tax payable		103,587
Conversion of Class B common stock to Class A common stock		690
Accretion of Class A common stock subject to redemption value	$ 1,292,494	479,371	1,109,165
Forgiveness of payable due to an affiliate of the Sponsor			140,000
Related party
Cash Flows from Financing Activities:
Proceeds from promissory note - Liminatus		393,720	$ 840,000
Liminatus
Cash Flows from Financing Activities:
Proceeds from promissory note - Liminatus		$ 350,000

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

9 Months Ended

Sep. 30, 2023

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Business Combination Agreement

The Company's stockholders approved the Charter Amendments at a special meeting of stockholders of the Company (the “ Second Special Meeting”) on September 7, 2023.

Liquidity, Capital Resources and Going Concern

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2023

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 the Trust Account

Concentration of Credit Risk

Forgiveness of Unrelated Vendor Payables

Common Stock Subject to Possible Redemption

Net (Loss) Income Per Common Stock


	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share
Numerator:
Net income (loss)		(78,794)		(245,097)		2,185,181		546,295		(143,719)		(595,904)		8,207,913		2,051,978
Denominator:
Basic and diluted weighted average shares outstanding		1,977,122		6,150,000		27,600,000		6,900,000		1,603,176		6,647,253		27,600,000		6,900,000
Basic and diluted net income (loss) per common share	$	(0.04)	$	(0.04)	$	0.08	$	0.08	$	(0.09)	$	(0.09)	$	0.30	$	0.30

Offering Costs

Fair Value of Financial Instruments

Derivative Financial Instruments

Fair Value Measurements

●

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

●

Income Taxes

Recent Accounting Pronouncements

Risks and Uncertainties

INITIAL PUBLIC OFFERING

9 Months Ended

Sep. 30, 2023

INITIAL PUBLIC OFFERING

INITIAL PUBLIC OFFERING

NOTE 3. INITIAL PUBLIC OFFERING

On May 30, 2023, the Board held a meeting and extended the date by which the Company must consummate a Business Combination for a three month period from June 9, 2023 to September 9, 2023. Consistent with this extension by the Board, the parties to the Business Combination Agreement amended the Business Combination Agreement on June 1, 2023, to extend the Outside Date from June 7, 2023, to September 30, 2023.

The Company’s stockholders approved the Charter Amendments the Second Special Meeting on September 7, 2023.

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.

As of September 30, 2023 and December 31, 2022, 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, 2022	$	15,127,621
Less: Remeasurement of carrying value to redemption value		(298,845)
Less: Adjustment to share price for shares redeemed in December 2022		(305,008)
Class A common stock subject to possible redemption as March 31, 2023		14,523,768
Less: Adjustment to share price for shares redeemed in December 2022		6,577
Class A common stock subject to possible redemption as June 30, 2023		14,530,345
Less: Remeasurement of carrying value to redemption value		(180,526)
Less: Shares redeemed in September 2023		(10,358,754)
Class A common stock subject to possible redemption as September 30, 2023	$	3,991,065

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

9 Months Ended

Sep. 30, 2023

PRIVATE PLACEMENT

PRIVATE PLACEMENT

NOTE 4. PRIVATE PLACEMENT

RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

Promissory Note — Related Party

The total balance outstanding on the promissory notes - related party is $1,433,720 and $1,040,000 at September 30, 2023 and December 31, 2022, respectively.

