FOR MORE INFORMATION: Company Contact: Beth A. Taylor Chief Financial Officer Phone: 765.497.8381 btaylor@inotivco.com BASi Releases Earnings for Third Quarter of Fiscal 2020

BASi Releases Earnings for

Third Quarter of Fiscal 2020

WEST LAFAYETTE, IN, August

14, 2020 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("BASi", the "Company", "We" or "Our"),

doing business as Inotiv, a leading provider of nonclinical and analytical contract research services, today announced financial

results for the three months ended June 30, 2020.

During the third quarter of fiscal 2020,

the Company saw 45.2% revenue growth compared to the third quarter of fiscal 2019. Growth initiatives including acquisitions of

the Gaithersburg, Maryland, operations of Smithers Avanza in May 2019 and Pre-Clinical Research Services, Inc.'s. ("PCRS")

business in Ft. Collins, Colorado, in December 2019, as well as internal growth at existing sites from the expansion of the Evansville

facility and investment in the St. Louis facility, contributed to the increase in service revenue and gross margins.

Robert Leasure, Jr., BASi's President and

Chief Executive Officer commented, "Like many others we experienced challenges related to the COVID-19 pandemic over the last

three months. As a critical business, we continued our daily operations during the last quarter, and our team created a safe environment

for our employees and our clients. We had clients who needed to delay some large programs and we had start dates for programs that

were postponed. We also recognized additional revenue with multiple clients, at our multiple sites, on a variety of therapy or

vaccine candidates for COVID-19. However, program delay impacts more than offset the additional revenue from working with clients

to support COVID-19 drug discovery and development efforts."

The Company accepted $5,051,282 in PPP

funds and adjusted its plans during the quarter to minimize the financial impact of the pandemic and the unexpected events which

could impact the Company. The Company will seek forgiveness of the PPP funds. Currently this debt is recorded as a liability on

the balance sheet. The PPP funds we accepted were used to fund payroll, rent and utilities. We have begun to see some of the delayed

programs come back with new start dates, and it has been beneficial over the last quarter to maintain our employment level in order

to respond to our clients' needs.

The Company experienced program delays

that negatively impacted revenue by an estimated $2,000,000 due to the COVID-19 pandemic, which also impacted earnings. Additionally,

the Company believes that earnings were impacted by inefficiencies as people were required to work from home and practiced social

The Company continued its strategy of investing

in technology and human resources to support future growth in capacity and services. The investments in laboratory technology and

equipment were mainly funded by the equipment line of credit put in place in the first quarter of fiscal 2020. We believe the actions

taken during the third quarter will allow the company to continue its growth strategy in the future.

Over the last nine months, we continued

to recruit talented people, and expanded the further development of the infrastructure and platform to support future growth and

additional potential acquisitions. We believe these initiatives, investments, acquisitions and recruiting efforts, combined with

our existing team and the development of our sales and marketing team, have led to growth in revenue and the ability to improve

the service offerings to our clients.

In spite of some delays in programs and

reduced expected revenue, our overall year-over-year revenue increased and was positively impacted by increases in sales and margins

from the internal growth the Company has been experiencing in our Service business and through acquisitions. We have experienced

increases in overhead and corporate expenses related to our acquisitions in May 2019 and December 2019 as well as expenses associated

with enhancements to support internal growth and our infrastructure development.

"We look forward to continuing the

integration of our combined businesses, adding services and further developing our infrastructure, project management, sales, marketing,

client services and branding. We will continue to evaluate additional internal and external growth opportunities and new services

to provide to clients," Mr. Leasure concluded.

Third Quarter Results

For the quarter, revenue amounted

to $15,765,000, a 45.2% increase from $10,861,000 in the third quarter of fiscal 2019. Revenue growth was driven by incremental

sales associated with organic growth of the service business, as well as sales attributable to the Smithers Avanza and PCRS acquisitions.

Net loss for the third quarter

of fiscal 2020 amounted to $879,000, or $0.08 per diluted share, compared to a net loss of $426,000, or $0.04 per diluted share

for the third quarter of fiscal 2019.

