Liminatus Pharma, Inc. (LIMN) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Liminatus Pharma, Inc. is a pre-clinical stage biopharmaceutical company developing IBA101, a humanized anti-CD47 monoclonal antibody for advanced solid cancers. The company consummated a business combination with Iris Acquisition Corp. on April 30, 2025, and is currently listed on Nasdaq under the symbols "LIMN" and "LIMNW". The company is classified as an emerging growth company and a smaller reporting company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $0 | $0 |
| Net Loss | $(1,123,714) | $(327,526) |
| Operating Expenses | $1,100,898 | $264,220 |
| Cash and Equivalents (End of Period) | $1,907,674 | $34,926 |
| Total Assets | $2,790,249 | $512,795 |
| Total Liabilities | $2,922,845 | $10,327,485 |
| Stockholders' Deficit | $(132,596) | $(9,814,690) |
| Short-Term Debt (Related Parties) | $1,442,500 | $1,442,500 |
Note: The company reported no revenue for either period. The significant reduction in total liabilities from Q1 2025 to Q1 2026 is primarily due to the settlement of a $7.36 million legal liability via stock issuance in Q1 2026.
Material Changes vs. Prior Period
- Operating Expenses: Increased by 317% to $1.1 million, driven by a $400,000 increase in Research and Development (R&D) costs for Phase 1 trial preparation and a $436,678 increase in General and Administrative (G&A) expenses due to public company compliance costs.
- Liquidity: Cash balances increased significantly from $34,926 in Q1 2025 to $1.9 million in Q1 2026, primarily due to net proceeds of approximately $3.44 million from a public offering closed in February 2026.
- Debt Settlement: A $7.36 million settlement payable recorded in the prior period was fully settled in Q1 2026 through the issuance of 4,000,000 shares of common stock to Clear Street LLC.
- Interest Expense: Related party interest expense decreased to $18,638 from $115,512 in the prior year due to the conversion of significant related party debt into equity during the business combination.
Outlook, Risks, and Management Commentary
- Going Concern: Management has concluded there is substantial doubt about the company's ability to continue as a going concern for one year following the report date. The company relies on raising additional capital through equity or debt financings to fund operations.
- Nasdaq Compliance: The company received notices of non-compliance with Nasdaq listing rules regarding Market Value of Listed Securities (MVLS), Market Value of Publicly Held Shares (MVPHS), and the Minimum Bid Price ($1.00). The company has until May 18, 2026, and July 14, 2026, respectively, to regain compliance or face potential delisting.
- Internal Controls: Management identified material weaknesses in internal controls over financial reporting, citing a lack of a formalized control environment and inadequate segregation of duties. Remediation efforts are underway.
- Capital Raise: In February 2026, the company completed a "best efforts" public offering raising net proceeds of ~$3.44 million. This included the sale of common stock, pre-funded warrants, and common stock purchase warrants.
Investor Verification Checklist
- Going Concern Status: Verify the company's ability to secure additional funding beyond the current $1.9 million cash balance to sustain operations for the next 12 months.
- Nasdaq Delisting Risk: Monitor the company's progress in meeting Nasdaq's MVLS, MVPHS, and Bid Price requirements by the May and July 2026 deadlines.
- Related Party Debt: Review the terms of the $1.44 million in outstanding related party debt, which is past due but deferred by mutual agreement.
- Internal Control Remediation: Assess the timeline and effectiveness of the company's plan to address material weaknesses in financial reporting controls.
- Dilution: Evaluate the impact of the recent public offering and the 4 million shares issued for the legal settlement on existing shareholder equity.