Company: INV
Filing Date: 2025-05-19
Form Type: 424B3
Source: 0001628280-25-026457
Chunk: 16

Company: Innventure, Inc.
Filing Date: 2025-05-19
Form: 424B3
Chunk 16
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31, 2026 or (ii) the date of the sale, transfer or other disposition all of AeroFlexx’s assets or AeroFlexx's stock. After any full or partial repayment of the term loans, AeroFlexx may borrow additional funds up to the $10,000 limit until the maturity date. The loans bear interest at the applicable federal rate published by the Internal Revenue Service and is adjusted on a quarterly basis.

The Company has an option to convert the outstanding principal amount of the term loans and any unpaid accrued interest into shares or units in connection with the next issuance of equity securities by AeroFlexx, at a price equal to 100% of the price per share or unit and on the same terms and conditions as apply to such issuance.

During 2024, the Company lent AeroFlexx the entire $10,000 principal balance under this agreement. As of January 1, 2025, AeroFlexx was unable to raise any additional equity financing, therefore the outstanding principal and unpaid accrued interest with an amount equal to the equity deficit of $7,250 was automatically converted into Class D preferred units of AeroFlexx at the price of $6.83 per share in accordance with the loan agreement. Upon conversion, a realized gain of $1,507 was recognized for the three months ended March 31, 2025 (Successor) and is included in non-operating income in the condensed consolidated statements of operations and comprehensive income (loss).

During the three months ended March 31, 2025 (Successor), $4,375 was reclassified from Due from related parties under the term loan and $2,337 was drawn down by AeroFlexx under the term loan. The total balance drawn as of March 31, 2025 was $9,629.

The Company accounted for the loans as an investment in debt securities and classified them as available for sale debt securities. Based on the AFS classification, the Company records this investment at fair value at each reporting date and as such recorded the changes in fair value of these loans (including the adjustment to fair value at inception date) in Other comprehensive income ("OCI").

As the contractual maturity of the loan is in 2026, it is included in the non-current line item Investments of the condensed consolidated balance sheets. The change in fair value of this investment in debt securities of $880 for the three months ended March 31, 2025 (Successor) is included as Unrealized loss on available for sale debt securities - related party