| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                                      |         | 20-0653570                            |
|---------------------------------------------------------------|--------------|---------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |         | (IRS EmployerIdentification No.) |
|                                                          |         |                                  |
| Pharma-Bio Serv Building,# 6 Road 696Dorado, Puerto Rico      |         | 00646(Zip Code)                       |
| (Address of Principal Executive Offices)                      |    |                                  |

| Large accelerated filer  ̈ | Accelerated filer  ̈    |
|--------------------------------|-----------------------------|
| Non-accelerated filer  ̈   | Smaller reporting company x |

----

|                                                                                                                                |   | Page   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| PART I FINANCIAL INFORMATION                                                                                                        |   |   |
|                                                                                                                                |   |   |
| Item 1 – Financial Statements                                                                                                 |   |   |
|                                                                                                                                |   |   |
| Condensed Consolidated Balance Sheets as of April 30, 2011 and October 31, 2010 (unaudited)                                         |   | 3      |
|                                                                                                                                |   |   |
| Condensed Consolidated Statements of Income for the three-month and six-month periods ended April 30, 2011 and 2010 (unaudited)     |   | 4      |
|                                                                                                                                |   |   |
| Condensed Consolidated Statements of Cash Flows for the three-month and six-month periods ended April 30, 2011 and 2010 (unaudited) |   | 5      |
|                                                                                                                                |   |   |
| Notes to Condensed Consolidated Financial Statements (unaudited)                                                                    |   | 6      |
|                                                                                                                                |   |   |
| Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations                                      |   | 12     |
|                                                                                                                                |   |   |
| Item 4 – Controls and Procedures                                                                                              |   | 17     |
|                                                                                                                                |   |   |
| PART II OTHER INFORMATION                                                                                                           |   |   |
|                                                                                                                                |   |   |
| Item 1 – Legal Proceedings                                                                                                    |   | 18     |
|                                                                                                                                |   |   |
| Item 6 – Exhibits                                                                                                             |   | 18     |
|                                                                                                                                |   |   |
| SIGNATURES                                                                                                                          |   | 19     |

----

| Item 1.  | FINANCIAL STATEMENTS |
|--------------------|----------------------|

|                                                                                                    |   | April 30,2011* |      |   | October 31,2010** |   |
|---------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|-------------------|--------|
| ASSETS:                                                                                                 |   |           |      |   |              |   |
| Current assets                                                                                          |   |           |      |   |              |   |
| Cash and cash equivalents                                                                               |   | $              | 2,552,989 |   |              | $      | 2,317,168 |   |
| Marketable securities                                                                                   |   |           | 95,000    |   |              |   | 95,000 |   |
| Accounts receivable                                                                                     |   |           | 3,989,801 |   |              |   | 2,520,407 |   |
| Other                                                                                                   |   |           | 211,759   |   |              |   | 270,827 |   |
| Total current assets                                                                                    |   |           | 6,849,549 |   |              |   | 5,203,402 |   |
|                                                                                                    |   |           |      |   |              |   |   |   |
| Property and equipment                                                                                  |   |           | 1,316,808 |   |              |   | 1,321,258 |   |
| Other assets                                                                                            |   |           | 24,399    |   |              |   | 33,364 |   |
| Total assets                                                                                            |   | $              | 8,190,756 |   |              | $      | 6,558,024 |   |
|                                                                                                    |   |           |      |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY:                                                             |   |           |      |   |              |   |   |   |
| Current liabilities                                                                                     |   |           |      |   |              |   |   |   |
| Current portion-obligations under capital leases                                                        |   | $              | 30,095    |   |              | $      | 18,227 |   |
| Accounts payable and accrued expenses                                                                   |   |           | 1,484,167 |   |              |   | 1,205,576 |   |
| Income taxes payable                                                                                    |   |           | 629,714   |   |              |   | 210,911 |   |
| Total current liabilities                                                                               |   |           | 2,143,976 |   |              |   | 1,434,714 |   |
|                                                                                                    |   |           |      |   |              |   |   |   |
| Obligations under capital leases                                                                        |   |           | 108,631   |   |              |   | 53,839 |   |
| Total liabilities                                                                                       |   |           | 2,252,607 |   |              |   | 1,488,553 |   |
|                                                                                                    |   |           |      |   |              |   |   |   |
| Stockholders' equity:                                                                                   |   |           |      |   |              |   |   |   |
| Preferred Stock, $0.0001 par value; authorized 10,000,000 shares; none outstanding                      |   |           | -         |   |              |   | - |   |
| Common Stock, $0.0001 par value; authorized 50,000,000 shares; issued and outstanding 20,751,215 shares |   |           | 2,075     |   |              |   | 2,075 |   |
| Additional paid-in capital                                                                              |   |           | 650,218   |   |              |   | 645,886 |   |
| Retained earnings                                                                                       |   |           | 5,276,680 |   |              |   | 4,440,728 |   |
| Accumulated other comprehensive gain (loss)                                                             |   |           | 9,176     |   |              |   | (19,218 | ) |
| Total stockholders' equity                                                                              |   |           | 5,938,149 |   |              |   | 5,069,471 |   |
| Total liabilities and stockholders' equity                                                              |   | $              | 8,190,756 |   |              | $      | 6,558,024 |   |

