Company: NOTV
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-039017
Chunk: 218

Company: Inotiv, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 218
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"), can be challenging to forecast. Funding of research and development is impacted by the political process, which is ever-changing. For example, on February 7, 2025, the NIH announced a policy that would reduce research grants by limiting payments for indirect overhead. Subsequently, on April 4, 2025, a federal judge issued a permanent injunction blocking the implementation of this policy.

With respect to the FDA Modernization Act 2.0, which encourages the industry to explore alternatives to animal testing, many of our acquisitions and investments have been implemented, at least in part, if not sometimes wholly, with the intent to help position us for the future. We believe our future objectives are in line with the goals outlined in the FDA Modernization Act 2.0. Examples of some of our current service offerings which we believe are in line with these goals include predictive computer software, computational toxicology, bioinformatics, proteomics, ex vivo and in vitro cell-based assays, and assays we run in human cells and tissues.

Refer to Part II, Item 1A - Risk Factors of this report for further discussion of potential risks associated with tariffs, client research and development funding levels and the efforts to accelerate implementation of the FDA Modernization Act 2.0.

38

Financial Highlights During Three Months Ended June 30, 2025

•Revenue was $130,683 in the three months ended June 30, 2025, an increase of $24,897, or 23.5%, compared to $105,786 during the three months ended June 30, 2024, driven by an increase of $20,966, or 34.1%, in RMS revenue and a $3,931, or 8.9%, increase in DSA revenue.

•Consolidated net loss for the three months ended June 30, 2025 was $17,577, or 13.5% of total revenue, compared to a consolidated net loss of $26,087, or 24.7% of total revenue, in the three months ended June 30, 2024. 

•Book-to-bill ratio for the three months ended June 30, 2025 was 1.07x for the DSA services business.

•DSA backlog was $134,319 at June 30, 2025 compared to $139,384 at June 30, 2024 and $130,824 at March 31, 2025.

Financial Highlights During Nine