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Yahoo
02-06-2025
- Business
- Yahoo
AeroFlexx Awarded New Patents in Sustainable Packaging Innovation
The company continues its commitment to offering a leading sustainable liquid packaging solution WEST CHESTER, Ohio, June 02, 2025 (GLOBE NEWSWIRE) -- AeroFlexx, a leader in sustainable packaging, has been awarded U.S. Patents 11,548,709 and 12,071,292. These patents present a flexible plastic package suitable for curbside recycling where all plastic bottles are accepted* that aligns with industry standards used to assess the compatibility of PE-based films and flexible packaging innovations. The AeroFlexx Pak is an improved flexible recyclable mono-material package capable of incorporating recycled content to achieve suitable package performance and help address some of the shortcomings with other packages available in the market today. "This recognition is a significant achievement for AeroFlexx and provides the company with additional value creation by broadening our intellectual property portfolio,' said Cedric D'Souza, Chief Technology Officer of AeroFlexx. 'We will continue to drive innovation in the plastic packaging industry to address both the consumer and brand's needs.' The AeroFlexx Pak is made of a flexible material but designed to act like a rigid bottle, combining the best qualities of both in a single solution. The AeroFlexx Pak can potentially eliminate up to 85 percent of virgin plastic when compared to a traditional rigid bottle, cap, and label. This is made possible by having up to 70 percent less plastic at the source and incorporating up to 50 percent recycled content. The result is a lightweight, flexible, durable package that can deliver a preferred consumer experience and unlock significant brand value, all while introducing unprecedented sustainability benefits. Andrew Meyer, CEO of AeroFlexx, said, "We are honored to be awarded these patents. It demonstrates our unwavering commitment to providing a sustainable and differentiated liquid packaging solution to the marketplace.' He added, 'By adopting the AeroFlexx Pak, companies can accelerate progress toward their ESG goals and sustainability commitments.' Patent: *May not be recyclable in all communities. Check locally. About AeroFlexx: AeroFlexx is a full-service liquid packaging company providing sustainable solutions to the marketplace. By combining the best attributes of flexible and rigid packaging into a single product offering, the technology is transforming the industry as it delivers a preferred consumer experience and creates significant brand value, all while introducing unprecedented sustainability benefits. Headquartered in West Chester, Ohio, and part of the Innventure (NASDAQ:INV) family of companies, AeroFlexx provides packaging and manufacturing solutions in Europe, Southeast Asia, and the Americas. To learn more, visit or follow us on LinkedIn. Press Contact:Bethany Sersionbsersion@
Yahoo
16-05-2025
- Business
- Yahoo
Q1 2025 Innventure Inc Earnings Call
Lucas Harper; Chief Investment Officer; Innventure Inc Gregory Haskell; Chief Executive Officer, Director; Innventure Inc Dino Foderaro; Chief Revenue Officer; Accelsius David Yablunosky; Chief Financial Officer; Innventure Inc Nehal Chokshi; Analyst; Northland Capital Markets Chip Moore; Analyst; ROTH Capital Partners Operator Hello and welcome to Innventure first-quarter 2025 earnest conference call. (Operator Instructions) I would now like to turn the conference over to Lucas Harper. Sir, you may begin. Lucas Harper Thank you, operator, and thank you all for joining us for Innventure's first-quarter 2025 earnings call. My name is Lucas Harper, Innventure's Chief Investment Officer. And joining me from the company are Bill Haskell, Chief Executive Officer; and Dave Yablunosky, Chief Financial Officer. Earlier today, we issued a press release announcing our financial results, which is available on our Investor Relations website along with a supplemental slide presentation. As referenced on Slide five, we will be discussing non GAAP financial measures during this call. The most directly comparable GAAP financial measures and a reconciliation of the differences between the GAAP and non GAAP financial measures are available in our earnings release and supplemental slide presentation on our website. In addition, certain statements being made today are forward looking statements that are based on management's current assumptions, beliefs and expectations concerning future events impacting the company. These forward looking statements involve a number of uncertainties and risks, including but not limited to those described in our earnings release, Form 10 Q for the period ending 03/31/2025 and other filings with the SEC. The actual results of operations and financial condition of the company could differ materially from those expressed or implied in our forward looking statements. And now I'd like to hand the call over to Bill. Gregory Haskell Thanks, Lucas, and thanks to everyone joining us today. Given the recency of our last update, we'd like to use today's call to shift our focus from specific first quarter developments to a high level recap of the exciting opportunities that lie ahead for Innventure, the spotlight on Accelsius. AeroFlexx and Refinitiv continue to execute on their respective strategies We are excited to share more about both as we move through 2025. But given the number of inbounds we feel from investors on Accelsius, we felt today's call would be a good opportunity to speak at more length about the company. At the highest level, Accelsius has tremendous momentum, but it is important to provide additional context on the compelling market opportunity that underpins a large part of the venture's value creation potential. Today, we're excited to have Dino Fotorero, Accelsius' Chief Revenue Officer on the call to provide an insight on his perspective on Accelsius' market opportunity, technology differentiators and adoption momentum. With nearly ten years in the data center industry, first in power distribution and quality, and now over the last two and a half years in advanced cooling with Accelsius, Kimo has had a front row seat at the infrastructure challenges shaping today's market. As CRO, he leads the client operations group, applying his operations background to driving execution and ensuring a premier customer experience across every engagement. As we've repeated often, Innventure's goal is to build companies that we believe can achieve a minimum of $1 billion in enterprise value. We'd like everyone to walk away from today's call with a higher level of context and understanding about why Innventure believes in Accelsius' ability to meet and exceed that milestone. Hearing directly from Dino, who speaks with our partners and potential customers every day, seems like a good way to provide that color. With that, I'd like to turn the call over to Dino. Dino Foderaro Thanks, Bill. And thanks to the entire Innventure team for having me on the call. There are many exciting things happening at Accelsius. And today, I'll focus my remarks on three key areas. One, Accelsius' opportunity within the data center liquid cooling market. Two, the technology differentiators of our NuCool two phase direct to chip technology, and three, a deep dive into the momentum we are developing with ecosystem partners and high value end users. Let's start with the sizable, rapidly growing market that Accelsius technology and product set address. This highly attractive market was one of the key factors in Inventor's decision to commercialize the two phase direct to chip technology and one of the many reasons I joined the company. There are a few key secular tailwinds happening in the data center industry that create a compelling backdrop that Accelsius aims to capitalize on. First, it is no secret that technology companies, and more importantly, companies across all industries have publicly talked about significantly increasing their data center budgets over the next several years to keep up with the advent of AI and rapidly evolving chip technology. According to the Dell'Oro Group, worldwide data center spending was roughly $450 billion in 2024. And that number is expected to grow to over $1 trillion by 2029. This creates an incredible secular tailwind for the entire data center ecosystem and especially for critical infrastructure providers such as Accelsius. Second, the overwhelming majority of the nearly 12,000 data centers spanning the globe are still utilizing highly inefficient and antiquated air cooled solutions, and single phase water cooling technologies represent a single digit percentage of cooling installations. In the short term, single phase water based technologies are expected to expand their share of the liquid cooling market as data centers install infrastructure for this technology. However, these solutions have significant limitations. We believe that Accelsius' new cool technology is superior to single phase water based technologies. For data center operators already using single phase, switching to Accelsius new cool products does not require a seismic shift or costly rip and replace approach. Companies