Company: NOTV
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004178
Chunk: 54

Company: Inotiv, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 Agreement, nor can there be any assurance that the Company would be able to raise additional capital, whether through selling additional equity or debt securities or obtaining a line of credit or other loan on terms acceptable to the Company or at all.

Management's operating plan forecasts compliance with the financial covenants under the Credit Agreement for the next twelve months. Although management believes that it will be able to implement its plan, there can be no assurances that its plan will prove successful. As a result, substantial doubt about the Company's ability to continue as a going concern exists.

Comparative Cash Flow Analysis

At December 31, 2024, we had cash and cash equivalents of $38,043, compared to $21,432 at September 30, 2024.

Net cash used in operating activities was $4,497 for the three months ended December 31, 2024 compared to $6,545 for the three months ended December 31, 2023. 

Net cash used in operating activities in the three months ended December 31, 2024, was driven by consolidated net loss of $(27,630), partially offset by non-cash charges of $17,701 and a net increase in operating assets and liabilities of $5,432. Non-cash charges primarily included $14,179 for depreciation and amortization, non-cash interest and accretion of $3,076, $1,770 for non-cash stock compensation expense, and amortization of debt issuance costs and original issue discount of $1,288, partially offset by a decrease in deferred taxes of $2,802. 

Net cash used in operating activities for the three months ended December 31, 2023 was primarily driven by a consolidated net loss of $15,828, partially offset by non-cash charges of $11,778. Non-cash charges primarily included $14,250 for depreciation and amortization and $1,897 for non-cash stock compensation expense, partially offset by changes in deferred taxes of $5,318. The change in net operating assets and liabilities was not significant for the three months ended December 31, 2023. The decreases in inventories and prepaid expenses and other current assets were driven by the timing of prepaid deposits for future NHP shipments, the shipment of NHPs and the collection of cash as it relates to the shipments to clients. 

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Net cash used in investing activities of $4,459 in the three months ended December 31, 2024 was