Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 162

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part II, Item 8
Chunk 162
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 settlement payment received during March 2025. The plan now indicates that Phase Two will reduce 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 now plan to complete by March 2026, approximately six months earlier than we originally planned. Further, we anticipate beginning to see savings benefits as early as the fourth quarter of fiscal 2025.

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In connection with Phase Two, we have two properties under contract to be sold for which the net proceeds will be used to repay principal on our term loans. 

Refer to Note 8 – Restructuring and Assets Held for Sale in our condensed consolidated financial statements contained in Part I, Item 1 for more information related to the site optimizations.

Additionally, we remain attentive to external factors, including tariffs, client research and development funding levels, and the recently announced efforts to accelerate implementation of the FDA Modernization Act 2.0, passed in December 2022, any of which may increase our costs and could continue to drive uncertainty and instability in global markets. Any or all of these external factors could impact both of our segments during the remainder of fiscal 2025 and beyond. Based upon current status of tariffs, imported NHPs are subject to 10% tariffs and we will be working with suppliers and customers to mitigate the financial impact of these additional costs. If higher tariff rates come to pass, we also expect to work with suppliers and customers to mitigate these potential additional costs as the NHP’s are mission-critical to the safety testing of new medicines. In regards to the FDA Modernization Act 2.0, many of our acquisitions and investments have been implemented, at least in part, if not sometimes wholly, with the intent to help position us for the future. We believe our future objectives are in line with the goals outlined in the 2022, FDA Modernization Act 2.0. Examples of some of our current service offerings which we believe are in line with these goals include predictive computer software, computational toxicology, bioinformatics, proteomics, ex vivo and in vitro cell-based assays, and assays we run in human cells and tissues.

Financial Highlights During Three Months Ended March 31, 2025

•Revenue was $124,323 in the three months ended March 31, 202