Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 222

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 222
---
3,505 |     |                — |
| Right of use assets.....................................................................................................   |             -109 |     |             -177 |
| Total Deferred Tax Liabilities.................................................................................            |          -42,057 |     |             -500 |
| Net Deferred Tax Liabilities....................................................................................           |        $(27,353) |     |               $— |

Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. Valuation allowances are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The valuation allowance on deferred tax assets was $ 11,664 as of December 31, 2024 and $ 5,910 as of December 31, 2023 , resulting in a net change of $ 5,754 . The increase in valuation allowance of $ 15,115 during the period mainly relates to U.S. federal and state operating loss carryforwards and equity based compensation deferred tax assets that were deemed unrealizable. During this period, Accelsius recognized significant deferred tax liabilities from acquired intangible assets as part of the Business Combination. The deferred tax liability provided a new source of income to realize the existing deferred tax assets, which provided enough positive evidence to release the valuation allowance of $ 9,361 . The Company and the remaining corporate subsidiaries maintained the valuation allowance as the entities have been in a pre-tax loss position, with insufficient projected taxable income (exclusive of reversing taxable temporary differences) to recognize the benefit of net deferred tax assets as of the end of the year. As of December 31, 2024 , the taxable entity had net operating loss carryforwards for income tax purposes of approximately $ 62,653 related to federal taxes, all of which may be carried forward indefinitely. The Company and certain subsidiaries also have state net operating loss (“NOL”) carryforwards in the amount of $ 39,262 . The state NOL carryforwards begin to expire in 2038