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

Pharma-Bio Serv, Inc. is a Delaware corporation organized on January 14 2004 and provides technical compliance consulting services to the pharmaceutical chemical biotechnology medical devices cosmetic and food industries and allied products companies in Puerto Rico the United States Europe and Brazil. The firm operates as a regulatory affairs quality compliance and technology transfer services consulting firm with headquarters in Puerto Rico serving clients across multiple international markets. Its core activities involve delivering consulting expertise in regulatory compliance validation technology transfer engineering project management and process support to manufacturing and life sciences companies.

The company generates revenue primarily through time and materials contracts which account for approximately 99% of total revenue where clients are charged for the time materials and expenses incurred on specific projects or services. A smaller portion of revenue about 1% comes from fixed fee contracts or not to exceed contracts which are generally short term and capped at a stated amount. Revenue is driven by the number of consultants engaged and the hours billed per consultant under time and materials arrangements while fixed fee contracts depend on accurate cost estimation and project management to maintain profitability. The firm serves pharmaceutical chemical biotechnology medical device cosmetic and food industry companies as its general customer base.

The company operates through the following segments: Puerto Rico technical compliance consulting United States technical compliance consulting and Europe technical compliance consulting.

• Puerto Rico technical compliance consulting provides regulatory affairs quality compliance and technology transfer services to pharmaceutical chemical biotechnology medical device cosmetic and food industry clients in the Puerto Rico market leveraging long standing relationships with major manufacturers in the region.

• United States technical compliance consulting delivers similar consulting services to clients across the United States market focusing on regulatory validation engineering and process support for life sciences and manufacturing companies.

• Europe technical compliance consulting offers technical compliance consulting to pharmaceutical biotechnology medical device and chemical manufacturing companies in European markets drawing on the firm's established reputation and expertise in quality assurance and regulatory affairs.

Pharma-Bio Serv Inc maintains a competitive position in the fragmented technical compliance consulting industry through its historical market share in Puerto Rico spanning over 30 years its strong brand reputation and track record with major pharmaceutical biotechnology medical device and chemical manufacturing companies and its ability to deliver excellent service at a competitive price. The firm competes with regional national and international consulting firms as well as internal teams within client companies but differentiates itself through experienced consultants former quality assurance managers health agency officials and professionals with advanced degrees in health sciences and engineering.

The company serves pharmaceutical chemical biotechnology medical device cosmetic and food industry companies including allied products firms with a client base that changes regularly on a project by project basis. Three customers represented 10% or more of revenues in the years ended October 31 2025 and 2024 accounting for 43.5% and 44.2% of total revenue respectively although specific customer names are not disclosed in the filing. The firm maintains well established and consistent relationships with major pharmaceutical biotechnology medical device and chemical manufacturing companies in Puerto Rico and the United States which provide access to affiliated companies in other markets.