Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 158

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part II, Item 8
Chunk 158
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 shares issuable upon conversion of the Notes and 3,034,124 common shares issuable upon the exercise of the Warrants. As of June 30, 2024, anti-dilutive common share equivalents are comprised of stock options, restricted stock units, restricted stock awards and 3,040,268 shares of common stock issuable upon conversion of the Notes. These common share equivalents were outstanding for the periods presented, but were not included in the computation of diluted net loss per share for those periods because their inclusion would have had an anti-dilutive effect.

11.    INCOME TAXESThe Company uses the asset and liability method of accounting for income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect on deferred tax assets and liabilities of a change in tax rates in income in the period that includes the enactment date. The Company records valuation allowances based on a determination of the expected realization of tax assets. 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 months ended June 30, 2025, the Company’s effective tax rate was primarily driven by the change in forecasted income in non-U.S. jurisdictions and unfavorable discrete items. For the three months ended June 30, 2024, the Company’s effective tax rate was primarily driven by a change in the Company's forecasted loss before 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.The “One Big Beautiful Bill Act” (“OBBBA”) was signed into law on July 4, 2025, which is considered the enactment date under U.S.