Innventure Reports First Quarter 2025 Results

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Stockholders / Innventure LLC Unitholders$(145,384)  $(5,219)         See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesCondensed Consolidated Statements of Changes in Unitholders' Deficit (Predecessor)(Unaudited) (in thousands, except share and per share amounts)  Class BPreferred Class B-1Preferred Class A Class C AccumulatedDeficit AccumulatedOCI Non-ControllingInterest Total(Deficit)EquityDecember 31, 2023  38,122  3,323  1,950  844  (64,284)  —  1,559   (18,486)Net loss —  —  —  —  (5,219)  —  (2,307)  (7,526)Units issued to non-controlling interest —  —  —  —  —   —  3,503   3,503 Issuance of preferred units, net of issuance costs 7,566  —  —  —  —   —  —   7,566 Unit-based compensation —  —  —  51  —   —  345   396 Issuance of units to non-controlling interest in exchange of convertible promissory notes —  —  —  —  —   —  8,443   8,443 Accretion of redeemable units to redemption value —  —  —  —  (4,415)  —  —   (4,415)March 31, 2024$45,688 $3,323 $1,950 $895 $(73,918) $— $11,543  $(10,519)                 See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesCondensed Consolidated Statements of Changes in Mezzanine and Stockholders' Equity (Deficit) (Successor)(Unaudited) (in thousands, except share and per share amounts)  Stockholders’ Equity  MezzanineEquity PreferredStock CommonStock            PreferredStock Shares Amount Shares Amount AdditionalPaid-InCapital AccumulatedDeficit AccumulatedOCI Non-ControllingInterest TotalStockholders'Equity  Shares AmountDecember 31, 20241,102,000  $— 44,597,154 $4 $502,865  $(78,262) $909  $340,777  $766,293   — $— Net loss—   — —  —  —   (142,997)  —   (110,677)  (253,674)  —  — Series B Preferred Stock buyback(5,000)  — —  —  (50)  —   —   —   (50)  —  — Series B Preferred Stock issued for paid-in-kind dividends21,808   — —  —  218   —   —   —   218   —  — Issuance of common shares, net of issuance costs—   — 161,964  —  1,927   —   —   —   1,927   —  — Vesting of earnout shares—   — 2,344,682  1  873   —   —   —   874   —  — Other comprehensive gain, net of taxes—   — —  —  —   —   (2,387)  —   (2,387)  —  — Conversion of related party notes—   — —  —  —   —   —   —   —   2,310,848  23,108 Issuance of Series C Preferred Stock, net—   — —  —  —   —   —   —   —   575,000  5,663 Non-controlling interest issued and related transfers—   — —  —  (26,303)  —   —   33,249   6,946   —  — Distributions to Stockholders—   — —  —  —   (26)  —   —   (26)  —  — Stock-based compensation—   — —  —  4,943   —   —   898   5,841   —  — Accrued preferred dividends—   — —  —  (217)  —   —   —   (217)  —  (44)March 31, 20251,118,808  $— 47,103,800 $5 $484,256  $(221,285) $(1,478) $264,247  $525,745   2,885,848 $28,727  See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited) (in thousands, except share and per share amounts)  Successor  Predecessor Three months endedMarch 31, 2025  Three months endedMarch 31, 2024Cash Flows Used in Operating Activities    Net loss$(253,674)  $(7,526)Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:    Stock-based compensation 5,841    396 Interest income on debt securities - related party (91)   — Change in fair value of financial liabilities (16,429)   478 Change in fair value of payables due to related parties —    186 Non-cash interest expense on notes payable 510    230 Net (gain) loss on investments —    (5,189)Equity method investment gain (loss) 6,756    (5)Realized gain on conversion of available for sale investments (1,507)   — Loss on extinguishment of related party debt 3,538    — Loss on conversion of promissory notes —    1,119 Deferred income taxes (1,899)   — Depreciation and amortization 5,548    — Goodwill impairment 233,213    — Payment of patent installment (525)   — Non-cash rent costs 61    — Other, net —    67 Changes in operating assets and liabilities:    Accounts receivable 46    — Prepaid expenses and other current assets (122)   (136)Inventory (42)   — Accounts payable 1,587    1,234 Accrued employee benefits 1,943    1,329 Accrued expenses 565    488 Stock-based compensation liability (442)   — Income taxes payable 500    — Other current liabilities (73)   (68)Net Cash Used in Operating Activities  (14,696)   (7,397)     Cash Flows Used in Investing Activities    Investment in available-for-sale debt securities - equity method investee (2,337)   — Advances to equity method investee —    (2,540)Acquisition of property, plant and equipment (917)   (640)Net Cash Used in Investing Activities  (3,254)   (3,180)     Cash Flows Provided by Financing Activities    Proceeds from issuance of equity, net of issuance costs 3,675    7,116 Proceeds from the issuance of equity to non-controlling interest, net of issuance costs 4,907    3,503 Payment of debts (300)   (460)Distributions to Stockholders (26)   — Payment of promissory notes to related parties —    — Repurchase of Preferred Stock (50)   — Cash Flows Provided by Financing Activities  8,206    10,159      Net Decrease in Cash, Cash Equivalents and Restricted Cash (9,744)   (418)Cash, Cash Equivalents and Restricted Cash Beginning of period 11,119    2,575 Cash, Cash Equivalents and Restricted Cash End of period$1,375   $2,157  See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited) (in thousands, except share and per share amounts)  Successor  Predecessor Three months endedMarch 31, 2025  Three months endedMarch 31, 2024Supplemental Cash Flow Information    Cash paid for interest$1,127  $55Supplemental Disclosure of Noncash Financing Information    Accretion of redeemable units to redemption value —   4,415Issuance of units to non-controlling interest in exchange of convertible promissory notes —   7,324Conversion of working capital loans to equity method investee into investments in debt securities - related party 4,375   —Extinguishment of debt with Series C Preferred Stock 14,000   —Contribution of Series C Preferred Stock to equity method investee 5,783   —Conversion of AFX available-for-sale term loan into equity method investments 8,757   —Issuance of stock in exchange for services 4,002   —Equity reallocation between non-controlling interest and additional paid-in capital 26,304   — See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesNon-GAAP Financial Measures(in thousands, except share and per share amounts)   Successor    Predecessor  Three months endedMarch 31, 2025  Three months endedMarch 31, 2024Net loss(253,674)  (7,526)Interest expense, net(1)1,538   405 Depreciation and amortization expense5,548   — Income tax benefit(1,399)  — EBITDA(247,987)  (7,121)Transaction and other related costs(2)—   3,272 Change in fair value of financial liabilities(3)(16,429)  478 Stock-based compensation(4)5,841   396 Goodwill impairment(5)233,213   — Loss on extinguishment of related party debt(6)3,538   — Loss on conversion of promissory notes—   1,119 Adjusted EBITDA(21,824)  (1,856) (1) Interest Expense, net, includes interest incurred on our various borrowing facilities and the amortization of debt issuance costs.(2) Transaction and other related costs – For the three months ended March 31, 2025 (Successor) and three months ended March 31, 2024 (Predecessor), this is comprised of consulting, legal, and other professional fees related to the Business Combination.(3) Change in fair value of financial liabilities – For the three months ended March 31, 2025 (Successor), the change in fair value of financial liabilities primarily consists of the change in fair value of the warrant liability and the earnout liability.