that currently use single phase cooling solutions can easily derisk and future proof their data centers by swapping out their single phase solutions for the Accelsius new cool technology. This allows them to adopt a more efficient and safer solution while utilizing existing infrastructure. Efficiency is among the future proofing benefits of our solution. Data center operators and end users that currently employ traditional air cooling can experience a drastic improvement in power usage effectiveness or POE, typically reducing the amount of power used for cooling by more than 80%. And while the transition from air to liquid cooling can be a bit of a journey, the simpler transition from single phase water based technologies to the NuCool solution unlocks additional savings in the form of reduced HVAC load and increased free cooling. In fact, test data captured in our lab paired with climate data provided by ASHRAE show that customers utilizing our two phase technology in comparison to single phase technology in hard to cool locations such as Southeast Asia and The Middle East can see tremendous benefits. Specifically, this study indicated that our NuCool technology allows AI data center customers in Singapore the ability to utilize free cooling 97% of the time in comparison to 34% of the time with single phase technologies. Now let's discuss how data center operators are thinking about the future. It is widely understood across the data center ecosystem that air cooling solutions are largely insufficient for existing and future generations of processors. Based on feedback we received from key customers and early single phase deployments, we believe that data center operators are increasingly recognizing the benefits of leapfrogging single phase cooling altogether as rack densities increase. Turning directly to two phase, direct to chip solutions like our NuCool platform can help data center operators meet sustainability targets, uphold service level agreements or SLAs, and protect ROI. The newest AI focused chipsets expected to enter the market in late twenty twenty five and 2026, such as NVIDIA's Rubin and AMD's m I three fifty, will require liquid cooling. We believe this dynamic will drive accelerated adoption. To demonstrate the drastic rack density impact of these ultra high thermal design power processors, a quick look into NVIDIA's five year product roadmap shows near term rack densities anticipated to eclipse 250 kilowatts per rack and rapidly approach 600 kilowatts, while other chip and server OEMs are targeting configurations landing at one megawatt per rack before 2030. The so called thermal wall is very real. And according to guidelines put forth by ASHRAE, the industry has already extended beyond the abilities of air cooling and is approaching the limitations of single phase, water based, directed chip cooling technologies at breakneck speed. Today, the current liquid cooling market is estimated at 1,300,000,000, and it is growing at an annual rate of approximately 30% according to the Dell'Oro Group, driven by advancements in AI and chip technology, as I just mentioned. The Dell'Oro Group estimates that the market will grow to a $5 billion market by 2028. This represents a significant unmet market need and Accelsius, armed with our NuCool technology, has positioned itself at the forefront of the future adoption cycle. Studies show our NuCool solution is superior to current single phase direct to chip systems and benefits a data center operator in five key ways. The first, superior heat removal. Our technology offers six to eight degrees Accelsius more headroom, which unlocks a myriad of benefits for data center operators and end users. These benefits include increased potential for heat reuse applications, reduced CapEx associated with costly infrastructure, and the ability to handle future generations of processors with increased confidence. Two, use of nonconductive dielectric fluid. Unlike leaks from water based cooling systems that can cause millions of dollars in damage to IT equipment, studies show that if a leak of our dielectric refrigerant were to occur, it would not result in IT equipment damage. To put the impact of leaks in context, current generation GPUs can cost upwards of $60,000 each and carry four to five month lead times, which can impact an operator's or end user's realized return on investment. Number three, warranty. We provide peace of mind with two and five year limited warranty options and offer additional coverage that replaces server electronics if damaged due to leaks of our refrigerant. Additionally, our relationships with server OEMs and integrators allow us to warranty Accelsius-enabled IT equipment, eliminating a large hurdle to adoption of our new pool technology. Number four, lower OpEx. Our technology can run-in an environment with up to 45 degree c facility water supply, dependent on processor and rack configuration, compared to 27 to 32 degree c facility water for single phase technologies. This allows operators to run chillers less and utilize free cooling, which can provide data center operators up to 4% energy savings per one degree C increase according to data published by Vertiv. Number five, ease of maintenance. All of our systems are built with hot swappable components that don't require a licensed technician to manage. The systems also don't need to be constantly monitored or flushed, which eliminates costly maintenance services, reduces on-site staff, and minimizes system downtime. Today, Accelsius has three products with several more in development. Rather than just technology, we offer a full product set, which provides flexibility for data center environments regardless of use case, location, or scale. Our flexible solutions within rack and multi rack form factors can be deployed within existing data center infrastructures, brownfield sites, without significant costs or downtime, and give data center design firms a full portfolio of highly efficient solutions to draw from when designing new facilities or greenfield sites. We've included specific product details within the slides accompanying today's presentation. But the most important thing to highlight between the various solutions is that each is designed to address a specific market participant need, and each product represents a platform that can and will evolve as the market continues to mature. From a competitive perspective, we believe there is only one other player in the market today that offers a viable two phase direct to chip liquid cooling technology, and the Accelsius is in a lead position. In a multiple billion dollar market such as this, even capturing a very small percentage of the market share would lead to tremendous growth and success. Now I'd like to frame the magnitude of the two phase liquid cooling adoption cycle and how that could translate to results. As you've heard from the Innventure team, Accelsius is focused on building relationships with four key groups, hyperscalers and multinational OEMs, global resellers, colocation providers, and AI as a service provider, also referred to as Neo Clouds. Today, I will focus on the available opportunities with hyperscalers, multinational OEMs, and our global resellers. First, hyperscalers regularly require large quantities of racks, with some needing approximately 1,000 racks per week. To provide an illustration for the true size of the opportunity, a single 1,000 rack order would translate into revenues approaching 9 figures. That addressable market presents a truly compelling opportunity available to us. Not only is the opportunity real, the engagement we have with the hyperscalers is real. We are currently deep in discussions with most of the major players, having met some of the companies well over 10 times. They understand the value the technology provides and know that broader adoption is only a matter of time. Winning the confidence and volume orders from a hyperscale customer is a deliberate multi phase process that requires alignment across numerous internal stakeholders with each evaluating how our technology supports their technical architecture roadmap. These are not everyday decisions. They're made in defined windows tied to platform refresh cycles and require detailed reviews, technical validation, and multiparty sign off. The process typically begins with lab testing, followed by formal proof of concept deployments that run sixty to one hundred and twenty days and may involve several iterations. From there, a pilot deployment is initiated to evaluate performance under real workloads and validate manufacturing and supply chain readiness. The questions we're fielding now focus on performance data, POC site selection, test plans, and execution timelines, clear signs we've moved from interest to evaluation. While orders take time in this space, we are seeing steady traction, strong engagement, and continued momentum as our technology proves itself in the field. Second, let's review our focus on the global OEMs that design, build, and supply the infrastructure technology used to support data center operations. OEMs represent attractive partners given their scale, reach, and extensive customer networks. It should be noted