UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended March 31, 2021
OR
- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for
the transition period from | to | . | |||
Commission File Number 000-23357 | |||||
INOTIV, INC. | |||||
(Exact name of the registrant as specified in its charter) | |||||
INDIANA | 35-1345024 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
2701 KENT AVENUE | |||||
WEST LAFAYETTE, INDIANA | 47906 | ||||
(Address of principal executive offices) | (Zip code) |
(765) 463-4527
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange | ||||
Title of each class | Trading Symbol(s) | on which registered | ||
Common Shares | NOTV | NASDAQ Capital Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES NO
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). YES | NO |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check):
Large accelerated filer Accelerated filer Non-accelerated filer
Smaller Reporting Company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO
As of May 6, 2021, 15,827,839 of the registrant's common shares were outstanding.
1
TABLE OF CONTENTS | ||
Page | ||
PART I | FINANCIAL INFORMATION | |
Item 1 | Condensed Consolidated Financial Statements: | |
Condensed Consolidated Balance Sheets as of March 31, 2021 (Unaudited) and September 30, 2020 | ||
Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2021 and 2020 (Unaudited) | 6 | |
Notes to Condensed Consolidated Financial Statements | 8 | |
Item 2 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 20 |
Item 3 | Quantitative and Qualitative Disclosures about Market Risk | 29 |
Item 4 | Controls and Procedures | 29 |
PART II | OTHER INFORMATION | 30 |
Item 1 | Legal Proceedings | 30 |
Item 1A | Risk Factors | 30 |
Item 6 | Exhibits | 32 |
Signatures | 32 |
2
INOTIV, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, | September 30, | |||||||||
2021 | 2020 | |||||||||
(Unaudited) | ||||||||||
Assets | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 2,186 | $ | 1,406 | ||||||
Accounts receivable | ||||||||||
Trade, net of allowance of $500 at March 31, 2021 and $561 at September 30, 2020 | 9,340 | 8,681 | ||||||||
Unbilled revenues and other | 3,338 | 2,142 | ||||||||
Inventories, net | 872 | 700 | ||||||||
Prepaid expenses | 2,135 | 2,371 | ||||||||
Total current assets | 17,871 | 15,300 | ||||||||
Property and equipment, net | 29,353 | 28,729 | ||||||||
Operating lease right-of-use assets, net | 4,105 | 4,001 | ||||||||
Finance lease right-of-use assets, net | 4,710 | 4,778 | ||||||||
Goodwill | 4,368 | 4,368 | ||||||||
Other intangible assets, net | 3,949 | 4,261 | ||||||||
Lease rent receivable | 129 | 75 | ||||||||
Other assets | 86 | 81 | ||||||||
Total assets | $ | 64,571 | $ | 61,593 | ||||||
Liabilities and shareholders' equity | ||||||||||
Current liabilities: | ||||||||||
Accounts payable | $ | 3,967 | $ | 3,196 | ||||||
Restructuring liability | 168 | |||||||||
Accrued expenses | 2,932 | 2,688 | ||||||||
Customer advances | 15,186 | 11,392 | ||||||||
Capex line of credit | - | 2,613 | ||||||||
Current portion on long-term operating lease | 1,004 | 866 | ||||||||
Current portion of long-term finance lease | 4,664 | 4,728 | ||||||||
Current portion of long-term debt | 8,317 | 5,991 | ||||||||
Total current liabilities | 36,070 | 31,642 | ||||||||
Long-term operating leases, net | 3,278 | 3,344 | ||||||||
Long-term finance leases, net | 42 | 44 | ||||||||
Long-term debt, less current portion, net of debt issuance costs | 17,925 | 18,826 | ||||||||
Deferred tax liabilities | 180 | 141 | ||||||||
Total liabilities | 57,495 | 53,997 | ||||||||
Shareholders' equity: | ||||||||||
Preferred shares, authorized 1,000,000 shares, no par value: | ||||||||||
No Series A shares at March 31, 2021 and 25 shares at September 30, 2020 issued and | ||||||||||
outstanding at $1,000 stated value | - | 25 | ||||||||
Common shares, no par value: | ||||||||||
Authorized 19,000,000 shares; 11,179,041 issued and outstanding at March 31, 2021 and | ||||||||||
10,977,675 at September 30, 2020 | 2,756 | 2,706 | ||||||||
Additional paid-in capital | 27,319 | 26,775 | ||||||||
Accumulated deficit | (22,999) | (21,910) | ||||||||
Total shareholders' equity | 7,076 | 7,596 | ||||||||
Total liabilities and shareholders' equity | $ | 64,571 | $ | 61,593 | ||||||