Media Contact: Laurie Steinberg, Solebury Strategic Communications press@innventure.com Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications investorrelations@innventure.com Innventure, Inc.and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except share and per share amounts)  March 31, 2025(Unaudited) December 31, 2024Assets   Cash, cash equivalents and restricted cash$1,375  $11,119 Accounts receivable 237   283 Due from related parties 124   4,536 Inventories 5,220   5,178 Prepaid expenses and other current assets 3,329   3,170 Total Current Assets  10,285   24,286 Investments 33,684   28,734 Property, plant and equipment, net 2,186   1,414 Intangible assets, net 176,750   182,153 Goodwill 436,807   667,936 Other assets 707   766 Total Assets $660,419  $905,289 Liabilities and Stockholders' Deficit   Accounts payable$5,061  $3,248 Accrued employee benefits 11,216   9,273 Accrued expenses 3,102   2,478 Related party notes payable - current —   14,000 Notes payable - current 2,141   625 Patent installment payable - current 700   1,225 Obligation to issue equity 261   4,158 Warrant liability 24,003   34,023 Income taxes payable 500   — Other current liabilities 340   317 Total Current Liabilities  47,324   69,347 Notes payable, net of current portion 12,346   13,654 Earnout liability 7,470   14,752 Stock-based compensation liability 718   1,160 Patent installment payable, net of current 12,375   12,375 Deferred income taxes 25,454   27,353 Other liabilities 260   355 Total Liabilities  105,947   138,996 Commitments and Contingencies (Note 16)   Mezzanine Equity   Preferred Stock, $0.0001 par value, 25,000,000 shares authorized, 2,885,848 and — shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 28,727   — Stockholders' Equity   Preferred Stock, $0.0001 par value, 25,000,000 shares authorized, 1,118,808 and 1,102,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively —   — Common Stock, $0.0001 par value, 250,000,000 shares authorized, 47,103,800 and 44,597,154 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 5   4 Additional paid-in capital 484,256   502,865 Accumulated other comprehensive (loss) gain (1,478)  909 Accumulated deficit (221,285)  (78,262)Total Innventure, Inc., Stockholders’ Equity 261,498   425,516 Non-controlling interest 264,247   340,777 Total Stockholders' Equity  525,745   766,293 Total Liabilities, Mezzanine and Stockholders' Equity$660,419  $905,289  See accompanying notes to condensed consolidated financial statements.Innventure, Inc.and SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive Income (Loss)(Unaudited) (in thousands, except share and per share amounts)  Successor  Predecessor Three monthsended March 31,2025  Three monthsended March 31,2024Revenue$224   $224      Operating Expenses    Cost of sales 184    — General and administrative 19,676    7,904 Sales and marketing 2,096    1,183 Research and development 6,253    1,669 Goodwill impairment 233,213    — Total Operating Expenses 261,422    10,756      Loss from Operations (261,198)   (10,532)     Non-operating (Expense) and Income    Interest expense, net (1,538)   (405)Net gain on investments —    5,189 Net loss on investments - due to related parties —    (186)Change in fair value of financial liabilities 16,429    (478)Equity method investment (loss) gain (6,756)   5 Realized gain on conversion of available for sale investment 1,507    — Loss on extinguishment of related party debt (3,538)   — Loss on conversion of promissory notes —    (1,119)Miscellaneous other income 21    — Total Non-operating Income 6,125    3,006      Loss before income taxes (255,073)   (7,526)     Income tax benefit (1,399)   — Net Loss (253,674)   (7,526)Less: net loss attributable to    Non-redeemable non-controlling interest (110,677)   (2,307)Net Loss Attributable to Innventure, Inc.

