Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 152

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 1
Chunk 152
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 for a term that expires on January 20, 2030, five years from appointment of the Compliance Monitor, unless the Company is released from probation prior to completion of the five-year term, in which case the monitorship term shall expire on January 20, 2028, three years from appointment of the Compliance Monitor, or two months after the completion of probation, whichever is later. In addition, the pleas result in Envigo being subject to probation for up to five years, with the potential to end the term early at a minimum of three years if the Company complies with the elements of the resolution.

For the twelve months ended September 30, 2024, the Company expensed $28,500 related to the Resolution and Plea Agreements, which is presented within other operating expense in the Company’s Consolidated Statement of Operations. In line with the Resolution and Plea Agreements, the Company paid $5,000 during the twelve months ended September 30, 2025 and $6,500 during the twelve months ended September 30, 2024, and expects to pay an additional $17,000 over multiple future years. The Company has included $5,000 in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2025 and within “Changes in operating assets and liabilities – accrued expenses and other current liabilities” in its Consolidated Statements of Cash Flows for the twelve months ended September 30, 2025 and the Company has included $12,000 in other long-term liabilities on its Consolidated Balance Sheets as of September 30, 2025 and within “Changes in operating assets and liabilities – other assets and liabilities” in its Consolidated Statement of Cash Flows for the twelve months ended September 30, 2025. The total $28,500 charge is reflected in the operating loss of the RMS segment for the twelve months ended September 30, 2024. The charge of $28,500 is non-deductible for U.S. federal income tax purposes. Further, there were multiple amendments to the Company's Credit Agreement which, among other changes, permit charges or expenses attributable to or related to the Resolution Agreement and the Plea Agreement to be added back to the Company’s Consolidated EBITDA for purposes of the financial covenants under the Credit Agreement. The Company expects to have additional cash outlays in connection with certain costs related to the Resolution Agreement, which would be paid over the next two to four years.