Company: NOTV
Filing Date: 2025-01-23
Form Type: DEF 14A
Source: 0001628280-25-002250
Chunk: 28

Company: Inotiv, Inc.
Filing Date: 2025-01-23
Form: DEF 14A
Chunk 28
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 if this amendment is approved by shareholders, will be 5,967,774 , of which 2,560,715 s hares would be available for future awards, plus any shares subject to awards under the 2018 Plan that subsequently terminate by expiration, forfeiture, cancellation or otherwise without the issuance of common shares .

The board of directors recommends that our shareholders vote FOR approval of the amendment to the 2024 Plan because it will provide us with a share reserve that will enable us to continue to provide a competitive mix of compensation to our key employees.

#### Basis for the Requested Share Reserve Increase
Long-term equity-based incentives play a critical role in our executive compensation program, motivating executives to make decisions that focus on long-term shareholder value creation, aligning executives’ interests with the interests of shareholders, providing additional incentives, and serving to attract and retain the best available people for positions of responsibility with the Company. Our ability to continue to promote our long-term business success and provide competitive levels of equity-based compensation is considered to be of utmost importance to our business.

The Board of Directors believes that it is in the best interests of our shareholders to increase the number of shares available under the 2024 Plan to ensure sufficient shares for continued equity-based compensation.

As of January 14, 2025, there were 33,717,962 shares of our common stock issued and outstanding. The closing sale price of a share of our common stock on Nasdaq on that date was $4.22.

The following table summarizes information regarding awards outstanding and shares remaining available for grant under the 2024 Plan as of January 10, 2025:

| Stock Options Outstanding                                    |     | 1,872,953 |
| Weighted Average Exercise Price of Stock Options Outstanding |     |     $8.31 |
| Weighted Average Remaining Term of Stock Options Outstanding |     | 3.8 years |
| Full Value Awards Outstanding                                |     | 1,534,106 |
| Restricted Stock Units Outstanding                           |     | 1,525,106 |
| Restricted Stock Awards Outstanding                          |     |     9,000 |
| Shares Available for Grant under the 2024 Plan               |     |   310,715 |

Each year, the Compensation Committee reviews our overall compensation strategy and determines allocations of cash and equity compensation in light of our pay-for-performance philosophy. We believe that equity compensation is critical in motivating key employees and that it effectively aligns employee compensation with shareholder interests. We are also committed to effectively managing our