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

BASi Releases Earnings for

Fourth Quarter of Fiscal 2020

WEST LAFAYETTE, IN, December

21, 2020 -- Bioanalytical Systems, Inc. (NASDAQ:BASI) ("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 and twelve months ended September 30, 2020.

Q4 FY 2020 Highlights

Robert Leasure, Jr., the Company's President and Chief Executive

Officer commented, "As we look back at fiscal 2020, we can see it was the year of the unexpected and our Company faced tremendous

challenges related to COVID-19. As a result of the pandemic, we experienced customer delays or pauses of studies, and there

were other pandemic-related impacts on our employees, suppliers and clients. As part of the "essential critical infrastructure"

industry, we believe we had a special responsibility to maintain business continuity and a normal work schedule to the greatest

extent possible, and accordingly we accepted funds under the Paycheck Protection Program ("PPP") in order to help us

safely maintain our operations. I want to thank our team for their efforts during these challenging times."

Mr. Leasure continued, "As might be expected, the pandemic

had a negative impact on our financial results. Despite the challenges, I believe our team stayed focused on making good, long-term

decisions to continue our strategy of building our business by adding services, capacity, systems and talent, and enhancing our

client services, in order to create a strong foundation for long-term growth. We witnessed an increase in quoting and awarded business

as we progressed through the fourth quarter and into October. We were also able to complete a major expansion project at our Evansville

location, complete the acquisition and integration of PCRS in Fort Collins, CO, complete the integration of our Smithers Avanza

Toxicology Services acquisition in Gaithersburg, MD, continue to make significant investments in technology and services for our

laboratories, and introduce our new Inotiv name and branding for our service businesses."

Mr. Leasure concluded, "Our fourth quarter book-to-bill

ratio of 1.48x and quarter-end backlog of $43.8 million compared to $27.8 million on September 30, 2019, gives us confidence in

our internal growth prospects for fiscal 2021.We see significant opportunity ahead of us to expand our services, generate a favorable

return on our investments and drive value for shareholders. In addition, we will continue building upon our client experience,

building a winning culture, and creating a professionally, gratifying work environment. In 2021, we will continue to focus on internal

growth by adding services and expanding capacity, and explore selective external growth opportunities that might add breadth and

value to our platform."

"As we execute on our growth strategy, we intend to continue

to update the Company's governance and other practices. At the 2021 annual meeting of shareholders, we will propose adopting

Inotiv, Inc. as our formal corporate name. In September 2020, we presented at an investor conference for the first time under the

name Inotiv and we intend to incorporate quarterly earnings calls in fiscal 2021."

For fiscal 2020, revenue amounted to $60,469,000,

a 38.6% increase from $43,616,000 for fiscal 2019. Revenue growth was mainly driven by $5,592,000, or 33.2%, attributable to organic

growth and $11,261,000 or 66.8%, of growth attributable to operations acquired via the Smithers Avanza Toxicology Services and

PCRS acquisitions of $6,481,000 and $4,780,000, respectively.

For fiscal 2020, our Service revenue increased

46.4% to $57,177,000 compared to $39,048,000 for fiscal 2019. The increase is primarily due to an increase in nonclinical services

revenues of $17,385,000 due to an overall increase in the number of studies from the prior year and additional revenue attributable

to the Smithers Avanza Toxicology Services and PCRS acquisitions.

Cost of Service revenue as a percentage

of Service revenue decreased to 70.0% for fiscal 2020 from 70.3% for fiscal 2019 due to improved margins during the first three

quarters of 2020, after covering fixed cost. The Fourth quarter had decreasing margins as fixed cost increased to support anticipated

Sales in our Product segment decreased

27.9% in fiscal 2020 to $3,292,000 from $4,568,000 when compared to fiscal 2019. The decrease stems primarily from decreased sales

of our Culex automated in vivo sampling instruments and other instruments, as sales of our Analytical instruments remained consistent.

The decrease is primarily due to a reduction of orders from universites and other customers as they closed and reduced purchasing

during the COVID-19 pandemic and our inability to go onsite to install and service client instruments.

Cost of Product revenue as a percentage

of Product revenue in fiscal 2020 increased to 67.6% from 47.0% in fiscal 2019. This increase in fiscal 2020 was mainly due to

lower sales to cover fixed costs, the increase in material cost and adjustment of selling price for in vivo products to stay competitive

with the market and some change in product mix.

Net loss for fiscal 2020 amounted to $4,685,000

or $0.43 per diluted share, compared to the net loss of $790,000 or $0.08 per diluted share for fiscal 2019. We have submitted

an application for forgiveness of $4,850,665 of the PPP loan.

Net loss and earnings per share were impacted

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

benefits and non-cash stock compensation by adding employees to support anticipated future growth and build infrastructure, the

introduction of our new name and branding efforts, severance expense related to changes in management, increased depreciation expense,

increased corporate expenses associated with professional fees related to the PCRS acquisition, and 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 fiscal 2020, were approximately $1,200,000.

Adjusted EBITDA for fiscal 2020 amounted

to $2,548,000 compared to Adjusted EBITDA for the fiscal 2019, of $2,834,000.

Fourth Quarter Results

For the quarter, revenue amounted

to $15,774,000, a 6.7% increase from $14,786,000 in the fourth quarter of fiscal 2019. The majority of the increase in revenue

was due to the PCRS acquisition in December of 2019.

Service revenue for the fourth quarter

of fiscal 2020 increased 11.1% to $14,992,000 compared to $13,493,000 for the same period in fiscal 2019. Nonclinical services

revenues increased, which includes additional revenue in the fiscal quarter ended September 30, 2020 for the acquisition of PCRS

of $1,575,000, offset by a slight decrease in Bioanalytical Analysis services revenues compared to the same fiscal quarter last

Cost of Service revenue as a percentage

of Service revenue increased to 71.1% during the quarter ended September 30, 2020, from 67.3% in the quarter ended September 30,

2019. The decrease in margins was due to increasing cost and capacity to support future internal growth, and therefore, underutilized

capacity in the fourth quarter.

Sales in our Product segment decreased

39.5% in the quarter ended September 30, 2020, to $782,000 from $1,293,000 in the quarter ended September 30, 2019. The decrease

reflected a continuing quarterly trend in 2020 and stems from lower sales of Culex in vivo sampling systems and other instruments.

The decrease was due to a reduction of orders from universities and other customers as they closed and reduced purchasing during

the COVID-19 pandemic and our inability to go onsite to install and service client instruments.

Cost of Product revenue as a

percentage of Product revenue in the quarter ended September 30, 2020, increased to 63.4% from 47.3% during the quarter ended September

30, 2019, due to lower revenue to cover fixed costs and margins on the mix of products sold.

The book-to-bill ratio for the

fourth quarter of 2020 was 1.48x which resulted in a 1.26x ratio for fiscal 2020. 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 going into 2021 was $43,800,000, compared to $27,800,000 on September 30, 2019.

Net loss for the fourth quarter

of fiscal 2020 amounted to a loss of $1,792,000, or $0.16 per diluted share, compared to net income of $290,000, or $.03 per diluted

share for the fourth quarter of fiscal 2019.

Net loss and earnings per share were impacted

by reduced gross margin and an increase in general and administrative expenses. The decrease in gross margin was a result of increasing

fixed cost and investments into growing internal capacity. Therefore, the fourth quarter reflected developing unutilized capacity.

The increase in general and administrative cost was due to additional expenses related to PCRS operations that were not present

during the quarter ended September 30, 2019, and additional expenses incurred to further develop our infrastructure and systems.

We believe we needed to enhance our systems and processes to support future growth. General and administrative expense includes