Pharma-Bio Serv, Inc. (OTC: PBSV)

Pharma-Bio Serv, Inc. operates as a technical compliance consulting services provider, catering to the pharmaceutical, chemical, biotechnology, medical devices, cosmetic, and food industries, along with allied products companies. The company extends its services across Puerto Rico, the United States, Europe, and Brazil, with a primary focus on regulatory affairs, quality, compliance, and technology transfer services. Pharma-Bio Serv, Inc. was established as a Delaware corporation on January 14, 2004, and maintains its headquarters in Puerto Rico.

The company generates revenue primarily through time and materials contracts, which account for approximately 99% of its total revenue. These contracts charge clients for the time, materials, and expenses incurred on specific projects or services. The remaining 1% of revenue comes from fixed-fee or "not to exceed" contracts, which are typically short-term and have a capped value. The company's revenue is largely driven by the number of consultants and the hours billed per consultant. Pharma-Bio Serv, Inc. serves a diverse customer base, including major pharmaceutical, biotechnology, medical device, and chemical manufacturing companies.

• Puerto Rico technical compliance consulting: This segment focuses on providing compliance-related consulting services within Puerto Rico, leveraging the company's historical market share and established relationships with key industry players.

• United States technical compliance consulting: This segment extends the company's compliance consulting services to the United States market, catering to the needs of pharmaceutical, chemical, biotechnology, medical devices, cosmetic, and food industries.

• Europe technical compliance consulting: This segment targets the European market, offering similar compliance consulting services to those available in Puerto Rico and the United States.

Pharma-Bio Serv, Inc. operates in a highly competitive and fragmented industry, facing competition from regional, national, and international firms. Some competitors may possess greater resources or better access to clients. However, the company's competitive advantages include its historical market share in Puerto Rico, brand name, reputation, and track record with major industry players. Additionally, Pharma-Bio Serv, Inc. emphasizes providing excellent service at a competitive price. The company's evaluation of validation and consulting services is based on reputation, track record, experience, and quality of service, with price becoming a significant factor in sourcing these services.

The company's customer base consists of approximately 70 clients, which include some of the largest pharmaceutical, chemical manufacturing, medical device, and biotechnology companies. Three customers represented 10% or more of the company's revenues in either of the years ended October 31, 2025 and 2024, accounting for 43.5% and 44.2% of total revenue, respectively. The client base for which Pharma-Bio Serv, Inc. provides services changes regularly, as the company's functions are not a continuous process. Therefore, a small number of customers could represent a significant source of revenue in any given year.