Core Insights - Innventure, Inc. expresses strong confidence in achieving a revenue growth inflection during the second half of 2025, driven by its operating companies, particularly Accelsius and AeroFlexx [2][5]. Company Overview - Innventure is a technology commercialization platform that focuses on founding, funding, and operating companies with transformative and sustainable technology solutions, aiming for at least $1 billion in enterprise value [5]. - The company emphasizes its strategy of mitigating risks while building disruptive companies that can significantly change market dynamics [5]. Financial Performance - For the quarter ended March 31, 2025, Innventure reported revenue of $224,000, consistent with the same period in 2024 [18]. - The company incurred a net loss of $253.674 million for the quarter, compared to a net loss of $7.526 million in the prior year [28][32]. - Significant operating expenses included a goodwill impairment charge of $233.213 million, reflecting a decrease in the company's market capitalization [36]. Cash Flow and Financial Position - As of March 31, 2025, Innventure's total assets amounted to $660.419 million, a decrease from $905.289 million at the end of 2024 [15][16]. - The company reported cash and cash equivalents of $1.375 million, down from $11.119 million at the end of the previous year [15][28]. - Cash flows used in operating activities for the quarter were $14.696 million, compared to $7.397 million in the same period of 2024 [28]. Market Position and Future Outlook - Accelsius is highlighted as a key player in the two-phase, direct-to-chip liquid cooling market, engaging with major industry players and positioned for significant growth [2]. - The company anticipates a seismic shift in liquid cooling adoption, which it believes will create substantial value for shareholders [2].

Revenue and Financial Performance - Revenue for the three months ended March 31, 2025, was $224, unchanged from the same period in 2024[186]. - Net loss attributable to Innventure, Inc. stockholders was $142,997 for the three months ended March 31, 2025, compared to a loss of $5,219 in the same period in 2024, reflecting a 2,639.9% increase[184]. - Total comprehensive loss, net of taxes, was $256,061 for the three months ended March 31, 2025, compared to $7,526 in the prior year, reflecting a 3,302.4% increase[184]. - Net loss for the three months ended March 31, 2025, was $(253,674), compared to $(7,526) for the same period in 2024, reflecting a substantial decline in financial performance[208]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(21,824), a significant drop from $(1,856) in 2024, highlighting operational challenges[208]. Expenses - General and administrative expenses increased by $11,772, or 148.9%, to $19,676 for the three months ended March 31, 2025, primarily due to increased professional services and employee costs[188]. - Research and development expenses rose by $4,584, or 274.7%, to $6,253 for the three months ended March 31, 2025, driven by new product development costs[190]. - Total operating expenses surged to $261,422 for the three months ended March 31, 2025, a 2,330.5% increase from $10,756 in the prior year[184]. - Interest expense increased by $1,133, or 279.8%, to $1,538 for the three months ended March 31, 2025, due to higher interest expenses on related party notes[192]. - Net cash used in operating activities increased to $14,696 million for the three months ended March 31, 2025, compared to $7,397 million for the same period in 2024, reflecting a 98.7% increase primarily due to higher operating expenses[232]. Asset and Liability Changes - Goodwill impairment was $233,213 for the three months ended March 31, 2025, attributed to declines in the company's share price and market capitalization[191]. - The fair value of financial liabilities decreased by $16,429 for the three months ended March 31, 2025, marking a change of 3,537.0% from the previous period[196]. - Equity method investment loss was $6,756 for the three months ended March 31, 2025, compared to a gain of $5 in the same period in 2024, a decrease of 135,220.0%[197]. - Cash and cash equivalents decreased to $1,375 as of March 31, 2025, down from $11,119 as of December 31, 2024, indicating liquidity concerns[217]. - Working capital improved to $(37,039) as of March 31, 2025, from $(45,061) at the end of 2024, suggesting a slight reduction in financial strain[217]. Financing and Capital Needs - The company expects to require at least $50,000 in addition to cash on hand to meet liquidity needs over the next 12 months, with an additional $25,000 needed for growth[218]. - The company raised approximately $5,150 in additional equity financing during the three months ended March 31, 2025, compared to $3,855 in the same period of 2024[219]. - The company issued 2,885,848 shares of Series C Preferred Stock for a total amount of $28,858,480 on March 24, 2025, as part of its capital strategy[225]. - Net cash provided by financing activities decreased to $8,206 million for the three months ended March 31, 2025, down from $10,159 million in 2024, representing a decline of 19.2% due to reduced proceeds from equity and debt financing[234]. - The total contractual obligations as of March 31, 2025, amount to $34,160 million, including $20,425 million in debt obligations and $13,075 million in minimum royalties[236]. Going Concern and Risks - The company has experienced recurring losses and negative cash flows from operating activities, raising substantial doubt about its ability to continue as a going concern within the next twelve months[237][240]. - If the company fails to secure adequate capital or generate sufficient revenues, it may need to implement cost reduction measures or adjust operations, which could adversely affect its financial condition[239]. - The company has no assurances that required financings will be available on commercially acceptable terms, which could lead to material adverse effects on its business[240]. Other Financial Metrics - Unrealized loss on available for sale debt securities increased by $880, reaching $880 for the three months ended March 31, 2025, compared to nil for the same period in 2024[201]. - Reclassification of realized gain on conversion of available for sale investments was $1,507 for the three months ended March 31, 2025, with no gain reported in 2024, indicating a significant increase[202]. - Loss attributable to non-redeemable non-controlling interests surged by $108,370, or 4,697.4%, totaling $110,677 for the three months ended March 31, 2025, primarily due to goodwill impairment[203]. - Net cash used in investing activities was $3,254 million for the three months ended March 31, 2025, up from $3,180 million in 2024, marking a 2.3% increase attributed to additional investments in debt securities and property, plant, and equipment[233]. - There have been no material changes to the company's critical accounting policies and estimates compared to the previous annual report[242].

