Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 129

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 1
Chunk 129
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 condition, liquidity and results of operations. 

We have completed several acquisitions and from time to time may review other acquisition candidates. Acquisitions involve numerous risks, including:

•The inability of the Company to obtain financing for the acquisition of targets;

•Difficulties and expenses in connection with integrating acquired companies and achieving expected benefits, including as related to the integration of departments, accounting and other systems, technologies, books and records and procedures;

•Diversion of management’s attention from daily operations to various integration activities;

•The potential for disruption of prior operations and plans;

•The risk that acquisitions could be dilutive to earnings, or in the event of acquisitions made through the issuance of our common shares to the shareholders of the acquired company, dilutive to the percentage ownership of our existing shareholders;

•The adverse impact of risks facing the acquired companies, including losses resulting from undiscovered liabilities of acquired companies not covered by the indemnification we may obtain from the sellers;

•Risks associated with the assimilation and retention of employees, including key employees;

•The potential loss of, or adverse effects on, existing business relationships the acquired business has with suppliers and clients;

•The potential need to address relevant internal control over financial reporting and disclosure control and procedures matters;

•Possible deficiencies in operational processes and procedures;

•Risks associated with carrying a relatively significant level of debt; and

•The ability of our management team to manage expanded operations to meet operational and financial expectations.

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Our operating results or financial condition also may be adversely impacted by (i) claims or liabilities related to the acquired companies’ businesses including, among others, claims from U.S. regulatory or other governmental agencies, such as those related to OBRC and Envigo, terminated employees, current or former clients or business partners, or other third parties; (ii) pre-existing contractual relationships of the acquired companies that we would not have otherwise entered into, the termination or modification of which may be costly or disruptive to our business; (iii) unfavorable accounting treatment as a result of the acquired companies' practices; and (iv) intellectual property claims or disputes.

Certain of the companies we have acquired were not required to maintain an internal control infrastructure that would meet the standards of a public company, including the requirements of the Sarbanes-Oxley Act of 2002, and we may acquire similar companies in the future. The costs to implement such controls and procedures may be substantial and we could encounter unexpected delays and challenges in this implementation. In addition, we may discover significant deficiencies or material weaknesses in