Related Party Loans

Administrative Support Agreement

LOAN PAYABLE - LIMINATUS

9 Months Ended

Sep. 30, 2023

LOAN PAYABLE - LIMINATUS

LOAN PAYABLE - LIMINATUS

NOTE 6. LOAN PAYABLE - LIMINATUS

COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2023

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 7. COMMITMENTS AND CONTINGENCIES

Registration Rights

Underwriting Agreement

STOCKHOLDERS' DEFICIT

9 Months Ended

Sep. 30, 2023

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT

NOTE 8. STOCKHOLDERS’ DEFICIT

INCOME TAXES

9 Months Ended

Sep. 30, 2023

INCOME TAXES

INCOME TAXES

NOTE 9. INCOME TAXES

RECURRING FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2023

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
September 30, 2023 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	4,201,546	$	4,201,546	$	—	$	—
Liabilities:
Public Warrants	$	276,000	$	276,000	$	—	$	—
Private Warrants	$	223,920	$	—	$	—	$	223,920
December 31, 2022
Assets:
Cash held in Trust Account:	$	15,127,621	$	15,127,621	$	—	$	—
Liabilities:
Public Warrants	$	524,400	$	524,400	$	—	$	—
Private Warrants	$	418,246	$	—	$	—	$	418,246

The key inputs into the Monte Carlo simulation model for the Warrants were as follows at initial measurement, September 30, 2023 and December 31, 2022:



	September 30, 2023
	(Unaudited)		December 31, 2022
Risk-free interest rate	5.48	%	4.75	%
Expected term (years)	0.83		0.69
Expected volatility	4.2	%	11.1	%
Exercise Price	11.50		11.50

The change in the fair value of the warrant liabilities classified as Level 3 for the three and nine months ended September 30, 2023 and the year ended December 31,2022 is summarized as follows:


Fair value at January 1, 2022	$	4,594,820
Change in fair value		(1,977,860)
Fair value at March 31, 2022		2,616,960
Change in fair value		(1,789,760)
Fair value at June 30, 2022		827,200
Change in fair value		(536,427)
Fair value at September 30, 2022		290,773
Change in fair value		127,473
Fair value at December 31, 2022		418,246
Change in fair value		42,015
Fair value at March 31, 2023		460,261
Change in fair value		(255,943)
Fair value at June 30, 2023		204,318
Change in fair value		19,602
Fair value at September 30, 2023	$	223,920

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 11. SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2023

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 the Trust Account

Cash and Cash Equivalents Held in the Trust Account

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) Income Per Common Stock

Net (Loss) Income Per Common Stock


	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share
Numerator:
Net income (loss)		(78,794)		(245,097)		2,185,181		546,295		(143,719)		(595,904)		8,207,913		2,051,978
Denominator:
Basic and diluted weighted average shares outstanding		1,977,122		6,150,000		27,600,000		6,900,000		1,603,176		6,647,253		27,600,000		6,900,000
Basic and diluted net income (loss) per common share	$	(0.04)	$	(0.04)	$	0.08	$	0.08	$	(0.09)	$	(0.09)	$	0.30	$	0.30

Offering Costs

Offering Costs

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Derivative Financial Instruments

Derivative Financial Instruments

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

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Risks and Uncertainties

Risks and Uncertainties

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2023

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				Nine Months Ended				Nine Months Ended
	September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share
Numerator:
Net income (loss)		(78,794)		(245,097)		2,185,181		546,295		(143,719)		(595,904)		8,207,913		2,051,978
Denominator:
Basic and diluted weighted average shares outstanding		1,977,122		6,150,000		27,600,000		6,900,000		1,603,176		6,647,253		27,600,000		6,900,000
Basic and diluted net income (loss) per common share	$	(0.04)	$	(0.04)	$	0.08	$	0.08	$	(0.09)	$	(0.09)	$	0.30	$	0.30

INITIAL PUBLIC OFFERING (Tables)

9 Months Ended

Sep. 30, 2023

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, 2022	$	15,127,621
Less: Remeasurement of carrying value to redemption value		(298,845)
Less: Adjustment to share price for shares redeemed in December 2022		(305,008)
Class A common stock subject to possible redemption as March 31, 2023		14,523,768
Less: Adjustment to share price for shares redeemed in December 2022		6,577
Class A common stock subject to possible redemption as June 30, 2023		14,530,345
Less: Remeasurement of carrying value to redemption value		(180,526)
Less: Shares redeemed in September 2023		(10,358,754)
Class A common stock subject to possible redemption as September 30, 2023	$	3,991,065

