Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 35

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 35
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 third-party supplier

with over 22,000 employees and operations in approximately 100 countries—and is working to finalize a raw

materials agreement with the same. Currently, AFX relies on individual purchase orders to purchase the film

produced by the supplier. AFX is in the process of qualifying a second raw material film supplier—another,

similarly large, foreign third-party supplier with a larger global footprint—with negotiations for a raw materials

agreement to begin after such qualification. Such qualification, if achieved, is not expected until the end of the

second quarter of 2025. AFX intends to continue to work towards further diversifying its supplier base as product

demand grows and multiple suppliers are needed to support business continuity, though there is no guaranty that

such diversification will be successful.

If AFX’s suppliers provide insufficient inventory to meet customer demand or such inventory is not at the level

of quality required to meet its standards or if its suppliers are unable or unwilling to provide AFX with the requested

quantities (as AFX has no alternatives for supply), AFX’s results of operations could be materially and negatively

impacted. If AFX fails to develop or maintain its relationships with suppliers, or if there is otherwise a shortage or

lack of availability of any required raw materials or components, AFX may be unable to manufacture its products or

those products may be available only at a higher cost or after a long delay.

Due to increased demand across a range of industries, the global supply chain for certain raw materials and

components has experienced significant strain. The global macroeconomic environment and geopolitical instability,

as well as the impact of tariffs, have also contributed to and exacerbated this strain. There can be no assurance that

the impact of these issues on the supply chain will not continue, or worsen, in the future. Significant delays and

shortages could prevent AFX from delivering its products to its customers within required time frames and cause

order cancellations, which would adversely impact its cash flows and results of operations.

AFX may not be able to meet applicable regulatory requirements for the use of AFX’s products in food grade

applications, and, even if the requirements are met, complying on an ongoing basis with the numerous regulatory

requirements applicable to AFX’s products and AFX’s facilities will be time-consuming and costly.

The use of AFX’s products in food grade applications is subject to regulation by the U.S. Food and Drug

Administration (“FDA”). The FDA has established certain guidelines