| * | Unaudited. |
|---|------------|

| ** | Condensed from audited financial statements. |
|----|----------------------------------------------|

----

|                                                                           |   | Three months ended April 30, |       |   | Six months ended April 30, |   |
|--------------------------------------------------------------------------------|--------|------------------------------|------------|--------|----------------------------|--------|
|                                                                           |   | 2011                         |       |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
| REVENUES                                                                       |   | $                            | 4,586,804  |   |                       | $      | 2,773,604 |   |   | $ | 8,179,475 |   |   | $ | 5,330,343 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| COST OF SERVICES                                                               |   |                         | 3,041,804  |   |                       |   | 2,016,862 |   |   |   | 5,458,467 |   |   |   | 3,822,425 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| GROSS PROFIT                                                                   |   |                         | 1,545,000  |   |                       |   | 756,742 |   |   |   | 2,721,008 |   |   |   | 1,507,918 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                                   |   |                         | 808,245    |   |                       |   | 678,428 |   |   |   | 1,466,726 |   |   |   | 1,380,289 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| INCOME FROM OPERATIONS                                                         |   |                         | 736,755    |   |                       |   | 78,314 |   |   |   | 1,254,282 |   |   |   | 127,629 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE):                                                        |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                               |   |                         | (1,991     | )      |                       |   | (939 | ) |   |   | (3,341 | ) |   |   | (2,697 | ) |
| Interest income                                                                |   |                         | 4,354      |   |                       |   | 4,300 |   |   |   | 9,119 |   |   |   | 8,964 |   |
| Gain on disposition of property and equipment                                  |   |                         | -          |   |                       |   | - |   |   |   | - |   |   |   | 1,920 |   |
|                                                                           |   |                         | 2,363      |   |                       |   | 3,361 |   |   |   | 5,778 |   |   |   | 8,187 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| INCOME BEFORE TAXES                                                            |   |                         | 739,118    |   |                       |   | 81,675 |   |   |   | 1,260,060 |   |   |   | 135,816 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| INCOME TAXES                                                                   |   |                         | 259,426    |   |                       |   | 34,795 |   |   |   | 424,108 |   |   |   | 68,477 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME                                                                     |   | $                            | 479,692    |   |                       | $      | 46,880 |   |   | $ | 835,952 |   |   | $ | 67,339 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| BASIC EARNINGS PER COMMON SHARE                                                |   | $                            | 0.023      |   |                       | $      | 0.002 |   |   | $ | 0.040 |   |   | $ | 0.003 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| DILUTED EARNINGS PER COMMON SHARE                                              |   | $                            | 0.021      |   |                       | $      | 0.002 |   |   | $ | 0.037 |   |   | $ | 0.003 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – BASIC        |   |                         | 20,751,215 |   |                       |   | 20,751,215 |   |   |   | 20,751,215 |   |   |   | 20,751,215 |   |
|                                                                           |   |                         |       |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING – DILUTED |   |                         | 22,483,430 |   |                       |   | 22,307,369 |   |   |   | 22,479,368 |   |   |   | 22,371,489 |   |

