Financial Performance and Concerns - Innventure's principal revenues are expected to be earned in the future through its Operating Companies, including AeroFlexx, Accelsius, and Refinity, which are crucial for cash flow [115]. - There is substantial doubt regarding Innventure's ability to continue as a going concern, dependent on obtaining additional financing or generating cash flow from operations [114]. - Innventure and its Operating Companies are currently early commercial stage companies that may never achieve or sustain profitability [118]. - Innventure's inability to generate sufficient cash flow from its Operating Companies could lead to alternative financing plans or restructuring of debt [115]. - The company expects to require additional financing to fund operations or growth, which could dilute existing stockholders' ownership interests [186]. - The company relies on various financing sources, including banks and related parties, to support its operations and growth [289]. Stock Price and Market Risks - The market price of Innventure's Common Stock is likely to be highly volatile, which could lead to potential losses for investors [111]. - Future sales of shares of Common Stock may depress its stock price, affecting existing shareholders [111]. - The actual gross proceeds from the sale of shares to Yorkville may be substantially less than the $75.0 million total commitment due to fluctuating market prices [130]. - The number of shares that Innventure may sell under the SEPA and Convertible Debentures is uncertain and will depend on market prices during the sales period [129]. - Future sales of Common Stock may depress its stock price, particularly after the expiration of lock-up agreements for certain insiders [156]. - The market price of Innventure's Common Stock is likely to be highly volatile, influenced by various factors including financial performance fluctuations and competitor developments [152]. Regulatory and Compliance Challenges - AFX's products used in food grade applications are subject to FDA regulations, requiring substantial time and financial resources for compliance [146]. - The process of obtaining FDA regulatory approval may take up to one year and could adversely affect AFX's business and financial condition [147]. - AFX anticipates increased compliance costs and potential delays due to evolving regulatory requirements, which may adversely affect its business and financial condition [148]. - AFX expects to face regulatory challenges in most countries it seeks to expand into, potentially leading to reduced market demand if products do not meet local requirements [149]. - Compliance with evolving data privacy laws, such as the GDPR and CCPA, may increase regulatory risks and operational costs for Innventure [202]. Internal Controls and Financial Reporting - The Company has identified material weaknesses in its internal controls over financial reporting, which could result in material misstatements in its financial statements [112]. - If Innventure fails to remediate these weaknesses, it may not detect errors timely, potentially harming its operating results and investor confidence [176]. - Innventure's compliance with financial reporting standards may require changes to its accounting policies, potentially affecting its financial position and reputation [172]. - Innventure's ability to comply with new accounting standards may be delayed, as it can utilize an extended transition period for emerging growth companies [165]. Intellectual Property and Legal Risks - The company relies on intellectual property (IP) acquired or licensed from third parties, and may face challenges in protecting these rights [187]. - There is no certainty that Innventure's IP rights will provide substantial protection or commercial benefit, especially in non-U.S. jurisdictions [188]. - Innventure and its companies face significant risks related to IP rights disputes, which could lead to substantial legal costs and potential damages [191]. - The exclusive forum clause in the Warrant Agreement may limit investors' rights to bring legal actions against Innventure, potentially affecting their ability to obtain favorable judicial outcomes [159]. - The exclusive forum provisions in Innventure's Bylaws may limit stockholders' ability to choose their preferred judicial forum for disputes [173]. Operational and Market Environment - AFX is early in the development of its commercial production capacity and has not yet fully diversified suppliers for critical raw materials, specifically its film [142]. - AFX's reliance on a single supplier for raw materials poses risks, as any failure to deliver could materially impact its operations [144]. - The global supply chain for certain raw materials has experienced significant strain, which could adversely affect AFX's ability to deliver products on time [145]. - The company is exposed to economic volatility, including high interest rates and inflation, which may adversely affect its financial condition and operational results [193]. - Changes in foreign trade policies and tariffs could increase product costs and disrupt supply chains, impacting competitiveness in the global market [196]. - Climate change and related regulations could increase operational costs and disrupt supply chains, affecting Innventure's business [205]. - Changes in international tax laws, particularly the OECD's new "Two Pillar" approach, may result in higher effective tax rates for Innventure [209]. Strategic Growth and Future Opportunities - Innventure's growth strategy includes new business strategies and technology acquisitions, which may disrupt ongoing operations and require significant capital expenditures [135]. - Innventure may not be successful in finding future opportunities to license or acquire breakthrough technology solutions, impacting its ability to generate future revenues [117]. - The company may issue additional shares or debt securities in the future, which could dilute existing stockholders and adversely affect the market price of its Common Stock [169]. - Innventure is classified as an emerging growth company, allowing it to take advantage of reduced reporting requirements until it meets certain revenue or market value thresholds [164]. Cybersecurity and Technological Risks - Cybersecurity threats pose risks to Innventure's information technology systems, potentially leading to data loss and operational disruptions [199]. - The introduction of AI technologies presents both opportunities and risks, including potential compliance issues and reputational harm [203].

