Company: INV
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001628280-25-017890
Chunk: 57

Company: Innventure, Inc.
Filing Date: 2025-04-15
Form: S-1
Chunk 57
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’ products.

Changes in tax laws could adversely affect Innventure and the Innventure Companies.

Innventure and the Innventure Companies operate in various jurisdictions and are subject to changes in

applicable tax laws, treaties, or regulations in those jurisdictions. A material change in the tax laws, treaties, or

regulations, or their interpretation, of any jurisdiction with which Innventure and the Innventure Companies do

business, or in which Innventure and the Innventure Companies have significant operations, could adversely affect

Innventure.

For example, during October 2021, the Organisation for Economic Cooperation and Development (the

“OECD”) announced that 136 countries and tax jurisdictions have agreed to implement a new “Two Pillar” approach

to international taxation. Numerous countries have now enacted, or are in the process of enacting, new legislation

consistent with this approach, which took effect for the first time in 2024. More countries have committed to

introduce similar legislation, at different times and in different ways, through their individual agreement to tax treaty

changes and through changes to their own domestic tax laws.

The first of the OECD’s “pillars” establishes a new taxing right for countries in which a business has a

significant economic presence, even though it may not have the degree of physical presence in that country needed

to establish a taxing right under existing tax treaties. This new taxing right is subject to several conditions,

exclusions and exceptions, and will initially affect only multinational enterprises with global turnover above 20

billion euros.

The second pillar establishes a global minimum tax rate of 15%, such that multinational enterprises with an

effective tax rate in a jurisdiction below this minimum rate will need to pay additional tax, which could be collected

by the parent company’s tax authorities or by those in other countries, depending on whether and how each country

implements the OECD’s approach in its tax treaties and domestic tax legislation. In an initial transition period from

2024 to 2026, enterprises are exempt from this additional tax if certain “Safe Harbour” tests are met.

Depending on how the jurisdictions in which Innventure and the Innventure Companies operate choose to

implement the OECD’s approach in their tax treaties and domestic tax laws, and future evolution of the OECD’s

“Two Pillar” approach, Innventure and the Innventure Companies could be adversely affected due to its income

being taxed at higher effective rates.

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USE OF PROCEEDS

All of the shares of Common Stock offered by the