Company: INV
Filing Date: 2025-05-09
Form Type: ARS
Source: 0001628280-25-024065
Chunk: 114

Company: Innventure, Inc.
Filing Date: 2025-05-09
Form: ARS
Chunk 114
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 LLC's “DownSelect” process, within the Vesting Period. The probability of achievement based on the Company’s analysis was 98% on October 2, 2024. Milestone Three The following table summarizes the unobservable inputs used in estimating the fair value of the Earnout Shares based on revenue for AeroFlexx (Milestone Three): October 2, 2024 December 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). Table of Contents Innventure, Inc. and Subsidiaries Notes to Consolidated Financial Statements (in thousands, except share or per share data) 81

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 December 31, 2023 Interest Rates Series 1 promissory notes