that these global OEMs generate billions of dollars of revenue and require significant volumes to have a meaningful impact on their respective business. Accelsius has a current OEM relationship to white label a solution, which includes modest minimum volume commitments. That said, our OEM partner, like other global players, typically does not white label a product for subscale volumes. They white label solutions that can scale with market demand, and we believe that Accelsius is well positioned to fulfill that need when it arises. And what's going to drive that market demand? As I touched on earlier, NVIDIA recently rolled out their GPU roadmap for the next several years, which it shows extreme anticipated increases in rack densities. The necessary computing power needed to enable AI is undeniable. Constituents across the data center ecosystem need to act quickly and need to act boldly to stay ahead of this wave. Accelsius is doing just that. Accelsius' current offering of solutions has been purpose built to handle the increasing rack densities anticipated well into 2026. We also have a sophisticated road map under development that aims to handle projected densities out to 2027 and beyond. Our deep technical team is focused on tackling the most important challenges facing data center operators and end users, which is what drives our impressive roadmap. The team is working on improved vaporator designs that enable extreme heat fluxes and challenging processor designs, evaluating developments in refrigerants and new working fluids, and developing joint solutions with HVAC equipment manufacturers to allow convenient adoption of the NuCool family of products. NVIDIA's rollout has coincided with an explosion of interest in Accelsius over the last sixty days or so. Marketing lead generation, where leads are defined as touches or interactions with market participants, has spiked over 300% in 2025 compared to the prior trailing four month period. These leads are coming in from a diverse set of data center constituents spanning the four main groups we are focused on. Hyperscalers, OEMs, resellers, colocation operators, and AI as a service operators. We've also experienced a notable uptick in our strategic partner network, which has grown by close to 200% since the start of 2025. In 2025 alone, we've added partners such as Wesco, Global Switch, Telehouse, Park Place Technologies, and others are engaged in nearing agreement. We expect several meaningful announcements in the coming weeks and months. Now over half of the opportunities that come to us originate from a selling partner or manufacturing rep, which demonstrates the value of our strategy. We believe that focusing on the four key groups I outlined above gives us the reach and scale needed to drive significant growth. For example, partnerships with value added distributors such as Avnet and Climb provide access to approximately 4,000 bars globally, which simply can't be replicated using a rifle shot approach and increases the velocity with which we can service new clients. In addition to the ramp and the number of inquiries we've received, the proposals we are generating are increasing both in total scope and average price. The average proposal size at the end of twenty twenty four was typically for single unit proof of concept systems. Today, proposals average between 2 million and 4 million which demonstrates the Accelsius inclusion and full scale production opportunities. Let's now discuss the Accelsius ability to meet these levels of demand. One question we frequently heard from investors is what's the Accelsius' current manufacturing capacity, and how does that translate into revenue and profit? We anticipate having sufficient internal manufacturing capacity to reach profitability, which we believe would happen by delivering around 100 racks per month. Clearly, the volume potential we've outlined here based on the size of the addressable market far exceeds that 100 rack per month threshold. While we aren't providing detail on longer term unit economic expectations, we do expect to achieve significant operating leverage if we receive orders that ramp into the thousands and tens of thousands of racks. This should give investors a good sense of why Innventure has such conviction in the economics and long term growth opportunity for the business. To position the company to meet anticipated market needs, Accelsius is focused on partnering with large global contract manufacturers that can support the much larger orders we would expect in the future. We currently have one such relationship today. And although we can't disclose specifics like the company name or anticipated volume, we can confirm it is with a well known contract manufacturing company whose primary focus is the tech hardware industry and who would be able to handle a 10,000 plus rack order if received today. When Accelsius receives a large scale order, fulfillment planning is already well underway. Our supply chain team operates with a proactive readiness model, aligning internal and contract manufacturing capabilities to meet volume and timeline expectations. With a North American focused supply chain and scalable production capacity, both internal and external, we are positioned to deliver at pace. In most cases, orders of this nature could be fulfilled within a ninety day window with revenue recognized upon delivery. This timeline adds to our conviction that the conversations that Accelsius is having today could lead to strong revenue growth in the back half of twenty twenty five. Thanks again for having me on today's call. We at Accelsius are incredibly proud of the hard work our team puts forth each and every day, and we are excited about the future. With that, I'd like to turn the call back over to Bill. Gregory Haskell Thank you, Dino. This is a truly exciting opportunity. Before passing it to Dave, let's recap the key takeaways we hope investors will walk away with. Number one, the liquid cooling market is sizable and growing and is estimated to reach $5 billion within the next three years. Two, given the trajectory of increasing chip densities, industry players believe adoption of liquid cooling will be all but required and Accelsius is at the forefront with the leading technology with the leading technology in the space. Number three, the company was well positioned through their contract manufacturing partnerships to capture the wave of liquid cooling adoption and fulfill potentially significant demand. And four, that demand from the large global players we are engaged with far exceeds what Accelsius needs to become a profitable and rapidly growing business. All of the factors underpin our conviction that 2025 will represent inflection point for revenue growth for Accelsius. Josh, Nino and the entire team remain laser focused on execution and are two market disruptors. Our confidence in the business has never been higher than it is today. We're excited to watch Accelsius on its journey to become what we believe is at least a $1 billion enterprise value opportunity. With that, I'd like to turn it over to Dave to cover our financials. Dave? David Yablunosky Thanks, Bill, and good afternoon, everyone. Innventure's first quarter revenue was $0.2 million representing management fees we collected from our management of the InVentus ESG fund. This was in line with our expectations and consistent with the communication on our last earnings call that we expect most of our revenue growth would be weighted to the second half of the year. As Dino highlighted in his remarks, there is a significant unmet market need for two phase direct to chip liquid cooling, and we believe Accelsius is well positioned at the forefront of adoption of this technology. We are excited about the momentum that is building at Accelsius. G and A expenses were approximately $20 million for the quarter. This number has four primary components: non cash equity based comp of approximately $5 million professional service fees of approximately $6 million for accounting, audit, and legal advisory services related to, among other things, regulatory filings and compliance as a new public company, $6 million for payroll expense, benefits and other operating expenses, primarily driven by growth at Accelsius, and $2 million of non cash amortization related to our intangible assets. It's important to point out, we have deliberately utilized outside professional services to keep our long term fixed costs related to headcount low. We expect our need to rely on outside professional accounting legal services to decrease over time, as we establish additional internal processes for compliance with public company requirements. Moving down the income statement, we booked a $233 million non-cash goodwill adjustment, driven by the write down of goodwill on the balance sheet. This was a result of the decrease in the company's share price and market capitalization, which were in part due to the general downward volatility experienced in the stock market during late February and March. Again, this was non cash. In the non operating section of the income statement, we booked a favorable non cash adjustment of approximately $16 million related to