Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 50

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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550)— Resolution and Plea Agreements 3— 26,500 — 26,500 $(4,125)$30,440 $(2,048)$33,759 1Restructuring costs represent costs incurred in connection with the Company's site closures, site optimization strategy, the in-house integration of the Company’s North American transportation operations and Phase Two of the Company's site optimization program as discussed in Note 8 – Restructuring and Assets Held for Sale.2The proceeds received in connection with the settlement agreement with Freese and Nichols, Inc. (the "Settlement Agreement") offset costs incurred to dispose of excess wastewater during previous years in addition to attorneys' fees in previous years and fiscal year 2025. Refer to Note 12 - Contingencies and Commitments for further discussion of the Settlement Agreement. 3Amounts relate to the Agreement in Principle, which was subsequently replaced by the Resolution Agreement and Plea Agreement. Refer to Note 12 - Contingencies and Commitments for further discussion of the Resolution Agreement and Plea Agreement.

8.    RESTRUCTURING AND ASSETS HELD FOR SALE

During June 2022, the Company approved and announced a plan to close its facility in Cumberland, Virginia. Further, during fiscal 2023, the Company announced restructuring and site optimization plans that included the following sites, which were identified for relocation of operations: Dublin, Virginia, Gannat, France, Blackthorn, U.K., RMS St. Louis, Missouri, Spain, Boyertown, Pennsylvania, Haslett, Michigan and Israel ("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