Company: NOTV
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023370
Chunk: 169

Company: Inotiv, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part II, Item 8
Chunk 169
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 expense, stock compensation expense and insurance expense, partially offset by increases in legal fees.

Other Expense 

Other expense increased by $6,061 for the six months ended March 31, 2025 compared to the six months ended March 31, 2024, primarily driven by an increase of $4,832 in interest expense, 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 six months ended March 31, 2025 and 2024 were 7.2% and 13.4%, respectively. For the six months ended March 31, 2025, the Company’s effective tax rate was primarily driven by a change in the valuation allowance. For the six months ended March 31, 2024, the Company’s effective tax rate was primarily driven by unfavorable permanent items related to the Agreement in Principle (subsequently replaced by the Resolution Agreement and Plea Agreement) and valuation allowance adjustments.

Consolidated Net Loss

As a result of the factors described above, we had a consolidated net loss of $42,496 for the six months ended March 31, 2025 as compared to a consolidated net loss of $63,907 during the six months ended March 31, 2024.

Liquidity and Capital Resources

Liquidity and Going Concern

The accompanying unaudited interim condensed consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") applicable to a going concern. This presentation contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of the uncertainties described below.

On December 18, 2024, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Lake Street Capital Markets, LLC, as underwriter (the “Underwriter”), relating to the public offering of 6,000,000 common shares at a purchase price per share to the public of $4.25 (the “Offering Price”). Pursuant to the Underwriting Agreement, the Company granted the Underwriter a 30-day option to purchase up to an additional 900,000 common shares at the Offering Price, less underwriting discounts and commissions, which option was exercised in full and closed