RECURRING FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2023

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
September 30, 2023 (Unaudited)
Assets:
Cash equivalents held in Trust Account:	$	4,201,546	$	4,201,546	$	—	$	—
Liabilities:
Public Warrants	$	276,000	$	276,000	$	—	$	—
Private Warrants	$	223,920	$	—	$	—	$	223,920
December 31, 2022
Assets:
Cash held in Trust Account:	$	15,127,621	$	15,127,621	$	—	$	—
Liabilities:
Public Warrants	$	524,400	$	524,400	$	—	$	—
Private Warrants	$	418,246	$	—	$	—	$	418,246

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



	September 30, 2023
	(Unaudited)		December 31, 2022
Risk-free interest rate	5.48	%	4.75	%
Expected term (years)	0.83		0.69
Expected volatility	4.2	%	11.1	%
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, 2022	$	4,594,820
Change in fair value		(1,977,860)
Fair value at March 31, 2022		2,616,960
Change in fair value		(1,789,760)
Fair value at June 30, 2022		827,200
Change in fair value		(536,427)
Fair value at September 30, 2022		290,773
Change in fair value		127,473
Fair value at December 31, 2022		418,246
Change in fair value		42,015
Fair value at March 31, 2023		460,261
Change in fair value		(255,943)
Fair value at June 30, 2023		204,318
Change in fair value		19,602
Fair value at September 30, 2023	$	223,920

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details)					1 Months Ended	9 Months Ended	12 Months Ended
	Sep. 20, 2023	Sep. 07, 2023 USD ($) $ / shares shares	Sep. 03, 2023	Mar. 09, 2021 USD ($) $ / shares shares	Nov. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 20, 2022 USD ($) $ / shares shares
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Deferred underwriting fee payable						$ 9,660,000
Investment of cash into trust account						$ 77,821
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
Minimum net tangible assets upon consummation of the business combination		$ 5,000,001		$ 5,000,001
Cash redemption price \| $ / shares						$ 9.82	$ 10.71
Operating bank account						$ 337,721	$ 280,640
Working capital						4,191,415	2,783,636
Franchise tax payable						56,400	447,133
Working capital loans outstanding						$ 0	$ 0
Class B common stock
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Common stock, par value, (in dollars per share) \| $ / shares						$ 0.0001	$ 0.0001
Ratio to be applied to the stock in the conversion	1
Liminatus
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Aggregate consideration to be paid transactions \| shares					25,000,000.0
Aggregate equity consideration price \| $ / shares					$ 10.00
PIPE Equity Subscription Agreement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
PIPE Investor has committed to purchase shares \| shares					1,500,000
Stock purchase price per share \| $ / shares					$ 10.00
Aggregate purchase price					$ 15,000,000
Equity subscription agreement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Percentage of purchase convertible notes					8.00%
Aggregate principal amount					$ 25,000,000
After closing term of business combination					3 years
Initial conversion price \| $ / shares					$ 11.50
Temporary equity of redemption payment		5,000,001				$ 298,431
Common stock exercised \| shares								26,186,896
Cash redemption price \| $ / shares								$ 10.08
Shares outstanding post redemption \| shares								1,413,104
Aggregate redemption amount.								$ 263,963,913
Stock subject to possible redemption \| shares								1,413,104
Second extension amendment
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Minimum net tangible assets upon consummation of the business combination		$ 5,000,001
Ratio to be applied to the stock in the conversion		1
Common stock exercised \| shares		1,006,495
Cash redemption price \| $ / shares		$ 10.29
Shares outstanding post redemption \| shares		406,609
Aggregate redemption amount.		$ 10,358,754
Stock subject to possible redemption \| shares		406,609
Second extension amendment \| Class B common stock
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Common stock, par value, (in dollars per share) \| $ / shares		$ 0.0001
Ratio to be applied to the stock in the conversion		1
IPO
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of units issued \| shares				27,600,000
Unit price per unit \| $ / shares				$ 10.00
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		$ 15,021,271
Investment of cash into trust account				$ 276,000,000
Redemption period upon closure			24 months	24 months
Private Placement
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of warrants to purchase shares issued \| shares				5,013,333
Price of warrant \| $ / shares				$ 1.50
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 \| shares				1
Price of warrant \| $ / shares				$ 11.50
Over-allotment option
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Number of units issued \| shares				3,600,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)			3 Months Ended	9 Months Ended
	Sep. 07, 2023	Mar. 09, 2021	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash held outside the Trust Account				$ 337,721		$ 280,640
Cash and cash equivalents held in Trust Account				4,201,546		$ 15,127,621
Vendors agreed to forgive outstanding payables				350,000	$ 829,989
Settlement payment in cash to vendors					250,000
Forgive of cash payments				75,000
Forgiveness of unrelated vendor payables			$ 579,989	$ 275,000	$ 579,989
Redemption value per share				$ 9.82		$ 10.71
Class A common stocks in the calculation of diluted income per share				11,913,333
Unrecognized tax benefits				$ 0		$ 0
Unrecognized tax benefits accrued for interest and penalties				0		$ 0
Excise tax payable				$ 103,587
Percentage of excise tax on fair market value of shares redeemed				1.00%
IPO
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Total offering costs				$ 15,627,893
Underwriting discount		$ 5,520,000		5,520,000
Deferred underwriting discount		9,660,000		9,660,000
Other offering costs				447,893
Offering costs				606,622
Transaction costs included in equity		$ 15,021,271		$ 15,021,271
Class A common stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Common stock redeemed (in shares)	1,006,495
Aggregate redemption amount	$ 10,358,754

