Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 50

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 7
Chunk 50
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 contract seeking damages and attorney fees and costs. On February 14, 2025, the Company (through two of its subsidiaries) entered into a Settlement Agreement (the “FNI Settlement Agreement”) with FNI to settle the lawsuit. The FNI Settlement Agreement provides that the parties fully resolve all claims set forth in such lawsuit, without any admission of liability, and that FNI will pay the Company $7,550 within 30 days following the date of the FNI Settlement Agreement. The Court granted the Company's Agreed Motion to Dismiss All Claims on March 27, 2025. The Company received the settlement payment in full prior to March 31, 2025. The $7,550 settlement payment is presented within other operating expense within the Company’s Consolidated Statement of Operations for the twelve months ended September 30, 2025. 

49

Unallocated Corporate

Twelve Months EndedSeptember 30,20252024$ Change% ChangeOperating expenses 1$59,089$62,537$(3,448)(5.5)%Depreciation and amortization of intangible assets7086396910.8 %Operating loss$(59,797)$(63,176)$3,379(5.3)%Operating loss % of total revenue(11.7)%(12.9)%1 Operating expenses include general and administrative and other operating expenses

Unallocated corporate operating loss consists of general and administrative expenses, other operating expenses and depreciation expense that are not directly related or allocated to the reportable segments. The decrease in unallocated corporate operating expenses of $3,448 in the twelve months ended September 30, 2025, compared to the twelve months ended September 30, 2024, was primarily driven by decreases in compensation and benefits expense, legal fees and stock-based compensation expense, among other individually immaterial items, partially offset by an increase in information technology expenses associated with the 2025 Cybersecurity Incident.

Other Expense

Other expense increased by $12,512 for fiscal year 2025 compared to fiscal year 2024. The increase was primarily driven by an increase of $9,709 in interest expense as a result of additional second lien debt incurred in September 2024 and periodic draws on our revolving credit facility, as well as foreign exchange rate losses.

Income Taxes

Our effective income tax rates for fiscal 2025 and fiscal 2024 were 21.8% and 16.7%, respectively. The income tax benefit recorded for fiscal