the change in fair value of our warrant and earn out liabilities. EBITDA for the quarter was a loss of approximately $248 million But after adjusting for non cash items, adjusted EBITDA was a loss of $21.8 million To say again, we believe 2025 will represent an inflection point for revenue growth at Accelsius. And due to our majority ownership of Accelsius, we expect to see the results of this revenue and earnings growth in our consolidated financial statements in future quarters. Moving to the balance sheet. As highlighted on our prior earnings call, on March 24, Executive Chairman, Mike Atworth; Chief Strategy Officer, John Scott, and another related party terminated approximately $18 million worth of Adventure and AeroFlexx debt in exchange for approximately $2.3 million Series C preferred shares. This resulted in an annual interest expense savings of approximately $3 million and reduced our cash expenditure obligations by $18 million This action underscores our founders' commitment to and confidence in our business strategy. In addition, in the second quarter, pursuant to our securities purchase agreement with Yorkville Advisors, in two tranches, we issued convertible debentures for an aggregate amount of $30 million In connection with these issuances, we received gross proceeds of $18 million on April 14 and $9 million on May 15. This added $27 million of cash to our balance sheet. These two actions illustrate the active management of our cash and both improve our capital position. Other notable items on our balance sheet. Inventory. Inventory remained steady from the end of the prior quarter at approximately $5.2 million We're acting judiciously with our cash, optimizing the need to keep inventory on hand to meet customer orders while keeping cash on our balance sheet. Intangible assets. This represents developed technology and other intangible assets and amortizes at different intervals, primarily over the next eight to fifteen years. Goodwill. As mentioned earlier, goodwill now stands at approximately $437 million as of March 31. On to the cash flow statement. In the cash from operating activities section, you can see many of the non cash items I mentioned earlier. The cash used in investing activities primarily represents the funding given to AeroFlexx through our existing facility comprised of debt securities. The cash provided by financing activities section includes approximately $8.2 million of net cash raised through the Innventure Series C preferred stock round, the issuance of shares through the Yorkville Standby Equity Purchase Agreement facility, separate from the advance mentioned earlier, and cash raised through Accelsius. It's important to say the Innventure team remains focused on additional capital raises at the Innventure and or operating company level to meet our liquidity needs and fund what we believe are very attractive growth opportunities ahead of us with the goal of creating substantial value for our shareholders. With that, we'll open up the call for questions. Operator (Operator Instructions) Nehal Chokshi, Northland Capital Markets. Nehal Chokshi Thank you. And thank you for bringing Dino on to the call to talk about in detail what Accelsius is doing to capitalize on this massive inflection point for DPhase DLC. Going into that discussion there, with respect to the go to market, addressing the four different customer types, With the white label agreement with the OEM, that was that primarily driven by a end hyperscaler engagement? Gregory Haskell I think it's broader than that, Nehal. Thanks for the question, by the way. And I can flip this over to Dino in just a second. But the OEM that we're doing the white label for has a much broader market than just the hyperscalers. Certainly, they serve various hyperscalers, but they serve a broader market. But Dino, if you have any other commentary on that, feel free to jump in and add on. Dino Foderaro Yeah, Bill. Relationship was there to driven not only by a hyperscale as you mentioned, but more of the overall market demand and kind of where the market is headed. So it could service hyperscalers as well as, as you mentioned, a wider breadth of customers. Gregory Haskell Like, players. Understood. Nehal Chokshi Right. Totally understand that going through this OEM will address the broader swath of customers that that OEM can address. But I guess what I'm trying to get is that the evolution or the original relationship start with a hyperscaler. Gregory Haskell Again, Dino, defer that one to you. You're closer to the ground on that one. Dino Foderaro Yeah. It it didn't start with a hyperscaler. It started with the it started with basically, with the OEMs driving kind of where they want the solution set or the product set to go from a liquid cooling standpoint and and the goals and objectives they want the infrastructure side to meet. It was definitely the relationship started from specifications that drove towards a larger, like that drove towards the larger market. Now we do see hyperscalers being able to use this, Neo Clouds being able to use this, as well as other users of the data center. Nehal Chokshi Okay. And with respect to this potential inflection point happening in calendar twenty five, do you expect it to be served largely through this white label agreement? Gregory Haskell I would say broadly no. Meaning, there we certainly expect some volume from those agreements, there's a much, much broader pool of customers that we're engaged with. And again, Dean, if you want to amplify on any of that, feel free to jump in. But there's a broad range. Our activity is kind of through the roof right now in terms of the activity coming to us from all of those various sources, not the scalers, colos, as a service, and and the the OEMs. Anything that you know. Dino Foderaro No, Bill. I I think you you nailed it there. Yeah. The the our pipeline is definitely filling with customers from all angles, or opportunities from all angles, especially those being driven by our our ecosystem of partners. You know, they've really they've really turned it on. The the Salesforce has has really been able to find a lot of opportunities that our product really addresses the need of that customer base. So not just driven from that OEM agreement, driven from the entire set of relationships that we have out there in the ecosystem. Gregory Haskell I mean, one of the things you saw from the chart, Naho is, we had six of these partners in January and now it's 21. So all of those have the ability to they're all channels of one form or another. Right? So we're getting, I won't say inundated, but there's a huge amount of activity going on in the space. And in terms of the trajectory, I think the entire industry was slower in the first and second quarter than they had anticipated. You can sort of see that across the board, but I think they're all quite bullish on the second half of the year and that's what we're seeing. And I think that slowdown in the first half was attributable to a number of factors, mostly tariffs, uncertainty and then Nvidia putting out their roadmap in late February of where they see the chip phone when and what type. And since that inflection point, it's been, as you can see in the data, a significant ramp up in activity. Nehal Chokshi Got it, that's great, thank you for that, detail. Could you comment on the pros and cons of flow versus pool based cooling? Dino Foderaro Bill, do you I can jump in and When we look at the pool boiling versus flow boiling, you do put in moving components, failure points into your cold plate technology that could cause issues in long standing operation, especially as we look at reliability and uptime being extremely important to these customers. Additionally, when you have pool boiling, you really have no excess for any overload or any hiccup in the facility water supply. So you're really exiting at 100% vapor quality, and that could lead to cases of dry out. Whereas the flow boiling, we always have ample fluid flowing through the cold plates and through the system that allow that additional headroom or a little bit of extra buffer. I think a rule of thumb from engineering is never to really to design something size on size or for the exact max requirement. And when you look at pool boiling, that's really what you're doing because you don't have that excess fluid that's available there if you go outside of normal operating conditions. Nehal Chokshi And what would you say the full base boiling guys would point to as shortcomings for the flow based cooling? Dino Foderaro I think the initial point that they that they point at it is pumping power and whatnot and the fact that you have to have a little bit more fluid inside your system. However, when you look at the cost associated with extra fluid, especially with the fluids that we're utilizing, which are commercially available, relatively low cost fluids when you talk about overall liquid cooling fluids in general. And the pump power being below those thresholds set by the OEMs of that 1.5%, two %, really the benefit that you get from having that resiliency, that robustness in the product that you get with the flow cooling versus the pool boiling, we see that