Financial Data and Key Metrics Changes - nVenture reported total revenue of $1.2 million for 2024, marking the first commercial sales at Excelsius [24] - Adjusted EBITDA was a loss of $27.9 million in 2024, driven by costs associated with sales, R&D, and increased G&A expenses due to the transition to a public company [24][25] Business Line Data and Key Metrics Changes - Excelsius began delivering products to the market in Q3 2024 and gained momentum in Q4, although revenues have yet to scale significantly [5][7] - Aeroflex also started delivering products in 2024, with a partnership announced with Spectrum Brands for a pet shampoo product [12][13] - Refinitiv was launched in December 2024, focusing on opportunities in the waste-to-value space, with plans to commercialize a proprietary recycling process [16][17] Market Data and Key Metrics Changes - The top hyperscalers are estimated to spend over $250 billion on data center development in 2025, indicating a significant market opportunity for Excelsius [10] - Aeroflex's certifications, including ISO and BRCGS, enhance its credibility in the $400 billion packaging market [14] Company Strategy and Development Direction - nVenture aims to drive long-term value for shareholders and is focused on scaling its operating companies through strategic partnerships with multinational corporations [6][20] - The company plans to engage in engineering procurement and construction partnerships for its first plant and demonstrate the viability of its recycling technology [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, anticipating a steep revenue ramp for Excelsius as white label products become available [41][42] - The company remains committed to creating long-term shareholder value and is confident in its positioning for growth in 2025 [27][29] Other Important Information - nVenture completed a private placement of Series C preferred stock amounting to approximately $28.9 million to strengthen its balance sheet [27][28] - The company plans to consolidate cash flows at the nVenture level as it scales and launches new companies [29] Q&A Session Summary Question: Can you expand on the discussions with global OEMs and hyperscalers? - Management confirmed that they have a contract with a global OEM and are optimistic about securing firm commitments from hyperscalers, indicating significant revenue potential [33][36] Question: What is the status of product revenue for December? - Management indicated that product revenue details would be disclosed in the upcoming 10-K filing, with current revenue primarily from Excelsius [55][58] Question: What enabled the doubling of heat capacity removal for Excelsius? - The increase was attributed to engineering and design improvements that allow for higher heat flux removal [63][65] Question: Is Aeroflex's pet shampoo product an early-stage test? - Management confirmed that the product is available for purchase and represents a significant commercial contract, with expectations for follow-on orders [46][47] Question: What is the current OpEx rate and future expectations? - Management stated that while specific details would be available in the 10-K, they expect to keep OpEx as low as possible while managing costs effectively [72][75]

