Company: INV
Filing Date: 2025-11-12
Form Type: 424B3
Source: 0001140361-25-041464
Chunk: 195

Company: Innventure, Inc.
Filing Date: 2025-11-12
Form: 424B3
Chunk 195
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choles model incorporating breakpoints upon which each tranche of AeroFlexx equity participates in distributions.

|                                    |     | October 2, 2024 |     | December 31, 2024 |
|:-----------------------------------|:----|:----------------|:----|:------------------|
| Volatility                         |     | 120.00%         |     | 120.00%           |
| Time to liquidity                  |     | 2 years         |     | 2 years           |
| Discount for lack of marketability |     | 18.00%          |     | 31.00%            |
| Weighted average cost of capital   |     | 45.00%          |     | 45.00%            |
| Risk-free rate                     |     | 3.51%           |     | 4.23%             |

Earnout Shares Upon Closing of the Business Combination, Earnout Shares were issued to previous Innventure Members and contingently issued to Sponsors (as defined and further described in Note 10. Earnout Shares). The fair value of the Earnout Shares was determined using a Monte Carlo valuation model that utilizes significant assumptions, including expected volatility, expected term, and risk-free rate, to determine the probability of achieving common share price and revenue milestones. The shares may vest upon either the achievement of the common share price milestone or revenue or event-based milestone specific to each of three tranches. Specifically, the future stock price of the Company and revenues of Accelsius and AeroFlexx are simulated assuming a Geometric Brownian Motion (GBM) in a risk-neutral framework. The Earnout Share payoff is calculated based on the contractual terms, and then discounted at the term-matched risk-free rate. The risk-free interest rate was determined by reference to the U.S. Treasury yield curve for time periods approximately equal to the remaining contractual term of the Earnout Shares. Discounting conventions of revenue-based milestones are mid-period assuming annual

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TABLE OF CONTENTS

Innventure, Inc. and Subsidiaries Notes to Consolidated Financial Statements (in thousands, except share or per share data) revenue forecasts are earned on average at the mid-period of the forecast period. The value of the Earnout Shares is calculated as the average present value over all future modeled payoffs. The inputs used in simulating the Company’s stock price include, the term, stock price, volatility, risk-free rate and dividend yield. Prior to the Business Combination, the