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of net income per common stock (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Class A common stock
Numerator:
Net (loss) income	$ (78,794)	$ 2,185,181	$ (143,719)	$ 8,207,913
Denominator:
Basic weighted average shares outstanding	1,977,122	27,600,000	1,603,176	27,600,000
Diluted weighted average shares outstanding	1,413,104	27,600,000	1,413,104	27,600,000
Basic net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30
Diluted net income (loss) per share	$ 0.03	$ 0.11	$ (0.05)	$ 0.22
Class B common stock
Numerator:
Net (loss) income	$ (245,097)	$ 546,295	$ (595,904)	$ 2,051,978
Denominator:
Basic weighted average shares outstanding	6,150,000	6,900,000	6,647,253	6,900,000
Diluted weighted average shares outstanding	6,150,000	6,900,000	6,647,253	6,900,000
Basic net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30
Diluted net income (loss) per share	$ (0.04)	$ 0.08	$ (0.09)	$ 0.30

INITIAL PUBLIC OFFERING (Details)				9 Months Ended
INITIAL PUBLIC OFFERING (Details)	Sep. 20, 2023	Sep. 07, 2023 USD ($) $ / shares shares	Mar. 09, 2021 USD ($) $ / shares shares	Sep. 30, 2023 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares shares	Dec. 20, 2022 USD ($) $ / shares shares
INITIAL PUBLIC OFFERING
Purchase price, per unit \| $ / shares			$ 10.00
Number of warrants in a unit			0.25
Cash redemption price \| $ / shares				$ 9.82	$ 10.71
Warrants expiration term			5 years
Minimum net tangible assets upon consummation of the business combination \| $		$ 5,000,001	$ 5,000,001
Equity subscription agreement
INITIAL PUBLIC OFFERING
Cash redemption price \| $ / shares						$ 10.08
Temporary equity of redemption payment \| $		$ 5,000,001		$ 298,431
Aggregate redemption amount. \| $						$ 263,963,913
Shares outstanding post redemption						1,413,104
Common stock exercised						26,186,896
Second extension amendment
INITIAL PUBLIC OFFERING
Cash redemption price \| $ / shares		$ 10.29
Aggregate redemption amount. \| $		$ 10,358,754
Shares outstanding post redemption		406,609
Minimum net tangible assets upon consummation of the business combination \| $		$ 5,000,001
Ratio to be applied to the stock in the conversion		1
Common stock exercised		1,006,495
Class A common stock
INITIAL PUBLIC OFFERING
Number of shares in a unit			1
Number of shares issuable per warrant			1
Shares outstanding post redemption				7,306,609	1,413,104
Common stock, par value, (in dollars per share) \| $ / shares				$ 0.0001	$ 0.0001
Class B common stock
INITIAL PUBLIC OFFERING
Common stock, par value, (in dollars per share) \| $ / shares				$ 0.0001	$ 0.0001
Ratio to be applied to the stock in the conversion	1
Class B common stock \| Second extension amendment
INITIAL PUBLIC OFFERING
Common stock, par value, (in dollars per share) \| $ / shares		$ 0.0001
Ratio to be applied to the stock in the conversion		1
Public warrants
INITIAL PUBLIC OFFERING
Exercise price of warrants \| $ / shares			$ 0.01
Warrants expiration term			5 years
Public warrants \| Class A common stock