Core Viewpoint - Innventure, Inc. is set to release its first quarter 2025 financial results on May 15, 2025, and will host a conference call to discuss these results [1]. Group 1: Financial Results Announcement - Innventure will announce its Q1 2025 financial results after market close on May 15, 2025 [1]. - A conference call will be held on the same day at 5:00 pm ET to discuss the financial results [1]. Group 2: Participation Details - Interested parties can join the teleconference by registering through a provided link, which will give them dial-in details and a unique PIN [2]. - Registration for the call is open until the live event, but early registration is recommended to ensure full participation [2]. Group 3: Company Overview - Innventure focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions acquired or licensed from multinational corporations [3]. - The company aims to commercialize breakthrough technologies, mitigating risks while building disruptive companies with a target enterprise value of at least $1 billion [3]. - "Disruptive" innovations are defined by Innventure as those that can significantly alter business operations, industries, markets, or consumer behavior [3].

Core Insights - Innventure, Inc. is sponsoring two upcoming conferences focused on innovation strategies in corporate R&D [1][2][3] Group 1: Conference Details - The Front End of Innovation 2025 will be held from May 19-21 at the Omni Boston Hotel, focusing on the theme "Harvesting Innovation: Sowing the Seeds of Future Growth" [2] - The IRI Innovators Summit will also take place on May 19-21 in Chicago, bringing together innovation experts to discuss growth drivers and cutting-edge strategies [3] Group 2: Company Participation - Colin Scott, Innventure's Senior Vice President, will present on 'Harvesting Innovation Through Collective Intelligence' at the Front End of Innovation 2025 [2] - Nicole Mignacca and Ellie Kim from Innventure will lead sessions at the IRI Innovators Summit, discussing bridging the innovation-to-market gap [3] Group 3: Engagement Opportunities - Attendees can engage with Nicole Mignacca during a panel session on "The ROI of Bold Ideas: Fueling the Innovation Pipeline" [4] - Innventure will also host an exclusive webinar and thought leader podcast to share insights on their unique model [4] Group 4: Company Overview - Innventure focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions, aiming for a target enterprise value of at least $1 billion [6]

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]

Core Insights - Innventure, Inc. had a significant year in 2024, marked by the commercial delivery of products for Accelsius and AeroFlexx, the completion of a business combination, and the launch of its fourth operating company, Refinity [2] Financial Performance - For the year ended December 31, 2024, Innventure reported a net loss of $70.633 million, compared to a net loss of $28.198 million for the predecessor period [18] - The company generated revenue of $456 thousand for the period from October 2, 2024, through December 31, 2024, down from $1.117 million in the previous year [18] - Total operating expenses for the same period were $40.753 million, an increase from $24.795 million in the prior year [18] Assets and Liabilities - As of December 31, 2024, total assets amounted to $905.289 million, a significant increase from $21.564 million in the previous year [16] - Current liabilities totaled $69.347 million, up from $8.168 million in the prior year [16] Non-GAAP Financial Measures - Innventure reported an Adjusted EBITDA of $(11.670) million for the period from October 2, 2024, through December 31, 2024, compared to $(26.156) million for the predecessor period [33] - The company defines Adjusted EBITDA as EBITDA further adjusted to exclude certain non-cash items and non-recurring expenses, providing additional insight into operational performance [7][10] Business Strategy - Innventure focuses on founding, funding, and operating companies that provide transformative, sustainable technology solutions, aiming for a target enterprise value of at least $1 billion [5] - The company aims to mitigate risks while building disruptive companies that can significantly change business operations and market dynamics [5]

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]