Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 190

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 190
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 in fair value recorded in the consolidated statements of operations and comprehensive income (loss) . A derivative liability or asset will be recorded when there is an Advance Notice outstanding as of a reporting period. There were no outstanding Advance Notices as of December 31, 2024 . Derivative Liabilities Embedded derivative liabilities contained within the 2025 Notes (as defined and further described in Note 5. Borrowings ) are stated at fair value. Fair value is determined utilizing discounted cash flows, using unobservable

F-23 Innventure, Inc. and Subsidiaries Notes to Consolidated Financial Statements (in thousands, except share or per share data)

market data inputs, and an option pricing model based on a probability-weighted expected outcome with respect to a financing or a change of control. The derivatives associated with the 2025 Notes were settled in March 2024 due to conversion of the 2025 Notes in a qualified financing. A summary of the significant unobservable inputs utilized to

estimate the fair value is as follows:

| Embedded derivative within 2025 Note issued August 18, 2022 with a principal balance of$4,000                              | Settlement |     | December 31,2023 |
| Discount Rate..........................................................................................................    | 35%        |     | 35%-36%          |
| Probability of Expected Outcomes                                                                                           |            |     |                  |
| Financing..............................................................................................................    | 100%       |     | 95%              |
| Change in control..................................................................................................        | —%         |     | 3%               |
| Other..................................................................................................................... | —%         |     | 2%               |
| Embedded derivative within 2025 Notes issued June 7 & July 3, 2023 with anaggregate principal balance of$2,000             |            |     |                  |
| Discount Rate..........................................................................................................    | 71%-87%    |     | 71%-88%          |
| Probability of Expected Outcomes                                                                                           |            |     |                  |
| Financing..............................................................................................................    | 100%       |     | 95%              |
| Change in control..................................................................................................        | —%         |     | 3%               |
| Other..................................................................................................................... | —%         |     | 2%               |

Significant increases or decreases to any of these inputs would result in a significantly higher or lower liability. Investment in debt securities - AFS The investment in debt securities is stated