Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 147

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part II, Item 8
Chunk 147
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Phase One"). As of September 30, 2024, Phase One of the Company's restructuring and site optimization plans was complete.During the six months ended March 31, 2025, the Company initiated the next phase of its site optimization program to further improve and consolidate additional RMS facilities in the U.S. ("Phase Two"). In connection with Phase Two, two U.S. properties met the held for sale criteria as of March 31, 2025. The assets held for sale consist of land and buildings, which are a part of the RMS operating segment.

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, vehicles and equipment. Facilities leases provide office, laboratory, warehouse, or land that the Company uses to conduct its operations. Vehicle leases primarily provide  trucks, vans and trailers utilized in the transportation of diet, bedding and enrichment products and animal research models. Equipment leases provide office equipment, laboratory equipment or services the Company uses to conduct its operations. 

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ROU lease assets and lease liabilities that are reported in the Company’s condensed consolidated balance sheets are as follows:March 31, 2025September 30, 2024Operating ROU assets, net$46,761 $49,165 Current portion of operating lease liabilities8,988 11,774 Long-term operating lease liabilities40,225 40,010 Total operating lease liabilities$49,213 $51,784 Finance ROU assets, net$2,846 $652 Current portion of finance lease liabilities$414 211 Long-term finance lease liabilities2,427 433 Total finance lease liabilities$2,841 $644 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 and six