Company: NOTV
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004178
Chunk: 128

Company: Inotiv, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part II, Item 8
Chunk 128
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 segment.

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9.    LEASES

The Company records a right-of-use (“ROU”) asset and lease liability for substantially all leases for which it is a lessee, in accordance with ASC 842. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. The Company recognizes lease expense for the leases on a straight-line basis over the lease term. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration.The Company has various operating and finance leases for facilities and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Equipment leases provide for office equipment, laboratory equipment or services the Company uses to conduct its operations. ROU lease assets and operating lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:December 31, 2024September 30, 2024Operating ROU assets, net$48,827 $49,165 Current portion of operating lease liabilities9,505 11,774 Long-term operating lease liabilities41,588 40,010 Total operating lease liabilities$51,093 $51,784 Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the three months ended December 31, 2024 and 2023 were:Three Months EndedDecember 31,20242023Operating lease costs: Fixed operating lease costs$3,439 $3,103 Lease income(700)(764)Total operating lease cost$2,739 $2,339 The Company serves as lessor to a lessee in five facilities. The gross rental income and underlying lease expense are presented net in the Company’s condensed consolidated statements of operations. The rent receivables and underlying lease liabilities are presented gross in the Company’s condensed consolidated balance sheets.

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Supplemental cash flow information related to leases was as follows:Three Months EndedDecember 31,20242023Cash flows included in the measurement of lease liabilities: Operating cash flows from operating leases$3,299 $2,966 Non-cash lease activity: ROU assets obtained in exchange for new operating lease