Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 143

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 1
Chunk 143
---
 believe that, as a result of Phase One and the integration of our North American transportation and distribution systems, we achieved approximately $17,000 to $19,000 in net annual cost savings.

During the first quarter of fiscal 2025, we announced that we would continue our site optimization plan for the RMS business ("Phase Two"). We anticipate that Phase Two will require a capital investment of approximately $6,500, which includes the use of tenant improvement dollars and a portion of a settlement payment we received during March 2025. We also expect that Phase Two will reduce production capacity and create operating efficiencies, while supporting our animal welfare objectives, and provide net annual savings of $6,000 to $7,000. Additionally, we believe Phase Two will allow us to remain agile and to increase capacity in the future, if needed. We are in the process of executing Phase Two, which we plan to complete by March 2026, approximately six months earlier than we originally planned. 

In connection with Phase Two, the sale of one U.S. property was completed in June 2025 and the sale of a second U.S. property was completed in September 2025. The net proceeds from the sale in June 2025 were used to repay principal on our term loans, as required by the Credit Agreement (as defined below), during fiscal year 2025, and the net proceeds from the sale in September 2025 were used to repay principal on our term loans, as required by the Credit Agreement, during October 2025. 

Refer to Note 10 – Restructuring Costs in our consolidated financial statements contained in Part II, Item 8 for more information related to the site optimizations.

Securities Class Action and Derivative Lawsuits

In order to eliminate the uncertainty, burden, and expense of protracted litigation, on September 25, 2025, we entered into a Stipulation and Agreement of Settlement (the “Proposed Securities Settlement”) to settle the Securities Class Action (as defined in Note 15 - Contingencies and Commitments).

The Proposed Securities Settlement does not assign or reflect any admission of wrongdoing or liability by the Company or the individual defendants, all of whom deny any wrongdoing. While the court preliminarily approved the Proposed Securities Settlement on October 3, 2025, it scheduled a final settlement hearing for January 27, 2026, and as a result, as of the date of this report, the Proposed Securities Settlement is still subject in all respects to court approval and