The mic works best hooked up to an official app called Vocalive, which you can see on the iPad's screen in the pic above. In addition to recording and playing back audio tracks, the app can also throw in some vocal effects, from reverb to frequency modulation, and a metronome for getting your timing just right. The iRig Mic will be available for just US$59 in the first week of March. IK Multimedia told us that they'd be at Macworld later this month, so we'll be sure to get them on video there.
In case you're wondering, that iPad is being held onto the mic stand by an IK product called the iKlip, which became available last December; for $40, it will clip your iPad onto a mic stand for use during a show. That way, iPad bands can keep both hands free for jamming.