trade off being a no brainer going towards the flow side. Nehal Chokshi Great. And then last question for me, and then I'll get back into the queue. But so my understanding is is that there are some hot spots on the Blackwall architecture, which could be a potential accelerant towards phase DLC. Any reconnaissance on whether or not NVIDIA can and will mitigate those hotspots on the next generation architecture Reuben due out in some sometime in calendar twenty six? Gregory Haskell Again, Dino, that's that's in your territory, not mine. Dino Foderaro Yeah, I would prefer not to answer that question. I would prefer not to answer that question just due to NDAs and whatnot. Nehal Chokshi Got you. Okay, understood. That's perfectly reasonable and understandable. I'll cede the floor. Thank you. Operator Chip Moore, ROTH Capital Partners. Chip Moore Hey, thanks for taking the question. I wanted to follow-up, I guess, appreciate the deep dive on Accelsius and I think the tone around revenue inflection certainly sounds like you're feeling more positive on sort of near term trajectory. Maybe just expand on that pretty notable increase in lead generation there since February, I guess. And you talked about fulfillment, you know, being able to be pretty quickly just maybe talk about potential leapfrog single phase sort of is better now needed later type mentality how those conversations are going and your confidence level in that inflection point here in the second half. Gregory Haskell Yeah, let me just start and then I'll let Dino add on first shift. Thanks for the question and thanks for the interest. So we have seen, as you saw in data, a very, very big spike in activity around late February. That point forward, it's been significant. That data is, I believe it's a kind of a three month moving average. So when you see it triple from month to month, you can see a pretty significant explosion in activity there. And I think that parallels what we're seeing from all the other players in space. Listened to some of the other earnings calls or some of the other principles in the marketplace, and I think they were experiencing the very same kind of activity. So we're kind of aligned with that. Obviously, can't give you any kind of forward looking guidance on revenues. We're not prepared to do that. But in terms of the momentum, if you want to kind of drill down with Dino on the momentum, that's perfectly good. Absolutely, Bill. Anything in particular you wanna add on to that? Dino Foderaro Yeah, in regards to momentum, I think we touched on it in the readout is that, in the update is that with the, I guess, clarity provided by NVIDIA's roadmap that was released at GTC and then released even further at some of the conferences following that, really gave direction to the data center operators, the infrastructure manufacturers, and those that are kind of in the know on where the processes are going on, what rack architectures will look like, really started to draw attention to the extremely high flow rates, not only at the rack level, but also at the chip level for single phase cooling. And that really drove a lot of attention towards two phase. Additionally, there was a very small amount of liquid cooling deployments that had actually been achieved in the prior years outside of the hyperscalers. As enterprise clients as colos started to deploy more of the single phase water, those problems, those issues that are inherent to that technology really came to roost and people got to feel those personally. And I feel that drove a large amount of attention and really kind of opened up the market to what we've been evangelizing over the last few years. And that's definitely resulted into that drive of interest and the drive of right interest. So there's been a big paradigm shift in the leads that we've captured and the conversations that we've had where it's no longer, oh, this is a neat technology. I've been saying that two phases are gonna be needed to the people that are the experts, the subject matter experts at the the polos, the OEMs, the people that are actually deploying the cooling, the MEP firms, design firms to how do I deploy this? Your solution is viable. What is the way that we get this into our data centers? So that's really, like I said, the drive and the paradigm shift, the types of conversations that we've had, definitely kind of pointed at that inflection point and that wave coming out of Accelsius. Chip Moore Great, that's helpful. Appreciate it. And maybe just one more follow-up and I'll hop back in queue. Just maybe talk about that sort of chicken and egg, you know, confidence in your ability to scale and manufacturing how that those conversations are progressed. Thanks. Gregory Haskell Yeah, no, oh, yeah, go ahead. Dino Foderaro Yeah, I mean, so as we look at the manufacturing side, obviously, we've got a great team. One of the first people that was added to the organization when we were founded is our Chief Supply Chain Officer, Tremendous amount of background there on the supply chain side. He's added a great team. But myself, being a manufacturing guy at heart and running manufacturing companies, we knew that we were going to need the support to add confidence for the hyperscalers to large clients. And that's where our Centimeters partner and our Centimeters partners have really come in to drive a lot of that confidence and help ensure that we can support those large volumes, as well as ensuring that those volumes can be met with quality that's expected in a tech market or a high reliability market. So that was really a big add for us in overall ensuring our clients that we could grow with them. Because nothing's worse than testing, evaluating, and adopting a technology, and then finding out that it can't scale with your demands. So that's kind of where we were able to add a lot of confidence from the manufacturing side. Now when we look at the design development side, again, great team of engineers and a great sourcing group that was able to identify the proper materials and really robust process to ensuring that the materials that we utilized can meet that high reliability requirements of our clients, which I'm not sure a lot of the other units that are out there or new technologies are out there take to heart because they're more concerned about getting the technology out. The three sixty approach that we took, I think has lent very good confidence or gained very strong confidence from our clients. Gregory Haskell Yeah, I think another way to frame it Chip is that as we mentioned, as Dino mentioned, we've had a lot of engagement with some of the hyperscalers that have very high volume demand. And they're confident based on the interactions they've had with us or they wouldn't be coming back. So the fact that we've had in some cases a dozen meetings or more with various large type scalers suggests that they see this as a viable path to getting to scale. And of course, they understand that we're partnering with content manufacturers to handle the larger volumes. But even internally with the kind of volumes we talked about, we can still get to some pretty meaningful size just with our current internal manufacturing capacity. And it's almost exclusively a kind of North American supply chain, at least our direct suppliers. And that was purposeful to, kind of take out the geopolitical risk out of the equation so that we would be able to access, access the materials that we needed in order to to accommodate the volumes that we can manufacture internally. Operator Thank you. Ladies and gentlemen, at this time I would like to turn the call back over to Bill Haskell for closing remarks. Gregory Haskell Well, thanks, everyone. I really appreciate everybody joining today. It's useful to get number line directly from the horse's mouth, is why we wanted Dina to come on to talk more in detail about Accelsius. We do look forward to future updates. We believe that there's, again, a lot of momentum going on in the company in all of our opening companies. Quite honestly, I feel that we're very well positioned and they're all really maturing and of coming to the fore. Very optimistic about where we go from here, but we look forward to updating you in the future. And thank you again. Operator Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.
Yahoo
15-05-2025
- Business
- Yahoo
Innventure Reports First Quarter 2025 Results
