Innovaro (INNI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Innovaro Reports Financial Results for Quarter Ended September 30, 2010

Tampa, FL — (Business Wire) – November 12, 2010 –Innovaro, Inc. (NYSE Amex: INV), today announced financial results for the three and nine months ended September 30, 2010.

Third Quarter 2010 Summary

• Third quarter 2010 revenue increased by 50% over second quarter 2010 and 80% over third quarter 2009;

• Strategic Services revenue increased by 74% over second quarter 2010 and 116% over third quarter 2009;

• Insights and Research revenue increased by 1.5% over second quarter 2010 and 50% over third quarter 2009;

• Technology Marketplaces revenue decreased by 10% over second quarter 2010 and 39% over third quarter 2009;

• Completed the sale of 1,481,481 shares of its common stock along with warrants to purchase up to 2,375,000 shares of common stock in a registered offering raising approximately $3.2 million after advisory fees

• Paid $1.0 million in debt repayments during the quarter;

• Innovation management software platform R&D costs of $298,000 for the third quarter of 2010;

• Non-cash amortization and other charges of $544,000 for the third quarter of 2010: and

• Non-cash impairment charges for the third quarter totaled $11.6 million.

Results of Operations

Three Months Ended September 30, 2010 Operating Results

For the quarter ended September 30, 2010, revenue was $4.2 million as compared to $2.3 million for the quarter ended September 30, 2009. Total expenses were $17.2 million for the quarter ended September 30, 2010 as compared to $3.4 million for quarter ended September 30, 2009. Net loss from operations for the quarter ended September 30, 2010 was ($13.2) million as compared to ($1.0) million for the quarter ended September 30, 2009.

As of September 30, 2010, management concluded that the decline in the Company’s stock price was other than short-term in nature. This conclusion, coupled with the severity of the decline, triggered a review for impairment outside of the Company’s next scheduled annual impairment evaluation date of December 31, 2010. Due to the decline of the market capitalization of the Company’s common stock, third party valuations were performed to determine the fair value of the Company’s respective reporting units. As a result of the valuations and certain other reviews, included in the $13.2 million loss for the three months ended September 30, 2010 is an $11.6 million impairment loss and a $1.1 million capital loss.

Nine Months Ended September 30, 2010 Operating Results

For the nine months ended September 30, 2010, revenue was $9.3 million as compared to $7.8 million for the nine months ended September 30, 2009. Total expenses were $25.0 million for the nine months ended September 30, 2010 as compared to $17.3 million for nine months ended September 30, 2009. Net loss from operations for the nine months ended September 30, 2010 was ($16.0) million as compared to ($9.3) million for the nine months ended September 30, 2009.Included in the $16.0 million loss for the nine months ended September 30, 2010 is the $11.6 million impairment loss and $1.1 million capital loss discussed above.

Financial Position Information

Innovaro, Inc.

Consolidated Balance Sheets

	September 30, 2010 (Unaudited)			December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	2,208,344		$	2,118,970
Accounts receivable, net		2,793,957			1,481,548
Certificates of deposit		—			492,246
Available-for-sale securities		146,800			729,800
Investments under cost method		—			588,085
Prepaid expenses and other assets		388,179			569,829
Total current assets		5,537,280			5,980,478
Investments under cost method		564,085			—
Investments under equity method		329,310			—
Note receivable and accrued interest		1,674,000			1,596,000
Fixed assets, net		6,911,601			8,388,263
Goodwill		6,437,453			15,874,139
Intangible assets, net		6,461,035			8,492,301
Total assets	$	27,914,764		$	40,331,181
LIABILITIES
Current liabilities:
Accounts payable	$	647,204		$	454,509
Accrued expenses		2,391,917			462,802
Accrued severance payable		—			876,400
Deferred revenue		1,024,044			1,634,096
Current maturities of long-term debt		154,590			975,360
Derivative liabilities		508,599			664,972
Total current liabilities		4,726,354			5,068,139
Long-term debt, less current maturities		5,380,156			5,353,892
Deferred tax liability		894,789			1,303,031
Total liabilities		11,001,299			11,725,062
EQUITY
Innovaro stockholders’ equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued and outstanding		—			—
Common stock, $.01 par value, 29,000,000 shares authorized; 14,602,419 and 12,286,768 shares issued; 14,136,275 and 11,797,140 shares outstanding at September 30, 2010 and December 31, 2009, respectively		141,363			117,971
Additional paid-in capital		84,807,424			81,010,460
Total accumulated loss under Investment Company Accounting		(52,073,915	)		(52,073,915	)
Accumulated income (deficit) under Operating Company Accounting:
Accumulated deficit		(16,637,091	)		(624,006	)
Accumulated other comprehensive income (loss)		147,997			175,609
Total Innovaro stockholders’ equity		16,385,778			28,606,119
Noncontrolling interest		527,687			—
Total equity		16,913,465			28,606,119
Total liabilities and equity	$	27,914,764		$	40,331,181

Innovaro, Inc.

