EX-99.1 2 ef20038549_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1

Innventure Reports Third Quarter 2024 Results

Accelsius delivered first revenue generating system during third quarter

ORLANDO, Fla. (November 14, 2024) – Innventure, Inc. (NASDAQ: INV) (“Innventure”), a technology commercialization platform, today announced financial results for the quarter ended September 30, 2024.

“We are incredibly excited about Innventure’s accomplishments during the third quarter, which subsequently culminated in early October with the close of our business combination and first day of trading on the Nasdaq,” said Bill Haskell, Innventure’s Chief Executive Officer. “Our operating companies continue to outperform our expectations, with both AeroFlexx and Accelsius now delivering commercial product to the marketplace.”

Mr. Haskell continued, “We look forward to sharing more as we scale these companies and launch new companies in the future. I’d like to thank the entire Innventure team for their tireless work making our vision an ever expanding reality. Now as a public company, we can accelerate execution against our mission to bring breakthrough technologies to market and deliver long-term value for our shareholders.”

Conference Call and Webcast

A conference call to discuss these results has been scheduled for 8:30 a.m. ET on Thursday, November 14, 2024.  Interested parties can join the call via teleconference by registering at this link: https://register.vevent.com/register/BIc433d3bf08f34d37b56270335fc659fe.

After registering, you will be provided dial in details and a unique dial-in PIN. Registration is open through the live call, but to ensure you are connected for the full call, we suggest registering in advance. Webcast information and conference call materials will be made available on Innventure’s Investor Relations website here: https://ir.innventure.com/.

About Innventure

Innventure founds, funds, and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. As owner-operators, Innventure takes what it believes to be breakthrough technologies from early evaluation to scaled commercialization utilizing an approach designed to help mitigate risk as it builds disruptive companies it believes have the potential to achieve a target enterprise value of at least $1 billion. Innventure defines ‘‘disruptive’’ as innovations that have the ability to significantly change the way businesses, industries, markets and/or consumers operate.
Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including statements about the Company’s business model and its and its operating companies’ prospects. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “will,” “potential,” “predict,” “should,” “would” and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements are based on the current expectations of the Company’s management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors discussed and identified in other public filings made with the Securities and Exchange Commission by the Company and the following: (a) expectations regarding the Company’s and the Innventure Companies’ (as defined below) strategies and future financial performance, including their 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 ability to invest in growth initiatives; (b) the implementation, market acceptance and success of the Company’s and the Innventure Companies’ business models and growth strategies; (c) the Company’s future capital requirements and sources and uses of cash; (d) the Company’s ability to meet the various conditions, including the available cash and performance targets, and access any of the installments draws under the WTI Line of Credit; (e) the Company’s ability to meet the various conditions and satisfy the various limitations under the Standby Equity Purchase Agreement (the “SEPA”) with YA II PN, Ltd., including exchange caps, issuances and subscriptions based on trading volumes, to access the funds available under the SEPA; (f) that the Company will have sufficient capital following the completion of the Business Combination to operate as anticipated; (g) the Company’s ability to obtain funding for its operations and future growth; (h) developments and projections relating to the Company’s and the Innventure Companies’ competitors and industry; (i) the Innventure Companies’ ability to meet, and to continue to meet, applicable regulatory requirements for the use of their products and the numerous regulatory requirements generally applicable to their products and facilities; (j) the outcome of any legal proceedings that may be instituted against the Company in connection with the completion of the Business Combination; (k) the Company’s ability to find future opportunities to license or acquire breakthrough technology solutions from multinational corporations (“MNCs”) and to satisfy the requirements imposed by or to avoid disagreements with its current and future MNC partners; (l) 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; (m) the Company’s ability to sufficiently protect the intellectual property rights of itself and its subsidiaries, 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; (n) the risk of a cyber-attack or a failure of the Company’s information technology and data security infrastructure; (o) the ability to recognize the anticipated benefits of the Business Combination; (p) unexpected costs related to the Business Combination; (q) geopolitical risk and changes in applicable laws or regulations; (r) potential adverse effects of other economic, business, and/or competitive factors; and (s) operational risks related to the Company and its subsidiaries.


