Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 175

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 8
Chunk 175
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7,447 in the three months ended June 30, 2024, a change of $13,825, due primarily to the increase in revenue discussed above and decreased operating expenses, partially offset by increased cost of revenue. The $2,158 decrease in operating expenses was primarily due to the $2,000 charge incurred during the three months ended June 30, 2024 related to the Resolution Agreement and Plea Agreement between the Company and the U.S. Department of Justice ("DOJ") entered into to resolve an investigation by the DOJ, which did not repeat during the three months ended June 30, 2025. The $9,335 increase in cost of revenue primarily related to increased costs associated with the increased NHP related product and service revenue 

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from increased volumes as discussed above, partially offset by reduced non-NHP inventory costs and reduced facility-related expenses. 

Unallocated Corporate

(in thousands, except percentages)Three Months EndedJune 30,20252024$ Change% ChangeOperating expenses1$14,026$15,400$(1,374)(8.9)%Depreciation176230(54)(23.5)%Operating loss2$14,202$15,630$(1,428)(9.1)%Operating loss % of total revenue(10.9)%(14.8)%1Operating expenses includes general and administrative and other operating expenses2Table may not foot due to rounding

Unallocated corporate costs consist of general and administrative expenses, other operating expenses and depreciation expenses that are not directly related or allocated to the reportable segments. The decreased operating loss of $1,428 in the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was primarily driven by decreased legal fees and compensation and benefits expense, partially offset by increased non-legal professional fees.

Other Expense

Other expense increased by $889 for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily driven by an increase of $1,490 in interest expense, net, which was largely due to interest incurred in relation to the Second Lien Notes (as defined below) issued in September 2024, partially offset by gains related to changes in foreign exchange rates.

Income Taxes

The Company’s effective tax rates for the three months ended June 30, 2025 and 2024 were 6.3% and 20.8%, respectively. For the three