Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 178

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 8
Chunk 178
---
further discussion of the Settlement Agreement with FNI. The increase of $2,552 in cost of revenue was primarily due to increased costs associated with higher NHP-related product and service revenue, partially offset by lower non-NHP inventory costs, reduced transportation costs, reduced utilities costs and reduced operating supplies costs.

Unallocated Corporate

Nine Months EndedJune 30,20252024$ Change% ChangeOperating expenses1$44,292$46,554$(2,262)(4.9)%Depreciation and amortization of intangible assets492483 91.9 %Operating loss2$44,784$47,037$(2,253)(4.8)%Operating loss % of total revenue(11.9)%(13.1)%1Operating expenses include general and administrative and other operating expenses2Table may not foot due to rounding

Unallocated corporate operating loss consists of general and administrative expenses, other operating expenses and depreciation expenses that are not directly related or allocated to the reportable segments. The decrease in unallocated corporate operating loss was driven by a decrease in operating expenses of $2,262 in the nine months ended June 30, 2025, compared to the nine months ended June 30, 2024, which was primarily driven by reduced compensation and benefits expense and stock compensation expense, partially offset by an increase in professional fees.

Other Expense 

Other expense increased by $6,950 for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024, primarily driven by an increase of $6,322 in interest expense, net, largely due to interest incurred in relation to the Second Lien Notes (as defined below) issued in September 2024 and periodic draws on our revolving credit facility. 

Income Taxes

The Company’s effective tax rates for the nine months ended June 30, 2025 and 2024 were 6.9% and 15.7%, respectively. For the nine months ended June 30, 2025, the Company’s effective tax rate was primarily driven by a change in the valuation allowance. For the nine months ended June 30, 2024, the Company’s effective tax rate was primarily driven by unfavorable permanent items related to the Resolution Agreement and Plea Agreement and valuation allowance adjustments.

Additionally, the “One Big Beautiful Bill Act” (“OBBBA”) was signed into law on July 4, 2025, which is considered the enactment date under U.S. GA