INITIAL PUBLIC OFFERING
Exercise price of warrants \| $ / shares			$ 11.50
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	$ 5,520,000
Additional fee \| $			$ 9,660,000	$ 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 \| $ / shares			$ 11.50
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					9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INITIAL PUBLIC OFFERING
Less: Remeasurement of carrying value to redemption value	$ (180,526)		$ (298,845)	$ 1,292,494	$ (183,329)	$ 479,371	$ 1,109,165
Class A common stock subject to possible redemption
INITIAL PUBLIC OFFERING
Class A common stock subject to possible redemption	14,530,345	$ 14,523,768	15,127,621			15,127,621
Less: Remeasurement of carrying value to redemption value			(298,845)			(180,526)
Less: Shares redeemed in September 2023		6,577	(305,008)			(10,358,754)
Class A common stock subject to possible redemption	$ 3,991,065	$ 14,530,345	$ 14,523,768			$ 3,991,065

INITIAL PUBLIC OFFERING - Warrants (Details)	Mar. 09, 2021 D $ / shares shares
INITIAL PUBLIC OFFERING
Percentage of gross proceeds on total equity proceeds	60.00%
Warrants expiration term	5 years
Redemption period	30 days
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 \| $ / shares	$ 9.20
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 \| $ / shares	$ 18.00
Threshold trading days for redemption of public warrants \| D	20
Threshold consecutive trading days for redemption of public warrants \| D	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 \| $ / shares	$ 0.01
Warrants expiration term	5 years
Public Warrants \| Class A common stock
INITIAL PUBLIC OFFERING
Exercise price of warrants \| $ / shares	$ 11.50
Warrants exercisable term from the closing of the public offering	12 months
Warrants exercisable term after the completion of a business combination	30 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
Minimum threshold written notice period for redemption of public warrants	30 days
Public Warrants \| Redemption of warrants when the price per class A ordinary share equals or exceeds $10.00
INITIAL PUBLIC OFFERING
Maximum threshold period for registration statement to become effective after business combination	60 days

PRIVATE PLACEMENT (Details)	Mar. 09, 2021 USD ($) $ / shares shares
PRIVATE PLACEMENT
Warrants expiration term	5 years
Private Warrants
PRIVATE PLACEMENT
Price of warrant \| $ / shares	$ 1.50
Private Placement
PRIVATE PLACEMENT
Number of warrants to purchase shares issued \| shares	5,013,333
Exercise price of warrants \| $ / shares	$ 1.50
Private Placement \| Warrants
PRIVATE PLACEMENT
Number of warrants to purchase shares issued \| shares	1
Exercise price of warrants \| $ / shares	$ 11.50
Private Placement \| Private Warrants
PRIVATE PLACEMENT
Number of warrants to purchase shares issued \| shares	5,013,333
Proceeds from issuance of warrants \| $	$ 7,520,000
Number of shares per warrant \| shares	1
Exercise price of warrants \| $ / shares	$ 11.50
Warrants expiration term	5 years

