Bioanalytical Systems, Inc. Announces First Quarter Fiscal 2021 Financial Results

Bioanalytical Systems, Inc.

First Quarter Fiscal 2021 Financial

LAFAYETTE, IN, February 9, 2021 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) (the "Company", "We",

"Our" or "Inotiv"), doing business as Inotiv, a leading provider of nonclinical and analytical contract

research services, today announced financial results for the three months ended December 31, 2020 ("Q1 FY 2021").

Q1 FY 2021 Highlights

Leasure, Jr., the Company's President and Chief Executive Officer, commented, "We commenced fiscal 2021 with improved

first quarter financial results, including 38.5% revenue growth year over year, expanding margins, positive operating income and

$1.3 million of adjusted EBITDA. This quarter demonstrates the operating leverage inherent in our business as we grow revenue and

the value of continuing to invest in our people, capacity, infrastructure, systems and services. Our organization's unification

under the Inotiv brand name, along with our client-service oriented culture, continued to drive performance, as reflected in our

increasing revenue, quarter-end backlog of $45.3 million and book-to-bill ratio of 1.16x."

Mr. Leasure concluded, "Our quarter-end backlog, positive

first quarter book-to-bill ratio and seeing our team and business mature this quarter gives us additional confidence to continue

to invest in our future. We believe that we have significant opportunities ahead of us to expand our services, generate favorable

returns on our investments and drive value for shareholders. We also have opportunities to continue to improve and escalate the

client experience, while strengthening our winning culture and creating a professional, gratifying work environment."

Q1 FY 2021 revenue increased

38.5% to $17.9 million, from $12.9 million in Q1 FY 2020. The majority of the increase in revenue was due to internal growth, augmented

by $1.5 million of incremental revenue from PCRS, which the Company acquired in December of 2019.

Service segment revenue for Q1 FY 2021

increased 40.3% to $17.0 million, from $12.1 million in Q1 FY 2020. The increase in service revenue was due toincremental revenue

of $1.5 million in Q1 FY 2020 attributable to a full quarter of Fort Collins, CO, (legacy PCRS) related operations, combined with

additional revenue as a result of the expansion of our Evansville location and organic growth.

Cost of Service revenue as a percentage

of Service revenue decreased to 68.1% in Q1 FY 2021, from 73.4% in Q1 FY 2020. Service gross margin increased to 31.9% in Q1 FY

2021, from 26.6% in Q1 FY 2020, reflecting operating leverage and the greater utilization of recently expanded capacity.

segment revenue increased 9.9% to $853,000 in Q1 FY 2021, from $776,000 in Q1 FY 2020, reflecting higher sales of Culex

in-vivo sampling systems and analytical instruments, partially offset by a decrease in other instruments.

Cost of Product revenue as a

percentage of Product revenue in Q1 FY 2021 decreased to 48.2% from 68.3% in Q1 FY 2020, due to expense reductions implemented

in the last half of FY 2020 and improved margins on existing sales. Product gross margin increased to 51.8% in Q1 FY 2021, from

31.7% in Q1 FY 2020.

The book-to-bill ratio for Q1

FY 2021 was 1.16x. We continued to build our infrastructure for growth, which included additional headcount and investments in

research and development, technology, and systems. We believe the benefit of the PPP loan has allowed us to continue to retain

our employees and safely maintain business operations through recent periods. Our backlog at the end of Q1 FY 2021 was $45.3 million,

compared to $35.7 million at the end of Q1 FY 2020.

Net loss in Q1 FY 2021 totaled

$366,000, or $(0.03) per diluted share, an improvement of $1.1 million compared to a net loss of $1.4 million, or $(0.13) per diluted

share in Q1 FY 2020.

Adjusted EBITDA increased 169.4%

to $1.3 million in Q1 FY 2021, from $481,000 in Q1 FY 2020.

Cash Provided by Operating Activities

and Financial Condition

Cash provided by operating activities was

$1.7 million in Q1 FY 2021, compared to $1.5 million in Q1 FY 2020.

As of December 31, 2020, the Company had

$1.2 million in cash and cash equivalents and there was a $0 balance on its general line of credit. Borrowings on our $3.0 million

capex line of credit increased by $387 to the maximum balance of $3.0 million. In Q1 FY 2021, cash from operations, cash on hand

and financing activities funded capital expenditures of $1.5 million for the investment in laboratory equipment to increase capacity

and improvements to our Fort Collins facility.

Management will host a conference call

on Tuesday, February 9, 2021, at 4:30 pm ET to discuss Q1 FY 2021 financial results.

Interested parties may participate in the

The live conference call webcast also will

be accessible in the Investors section of the Company's website, and directly via the following link:

https://78449.themediaframe.com/dataconf/productusers/bas2/mediaframe/43273/indexl.html.

those who cannot listen to the live broadcast, an online webcast replay will be available in the Investors section of Inotiv's

web site at: https://www.inotivco.com/investors/investor-information/.

Non-GAAP to GAAP Reconciliation

This press release contains financial measures

that are not calculated in accordance with generally accepted accounting principles in the United States (GAAP). The non-GAAP financial

measures are Adjusted EBITDA for the three months ended December 31, 2020 and 2019. Adjusted EBITDA as reported herein refers to

a financial performance measure that excludes from net income (loss) income statement line items interest expense and income taxes

(benefit) expense, as well as non-cash charges for depreciation and amortization, stock option (benefit) expense, United Kingdom

lease liability reversal benefit, non-recurring acquisition and integration costs and other non-recurring third-party costs, such

as recruiting costs, consulting fees related to the adoption of two accounting standards, and expenses for rebranding and new website

The non-GAAP financial information should

be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Management, however, believes that Adjusted EBITDA, when used in conjunction with the results presented in accordance with GAAP,

may provide a more complete understanding of the Company's results and may facilitate a fuller analysis of the Company's results,

particularly in evaluating performance from one period to another.

Management has chosen to provide this supplemental

information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and

to illustrate our results giving effect to the non-GAAP adjustments shown in the reconciliation. Management strongly encourages

investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors

that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms

are used to identify such measures.

Systems, Inc., doing business as Inotiv, is a pharmaceutical development company providing contract research services and monitoring

instruments to emerging pharmaceutical companies and the world's leading drug development companies and medical research organizations.

The Company focuses on developing innovative services supporting its clients' discovery and development objectives for improved

decision-making and accelerated goal attainment. The Company's products focus on increasing efficiency, improving data,

and reducing the cost of taking new drugs to market. Visit inotivco.com for more information about the Company.

release may contain forward-looking statements that are subject to risks and uncertainties including, but not limited to, risks

and uncertainties related to changes in the market and demand for our products and services, the development, marketing and sales

of products and services, changes in technology, industry and regulatory standards, the timing of acquisitions and

the successful closing, integration and business and financial impact thereof, the impact of the COVID-19 pandemic on the economy,

demand for our services and products and our operations, including the measures taken by governmental authorities to address the

pandemic, which may precipitate or exacerbate other risks and/or uncertainties and various other market and operating risks, including

those detailed in the Company's filings with the U.S. Securities and Exchange Commission.

Financial Tables Follow:

BIOANALYTICAL SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

BIOANALYTICAL SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)