Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 39

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 7
Chunk 39
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 our strategic objectives, which include strengthening the Company’s liquidity position, reducing NHP revenue volatility, continuing to focus on client satisfaction and client relationships, and continuing integration efforts. Our December 2024 equity offering provided net proceeds of $27,524. This funding assisted in reducing liquidity risk and allowed us to continue to make strategic long-term decisions, while providing additional operational stability.

In an effort to reduce revenue volatility, we have expanded our NHP client base for calendar year 2025 and have continued to pre-sell our NHP inventory, which helped deliver a more consistent revenue stream in fiscal 2025 as compared to fiscal 2024, and we believe will continue to assist in a more consistent revenue stream for fiscal 2026. In addition, we expect our revenue from our long-term colony management services to continue to increase in calendar year 2026 as compared to calendar year 2025. During the twelve months ended September 30, 2025, we continued to invest in our NHP facilities in order to support our growth initiatives.

Further, in fiscal 2025, we continued to make progress integrating and improving our North American transportation and distribution systems, which we brought in house during fiscal 2024. This has provided an improved client experience and improved our operational efficiency.

Beginning in fiscal year 2022, we have been executing on our restructuring and site optimization plans. These plans included the sale of our Israeli businesses in fiscal year 2023, in addition to the closure and relocation of multiple RMS facilities ("Phase One") by the end of fiscal year 2024. By the end of fiscal year 2025, we believe that, as a result of Phase One and the integration of our North American transportation and distribution systems, we achieved approximately $17,000 to $19,000 in net annual cost savings.

During the first quarter of fiscal 2025, we announced that we would continue our site optimization plan for the RMS business ("Phase Two"). We anticipate that Phase Two will require a capital investment of approximately $6,500, which includes the use of tenant improvement dollars and a portion of a settlement payment we received during March 2025. We also expect that Phase Two will reduce production capacity and create operating efficiencies, while supporting our animal welfare objectives, and provide net annual savings of $6,000 to $7,000. Additionally, we believe Phase Two will allow us to remain agile and to increase capacity in the future, if needed. We are in the process of executing Phase Two, which we