Company: INV
Filing Date: 2025-05-09
Form Type: ARS
Source: 0001628280-25-024065
Chunk: 144

Company: Innventure, Inc.
Filing Date: 2025-05-09
Form: ARS
Chunk 144
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 deferred income tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases using currently enacted tax rates in effect for the year in which the differences are expected to reverse. Significant components of deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows: December 31, 2024 December 31, 2023 Deferred Tax Assets: Deferred lease liabilities $ 138 $ 189 Capitalized R&D expense 2,562 766 Fixed assets and intangibles 3,113 3,614 Reserves and other accruals 4,873 178 Loss carry-forwards and other tax attributes 15,682 1,663 Total Deferred Tax Assets 26,368 6,410 Less: Valuation allowance (11,664) (5,910) Net Deferred Tax Assets $ 14,704 $ 500 Deferred Tax Liabilities: Amortization $ (38,443) $ (323) Investment in Partnerships (3,505) — Right of use assets (109) (177) Total Deferred Tax Liabilities (42,057) (500) Net Deferred Tax Liabilities $ (27,353) $ — Deferred tax assets are regularly reviewed for recoverability and a valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. In assessing the need for a valuation allowance, management considers all available positive and negative evidence, including the ability to carryback operating losses to prior periods and the expected future Table of Contents Innventure, Inc. and Subsidiaries Notes to Consolidated Financial Statements (in thousands, except share or per share data) 104

utilization of net operating loss carryforwards, the reversal of deferred tax liabilities, projected taxable income, and tax-planning strategies. Valuation allowances are established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. The valuation allowance on deferred tax assets was $11,664 as of December 31, 2024 and $5,910 as of December 31, 2023, resulting in a net change of $5,754. The increase in valuation allowance of $15,115 during the period mainly relates to U.S. federal and state operating loss carry