Media Contact: Laurie Steinberg, Solebury Strategic Communications
press@innventure.com

Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications
investorrelations@innventure.com
Innventure LLC and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except unit and per unit amounts) (Unaudited)

   
September 30,
2024
    
December 31,
2023
  
   
(Unaudited)
        
Assets
            
Cash, cash equivalents and restricted cash
  
$
16,297
    
$
2,575
  
Prepaid expenses and other current assets
    
1,884
      
487
  
Inventory
    
2,824
      
—
  
Due from related parties
    
210
      
2,602
  
Total Current Assets
    
21,215
      
5,664
  
Investments
    
32,359
      
14,167
  
Property, plant and equipment, net
    
1,227
      
637
  
Other assets
    
930
      
1,096
  
Total Assets
    
55,731
      
21,564
  
 
                
Liabilities and Unitholders’ Capital
                
Accounts payable
    
4,932
      
93
  
Accrued employee benefits
    
7,617
      
3,779
  
Accrued expenses
    
1,929
      
1,009
  
Related party payables
    
815
      
347
  
Related party notes payable - current
    
13,932
      
1,000
  
Notes payable - current
    
693
      
912
  
Patent installment payable - current
    
525
      
775
  
Liability for future preferred stock issuance
    
10,870
      
—
  
Other current liabilities
    
288
      
253
  
Total Current Liabilities
    
41,601
      
8,168
  
Notes payable, net of current portion
    
282
      
999
  
Convertible promissory note, net
    
—
      
1,120
  
Convertible promissory note due to related party, net
    
—
      
3,381
  
Embedded derivative liability
    
—
      
1,994
  
Patent installment payable, net of current
    
13,075
      
13,075
  
Other liabilities
    
501
      
683
  
Total Liabilities
    
55,459
      
29,420
  
 
                
Commitments and Contingencies
                
 
                
Mezzanine Capital
                
Redeemable Class I Units, no par value, 1,000,000 units authorized, issued and outstanding
    
4,477
      
2,912
  
Redeemable Class PCTA Units, no par value, 3,982,675 units authorized, issued and outstanding
    
18,103
      
7,718
  
Unitholders' Deficit
                
Class B Preferred Units, no par value, 6,722,562 and 4,639,557 units authorized, 5,609,951 and 4,109,961 units issued and outstanding
    
51,683
      
38,122
  
Class B-1 Preferred Units, no par value, 2,600,000 units authorized, 342,608 units issued and outstanding
    
3,323
      
3,323
  
Class A Units, no par value, 10,975,000 units authorized, 10,875,000 units issued and outstanding
    
1,950
      
1,950
  
Class C Units, no par value, 1,585,125 units authorized, 1,570,125 units issued and outstanding
    
981
      
844
  
Accumulated deficit
    
(90,952
)
    
(64,284
)
Accumulated other comprehensive loss
    
(2,373
)
    
—
  
Non-controlling interest
    
13,080
      
1,559
  
Total Unitholders’ Deficit
    
(22,308
)
    
(18,486
)
Total Liabilities, Mezzanine Capital, and Unitholders' Deficit
  
$
55,731
    
$
21,564
  

See accompanying notes to condensed consolidated financial statements.
Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except unit and per unit amounts) (Unaudited)

   
Three months ended
September 30,
    
Nine months ended
September 30,
  
   
2024
    
2023
    
2024
    
2023
  
Revenue
                        
Management fee income - related parties
  
$
222
    
$
224
    
$
669
    
$
668
  
Consulting revenue
    
—
      
50
      
—
      
225
  
Product sales
    
95
      
—
      
95
      
—
  
Total Revenue
    
317
      
274
      
764
      
893
  
Operating Expenses
                                
Cost of sales
    
777
      
—
      
777
      
—
  
General and administrative
    
9,052
      
4,054
      
25,323
      
9,878
  
Sales and marketing
    
1,629
      
696
      
4,178
      
1,901
  
Research and development
    
2,533
      
1,240
      
5,978
      
2,822
  
Total Operating Expenses
    
13,991
      
5,990
      
36,256
      
14,601
  
 
                                
Loss from Operations
    
(13,674
)
    
(5,716
)
    
(35,492
)
    
(13,708
)
Non-operating (Expense) and Income
                                
Interest expense, net
    
(852
)
    
(364
)
    
(1,300
)
    
(841
)
Net (loss) gain on investments
    
7,148
      
(12,148
)
    
11,547
      
(2,718
)
Net (loss) gain on investments – due to related parties
    
(308
)
    
436
      
(468
)
    
99
  
Change in fair value of embedded derivative liability
    
—
      
(451
)
    
