Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 169

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 8
Chunk 169
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 client relationships and continuing integration efforts. Our December 2024 equity offering provided net proceeds of $27,524. This additional equity assisted in reducing liquidity risk and allowed us to continue to make strategic long-term decisions, while providing additional operational stability. 

In an effort to reduce revenue volatility, we have expanded our NHP client base for calendar 2025 and have continued to pre-sell our NHP inventory, which we believe has and will continue to deliver a more consistent revenue stream as compared to fiscal 2024. In addition, we expect our revenue from our long-term colony management services to continue to increase in calendar 2025 as compared to calendar 2024. During the nine months ended June 30, 2025, we continued to invest in our NHP facilities in order to support our growth initiatives. 

Further, we continued to make progress integrating and improving our North American transportation and distribution systems, which we brought in house during fiscal 2024. This has provided an improved client experience and improved our operational efficiency. 

From fiscal year 2022 through the end of fiscal year 2024, we executed on our restructuring and site optimization plans. These plans included the sale of our Israeli businesses in fiscal year 2023 in addition to the closure and relocation of multiple RMS facilities ("Phase One"). As of September 30, 2024, Phase One of our restructuring and site optimization plans was complete. By the end of fiscal year 2025, we believe that, as a result of Phase One and the integration of our North American transportation and distribution systems, we will have achieved approximately $17,000 to $19,000 in net annual cost savings. 

During the first quarter of fiscal 2025, we announced that we would continue our site optimization plan for the RMS business ("Phase Two"). Initially, we estimated Phase Two would require a $5,000 investment, which would have included the use of tenant improvement dollars along with proceeds from the sale of owned facilities. We also estimated that Phase Two would not change production capacity and would provide annual cost savings of approximately $4,000 to $5,000 from reduced repair and maintenance expense on facilities and lower cost of production, along with improved service for clients.

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We have continued to refine our plans for Phase Two and now anticipate that Phase Two will require a capital investment of approximately $6,500, which will include the use of tenant improvement dollars and a portion of the settlement payment received during March 2025. We also now expect that Phase