Financial Performance - Revenue for the year ended December 31, 2023, was $1,117 million, a decrease from $1,117 million in the previous period[21] - The net loss attributable to Innventure, Inc. stockholders was $62,294 million for the year ended December 31, 2023, compared to a net loss of $16,436 million in the previous period[21] - The company reported a total comprehensive loss of $69,724 million for the year ended December 31, 2023, compared to a comprehensive loss of $28,136 million in the previous period[21] - The company reported a net loss of $70,633 thousand for the year ended December 31, 2024, compared to a net loss of $30,984 thousand for the previous year, indicating a significant increase in losses[32] - Basic and diluted loss per share for the year was $1.42, with a weighted average of 43,951,279 common shares outstanding[21] - The adjusted EBITDA for the year ended December 31, 2024 was $(11,670) thousand, compared to $(26,156) thousand for the predecessor year, showing an improvement in operational performance[32] Assets and Liabilities - Innventure reported total assets of $905.3 million as of December 31, 2024, compared to $21.6 million in the previous year[19] - Total current assets rose to $24.3 million from $5.7 million in 2023, reflecting significant growth[19] - Total liabilities increased to $139.5 million from $29.4 million in the previous year[19] - The accumulated deficit grew to $78.8 million as of December 31, 2024, compared to $64.3 million in 2023[19] - Innventure's total stockholders' equity reached $765.8 million, up from a deficit of $18.5 million in 2023[19] Cash Flow and Financing - Cash and cash equivalents increased to $11.1 million from $2.6 million year-over-year[19] - Cash flows used in operating activities totaled $29,214 thousand for the year ended December 31, 2024, compared to $19,476 thousand in the previous year, indicating higher cash outflows[30] - The company generated $33,466 thousand in cash flows from financing activities for the year ended December 31, 2024, compared to $19,174 thousand in the previous year, reflecting increased capital raising efforts[30] - The company had a net cash increase of $11,074 thousand for the year ended December 31, 2024, compared to a decrease of $4,969 thousand in the previous year, indicating improved liquidity[30] - Cash paid for interest was $991 thousand for the year ended December 31, 2024, compared to $297 thousand in the previous year, indicating higher borrowing costs[30] Operating Expenses - Total operating expenses increased to $40,753 million from $37,541 million, primarily driven by higher general and administrative expenses of $29,652 million compared to $26,608 million[21] - Research and development expenses were $5,340 million, slightly down from $5,978 million in the previous period[21] - The company experienced a significant increase in interest expense, netting $1,132 million compared to $1,300 million in the previous period[21] - The total non-operating expense was $33,078 million, a stark contrast to the non-operating income of $9,011 million in the previous period[21] Strategic Initiatives - The company launched its fourth operating company, Refinity, in December 2024, aimed at converting mixed plastic wastes to petrochemical feedstocks[1] - Accelsius and AeroFlexx began generating revenue, with expectations for growth in 2025[1] - The company plans to expand its market presence and invest in new product development, although specific figures were not disclosed during the call[21] - The company is exploring potential mergers and acquisitions to enhance its growth strategy moving forward[21] - The company emphasizes the importance of non-GAAP financial measures like Adjusted EBITDA for assessing operational performance[6] Tax and Financial Instruments - The company reported a provision for income taxes of $2,742 thousand for the year ended December 31, 2024, compared to no tax provision in the previous year, reflecting changes in tax obligations[32] - The company reported a change in fair value of financial liabilities of $20,946 thousand for the year ended December 31, 2024, compared to a loss of $766 thousand in the previous year, highlighting volatility in financial instruments[32] - Stock-based compensation expenses amounted to $16,338 thousand for the year ended December 31, 2024, up from $910 thousand in the previous year, reflecting increased employee incentives[32]

Accelsius and AeroFlexx started generating revenue with expectations to grow in 2025 Founded fourth company, Refinity, to commercialize cost-effective conversion of mixed plastic wastes to petrochemical feedstocks in collaboration with The Dow Chemical Company ORLANDO, Fla., April 11, 2025 (GLOBE NEWSWIRE) -- Innventure, Inc. (NASDAQ: INV) (“Innventure”), a technology commercialization platform, today announced financial results for the quarter and year ended December 31, 2024. “2024 was a seminal y ...

Core Viewpoint - Innventure, Inc. is set to release its fourth quarter and full year 2024 financial results on April 11, 2025, with a conference call scheduled for the same day to discuss these results [1][2]. Company Overview - Innventure operates as a technology commercialization platform that focuses on transformative and sustainable technology solutions acquired or licensed from multinational corporations [3]. - The company aims to take breakthrough technologies from early evaluation to scaled commercialization, with a goal of achieving a target enterprise value of at least $1 billion [3]. - Innventure defines "disruptive" innovations as those that can significantly change the operations of businesses, industries, markets, and consumers [3].