RELATED PARTY TRANSACTIONS - Founder Shares (Details)			1 Months Ended	9 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS - Founder Shares (Details)	Sep. 20, 2023	Dec. 20, 2022 USD ($)	Feb. 28, 2021 shares	Sep. 30, 2023 USD ($) D $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Oct. 10, 2022 USD ($)	May 27, 2022 USD ($)
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
Other affiliates
RELATED PARTY TRANSACTIONS
Promissory note - related party				$ 1,433,720		$ 1,040,000
Promissory Note with Related Party
RELATED PARTY TRANSACTIONS
Promissory note - related party				593,720		200,000
Promissory Note with Related Party \| Sponsor
RELATED PARTY TRANSACTIONS
Aggregate principal amount		$ 750,000					$ 550,000
Maximum borrowing capacity of related party promissory note		$ 750,000					$ 550,000	$ 300,000
Percentage of purchase convertible notes		150.00%
Promissory note - related party				$ 540,000		$ 540,000
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				$ 12.00
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

RELATED PARTY TRANSACTIONS - Additional information (Details) - USD ($)		3 Months Ended		9 Months Ended
	Dec. 20, 2022	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Oct. 10, 2022	Jun. 01, 2022	May 27, 2022
RELATED PARTY TRANSACTIONS
Repayment of related party loan				$ 400,000
Proceeds from related party loan				400,000
Due to related party		$ 75,000		75,000		$ 75,000
Outstanding balance of related party note		1,433,720		1,433,720		1,040,000
Promissory Note with Related Party
RELATED PARTY TRANSACTIONS
Promissory note - related party		593,720		593,720		200,000
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
Percentage of purchase convertible notes	150.00%
Promissory note - related party		540,000		540,000		540,000
Administrative Support Agreement
RELATED PARTY TRANSACTIONS
Due to related party		0		0		0
Administrative Support Agreement \| Sponsor
RELATED PARTY TRANSACTIONS
Due to related party		75,000		75,000		75,000
Administrative expense payable forgiven								$ 140,000
Expenses incurred and paid				10,000
Administrative Support Agreement \| Sponsor \| Operating Costs
RELATED PARTY TRANSACTIONS
Administrative Fees Expense		$ 0	$ 0	$ 0	$ 50,000
Related Party Loans
RELATED PARTY TRANSACTIONS
Initial conversion price		$ 1.50		$ 1.50
Related Party Loans \| Sponsor
RELATED PARTY TRANSACTIONS
Proceeds from issuance of debt to payment of vendors				$ 400,000
Related Party Loans \| Sponsor \| Working Capital Loans Warrant
RELATED PARTY TRANSACTIONS
Maximum number of loans convertible into warrants				1,500,000
Due to related party		$ 0		$ 0		$ 0

LOAN PAYABLE - LIMINATUS (Details) - USD ($)				9 Months Ended
LOAN PAYABLE - LIMINATUS (Details) - USD ($)	Oct. 04, 2023	Sep. 11, 2023	Aug. 02, 2023	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Related party
LOAN PAYABLE - LIMINATUS
Proceeds from promissory note - Liminatus				$ 393,720	$ 840,000
Liminatus
LOAN PAYABLE - LIMINATUS
Proceeds from promissory note - Liminatus				350,000
Promissory note - related party				350,000
Promissory Note with Related Party
LOAN PAYABLE - LIMINATUS
Promissory note - related party				593,720		$ 200,000
Promissory Note with Related Party \| Liminatus
LOAN PAYABLE - LIMINATUS
Aggregate principal amount	$ 1,500,000
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%
Proceeds from promissory note - Liminatus		$ 350,000	$ 350,000
Promissory note - related party				$ 350,000

