Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 229

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 229
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 that the Company’s lenders will agree to any amendment to the Credit 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 June 30, 2025, we had cash and cash equivalents of $6,215, compared to $21,432 at September 30, 2024.

Net cash used in operating activities was $24,760 for the nine months ended June 30, 2025 compared to $4,433 for the nine months ended June 30, 2024. 

Net cash used in operating activities in the nine months ended June 30, 2025, was driven by consolidated net loss of $60,073, partially offset by non-cash charges of $54,467 and a net increase in operating assets and liabilities of $19,154. Non-cash charges primarily included $41,988 for depreciation and amortization, $9,176 for non-cash interest and accretion expense, $4,644 for non-cash employee stock compensation expense, and amortization of debt issuance costs and original issue discount of $3,862, partially offset by a decrease in deferred taxes of $5,835. The net increase in operating assets and liabilities was primarily driven by an increase of $26,846 in inventory, an increase of $9,085 in other assets and liabilities, net, a decrease in fees invoiced in advance of $1,868 and an increase in trade receivables and contract assets of $4,338, partially offset by decreases in prepaid expenses and other current assets of $6,877 and increases in accounts payable of $11,384. The increase in inventory and the decreases in prepaid expenses and other current assets were driven by increased NHP animal research model inventory and the timing of prepaid deposits for future NHP shipments. 

Net cash used in operating activities for the nine months ended June 30, 2024 was primarily driven by non-cash charges of $36,370 and a net increase in operating assets