Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 76

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 also continues to discuss its current business conditions with its lenders. In the event that the Company fails to comply with the requirements of the financial covenants set forth in the Credit Agreement, the Company has approximately 55 days subsequent to any fiscal quarter, and approximately 100 days subsequent to fiscal year-end to cure noncompliance (the "grace period"). Further, the Company has and may continue to seek additional financing and evaluate financing alternatives to meet its cash requirements for the next twelve months. There is no assurance that the Company’s lenders will agree to any amendment to the Credit Agreement, nor can there be any assurance that the Company would be able to raise additional capital, whether through selling additional equity or debt securities or obtaining a line of credit or other loan on terms acceptable to the Company or at all.

Management's operating plan forecasts compliance with the financial covenants under the Credit Agreement for the next twelve months. Although management believes that it will be able to implement its plan, there can be no assurances that its plan will prove successful. As a result, substantial doubt about the Company's ability to continue as a going concern exists.

Comparative Cash Flow Analysis

At March 31, 2025, we had cash and cash equivalents of $19,299, compared to $21,432 at September 30, 2024.

Net cash used in operating activities was $17,312 for the six months ended March 31, 2025 compared to net cash provided by operating activities of $10,373 for the six months ended March 31, 2024. 

Net cash used in operating activities in the six months ended March 31, 2025, was driven by consolidated net loss of $42,496, partially offset by non-cash charges of $36,029 and a net decrease in operating assets and liabilities of $10,845. Non-cash charges primarily included $28,003 for depreciation and amortization, $6,090 for non-cash interest and accretion expense, $3,205 for non-cash employee stock compensation expense, and amortization of debt issuance costs and original issue discount of $2,556, partially offset by a decrease in deferred taxes of $4,028. The net increase in operating assets and liabilities was primarily driven by an increase of $20,001 in inventory, partially offset by decreases in prepaid expenses and other current assets of $7,483 and trade receivables and other contract assets of $3,370. The increase in inventory and the