Group 1 - Innventure, Inc. will host two events during the IP Leadership Executive Summit on April 15 and 16, and will also speak at the LES-SVC's 21st Annual Chapter Conference on April 17 [1][2] - The IP Leadership Executive Summit is a two-day forum focusing on the future of intellectual property and technology solutions, with Innventure as a platinum partner [2] - Innventure will conduct a workshop titled "Breaking Industry Boundaries: The Reimagined IP Commercialization Playbook" on April 15, allowing participants to explore unlocking value from technology innovations [3] Group 2 - A roundtable discussion titled "Maximizing Value: Where the Rubber (TIRE) Meets the Road" will also be held on April 15, moderated by Innventure's Vice-President of Strategic Partnerships, Brice Dubosq [4] - The LES Silicon Valley Chapter Conference will address trends and challenges in innovation and IP deal-making, with the theme "The Silicon Valley Deal Machine" [4] - Innventure is a gold sponsor of the event, with Executive Chairman Mike Otworth delivering a keynote speech on April 17 titled "Breaking Free: Unleashing Innovation Beyond Corporate Wall" [5] Group 3 - Innventure's Vice President of Business Development/Strategic Partnerships, Gayle Anderson, will participate in a panel discussion on "Scaling Success: Business Models to Scale-up and Scale-out" on April 17 [5] - The panel will focus on business models that support innovation and commercialization deal-making, particularly in the context of AI-driven hardware breakthroughs [6] - Innventure specializes in founding, funding, and operating companies focused on transformative technology solutions, aiming for a target enterprise value of at least $1 billion [6]

Company Overview - Innventure, Inc. is a differentiated technology commercialization platform that focuses on founding, funding, and operating companies with transformative, sustainable technology solutions acquired or licensed from multinational corporations [2] - The company aims to take breakthrough technologies from early evaluation to scaled commercialization, mitigating risks while building disruptive companies with a target enterprise value of at least $1 billion [2] Upcoming Events - Bill Haskell, the CEO, and Lucas Harper, the CIO of Innventure, will attend the 37th Annual Roth Conference on March 17, 2025, in Newport Beach, California, where management will be available for investor meetings [1]

Core Insights - Accelsius is a leader in the two-phase, direct-to-chip, refrigerant-based liquid cooling market, with a growing product roadmap to meet the needs of major data center operators [1][3] - The company has established strategic relationships with key players in the data center ecosystem, enhancing its market position and technology value [1] - Accelsius has doubled its workforce in the past year and is experiencing rapid global adoption of its cooling solutions, exceeding initial international expansion plans [1][3] Company Developments - Accelsius signed a 3-year master purchasing agreement to white label its liquid cooling solution for a leading global thermal management company [5] - The company launched a 250Kw multi-rack cooling system to address the increasing demand for higher rack power density [5] - Recent product tests demonstrated the capability of Accelsius' technology to cool 4500Ws per socket, doubling previous performance records [5] Industry Context - Innventure focuses on transformative, sustainable technology solutions, aiming to commercialize breakthrough technologies with a target enterprise value of at least $1 billion [2] - The data center market is increasingly seeking advanced cooling solutions to enhance operational efficiency and sustainability [1][2]

Core Insights - Accelsius is a leader in the two-phase, direct-to-chip, refrigerant-based liquid cooling market, with a growing product roadmap to meet the needs of major data center operators [1][5] - The company has established strategic relationships with key players in the data center ecosystem, enhancing its market position and demand pipeline [1][5] - Accelsius has doubled its workforce in the past year and has made significant advancements in its technology, including a recent test that demonstrated the capability to cool 4500Ws per socket, which is double its previous record [1][5] Company Overview - Innventure, Inc. focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions, aiming for a target enterprise value of at least $1 billion [2] - Accelsius, founded by Innventure, offers advanced cooling solutions to data center and edge operators, utilizing its proprietary NeuCool platform for thermal efficiency [3] Recent Developments - Accelsius signed a 3-year master purchasing agreement to white label its liquid cooling solution for a leading global thermal management company [5] - The company is expanding its product line with the launch of a 250Kw multi-rack cooling system to address the increasing demand for higher rack power density [5]

Core Viewpoint - Innventure, Inc. is set to host a conference call on January 30, 2025, to discuss its collaboration with The Dow Chemical Company and the launch of its new operating company, Refinity [1]. Company Overview - Innventure (NASDAQ:INV) focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions acquired or licensed from multinational corporations [4]. - The company aims to commercialize breakthrough technologies, mitigating risks while building disruptive companies with a target enterprise value of at least $1 billion [4]. - Innventure defines "disruptive" innovations as those that can significantly alter business operations, industries, markets, or consumer behavior [4]. Upcoming Event Details - The conference call will feature Bill Haskell, CEO of Innventure, and Bill Grieco, CEO of Refinity, discussing Refinity's value proposition, market opportunity, and technology differentiation [1]. - The event will be available via live webcast on Innventure's investor relations website, and registration for teleconference participation is encouraged [2]. - A slide presentation will be posted on the investor relations website shortly before the event [3].