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].
Innventure, Inc.(INV) - 2025 Q1 - Quarterly Report