Consolidated Statements of Operations

(Unaudited)

	Operating Company Accounting			Investment Company Accounting			Operating Company Accounting			Investment Company Accounting
	Three Months Ended Sept. 30, 2010			Three Months Ended Sept. 30, 2009			Nine Months Ended Sept. 30, 2010			Nine Months Ended Sept. 30, 2009
Revenue / Income from operations:
Strategic services	$	3,337,416		$	1,544,407		$	6,684,046		$	4,798,695
Technology marketplaces		220,825			362,446			783,073			1,179,098
Insights and research		648,173			432,228			1,810,501			1,727,267
Investment income, net		—			2,100			—			59,604
		4,206,414			2,341,181			9,277,620			7,764,664
Expenses:
Direct costs of revenue		3,488,993			1,573,358			6,538,396			5,679,371
Salaries and wages		648,118			533,942			2,117,273			4,768,390
Professional fees		142,494			229,700			509,591			649,723
Research and development		297,587			—			848,241			—
Sales and marketing		18,867			65,673			456,744			354,988
General and administrative		593,136			620,721			1,770,808			2,286,193
Depreciation and amortization		388,095			384,686			1,184,503			1,206,777
Impairment loss		11,620,708			—			11,620,708			2,368,458
		17,197,998			3,408,080			25,046,264			17,313,900
Other (income) and expense:
Other (income) expense		283,239			—			126,850			—
Interest expense, net		235,136			—			512,374			—
		518,375						639,224
Loss before income taxes		(13,509,959	)		(1,066,899	)		(16,407,868	)		(9,549,236	)
Provision for income tax benefit		(300,529	)		(36,000	)		(390,338	)		(208,585	)
Net loss from operations		(13,209,430	)		(1,030,899	)		(16,017,530	)		(9,340,651	)
Net realized and unrealized gains (losses) from investment company activity:
Net realized gains (losses) on investments		—			(12,156,063	)		—			(49,591,193	)
Net change in unrealized appreciation (depreciation) of investments		—			10,768,155			—			44,292,068
Net loss / Net decrease in net assets from operations	$	(13,209,430	)	$	(2,418,807	)	$	(16,017,530	)	$	(14,639,776	)
Net loss attributable to noncontrolling interest		(2,084	)					(4,445	)
Net loss attributable to Innovaro stockholders	$	(13,207,346	)				$	(16,013,085	)
Net loss attributable to Innovaro stockholders per share / Net decrease in net assets from operations per share: Basic and diluted	$	(0.91	)	$	(0.21	)	$	(1.26	)	$	(1.30	)
Weighted average shares outstanding: Basic and diluted		14,536,396			11,561,091			12,745,278			11,257,663

Conference Call Information

We will host a live conference call at 4:30 p.m. ET today to discuss the results. Investors and analysts are invited to attend the conference call.

Investors and analysts can participate in the call by dialing:

US & Canada: 877-554-2421

UK: 0-800-028-8438

Other International Callers: 706-679-7207

Please reference conference ID# 23538043

About Innovaro, Inc.

Innovaro, Inc. is a comprehensive end-to-end innovation solution provider. With fully scalable solutions, whether for a global 1000 company or small R&D lab or university scientist, we help our clients create breakthrough innovation, realize latent value in their IP and accelerate their innovations to market. Leading companies trust us to create profitable growth, new revenue streams, enduring capabilities and lasting value through innovation. For more information about us, please visit our website at www.innovaro.com.

Forward-Looking Statements

Certain matters discussed in this press release are “forward-looking statements.” These forward looking statements can generally be identified as such because the context of the statement will include words such as “expects,” “should,” “believes,” “anticipates” or words of similar import. Certain factors could cause actual results to differ materially from those projected in these forward looking statements and these factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release is available at www.innovaro.com.

Contacts:

Innovaro

Tania Bernier

media@innovaro.com

813-754-4330 x223