The accompanying notes are an integral part of the condensed consolidated financial statements
3
INOTIV, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Service revenue | $ | 17,902 | $ | 15,191 | $ | 34,934 | $ | 27,333 | ||||
Product revenue | 849 | 821 | 1,702 | 1,597 | ||||||||
Total revenue | 18,751 | 16,012 | 36,636 | 28,930 | ||||||||
Cost of service revenue | 11,949 | 10,207 | 23,502 | 19,118 | ||||||||
Cost of product revenue | 522 | 612 | 933 | 1,142 | ||||||||
Total cost of revenue | 12,471 | 10,819 | 24,435 | 20,260 | ||||||||
Gross profit | 6,280 | 5,193 | 12,201 | 8,670 | ||||||||
Operating expenses: | ||||||||||||
Selling | 1,175 | 1,447 | 2,138 | 2,665 | ||||||||
Research and development | 203 | 162 | 399 | 324 | ||||||||
General and administrative | 5,423 | 3,779 | 10,171 | 6,896 | ||||||||
Total operating expenses | 6,801 | 5,388 | 12,708 | 9,885 | ||||||||
Operating loss | (521) | (195) | (507) | (1,215) | ||||||||
Interest expense | (366) | (392) | (713) | (703) |
Other income | 179 | 10 | 179 | 12 |
Net loss before income taxes | (708) | (577) | (1,041) | (1,906) |
Income tax expense | 15 | 11 | 48 | 108 | ||||||||
Net loss | $ | (723) | $ | (588) | $ | (1,089) | $ | (2,014) | ||||
Basic net loss per share | $ | (0.06) | $ | (0.05) | $ | (0.10) | $ | (0.19) | ||||
Diluted net loss per share | $ | (0.06) | $ | (0.05) | $ | (0.10) | $ | (0.19) | ||||
Weighted common shares outstanding: | ||||||||||||
Basic | 11,151 | 10,843 | 11,083 | 10,756 | ||||||||
Diluted | 11,151 | 10,843 | 11,083 | 10,756 |
The accompanying notes are an integral part of the condensed consolidated financial statements.
4
INOTIV, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(In thousands, except number of shares)
Six Month Period Ended March 31, 2021 | |||||||||||||||||||||||
Additional | Total | ||||||||||||||||||||||
Preferred Shares | Common Shares | paid-in | Accumulated | shareholders' | |||||||||||||||||||
Number | Amount | Number | Amount | capital | deficit | equity | |||||||||||||||||
Balance at | |||||||||||||||||||||||
September 30, 2020 | 25 | $ | 25 | 10,977,675 | $ | 2,706 | $ | 26,775 | $ | (21,910) | $ | 7,596 | |||||||||||
Net loss | (366) | (366) | |||||||||||||||||||||
Stock option | |||||||||||||||||||||||
exercises | 23,350 | 6 | 39 | 45 | |||||||||||||||||||
Stock based | |||||||||||||||||||||||
compensation | 116,974 | 29 | 152 | 181 | |||||||||||||||||||
Balance at December | |||||||||||||||||||||||
31, 2020 | 25 | $ | 25 | 11,117,999 | $ | 2,741 | $ | 26,966 | $ | (22,276) | $ | 7,456 | |||||||||||
Net loss | (723) | (723) | |||||||||||||||||||||
Stock based | |||||||||||||||||||||||
compensation | 12,502 | 3 | 275 | 278 | |||||||||||||||||||
Stock option | |||||||||||||||||||||||
exercises | 36,040 | 9 | 56 | 65 | |||||||||||||||||||
Preferred stock | |||||||||||||||||||||||
conversion | (25) | (25) | 12,500 | 3 | 22 |
Balance March 31, | |||||||||||
2021 | 0 | $ | 0 | 11,179,041 | $ | 2,756 | $ | 27,319 | (22,999) | $ | 7,076 |
Six Month Period Ended March 31, 2020 | ||||||||||||||||||||||
Additional | Total | |||||||||||||||||||||
Preferred Shares | Common Shares | paid-in | Accumulated | shareholders' | ||||||||||||||||||
Number | Amount | Number | Amount | capital | deficit | equity | ||||||||||||||||
Balance at | ||||||||||||||||||||||
September 30, 2019 | 35 | $ | 35 | 10,510,694 | $ | 2,589 | $ | 25,183 | $ | (17,097) | $ | 10,710 | ||||||||||
Adoption of | ||||||||||||||||||||||
accounting standard | (128) | (128) |
Net loss | (1,426) | (1,426) | ||||||||||
Stock issued in | ||||||||||||
acquisition | 240,000 | 60 | 1,073 | 1,133 | ||||||||
Stock based | ||||||||||||
compensation | 54,363 | 14 | 67 | 81 | ||||||||
Balance at December | ||||||||||||
31, 2019 | 35 | $ | 35 | 10,805,057 | $ | 2,663 | $ | 26,323 | $ | (18,651) | $ | 10,370 |
Net loss | (588) | (588) | ||||||||||
Stock based | ||||||||||||
compensation | 26,521 | 7 | 116 | 123 | ||||||||
Stock option | ||||||||||||
exercises | 32,703 | 8 | 12 | 20 |
Balance March 31, 2020
35 | $ | 35 | 10,864,281 | $ |
2,678 | $ | 26,451 |
(19,239) | $ | 9,925 |
The accompanying notes are an integral part of the consolidated financial statements.
5
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Bioanalytical Systems Inc. published this content on 18 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 May 2021 13:53:07 UTC.