(478
)
    
(492
)
Equity method investment income (loss)
    
109
      
(673
)
    
893
      
(291
)
Loss on conversion of promissory notes
    
—
      
—
      
(1,119
)
    
—
  
Other expenses
    
(64
)
    
—
      
(64
)
    
—
  
Total Non-operating (Expense) Income
    
6,033
      
(13,200
)
    
9,011
      
(4,243
)
Income tax expense
    
—
      
—
      
—
      
—
  
Net Loss
    
(7,641
)
    
(18,916
)
    
(26,481
)
    
(17,951
)
Less: Loss attributable to non-controlling interest
    
(5,430
)
    
(45
)
    
(11,762
)
    
(101
)
Net Loss Attributable to Innventure LLC Unitholders
  
$
(2,211
)
  
$
(18,871
)
  
$
(14,719
)
  
$
(17,850
)
 
                                
Net Loss Attributable to Class A Unitholders
  
$
(10,233
)
  
$
(9,177
)
  
$
(29,010
)
  
$
(16,848
)
Basic loss per unit
  
$
(0.94
)
  
$
(0.84
)
  
$
(2.67
)
  
$
(1.55
)
Basic weighted average Class A Units
    
10,875,000
      
10,875,000
      
10,875,000
      
10,875,000
  
 
                                
Other comprehensive income (loss), net of taxes:
                                
Unrealized loss on AFS debt securities - related party
  
$
(2,373
)
  
$
—
    
$
(2,373
)
  
$
—
  
Total other comprehensive loss, net of taxes
    
(2,373
)
    
—
      
(2,373
)
    
—
  
 
                                
Total comprehensive loss, net of taxes
    
(10,014
)
    
(18,916
)
    
(28,854
)
    
(17,951
)
Less: Comprehensive loss attributable to non-controlling interest
    
(5,430
)
    
(45
)
    
(11,762
)
    
(101
)
Net Comprehensive Loss Attributable to Innventure LLC Unitholders
  
$
(4,584
)
  
$
(18,871
)
  
$
(17,092
)
  
$
(17,850
)

See accompanying notes to condensed consolidated financial statements.
Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Changes in Mezzanine Capital
(in thousands) (Unaudited)

 
  
Class I
Amount
    
Class PCTA
Amount
    
Total
  
December 31, 2022
  
$
2,984
    
$
12,882
    
$
15,866
  
Accretion of redeemable units to redemption value
    
1
      
457
      
458
  
March 31, 2023
    
2,985
      
13,339
      
16,324
  
Proceeds from capital calls to unitholders
    
130
      
—
      
130
  
Accretion of redeemable units to redemption value
    
423
      
7,031
      
7,454
  
June 30, 2023
    
3,538
      
20,370
      
23,908
  
Accretion of redeemable units to redemption value
    
(469
)
    
(9,680
)
    
(10,149
)
September 30, 2023
  
$
3,069
    
$
10,690
    
$
13,759
  
 
                        
December 31, 2023
  
$
2,912
    
$
7,718
    
$
10,630
  
Accretion of redeemable units to redemption value
    
280
      
4,135
      
4,415
  
March 31, 2024
    
3,192
      
11,853
      
15,045
  
Accretion of redeemable units to redemption value
    
934
      
(572
)
    
362
  
June 30, 2024
    
4,126
      
11,281
      
15,407
  
Accretion of redeemable units to redemption value
    
351
      
6,822
      
7,173
  
September 30, 2024
  
$
4,477
    
$
18,103
    
$
22,580
  

See accompanying notes to condensed consolidated financial statements.
Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Changes in Unitholders' Deficit
(in thousands) (Unaudited)

 
  
Class B
Preferred
    
Class B-1
Preferred
    
Class A
    
Class C
    
Accumulated
Deficit
    
Accumulated Other Comprehensive Loss
    
Non-Controlling Interest
    
Total Unitholders' Deficit
  
December 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 NCI
    
—
      
—
      
—
      
—
      
—
      
—
      
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 NCI 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
)
Net loss
    
—
      
—
      
—
      
—
      
(7,288
)
    
—
      
(4,026
)
    
(11,314
)
Units issued to NCI
    
—
      
—
      
—
      
—
      
—
      
—
      
7,348
      
7,348
  
Issuance of preferred units, net of issuance costs
    
2,852
      
—
      
—
      
—
      
—
      
—
      
—
      
2,852
  
Unit-based compensation
    
—
      
—
      
—
      
45
      
—
      
—
      
248
      
293
  
Accretion of redeemable units to redemption value
    
—
      
—
      
—
      
—
      
(362
)
    