----

|                                                                                                                         |   | Three months ended April 30, |      |   | Six months ended April 30, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-----------|--------|----------------------------|--------|
|                                                                                                                         |   | 2011                         |      |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                        |   |                         |      |   |                       |   |   |   |   |   |   |   |
| Net income                                                                                                                   |   | $                            | 479,692   |   |                       | $      | 46,880 |   |   | $ | 835,952 |   |   | $ | 67,339 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                                            |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Gain on disposition of property and equipment                                                                                |   |                         | -         |   |                       |   | - |   |   |   | - |   |   |   | (1,920 | ) |
| Stock-based compensation                                                                                                     |   |                         | 2,166     |   |                       |   | 12,826 |   |   |   | 4,332 |   |   |   | 28,718 |   |
| Depreciation and amortization                                                                                                |   |                         | 74,128    |   |                       |   | 81,001 |   |   |   | 148,841 |   |   |   | 162,789 |   |
| (Increase) decrease in accounts receivable                                                                                   |   |                         | (812,507  | )      |                       |   | 66,805 |   |   |   | (1,420,966 | ) |   |   | 147,673 |   |
| (Increase) decrease in other assets                                                                                          |   |                         | (5,140    | )      |                       |   | (434 | ) |   |   | 66,618 |   |   |   | 92,599 |   |
| Increase in liabilities                                                                                                      |   |                         | 448,688   |   |                       |   | 84,068 |   |   |   | 658,368 |   |   |   | 63,548 |   |
| NET CASH PROVIDED BY OPERATING ACTIVITIES                                                                                    |   |                         | 187,027   |   |                       |   | 291,146 |   |   |   | 293,145 |   |   |   | 560,746 |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                        |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition of property and equipment                                                                                        |   |                         | (56,150   | )      |                       |   | (8,985 | ) |   |   | (66,215 | ) |   |   | (20,055 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                                                                        |   |                         | (56,150   | )      |                       |   | (8,985 | ) |   |   | (66,215 | ) |   |   | (20,055 | ) |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                        |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Payments on obligations under capital lease                                                                                  |   |                         | (5,391    | )      |                       |   | (5,460 | ) |   |   | (9,815 | ) |   |   | (26,627 | ) |
| NET CASH USED IN FINANCING ACTIVITIES                                                                                        |   |                         | (5,391    | )      |                       |   | (5,460 | ) |   |   | (9,815 | ) |   |   | (26,627 | ) |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                                                      |   |                         | 20,523    |   |                       |   | (10,691 | ) |   |   | 18,706 |   |   |   | (16,656 | ) |
| NET INCREASE  IN CASH AND CASH EQUIVALENTS                                                                         |   |                         | 146,009   |   |                       |   | 266,010 |   |   |   | 235,821 |   |   |   | 497,408 |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD                                                                              |   |                         | 2,406,980 |   |                       |   | 2,283,272 |   |   |   | 2,317,168 |   |   |   | 2,051,874 |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS – END OF PERIOD                                                                         |   | $                            | 2,552,989 |   |                       | $      | 2,549,282 |   |   | $ | 2,552,989 |   |   | $ | 2,549,282 |   |
| SUPPLEMENTAL DISCLOURES OFCASH FLOWS INFORMATION:                                                                            |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Cash paid during the period for:                                                                                             |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                                                                 |   | $                            | -         |   |                       | $      | 9,325 |   |   | $ | 6,025 |   |   | $ | 15,468 |   |
| Interest                                                                                                                     |   | $                            | 1,703     |   |                       | $      | 939 |   |   | $ | 3,053 |   |   | $ | 2,697 |   |
|                                                                                                                         |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTARY SCHEDULES OF NON-CASHINVESTING AND FINANCING ACTIVITIES:                                                       |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Income tax withheld by clients to be used as a credit in the Company’s income tax return                               |   | $                            | 6,870     |   |                       | $      | 3,454 |   |   | $ | 24,671 |   |   | $ | 3,454 |   |
| Obligations under capital lease incurred for the acquisition of a vehicle                                                    |   | $                            | -         |   |                       | $      | - |   |   | $ | 76,475 |   |   | $ | 31,918 |   |
| Property and equipment with accumulated depreciation of $12,355 disposed during the six month period ended in April 30, 2010 |   | $                            | -         |   |                       | $      | - |   |   | $ | - |   |   | $ | 33,695 |   |

