Company: NOTV
Filing Date: 2025-12-05
Form Type: 10-K
Source: 0001628280-25-055483
Chunk: 49

Company: Inotiv, Inc.
Filing Date: 2025-12-05
Form: 10-K
Item: Item 7
Chunk 49
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 Agreements, the Company paid $5,000 during the twelve months ended September 30, 2025 and $6,500 during the twelve months ended September 30, 2024, and expects to pay an additional $17,000 over multiple future years. The Company has included $5,000 in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2025 and within “Changes in operating assets and liabilities – accrued expenses and other current liabilities” in its Consolidated Statements of Cash Flows for the twelve months ended September 30, 2025 and the Company has included $12,000 in other long-term liabilities on its Consolidated Balance Sheets as of September 30, 2025 and within “Changes in operating assets and liabilities – other assets and liabilities” in its Consolidated Statement of Cash Flows for the twelve months ended September 30, 2025. The total $28,500 charge is reflected in the operating loss of the RMS segment for the twelve months ended September 30, 2024. The charge of $28,500 is non-deductible for U.S. federal income tax purposes. Further, there were multiple amendments to the Company's Credit Agreement which, among other changes, permit charges or expenses attributable to or related to the Resolution Agreement and the Plea Agreement to be added back to the Company’s Consolidated EBITDA for purposes of the financial covenants under the Credit Agreement. The Company expects to have additional cash outlays in connection with certain costs related to the Resolution Agreement, which would be paid over the next two to four years. The additional cash outlays could include ongoing monitoring and compliance costs, legal expenses and other payments required to comply with the Resolution Agreement, subject to final approvals, and at this time, the Company expects that such costs would be expensed as incurred.

FNI Settlement

On January 13, 2022, the Company filed a complaint against Freese and Nichols, Inc. ("FNI") titled Envigo RMS Holding Corp. and Envigo Global Services, Inc. v. Freese and Nichols, Inc., Case No. 22-01-61647-CV, in the District Court of Jim Wells County, Texas, 79th Judicial District related to, among other things, FNI’s failure to design an adequately sized lagoon to dispose of the current wastewater and future wastewater from expanded operations. The complaint asserted claims against FNI for negligence, negligence per se, and breach of