—
      
—
      
(362
)
June 30, 2024
    
48,540
      
3,323
      
1,950
      
940
      
(81,568
)
    
—
      
15,113
      
(11,702
)
Net loss
    
—
      
—
      
—
      
—
      
(2,211
)
    
—
      
(5,430
)
    
(7,641
)
Other comprehensive loss, net of taxes
    
—
      
—
      
—
      
—
      
—
      
(2,373
)
    
—
      
(2,373
)
Units issued to NCI
    
—
      
—
      
—
      
—
      
—
      
—
      
3,071
      
3,071
  
Issuance of preferred units, net of issuance costs
    
3,143
      
—
      
—
      
—
      
—
      
—
      
—
      
3,143
  
Unit-based compensation
    
—
      
—
      
—
      
41
      
—
      
—
      
326
      
367
  
Accretion of redeemable units to redemption value
    
—
      
—
      
—
      
—
      
(7,173
)
    
—
      
—
      
(7,173
)
September 30, 2024
  
$
51,683
    
$
3,323
    
$
1,950
    
$
981
    
$
(90,952
)
  
$
(2,373
)
  
$
13,080
    
$
(22,308
)

Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Changes in Unitholders' Deficit (continued)
(in thousands) (Unaudited)

   
Class B
Preferred
    
Class B-1
Preferred
    
Class A
    
Class C
    
Accumulated Deficit
    
Accumulated Other Comprehensive Loss
    
Non-Controlling Interest
    
Total Unitholders' Deficit
  
December 31, 2022
  
$
20,803
    
$
3,323
    
$
1,950
    
$
639
    
$
(38,564
)
  
$
—
    
$
656
    
$
(11,193
)
Net loss
    
—
      
—
      
—
      
—
      
(3,573
)
    
—
      
(23
)
    
(3,596
)
Units issued to NCI
    
—
      
—
      
—
      
—
      
—
      
—
      
104
      
104
  
Issuance of preferred units, net of issuance costs
    
712
      
—
      
—
      
—
      
—
      
—
      
—
      
712
  
Unit-based compensation
    
—
      
—
      
—
      
50
      
—
      
—
      
103
      
153
  
Accretion of redeemable units to redemption value
    
—
      
—
      
—
      
—
      
(458
)
    
—
      
—
      
(458
)
March 31, 2023
    
21,515
      
3,323
      
1,950
      
689
      
(42,595
)
    
—
      
840
      
(14,278
)
Net loss
    
—
      
—
      
—
      
—
      
4,594
      
—
      
(33
)
    
4,561
  
Issuance of preferred units, net of issuance costs
    
2,599
      
—
      
—
      
—
      
—
      
—
      
—
      
2,599
  
Unit-based compensation
    
—
      
—
      
—
      
52
      
—
      
—
      
133
      
185
  
Accretion of redeemable units to redemption value
    
—
      
—
      
—
      
—
      
(7,454
)
    
—
      
—
      
(7,454
)
June 30, 2023
    
24,114
      
3,323
      
1,950
      
741
      
(45,455
)
    
—
      
940
      
(14,387
)
Net loss
    
—
      
—
      
—
      
—
      
(18,871
)
    
—
      
(45
)
    
(18,916
)
Units issued to NCI
    
—
      
—
      
—
      
—
      
—
      
—
      
101
      
101
  
Issuance of preferred units, net of issuance costs
    
5,038
      
—
      
—
      
—
      
—
      
—
      
—
      
5,038
  
Tax advanced distributions to members
    
—
      
—
      
—
      
—
      
(243
)
    
—
      
—
      
(243
)
Unit-based compensation
    
—
      
—
      
—
      
51
      
—
      
—
      
244
      
295
  
Accretion of redeemable units to redemption value
    
—
      
—
      
—
      
—
      
10,149
      
—
      
—
      
10,149
  
September 30, 2023
  
$
29,152
    
$
3,323
    
$
1,950
    
$
792
    
$
(54,420
)
  
$
—
    
$
1,240
    
$
(17,963
)

See accompanying notes to condensed consolidated financial statements
Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands) (Unaudited)