----

----

|   | Level 1: | Quoted prices in active markets for identical assets and liabilities. |
|--------|---------------|-----------------------------------------------------------------------|

|   | Level 2: | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                |   | Exercise Price |   | Expiration Date |             | April 30, 2011 |   |      | October 31, 2010 |   |
|---------------------|--------|----------------|--------|-----------------|------------------|----------------|--------|-----------|------------------|--------|
| Investor Warrants A |   | $              | 1.1000 |            | January 25, 2011 |           |   | -         |             |   |   | 3,999,700 |   |
| Investor Warrants B |   | $              | 1.6500 |            | January 25, 2011 |           |   | -         |             |   |   | 3,999,700 |   |
| Other Warrants A    |   | $              | 0.0600 |            | January 16, 2014 |           |   | 249,600   |             |   |   | 249,600 |   |
| Other Warrants B    |   | $              | 0.0600 |            | January 24, 2014 |           |   | 1,830,991 |             |   |   | 1,830,991 |   |
| Warrants Total      |   |           |   |            |             |           |   | 2,080,591 |             |   |   | 10,079,991 |   |

|                                                                                                |   | Three monthsended April 30, |       |   | Six monthsended April 30, |   |
|-----------------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|---------------------------|--------|
|                                                                                                |   | 2011                        |       |   | 2010                      |   |   | 2011 |   |   | 2010 |   |
| Net income available to common equity holders - used to compute basic and diluted earning per share |   | $                           | 479,692    |   |                      | $      | 46,880 |   |   | $ | 835,952 |   |   | $ | 67,339 |   |
| Weighted average number of common shares - used to compute basic earning per share                  |   |                        | 20,751,215 |   |                      |   | 20,751,215 |   |   |   | 20,751,215 |   |   |   | 20,751,215 |   |
| Effect of warrants to purchase common stock                                                         |   |                        | 1,721,291  |   |                      |   | 1,556,154 |   |   |   | 1,717,885 |   |   |   | 1,620,274 |   |
| Effect of options to purchase common stock                                                          |   |                        | 10,924     |   |                      |   | - |   |   |   | 10,268 |   |   |   | - |   |
| Weighted average number of shares - used to compute diluted earnings per share                      |   |                        | 22,483,430 |   |                      |   | 22,307,369 |   |   |   | 22,479,368 |   |   |   | 22,371,489 |   |

----

|                                       |   | Three months ended April 30, |      |   | Six months ended April 30, |   |
|--------------------------------------------|--------|------------------------------|-----------|--------|----------------------------|--------|
|                                       |   | 2011                         |      |   | 2010                       |   |   | 2011 |   |   | 2010 |   |
| REVENUES:                                  |   |                         |      |   |                       |   |   |   |   |   |   |   |
| Puerto Rico and United States consulting   |   | $                            | 3,368,863 |   |                       | $      | 2,004,966 |   |   | $ | 5,943,608 |   |   | $ | 3,786,191 |   |
| Ireland consulting                         |   |                         | 734,126   |   |                       |   | 540,621 |   |   |   | 1,445,535 |   |   |   | 1,122,572 |   |
| Lab (microbiological and chemical testing) |   |                         | 152,396   |   |                       |   | 149,306 |   |   |   | 231,191 |   |   |   | 268,392 |   |
| Other segments1                       |   |                         | 331,419   |   |                       |   | 78,711 |   |   |   | 559,141 |   |   |   | 153,188 |   |
| Total consolidated revenues                |   | $                            | 4,586,804 |   |                       | $      | 2,773,604 |   |   | $ | 8,179,475 |   |   | $ | 5,330,343 |   |
|                                       |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| INCOME (LOSS) BEFORE TAXES:                |   |                         |      |   |                       |   |   |   |   |   |   |   |   |   |   |   |
| Puerto Rico and United States consulting   |   | $                            | 790,479   |   |                       | $      | 238,605 |   |   | $ | 1,322,941 |   |   | $ | 382,190 |   |
| Ireland consulting                         |   |                         | (45,527   | )      |                       |   | (48,424 | ) |   |   | 35,366 |   |   |   | (12,249 | ) |
| Lab (microbiological and chemical testing) |   |                         | (73,059   | )      |                       |   | (119,111 | ) |   |   | (217,103 | ) |   |   | (237,489 | ) |
| Other segments1                       |   |                         | 67,225    |   |                       |   | 10,605 |   |   |   | 118,856 |   |   |   | 3,364 |   |
| Total consolidated income before taxes     |   | $                            | 739,118   |   |                       | $      | 81,675 |   |   | $ | 1,260,060 |   |   | $ | 135,816 |   |

|    |                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| 1       | Other segments represent activities that fall below the reportable threshold and are carried out in Puerto Rico and United States. These activities include a technical seminars/training division, an information technology services and consulting division, and corporate headquarters, as applicable. |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         |                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| ITEM 2.   | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
|---------------------|----------------------------------------------------------------------------------------------|

