Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 277

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 1
Chunk 277
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 and administrative and other operating expenses and exclude depreciation and amortization of intangible assets, which is separately stated3 Table may not foot due to rounding 

For the twelve months ended September 30, 2025, RMS revenue was $325,081 compared to $310,623 for the twelve months ended September 30, 2024, representing an increase of $14,458, or 4.7%. The increase in RMS revenue was due primarily to increased NHP product and service revenue of $14,340. 

For the fiscal year ended September 30, 2025, RMS operating income was $20,611, compared to an operating loss of $(31,929) for the fiscal year ended September 30, 2024, a change of $52,540. This change was primarily driven by a decrease in RMS operating expenses of $38,187, the increase in RMS revenue of $14,458 discussed above and a decrease in RMS depreciation and amortization of intangible assets of $1,373, partially offset by an increase in RMS cost of revenue of $1,478. The decrease in operating expenses was primarily driven by the $28,500 charge incurred during the fiscal year ended September 30, 2024 related to the Resolution Agreement and Plea Agreement, which did not repeat during the fiscal year ended September 30, 2025 and a legal settlement of $7,550 that we received during the fiscal year ended September 30, 2025, among other immaterial changes.

The increase of $1,478 in cost of revenue was primarily due to increased costs of $7,820 associated with higher NHP-related product and service revenue, partially offset by a decrease in small animal and other non-NHP animal costs, a decrease in transportation costs as a result of the in-house integration of our North American transportation operations and a decrease in facility-related costs, among other immaterial changes.

Resolution Agreement and Plea Agreement

On June 3, 2024, the Company announced that it had reached agreement with the DOJ to resolve a previously-announced criminal investigation into its shuttered canine breeding facility located in Cumberland, Virginia, which was operated originally by Envigo RMS, which the Company acquired in November 2021. In connection with such resolution, the Company and its related entities entered into a Resolution Agreement (the “Resolution Agreement”) with the DOJ and the United States Attorney’s Office for the Western District of Virginia (“USAO-WDV”), and Envigo RMS and Env