Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 164

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part II, Item 8
Chunk 164
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 subsidiaries) entered into a Settlement Agreement (the “Settlement Agreement”) with Freese and Nichols, Inc. ("FNI") to settle a lawsuit that the Company had filed against FNI, which provides that the parties fully resolve all claims set forth in such lawsuit, without any admission of liability. The Company received the $7,550 settlement payment in full prior to March 31, 2025.

Results of Operations

36

Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024

DSA

(in thousands, except percentages)Three Months EndedMarch 31,20252024$ Change% ChangeRevenue$45,332$46,631$(1,299)(2.8)%Cost of revenue135,36931,9643,405 10.7 %Operating expenses25,5037,451(1,948)(26.1)%Depreciation and amortization of intangible assets4,5164,363153 3.5 %Operating (loss) income3$(56)$2,853$(2,909)(102.0)%Operating income % of total revenue— %2.4 %1Cost of revenue includes cost of services provided and cost of products sold and excludes depreciation and amortization of intangible assets, which is separately stated2Operating expenses include selling, general and administrative and other operating expenses and excludes depreciation and amortization of intangible assets, which is separately stated3Table may not foot due to rounding

DSA revenue decreased by $1,299 in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The decrease in DSA revenue was primarily driven by a decrease in general toxicology services revenue.

DSA operating loss was $56 in the three months ended March 31, 2025 compared to operating income of $2,853 in the three months ended March 31, 2024, a change of $2,909 primarily due to an increase in cost of revenue and the decrease in revenue discussed above, partially offset by reduced operating expenses. The increase in cost of revenue was primarily due to increased compensation and benefits expense, additional commercial activity at our Rockville facility, increased cost of research models and increased costs associated to a scientific study management software. The decrease in operating expenses was primarily due to decreased compensation and benefits expense, decreased bad debt expense and decreased startup costs.

RMS

(in thousands, except percentages)Three Months EndedMarch