Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 193

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 193
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 31,2024 |
| Revenue risk premium................................................................................................      | 30.60%          | 36.10%           |
| Revenue volatility....................................................................................................... | 165.00%         | 176.00%          |

For further information on the Earnout Shares, refer to Note 10. Earnout Shares . Warrants The Company issued freestanding warrants to the WTI Lenders in connection with the WTI Facility (as defined and further described in Note 5. Borrowings and Note 11. Warrants ). The fair value measurement of WTI Warrants is based on unobservable inputs (Level 3 fair value measurement).

F-25 Innventure, Inc. and Subsidiaries Notes to Consolidated Financial Statements (in thousands, except share or per share data)

The fair value of the WTI Warrants was determined using a Monte Carlo valuation model in which the future

stock price is simulated assuming a GBM in a risk-neutral framework. The model utilizes significant assumptions

including stock price, stock price volatility, and credit spread. The credit spread relates to estimated counterparty

credit risk of Innventure being able to make payments related to the WTI Lenders’ put right, in which the WTI

Lenders may exchange the WTI Warrants for a total cash payment of $ 15,000 after the four -year anniversary of

issuance. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve.

|                                                                                                                               | October 22, 2024 | December 31,2024 |
| Stock Price.................................................................................................................. |           $11.50 |           $13.85 |
| Stock Price Volatility..................................................................................................      |           56.00% |           56.00% |
| Credit Spread..............................................................................................................   |           18.60% |           18.80% |

Other

Our financial instruments that are not re-measured at fair value include prepaid expenses and other current

assets, due from related parties, other assets, accounts payable, accrued expenses, accrued employee benefits, other

current liabilities and other liabilities as the carrying amounts approximate fair value due to the short maturity terms

of these instruments. Note 5. Borrowings

|                                                                                               |            |     |        Successor |     |                |     |      Predecessor |     |                |
|                                                                                               | Maturities |     | December 31,2024 |     | Interest Rates |