Accelsius continues to build momentum within the large and growing liquid cooling market Innventure reiterates confidence in achieving revenue growth inflection during the second half of 2025 ORLANDO, Fla., May 15, 2025 (GLOBE NEWSWIRE) -- Innventure, Inc. (NASDAQ: INV) ('Innventure'), a technology commercialization platform, today announced financial results for the quarter ended March 31, 2025. 'Innventure's operating companies continued their momentum to start 2025, with both Accelsius and AeroFlexx further positioning themselves for revenue growth inflection in the second half of this year.' said Bill Haskell, Innventure's Chief Executive Officer. 'We founded Innventure to bring disruptive technologies to market by building companies we believe represent at least $1 billion enterprise value opportunities. Our companies are led by incredibly talented operators who are armed with differentiated technologies designed to meet significant unmet market needs. When it comes to high-growth ventures, timing the inflection point is inherently challenging, but from where we sit today, the confidence we have in our current family of companies has never been higher. ' Mr. Haskell continued, 'We are most excited about Accelsius's position in the two-phase, direct-to-chip liquid cooling market. Accelsius has a market leading technology and is engaged in deep discussions with many of the major players including hyperscalers, OEMs, colocation operators and AI-as-a-Service operators. Josh and his team are at the forefront of a seismic liquid cooling adoption cycle that we and data center operators across the ecosystem believe will occur in the near future. Once this shift takes hold, Accelsius is well equipped to catch the wave and drive significant value for our shareholders.' Conference Call and Webcast A conference call to discuss these results has been scheduled for 5:00 p.m. ET on May 15, 2025. The event will be webcasted live via Innventure's investor relations website or via this link. Parties interested in joining via teleconference can register using this link. After registering, you will be provided dial in details and a unique dial-in PIN. Registration is open through the live call, but to ensure you are connected for the full call, we suggest registering in advance. Innventure will also post a slide presentation to accompany the prepared remarks to its investor relations website shortly before the of the start of the event. About Innventure Innventure founds, funds, and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. As owner-operators, Innventure takes what it believes to be breakthrough technologies from early evaluation to scaled commercialization utilizing an approach designed to help mitigate risk as it builds disruptive companies it believes have the potential to achieve a target enterprise value of at least $1 billion. Innventure defines ''disruptive'' as innovations that have the ability to significantly change the way businesses, industries, markets and/or consumers operate. Non-GAAP Financial Measures We use certain financial measures that are not calculated in accordance with generally accepted accounting principles in the U.S. (GAAP) to supplement our consolidated financial statements. These non-GAAP financial measures provide additional information to investors to facilitate comparisons of past and present operating results, identify trends in our underlying operating performance, and offer greater transparency on how we evaluate our business activities. These measures are integral to our processes for budgeting, managing operations, making strategic decisions, and evaluating our performance. Our primary non-GAAP financial measures are EBITDA and Adjusted EBITDA. We define EBITDA as net income before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted to exclude certain non-cash items, non-recurring expenses, and other items that are not indicative of our core operating activities. These may include stock-based compensation, acquisition costs, and other financial items. We believe Adjusted EBITDA is valuable for investors and analysts as it provides additional insight into our operational performance, excluding the impacts of certain financing, investing, and other non-operational activities. This measure helps in comparing our current operating results with prior periods and with those of other companies in our industry. It is also used internally for allocating resources efficiently, assessing the economic outcomes of acquisitions and strategic decisions, and evaluating the performance of our management team. There are limitations to Adjusted EBITDA, including its exclusion of cash expenditures, future requirements for capital expenditures and contractual commitments, and changes in or cash requirements for working capital needs. Adjusted EBITDA also omits significant interest expenses and related cash requirements for interest and payments. While depreciation and amortization are non-cash charges, the associated assets will often need to be replaced in the future, and Adjusted EBITDA does not reflect the cash required for such replacements. Additionally, Adjusted EBITDA does not account for income or other taxes or necessary cash tax payments. Investors should use caution when comparing our non-GAAP measure to similar metrics used by other companies, as definitions can vary. Adjusted EBITDA should not be considered in isolation or as a substitute for GAAP financial measures. In presenting Adjusted EBITDA, we aim to provide investors with an additional tool for assessing the operational performance of our business. It serves as a useful complement to our GAAP results, offering a more comprehensive understanding of our financial health and operational efficiencies. Cautionary Statement Regarding Forward-Looking Statements Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Innventure's (the 'Company's') future financial or operating performance, expectations regarding new contractual arrangements, anticipated product line expansions and product testing and market acceptance, and these statements may refer to projections and forecasts. Forward-looking statements are often identified by future or conditional words such as 'plan,' 'believe,' 'expect,' 'anticipate,' 'intend,' 'outlook,' 'estimate,' 'forecast,' 'project,' 'continue,' 'could,' 'may,' 'might,' 'possible,' 'will,' 'potential,' 'predict,' 'should,' 'would' and other similar words and expressions (or the negative versions of such words or expressions), but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current assumptions and expectations of future events that are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of this press release. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the Company's public filings made with the Securities and Exchange Commission and the following: (a) the Company's and its subsidiaries' ability to execute on strategies and achieve future financial performance, including their respective future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and the Company's and its subsidiaries' ability to invest in growth initiatives; (b) the implementation, market acceptance and success of the Company's and its subsidiaries' business models and growth strategies; (c) the Company's and its subsidiaries' future capital requirements and sources and uses of cash; (d) the Company's access to funds under the Standby Equity Purchase Agreement with YA II PN, Ltd. ('YA') or the Securities Purchase Agreement and related convertible debentures with YA due to certain conditions, restrictions and limitations set forth therein; (e) certain restrictions and limitations set forth in the Company's debt instruments, which may impair the Company's financial and operating flexibility; (f) the Company and its subsidiaries ability to generate liquidity and maintain sufficient capital to operate as anticipated; (g) the Company's and its subsidiaries' ability to obtain funding for their operations and future growth and to continue as going concerns; (h) the risk that the technology solutions that the Company and its subsidiaries license or acquire from third parties or develop internally may not function as anticipated or provide the benefits anticipated; (i) developments and projections relating to the Company's and its subsidiaries' competitors and industry; (j) the ability of the Company and its subsidiaries to scale the operations of their businesses; (k) the ability of the Company and its subsidiaries to establish substantial commercial sales of their products; (l) the ability of the Company and its subsidiaries to compete against companies with greater capital and other resources or superior technology or products; (m) the Company and its subsidiaries' ability to meet, and to continue to meet, applicable regulatory requirements for the use of their respective products and the numerous regulatory requirements generally applicable to their businesses; (m) the outcome of any legal proceedings against the Company or its subsidiaries; (o) the Company's ability to find future opportunities to license or acquire breakthrough technology solutions from multinational corporations or other third parties ('Technology Solutions Provider') and to satisfy the requirements imposed by or to avoid disagreements with its current and future Technology Solutions Providers; (p) the risk that the launch of new companies distracts the Company's management from its other subsidiaries and their operations; (q) the risk that the Company may be deemed an investment company under the Investment Company Act, which would impose burdensome compliance requirements and restrictions on its activities; (r) the ability of the Company and its subsidiaries to sufficiently protect their intellectual property rights and to avoid or resolve in a timely and cost-effective manner any disputes that may arise relating to its use of the intellectual property of third parties; (s) the risk of a cyber-attack or a failure of the Company's or its subsidiaries' information technology and data security infrastructure; (t) geopolitical risk and changes in applicable laws or regulations; (u) potential adverse effects of other economic, business, and/or competitive factors; (v) operational risks related to the Company and its subsidiaries that have limited or no operating history; and (w) limited liquidity and trading of the Company's securities. