Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 9

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 1A
Chunk 9
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 Asia and Africa, legal issues related to these suppliers, increased costs associated with trade and economic factors, including tariffs, and any inability to diversify our suppliers located outside the U.S.

Our business, results of operations, financial condition, including the carrying value of certain of our assets, and cash flows have and may continue to be adversely affected by our dependence on NHP suppliers that are located outside the U.S. and difficulties in being able to diversify our suppliers located outside the U.S. 

The number of NHP suppliers located outside the U.S. is limited. If we are unable to obtain NHPs in sufficient quantities of the required species or in a timely manner to meet the needs of our clients, if the price of NHPs that are available increases significantly, or if we are unable to ship the NHPs in our possession to our clients because of governmental restrictions or limitations, our business, particularly in our RMS segment, will be materially adversely affected. Conversely, if the number of NHP suppliers which export to the U.S. were to increase, this could impact the pricing environment for NHPs, make it difficult to predict results, lead to variability in volumes and require us to adjust operations. 

In addition, increases in the costs of NHPs without ratable increased revenue as a result of macroeconomic and other factors, including increased tariffs, export or import laws/restrictions or embargoes, inflation, international trade regulations and foreign government instability, among other circumstances could materially adversely affect our business, financial condition, cash flows and results of operations. 

Our imported NHPs were subject to tariffs ranging from 10% to 20% during fiscal 2025. These tariffs were required to be paid within 30 days of import, which is a shorter timeframe than the average NHP research model inventory turnover. As a result, payment of tariffs negatively impacted the Company's cash flows during fiscal 2025 and is expected to impact the Company's cash flows in the future. The current and future applicable tariff percentages are based on the country of origin of the imported NHPs. Further, there continues to be a risk of additional and/or increased tariffs in connection with ongoing geopolitical and other factors. Our attempts to mitigate the financial impacts of the additional tariff costs may not be successful in the desired timeframe or at all. Should additional and/or increased tariffs be put into place and exist for some time, our business, financial condition, cash flows and results of 

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operations could be materially adversely affected by the