These risks and uncertainties include, but are not limited to, those factors described in the Company’s public filings made with the Securities and Exchange Commission and the following: (a) the Company’s and its subsidiaries’ ability to execute on strategies and achieve future financial performance, including their respective future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and the Company’s and its subsidiaries’ ability to invest in growth initiatives; (b) the implementation, market acceptance and success of the Company’s and its subsidiaries’ business models and growth strategies; (c) the Company’s and its subsidiaries’ future capital requirements and sources and uses of cash; (d) the Company’s access to funds under the Standby Equity Purchase Agreement with YA II PN, Ltd.("YA”) or the Securities Purchase Agreement and related convertible debentures with YA due to certain conditions, restrictions and limitations set forth therein; (e) certain restrictions and limitations set forth in the Company’s debt instruments, which may impair the Company’s financial and operating flexibility; (f) the Company and its subsidiaries ability to generate liquidity and maintain sufficient capital to operate as anticipated; (g) the Company’s and its subsidiaries’ ability to obtain funding for their operations and future growth and to continue as going concerns; (h) the risk that the technology solutions that the Company and its subsidiaries license or acquire from third parties or develop internally may not function as anticipated or provide the benefits anticipated; (i) developments and projections relating to the Company’s and its subsidiaries’ competitors and industry; (j) the ability of the Company and its subsidiaries to scale the operations of their businesses; (k) the ability of the Company and its subsidiaries to establish substantial commercial sales of their products; (l) the ability of the Company and its subsidiaries to compete against companies with greater capital and other resources or superior technology or products; (m) the Company and its subsidiaries’ ability to meet, and to continue to meet, applicable regulatory requirements for the use of their respective products and the numerous regulatory requirements generally applicable to their businesses; (m) the outcome of any legal proceedings against the Company or its subsidiaries; (o) the Company’s ability to find future opportunities to license or acquire breakthrough technology solutions from multinational corporations or other third parties ("Technology Solutions Provider”) and to satisfy the requirements imposed by or to avoid disagreements with its current and future Technology Solutions Providers; (p) the risk that the launch of new companies distracts the Company’s management from its other subsidiaries and their operations; (q) the risk that the Company may be deemed an investment company under the Investment Company Act, which would impose burdensome compliance requirements and restrictions on its activities; (r) the ability of the Company and its subsidiaries to sufficiently protect their intellectual property rights and to avoid or resolve in a timely and cost-effective manner any disputes that may arise relating to its use of the intellectual property of third parties; (s) the risk of a cyber-attack or a failure of the Company’s or its subsidiaries’ information technology and data security infrastructure; (t) geopolitical risk and changes in applicable laws or regulations; (u) potential adverse effects of other economic, business, and/or competitive factors; (v) operational risks related to the Company and its subsidiaries that have limited or no operating history; and (w) limited liquidity and trading of the Company’s securities.

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Author / Journalist: Innventure LLC

Category: Technology

Markets: China

Topics: Nasdaq:INV US45784M1080 Nasdaq:INVW

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-15 @ 20:15:00 (20 hours ago)

News Timezone: GMT +8:00

News Source URL: globenewswire.com

Language: English

Article Length: 2506 words

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Sentences: 54 lines

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News ID: 28734557

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