COMMITMENTS AND CONTINGENCIES (Details)	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2023 USD ($) item
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

STOCKHOLDERS' DEFICIT - Preferred stock (Details) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
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)		9 Months Ended
STOCKHOLDERS' DEFICIT - Common stock (Details)	Sep. 20, 2023	Sep. 30, 2023 Vote $ / shares shares	Dec. 31, 2022 $ / 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
Class A common stock subject to possible redemption, issued (in shares)		7,306,609	1,413,104
Class A common stock subject to possible redemption, outstanding (in shares)		7,306,609	1,413,104
Class A common stock subject to possible redemption
STOCKHOLDERS' DEFICIT
Class A common stock subject to possible redemption, issued (in shares)		406,609	406,609
Class A common stock subject to possible redemption, outstanding (in shares)		406,609	1,413,104
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	6,900,000
Common stock, shares outstanding (in shares)		0	6,900,000
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		9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
INCOME TAXES
Effective tax rate	(7.90%)	5.00%	(2.80%)	1.40%
Statutory income tax rate			21.00%

RECURRING FAIR VALUE MEASUREMENTS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Assets held in Trust Account:
Cash and cash equivalents held in Trust Account	$ 4,201,546	$ 15,127,621
Liabilities:
Warrant liability	499,920	942,646
Recurring
Assets held in Trust Account:
Cash and cash equivalents held in Trust Account	4,201,546	15,127,621
Recurring \| Public Warrants
Liabilities:
Warrant liability	276,000	524,400
Recurring \| Private Warrants
Liabilities:
Warrant liability	223,920	418,246
Level 1 \| Recurring
Assets held in Trust Account:
Cash and cash equivalents held in Trust Account	4,201,546	15,127,621
Level 1 \| Recurring \| Public Warrants
Liabilities:
Warrant liability	276,000	524,400
Level 3 \| Recurring \| Private Warrants
Liabilities:
Warrant liability	$ 223,920	$ 418,246

RECURRING FAIR VALUE MEASUREMENTS - Key inputs into the Monte Carlo simulation model for the Warrants (Details)	Sep. 30, 2023 $ / shares Y	Dec. 31, 2022 $ / shares Y
Risk-free interest rate
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input	5.48	4.75
Expected term (years)
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input \| Y	0.83	0.69
Expected volatility
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input	4.2	11.1
Exercise Price
RECURRING FAIR VALUE MEASUREMENTS
Derivative warrants liability, measurement input \| $ / shares	11.50	11.50

RECURRING FAIR VALUE MEASUREMENTS - Change in the fair value of the warrant liabilities classified as Level 3 (Details) - Level 3 - USD ($)	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Fair value at beginning of period	$ 204,318	$ 460,261	$ 418,246	$ 290,773	$ 827,200	$ 2,616,960	$ 4,594,820
Change in fair value	19,602	(255,943)	42,015	127,473	(536,427)	(1,789,760)	(1,977,860)
Fair value at end of period	$ 223,920	$ 204,318	$ 460,261	$ 418,246	$ 290,773	$ 827,200	$ 2,616,960

SUBSEQUENT EVENTS (Details) - USD ($)	1 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($)	Jan. 05, 2024	Oct. 11, 2023	Oct. 10, 2023	Sep. 30, 2023
SUBSEQUENT EVENTS
Deferred underwriting discount				$ 9,660,000
Subsequent Events \| Liminatus
SUBSEQUENT EVENTS
Proceeds from promissory note - Liminatus	$ 1,168,500
Promissory note - related party	$ 1,518,500
Subsequent Events \| Fee Reduction Agreement
SUBSEQUENT EVENTS
Deferred underwriting discount		$ 8,000,000	$ 9,660,000
Underwriting discount paid in cash		1,000,000
Underwriting discount paid in securities		$ 7,000,000

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