----

|           |   | Three months ended April 30, |   |   | Six months ended April 30, |   |
|---------------------|--------|------------------------------|--------|--------|------------------------------------------------|--------|
| Revenues by Region: |   | 2011                         |   |   | 2010                                           |   |   | 2011 |   |   | 2010 |   |
| Puerto Rico         |   | $                            | 2,270  |   |                                           |   | 49.5 | % |   | $ | 1,922 |   |   |   | 69.3 | % |   | $ | 4,109 |   |   |   | 50.2 | % |   | $ | 3,628 |   |   |   | 68.1 | % |
| United States       |   |                         | 1,583  |   |                                           |   | 34.5 | % |   |   | 311 |   |   |   | 11.2 | % |   |   | 2,625 |   |   |   | 32.1 | % |   |   | 580 |   |   |   | 10.9 | % |
| Ireland             |   |                         | 734    |   |                                           |   | 16.0 | % |   |   | 541 |   |   |   | 19.5 | % |   |   | 1,445 |   |   |   | 17.7 | % |   |   | 1,122 |   |   |   | 21.0 | % |
|                |   | $                            | 4,587  |   |                                           |   |   |   |   | $ | 2,774 |   |   |   |   |   |   | $ | 8,179 |   |   |   |   |   |   | $ | 5,330 |   |   |   |   |   |

----

|                                 |   | Three months ended April 30, |   |   | Six months ended April 30, |   |
|-------------------------------------------|--------|------------------------------|--------|--------|---------------------------------|--------|
|                                      |   | 2011                         |   |   | 2010                            |   |   | 2011 |   |   | 2010 |   |
| Revenues                                  |   | $                            | 4,587  |   |                            |   | 100.0 | % |   | $ | 2,774 |   |   |   | 100.0 | % |   | $ | 8,179 |   |   |   | 100.0 | % |   | $ | 5,330 |   |   |   | 100.0 | % |
| Cost of services                          |   |                         | 3,042  |   |                            |   | 66.3 | % |   |   | 2,017 |   |   |   | 72.7 | % |   |   | 5,458 |   |   |   | 66.7 | % |   |   | 3,822 |   |   |   | 71.7 | % |
| Gross profit                              |   |                         | 1,545  |   |                            |   | 33.7 | % |   |   | 757 |   |   |   | 27.3 | % |   |   | 2,721 |   |   |   | 33.3 | % |   |   | 1,508 |   |   |   | 28.3 | % |
| Selling, general and administrative costs |   |                         | 808    |   |                            |   | 17.6 | % |   |   | 678 |   |   |   | 24.4 | % |   |   | 1,467 |   |   |   | 17.9 | % |   |   | 1,380 |   |   |   | 25.9 | % |
| Interest expense                          |   |                         | 2      |   |                            |   | 0.0 | % |   |   | 1 |   |   |   | 0.0 | % |   |   | 3 |   |   |   | 0.0 | % |   |   | 3 |   |   |   | 0.1 | % |
| Interest income                           |   |                         | 4      |   |                            |   | 0.0 | % |   |   | 4 |   |   |   | -0.1 | % |   |   | 9 |   |   |   | 0.0 | % |   |   | 9 |   |   |   | -0.2 | % |
| Gain on disposition of property           |   |                         | -      |   |                            |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | - |   |   |   | 0.0 | % |   |   | 2 |   |   |   | 0.0 | % |
| Income before income taxes                |   |                         | 739    |   |                            |   | 16.1 | % |   |   | 82 |   |   |   | 3.0 | % |   |   | 1,260 |   |   |   | 15.4 | % |   |   | 136 |   |   |   | 2.5 | % |
| Income tax expense                        |   |                         | 259    |   |                            |   | 5.6 | % |   |   | 35 |   |   |   | 1.3 | % |   |   | 424 |   |   |   | 5.2 | % |   |   | 69 |   |   |   | 1.3 | % |
| Net income                                |   |                         | 480    |   |                            |   | 10.5 | % |   |   | 47 |   |   |   | 1.7 | % |   |   | 836 |   |   |   | 10.2 | % |   |   | 67 |   |   |   | 1.2 | % |