   
Nine months ended September 30,
  
   
2024
    
2023
  
Cash Flows Used in Operating Activities
            
Net loss
  
$
(26,481
)
  
$
(17,951
)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
                
Unit-based compensation
    
1,056
      
633
  
Interest income on debt securities - related party
    
(110
)
    
—
  
Accrued unpaid interest on note payable
    
931
      
397
  
Change in fair value of embedded derivative liability
    
478
      
492
  
Change in fair value of payables due to related parties
    
468
      
(99
)
Non-cash interest expense on notes payable
    
351
      
252
  
Net (gain) loss on investments
    
(11,547
)
    
2,718
  
Equity method investment loss (gain)
    
(893
)
    
291
  
Loss on conversion of promissory notes
    
1,119
      
—
  
Depreciation expense
    
146
      
—
  
Non-cash rent costs
    
186
      
133
  
Amortization of debt issuance costs - related party
    
—
      
—
  
Other, net
    
—
      
27
  
Changes in operating assets and liabilities:
                
Prepaid expenses and other current assets
    
(1,605
)
    
(930
)
Inventory
    
(2,824
)
    
—
  
Accounts payable
    
4,863
      
(32
)
Accrued employee benefits
    
3,838
      
2,111
  
Accrued expenses
    
674
      
113
  
Other current liabilities
    
(147
)
    
(89
)
Liability for future preferred stock issuance
    
10,870
      
—
  
Other assets
    
(20
)
    
(202
)
Net Cash Used in Operating Activities
    
(18,647
)
    
(12,136
)
 
                
Cash Flows Used in Investing Activities
                
Purchase of shares in equity method investees
    
—
      
(2,000
)
Contributions to equity method investees
    
—
      
(130
)
Investment in debt securities - related party
    
(7,400
)
    
—
  
Acquisition of property, plant and equipment
    
(736
)
    
(173
)
Proceeds received related to PCT stock sale
    
2,314
      
708
  
Net Cash Used in Investing Activities
    
(5,822
)
    
(1,595
)
 
                
Cash Flows Provided by Financing Activities
                
Proceeds from issuance of capital, net of issuance costs
    
13,122
      
8,249
  
Proceeds from the issuance of units to NCI
    
13,859
      
205
  
Proceeds from convertible notes payable
    
—
      
2,000
  
Payment of debts
    
(790
)
    
(19
)
Receipt of Capital from Class I Unitholder
    
—
      
130
  
Tax advance distribution to Members
    
—
      
(243
)
Proceeds of related party notes payable
    
12,000
      
3
  
Net Cash Provided by Financing Activities
    
38,191
      
10,325
  
 
                
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash
    
13,722
      
(3,406
)
Cash, Cash Equivalents and Restricted Cash Beginning of period
    
2,575
      
7,544
  
Cash, Cash Equivalents and Restricted Cash End of period
  
$
16,297
    
$
4,138
  

Innventure LLC and Subsidiaries
Condensed Consolidated Statements of Cash Flows (continued)
(in thousands) (Unaudited)

   
Nine months ended September 30,
  
   
2024
    
2023
  
Supplemental Cash Flow Information
            
Cash paid for interest
  
$
1,070
    
$
220
  
Supplemental Disclosure of Noncash Financing Information
                
Accretion of redeemable units to redemption value
  
$
11,950
    
$
2,237
  
Debt discount and embedded derivative upon issuance
  
$
—
    
$
1,119
  
Issuance of Class Preferred B Units to extinguish convertible notes payable
  
$
396
    
$
100
  
Issuance of Class B Preferred Units in exchange for Innventus ESG Fund Equity
  
$
183
    
$
—
  
Issuance of NCI in exchange for interest in Innventus ESG Fund
  
$
146
    
$
—
  
Commissions payable on issuance of Class B Preferred Units
  
$
163
    
$
—
  
Commissions payable on issuance of NCI
  
$
83
    
$
—
  
Issuance of Class B Preferred Units to extinguish consulting fees payable
  
$
24
    
$
—
  
Issuance of units to NCI in exchange of convertible promissory notes
  
$
7,324
    
$
—
  
Conversion of working capital loans to equity method investees into  investments in debt securities - related party
  
$
2,600
    
$
—
  
Unrealized loss on investments in debt Securities - related party through OCI
  
$
2,373
    
$
—
  
Recognition of right of use asset and corresponding lease liability
  
$
—
    
$
731
  

See accompanying notes to condensed consolidated financial statements.