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to update statements to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events. Media Contact: Laurie Steinberg, Solebury Strategic Communications press@ Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications investorrelations@ Inc. and SubsidiariesCondensed Consolidated Balance Sheets(in thousands, except share and per share amounts) March 31, 2025(Unaudited) December 31, 2024 Assets Cash, cash equivalents and restricted cash $ 1,375 $ 11,119 Accounts receivable 237 283 Due from related parties 124 4,536 Inventories 5,220 5,178 Prepaid expenses and other current assets 3,329 3,170 Total Current Assets 10,285 24,286 Investments 33,684 28,734 Property, plant and equipment, net 2,186 1,414 Intangible assets, net 176,750 182,153 Goodwill 436,807 667,936 Other assets 707 766 Total Assets $ 660,419 $ 905,289 Liabilities and Stockholders' Deficit Accounts payable $ 5,061 $ 3,248 Accrued employee benefits 11,216 9,273 Accrued expenses 3,102 2,478 Related party notes payable - current — 14,000 Notes payable - current 2,141 625 Patent installment payable - current 700 1,225 Obligation to issue equity 261 4,158 Warrant liability 24,003 34,023 Income taxes payable 500 — Other current liabilities 340 317 Total Current Liabilities 47,324 69,347 Notes payable, net of current portion 12,346 13,654 Earnout liability 7,470 14,752 Stock-based compensation liability 718 1,160 Patent installment payable, net of current 12,375 12,375 Deferred income taxes 25,454 27,353 Other liabilities 260 355 Total Liabilities 105,947 138,996 Commitments and Contingencies (Note 16) Mezzanine Equity Preferred Stock, $0.0001 par value, 25,000,000 shares authorized, 2,885,848 and — shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 28,727 — Stockholders' Equity Preferred Stock, $0.0001 par value, 25,000,000 shares authorized, 1,118,808 and 1,102,000 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively — — Common Stock, $0.0001 par value, 250,000,000 shares authorized, 47,103,800 and 44,597,154 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 5 4 Additional paid-in capital 484,256 502,865 Accumulated other comprehensive (loss) gain (1,478 ) 909 Accumulated deficit (221,285 ) (78,262 ) Total Innventure, Inc., Stockholders' Equity 261,498 425,516 Non-controlling interest 264,247 340,777 Total Stockholders' Equity 525,745 766,293 Total Liabilities, Mezzanine and Stockholders' Equity $ 660,419 $ 905,289 See accompanying notes to condensed consolidated financial Inc. and SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive Income (Loss)(Unaudited) (in thousands, except share and per share amounts) Successor Predecessor Three monthsended March 31,2025 Three monthsended March 31,2024 Revenue $ 224 $ 224 Operating Expenses Cost of sales 184 — General and administrative 19,676 7,904 Sales and marketing 2,096 1,183 Research and development 6,253 1,669 Goodwill impairment 233,213 — Total Operating Expenses 261,422 10,756 Loss from Operations (261,198 ) (10,532 ) Non-operating (Expense) and Income Interest expense, net (1,538 ) (405 ) Net gain on investments — 5,189 Net loss on investments - due to related parties — (186 ) Change in fair value of financial liabilities 16,429 (478 ) Equity method investment (loss) gain (6,756 ) 5 Realized gain on conversion of available for sale investment 1,507 — Loss on extinguishment of related party debt (3,538 ) — Loss on conversion of promissory notes — (1,119 ) Miscellaneous other income 21 — Total Non-operating Income 6,125 3,006 Loss before income taxes (255,073 ) (7,526 ) Income tax benefit (1,399 ) — Net Loss (253,674 ) (7,526 ) Less: net loss attributable to Non-redeemable non-controlling interest (110,677 ) (2,307 ) Net Loss Attributable to Innventure, Inc. Stockholders / Innventure LLC Unitholders (142,997 ) (5,219 ) Basic and diluted loss per share $ (3.10 ) Basic and diluted weighted average common shares 46,252,922 Other comprehensive loss, net of taxes: Unrealized loss on available for sale debt securities - related party (880 ) — Reclassification of realized gain on conversion of available for sale investments (1,507 ) — Total other comprehensive loss, net of taxes (2,387 ) — Total comprehensive loss, net of taxes (256,061 ) (7,526 ) Less: comprehensive loss attributable to Non-redeemable non-controlling interest (110,677 ) (2,307 ) Net Comprehensive Loss Attributable to Innventure, Inc. Stockholders / Innventure LLC Unitholders $ (145,384 ) $ (5,219 ) See accompanying notes to condensed consolidated financial Inc. and SubsidiariesCondensed Consolidated Statements of Changes in Unitholders' Deficit (Predecessor)(Unaudited) (in thousands, except share and per share amounts) Class BPreferred Class B-1Preferred Class A Class C AccumulatedDeficit AccumulatedOCI Non-ControllingInterest Total(Deficit)Equity December 31, 2023 38,122 3,323 1,950 844 (64,284 ) — 1,559 (18,486 ) Net loss — — — — (5,219 ) — (2,307 ) (7,526 ) Units issued to non-controlling interest — — — — — — 3,503 3,503 Issuance of preferred units, net of issuance costs 7,566 — — — — — — 7,566 Unit-based compensation — — — 51 — — 345 396 Issuance of units to non-controlling interest in exchange of convertible promissory notes — — — — — — 8,443 8,443 Accretion of redeemable units to redemption value — — — — (4,415 ) — — (4,415 ) March 31, 2024 $ 45,688 $ 3,323 $ 1,950 $ 895 $ (73,918 ) $ — $ 11,543 $ (10,519 ) See accompanying notes to condensed consolidated financial statements. Innventure, Inc. and SubsidiariesCondensed Consolidated Statements of Changes in Mezzanine and Stockholders' Equity (Deficit) (Successor)(Unaudited) (in thousands, except share and per share amounts) Stockholders' Equity MezzanineEquity PreferredStock CommonStock PreferredStock Shares Amount Shares Amount AdditionalPaid-InCapital AccumulatedDeficit AccumulatedOCI Non-ControllingInterest TotalStockholders'Equity Shares Amount December 31, 2024 1,102,000 $ — 44,597,154 $ 4 $ 502,865 $ (78,262 ) $ 909 $ 340,777 $ 766,293 — $ — Net loss — — — — — (142,997 ) — (110,677 ) (253,674 ) — — Series B Preferred Stock buyback (5,000 ) — — — (50 ) — — — (50 ) — — Series B Preferred Stock issued for paid-in-kind dividends 21,808 — — — 218 — — — 218 — — Issuance of common shares, net of issuance costs — — 161,964 — 1,927 — — — 1,927 — — Vesting of earnout shares — — 2,344,682 1 873 — — — 874 — — Other comprehensive gain, net of taxes — — — — — — (2,387 ) — (2,387 ) — — Conversion of related party notes — — — — — — — — — 2,310,848 23,108 Issuance of Series C Preferred Stock, net — — — — — — — — — 575,000 5,663 Non-controlling interest issued and related transfers — — — — (26,303 ) — — 33,249 6,946 — — Distributions to Stockholders — — — — — (26 ) — — (26 ) — — Stock-based compensation — — — — 4,943 — — 898 5,841 — — Accrued preferred dividends — — — — (217 ) — — — (217 ) — (44 ) March 31, 2025 1,118,808 $ — 47,103,800 $ 5 $ 484,256 $ (221,285 ) $ (1,478 ) $ 264,247 $ 525,745 2,885,848 $ 28,727 See accompanying notes to condensed consolidated financial Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited) (in thousands, except share and per share amounts) Successor Predecessor Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Cash Flows Used in Operating Activities Net loss $ (253,674 ) $ (7,526 ) Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities: Stock-based compensation 5,841 396 Interest income on debt securities - related party (91 ) — Change in fair value of financial liabilities (16,429 ) 478 Change in fair value of payables due to related parties — 186 Non-cash interest expense on notes payable 510 230 Net (gain) loss on investments — (5,189 ) Equity method investment gain (loss) 6,756 (5 ) Realized gain on conversion of available for sale investments (1,507 ) — Loss on extinguishment of related party debt 3,538 — Loss on conversion of promissory notes — 1,119 Deferred income taxes (1,899 ) — Depreciation and amortization 5,548 — Goodwill impairment 233,213 — Payment of patent installment (525 ) — Non-cash rent costs 61 — Other, net — 67 Changes in operating assets and liabilities: Accounts receivable 46 — Prepaid expenses and other current assets (122 ) (136 ) Inventory (42 ) — Accounts payable 1,587 1,234 Accrued employee benefits 1,943 1,329 Accrued expenses 565 488 Stock-based compensation liability (442 ) — Income taxes payable 500 — Other current liabilities (73 ) (68 ) Net Cash Used in Operating Activities (14,696 ) (7,397 ) Cash Flows Used in Investing Activities Investment in available-for-sale debt securities - equity method investee (2,337 ) — Advances to equity method investee — (2,540 ) Acquisition of property, plant and equipment (917 ) (640 ) Net Cash Used in Investing Activities (3,254 ) (3,180 ) Cash Flows Provided by Financing Activities Proceeds from issuance of equity, net of issuance costs 