Net loss and earnings per share were impacted

by an increase in general and administrative expenses primarily due to additional expenses of $711,000 from Smithers Avanza and

PCRS that were not present during the three months ended June 30, 2019, which includes depreciation and amortization of $189,000,

increased salaries, wages, benefits and non cash stock compensation by adding employees to build infrastructure, increased depreciation

expense, and other non-recurring expense of approximately $100,000 relating to recruiting, implementing a new accounting system

and other IT enhancements. We do not expect the non-recurring expenses to continue or materially impact future fiscal quarters.

Adjusted EBITDA for the third

quarter of fiscal 2020 amounted to $774,000, compared to Adjusted EBITDA for the third quarter of fiscal 2019 of $801,000.

Third Quarter Segment Results

Service revenue for the third quarter of

fiscal 2020 increased 53.3% to $14,852,000 compared to $9,689,000 for the same period in fiscal 2019, including $2,104,000, or

21.7%, attributable to organic growth and additional revenue of $3,059,000, or 31.6% attributable to the Smithers Avanza acquisition

and the PCRS acquisition of $1,784,000 and $1,275,000, respectively. Nonclinical services revenues increased $4,257,000 in the

three months ended June 30, 2020, compared to the same fiscal quarter last year. Bioanalytical analysis revenues increased by $620,000

in the three months ended June 30, 2020, compared to the same fiscal quarter last year.

Cost of Service revenue as a percentage

of Service revenue decreased to 68.9% during the three months ended June 30, 2020, from 72.3% in the three months ended June 30,

2019, due to increasing revenue which generates higher margins after fixed costs are covered.

Sales in our Products segment decreased

22.2% in the three months ended June 30, 2020, to $913,000 from $1,172,000 in the three months ended June 30, 2019. The decrease

stems from lower sales of Culex in vivo sampling systems and analytical instruments. The decrease is primarily due to a reduction

of orders from universities as they closed and reduced purchasing due to the COVID-19 pandemic and our inability to go on site

to install and service client instruments.

Cost of Products revenue as a percentage

of Products revenue in the three months ended June 30, 2020, increased to 64.4% from 62.1% in the three months ended June 30, 2019,

due to reduced revenue to cover fixed costs.

First Nine Months Results

For the first nine months of fiscal 2020,

revenue amounted to $44,695,000, a 55.0% increase from $28,830,000 for the first nine months of fiscal 2019. Revenue growth was

mainly driven by $5,825,000, or 20.2%, attributable to organic growth and $10,040,000 or 34.8%, of growth attributable to the acquisitions

of Smithers Avanza and PCRS of $6,835,000 and $3,205,000, respectively.

Net loss for the first nine months of fiscal

2020 amounts to $2,893,000, or $0.27 per diluted share, compared to the net loss of $1,080,000, or $0.10 per diluted share for

the first nine months of fiscal 2019.

Net loss and earnings per share were impacted

by increased costs associated with the acquisitions of Smithers Avanza and PCRS plus increased salaries, wages, benefits and non

cash stock compensation by adding employees to support future growth and build infrastructure, severance expense related to changes

in management, increased depreciation expense, increased corporate expenses associated with professional fees related to PCRS acquisition,

and other non-recurring expenses related to recruiting, implementing a new accounting system, adopting two new accounting standards,

and other one-time expenses. The one-time, non-recurring expenses for the nine months ended June 30, 2020 were approximately $1,100,000.

Adjusted EBITDA for the nine months ended

June 30, 2020, amounted to $2,362,000 compared to Adjusted EBITDA for the nine months ended June 30, 2019, of $1,504,000.

First Nine Months Segment Results

For the first nine months of fiscal 2020,

our Service revenue increased 65.1% to $42,185,000 compared to $25,555,000 for the first nine months of fiscal 2019. Nonclinical

services revenues increased due to an overall increase in the number of studies from the prior year and additional revenue attributable

to the Smithers Avanza acquisition and the PCRS acquisition during the first half of fiscal 2020.