Inotiv(US:NOTV)2025-02-06 02:20Financial Performance - Total revenue for the three months ended December 31, 2024, was $119.876 million, a decrease of 11.5% compared to $135.501 million in the same period of 2023[13]. - Service revenue was $53.557 million, while product revenue was $66.319 million, reflecting a decline in product revenue of 18.7% from $81.638 million year-over-year[13]. - Consolidated net loss for the quarter was $27.630 million, compared to a net loss of $15.828 million in the prior year, indicating an increase in losses of 74.8%[16]. - Basic and diluted loss per common share was $1.02 for the three months ended December 31, 2024, compared to $0.60 in the same period of 2023[13]. - The company reported a comprehensive loss of $29.943 million for the three months ended December 31, 2024, compared to a comprehensive loss of $14.141 million in the same period of 2023[16]. - The Company reported a loss before income taxes of $29.808 million for the three months ended December 31, 2024, compared to a loss of $19.322 million in the same period of 2023[54]. - The consolidated net loss for the three months ended December 31, 2024, was $27,630 thousand, compared to a loss of $15,828 thousand for the same period in 2023, representing a 74% increase in losses[22]. Assets and Liabilities - Total current assets increased to $171.417 million as of December 31, 2024, up from $163.413 million at September 30, 2024[11]. - Total liabilities decreased to $603.075 million as of December 31, 2024, down from $610.857 million at September 30, 2024[11]. - As of December 31, 2024, total long-term debt was $392.978 million, slightly up from $389.801 million as of September 30, 2024[58]. - The Company has approximately $61.255 million in trade receivables and $15.306 million in unbilled revenue as of December 31, 2024[53]. - Contract liabilities, including client deposits and deferred revenue, totaled $46.129 million as of December 31, 2024, compared to $41.986 million as of September 30, 2024[53]. Cash Flow and Financing - Cash and cash equivalents rose significantly to $38.043 million from $21.432 million in the previous quarter, marking an increase of 77.4%[11]. - Net cash used in operating activities was $4,497 for the three months ended December 31, 2024, an improvement from $6,545 in the prior year[22]. - The company had access to a $15,000 revolving credit facility, which had no balance outstanding as of December 31, 2024[31]. - The company is currently evaluating financing alternatives to meet cash requirements for the next 12 months[36]. Shareholder Equity and Stock Activity - Shareholders' equity slightly decreased to $169.832 million from $170.504 million in the prior quarter[11]. - The company issued 6.9 million common shares during the quarter, increasing the total number of shares outstanding to 33.718 million[19]. - The company completed a public offering of 6,000,000 common shares at a price of $4.25 per share, with net proceeds amounting to $27,524,000 after deducting underwriting discounts and commissions[136]. - The weighted-average shares outstanding for basic and diluted loss per share were 27,160,000 for the three months ended December 31, 2024, compared to 25,764,000 for the same period in 2023, indicating an increase of 5.4%[142]. Operational Challenges and Future Outlook - The company plans to optimize capital allocation and increase revenue from non-human primate-related products and services[36]. - Substantial doubt exists about the company's ability to continue as a going concern due to ongoing financial challenges[38]. - The company had negative operating cash flows and net losses for the three months ended December 31, 2024, raising concerns about compliance with financial covenants[31]. - Management's operating plan forecasts compliance with financial covenants under the Credit Agreement for the next twelve months[38]. Legal and Regulatory Matters - The company is subject to a probation period of up to five years following the plea agreements related to violations of the Animal Welfare Act and the Clean Water Act[157]. - The company has agreed to make payments totaling $22 million in fines, with structured payments over several years, starting with $5 million due on June 3 for the next three years[158]. - The Company anticipates filing a motion for preliminary approval of a settlement related to a class action lawsuit in the second quarter of calendar year 2025, with a proposed settlement amount of $795,000[148]. - The Company is currently involved in multiple legal actions, including a securities class action lawsuit, but believes these actions to be without merit and plans to vigorously defend itself[149].