3,675 7,116 Proceeds from the issuance of equity to non-controlling interest, net of issuance costs 4,907 3,503 Payment of debts (300 ) (460 ) Distributions to Stockholders (26 ) — Payment of promissory notes to related parties — — Repurchase of Preferred Stock (50 ) — Cash Flows Provided by Financing Activities 8,206 10,159 Net Decrease in Cash, Cash Equivalents and Restricted Cash (9,744 ) (418 ) Cash, Cash Equivalents and Restricted Cash Beginning of period 11,119 2,575 Cash, Cash Equivalents and Restricted Cash End of period $ 1,375 $ 2,157 See accompanying notes to condensed consolidated financial Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows(Unaudited) (in thousands, except share and per share amounts) Successor Predecessor Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Supplemental Cash Flow Information Cash paid for interest $ 1,127 $ 55 Supplemental Disclosure of Noncash Financing Information Accretion of redeemable units to redemption value — 4,415 Issuance of units to non-controlling interest in exchange of convertible promissory notes — 7,324 Conversion of working capital loans to equity method investee into investments in debt securities - related party 4,375 — Extinguishment of debt with Series C Preferred Stock 14,000 — Contribution of Series C Preferred Stock to equity method investee 5,783 — Conversion of AFX available-for-sale term loan into equity method investments 8,757 — Issuance of stock in exchange for services 4,002 — Equity reallocation between non-controlling interest and additional paid-in capital 26,304 — See accompanying notes to condensed consolidated financial Inc. and SubsidiariesNon-GAAP Financial Measures(in thousands, except share and per share amounts) Successor Predecessor Three months endedMarch 31, 2025 Three months endedMarch 31, 2024 Net loss (253,674 ) (7,526 ) Interest expense, net(1) 1,538 405 Depreciation and amortization expense 5,548 — Income tax benefit (1,399 ) — EBITDA (247,987 ) (7,121 ) Transaction and other related costs(2) — 3,272 Change in fair value of financial liabilities(3) (16,429 ) 478 Stock-based compensation(4) 5,841 396 Goodwill impairment(5) 233,213 — Loss on extinguishment of related party debt(6) 3,538 — Loss on conversion of promissory notes — 1,119 Adjusted EBITDA (21,824 ) (1,856 ) (1) Interest Expense, net, includes interest incurred on our various borrowing facilities and the amortization of debt issuance costs. (2) Transaction and other related costs – For the three months ended March 31, 2025 (Successor) and three months ended March 31, 2024 (Predecessor), this is comprised of consulting, legal, and other professional fees related to the Business Combination.(3) Change in fair value of financial liabilities – For the three months ended March 31, 2025 (Successor), the change in fair value of financial liabilities primarily consists of the change in fair value of the warrant liability and the earnout liability. For the three months ended March 31, 2024 (Predecessor), this is comprised entirely of the change in fair value of the embedded derivative associated with the convertible notes.(4) Stock based compensation – For the three months ended March 31, 2025 (Successor), stock based compensation primarily consisted of awards in the 2024 Equity and Incentive Plan entered into on October 2, 2024 subsequent to the Business Combination. These awards consisted of Stock Options, Restricted Stock Units, and Stock Appreciation Rights. Further, a portion of this expense was related to share based payment employee incentive plans in existence at Innventure LLC and other subsidiaries. For the three months ended March 31, 2024 (Predecessor), stock based compensation was comprised wholly of share based payment employee incentive plans in existence at Innventure LLC and other subsidiaries.(5) Goodwill impairment - For the three months ended March 31, 2025 (Successor), the Company recognized a goodwill impairment charge due to sustained decreases in the Company's publicly quoted share price and market capitalization, which were, at least in part, sensitive to the general downward volatility experienced in the stock market during late February and March. There was no similar goodwill impairment charge for the three months ended March 31, 2024 (Predecessor).(6) Loss on extinguishment of related party debt - For the three months ended March 31, 2025 (Successor), the Company extinguished certain related party debts by issuing Series C Preferred Stock. There was no loss on extinguishment of related party debt for the three months ended March 31, 2024 (Predecessor).Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Innventure, Inc. to Announce First Quarter 2025 Results on May 15, 2025
ORLANDO, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- Innventure, Inc. (NASDAQ: INV) ('Innventure'), a technology commercialization platform, today announced it will release its first quarter 2025 financial results after market close on Thursday, May 15, 2025. Management will host a conference call on the day of the release (May 15, 2025) at 5:00 pm ET to discuss the results. The event will be webcasted live via our investor relations website or via this link. Parties interested in joining via teleconference can register using this link: After registering, you will be provided dial in details and a unique dial-in PIN. Registration is open through the live call, but to ensure you are connected for the full call, we suggest registering in advance. About InnventureInnventure founds, funds, and operates companies with a focus on transformative, sustainable technology solutions acquired or licensed from multinational corporations. Innventure takes what it believes to be breakthrough technologies from early evaluation to scaled commercialization utilizing an approach designed to help mitigate risk as it builds disruptive companies it believes have the potential to achieve a target enterprise value of at least $1 billion. Innventure defines ''disruptive'' as innovations that have the ability to significantly change the way businesses, industries, markets and/or consumers operate. Media Contact: Laurie Steinberg, Solebury Strategic Communications press@ Investor Relations Contact: Sloan Bohlen, Solebury Strategic Communications investorrelations@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-05-2025
- Health
- Yahoo
Pub fined after boy's allergic reaction to sausage
A pub chain has been fined almost £27,000 after a young boy had an allergic reaction to a sausage. St Albans Magistrates Court heard that the mother of the boy, from Welwyn Garden City, had been assured twice that the sausage did not contain wheat. The Rusty Gun, in Hitchin, Hertfordshire, later confirmed that there was wheat in the food and offered the boy's parents a free meal as an apology. The owners, Innventure, said those who had "let this young man down" had been dismissed or had resigned. The boy, called Ralph, was nine years old at the time and went for a birthday meal at the Rusty Gun in Hitchin, Hertfordshire, with his parents, Lauren and James, in August 2023. The court was told that Lauren asked the pub staff on two occasions whether the sausage chosen by her son contained wheat. Waiting staff checked with the chefs in the kitchen and told Lauren the recipe did not contain wheat. Ralph began to feel unwell after eating just a quarter of the sausage. Back at home, parts of Ralph's body began to swell; he had red hives all over him and had difficulty breathing. He was given steroids and adrenaline at the local hospital before being transferred to Lister Hospital in Stevenage. Lauren said: "It's every parent's worst nightmare watching their child struggle to breathe, and I was thinking the worst. "I will always have a lasting memory of Ralph asking me if he was going to die that night." She said she called the Rusty Gun and asked whether they were sure the sausage contained no wheat. "I was then told 'we made a mistake' and - can you believe it? - I was offered a free meal!" Hertfordshire Trading Standards investigated the incident and charged the pub's owners, Innventure, with two offences under food safety legislation. Innventure pleaded guilty at St Albans Magistrates Court on 6 May and was ordered to pay a total of £26,802.76 in fines and costs. Ralph was awarded £1,000 in compensation. A spokesperson for Innventure said: "Those that let the company and this young man down in August 2023 have been dismissed or have resigned. "We have undertaken a comprehensive review of the allergens processes and procedures operated by the business. New and improved systems are in place to ensure that this never happens again. "We offer and have offered our sincerest apologies to the young man in question." Tanya Ednan-Laperouse OBE, from the Natasha Allergy Research Foundation, said: "We would urge anyone working with food to take food allergies seriously so that all people can eat out safely." Follow Beds, Herts and Bucks news on BBC Sounds, Facebook, Instagram and X. Call for change at first food allergy conference BBC presenter taken off flight over child's allergy Peanut allergy warning over dips and sandwiches Natasha Allergy Research Foundation Hertfordshire Trading Standards Innventure