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|   | · | Because our business is concentrated in the pharmaceutical industry in Puerto Rico, and to a lesser extent in the United States and other countries, any changes in that industry or in those markets could impair our ability to generate revenue and realize a profit. |
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|   | · | Puerto Rico government enacted ACT 74 of October 22, 2010 may affect the willingness of our customers to do business in Puerto Rico and consequently affect our business. |
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|   | · | Changes in tax benefits may affect the willingness of companies to continue or expand their operations in Puerto Rico. |
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|   | · | Puerto Rico’s economy, including its governmental financial crisis, may affect the willingness of businesses to commence or expand operations in Puerto Rico. |
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|   | · | Other factors, including economic factors, may affect the decision of businesses to continue or expand their operations in Puerto Rico. |
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|   | · | Because our business is dependent upon a small number of clients, the loss of a major client could impair our ability to operate profitably. |
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|   | · | Customer procurement and sourcing practices intended to reduce costs could have an adverse affect on our margins and profitability. |
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|   | · | A trend by multinational companies to lower cost on consulting services by converting this highly skilled service to “temporary workers” has a negative impact not only in employee morale and retention, but also impairs our capacity to compete with lower cost companies, impairs our ability to maintain fair compensation and benefits to our employees and also jeopardizes our capacity of making a profit for the service. We have lost some volume to staffing agencies which offer the same service with lower cost employees. |
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|   | · | Since our business is dependent upon the development and enhancement of patented pharmaceutical products or processes by our clients, the failure of our clients to obtain and maintain patents could impair our ability to operate profitably. |
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|   | · | We may be unable to pass on increased labor costs to our clients. |
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|   | · | Consolidation in the pharmaceutical industry may have a harmful effect on our business. |
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|   | · | Because the pharmaceutical industry is subject to government regulations, changes in government regulations relating to this industry may affect the need for our services. |
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|   | · | If we are unable to protect our clients’ intellectual property, our ability to generate business will be impaired. |
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|   | · | We may be subject to liability if our services or solutions for our clients infringe upon the intellectual property rights of others. |
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|   | · | We may be held liable for the actions of our employees or contractors when on assignment. |
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|   | · | To the extent that we perform services pursuant to fixed-price or incentive-based contracts, our cost of services may exceed our revenue on the contract. |
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|   | · | Because most of our contracts may be terminated on little or no advance notice, our failure to generate new business could impair our ability to operate profitably. |
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|   | · | Because we are dependent upon our management, our ability to develop our business may be impaired if we are not able to engage skilled personnel. |
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|   | · | We may not be able to continue to grow unless we consummate acquisitions or enter markets outside of Puerto Rico, the United States and Ireland. |
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|   | · | If we identify a proposed acquisition, we may require substantial cash to fund the cost of the acquisition. |
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|   | · | If we make any acquisitions, they may disrupt or have a negative impact on our business. |
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|   | · | Because there is a limited market in our common stock, stockholders may have difficulty in selling our common stock and our common stock may be subject to significant price swings. |
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|   | · | Our quarterly revenues, operating results and profitability will vary from quarter to quarter, which may result in increased volatility of our stock price. |
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|   | · | The issuance of securities, whether in connection with an acquisition or otherwise, may result in significant dilution to our stockholders. |
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|   | 31.1 | Certification of chief executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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|   | 31.2 | Certification of chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
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|   | 32.1 | Certification of the chief executive officer and chief financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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|                 | PHARMA-BIO SERV, INC.                                 |
|----------------------|-------------------------------------------------------|
|                 |                                                  |
|                 | /s/ Elizabeth Plaza                                   |
|                 | Elizabeth Plaza                                       |
|                 | Chief Executive Officer                               |
|                 | (Principal Executive Officer)                         |
|                 |                                                  |
|                 | /s/ Pedro J. Lasanta                                  |
|                 | Pedro J. Lasanta                                      |
|                 | Chief Financial Officer                               |
|                 | (Principal Financial Officer and Principal Accounting |
|                 | Officer)                                              |
|                 |                                                  |
| Dated: June 14, 2011 |                                                  |

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