Elite Pharmaceuticals Inc (ELTP)

[Couch]

Don't forget about the SS issue and the $4,000,000 losses a quarter most OTC stocks with numbers this bad are trading in the sub-pennies.

Sorry more misinformation that I'll go ahead and clear up. Here's what most OTC stocks including every single sub-penny stock on the planet does not have.

Our revenues; they were 1.4 million dollars for the quarter, bringing our nine months revenue up to 3.8 million. We're well on our way to exceeding last year's record revenues and our nine month revenues are already more than the 12 month revenues of every other year in Elite’s history.

So revenues are very strong. Revenues for December 2013 quarter were 300,000 more than this year's
1.4 million dollars. But a quick drill down into these numbers shows that the last year's quarters 2013, included a one-time, 600 thousand dollar milestone, which was earned pursuant to the licensing deal to Epic, which we signed in 2013. This year we had no such milestone, but instead our revenues consisted of the manufacturing and sale of our generic products at greatly increased volumes. So if you exclude the one time mile stones, our revenues from actual generic product sales are up more than 24% from the same quarter in 2013. Revenues for this quarter, they are also eight and a half percent above those for the September of 2014 quarter. And that quarter was also eight percent above the quarter before that.

And the June quarter was also roughly 20% above the prior quarter, the March quarter. So we are clearly seeing an upward trend in our revenues. This was expected and we expect to continue with this trend. And that is really the biggest takeaway from these financials. Remember, our genericproduct revenue streams, they are still relatively young and there is a lot of room for growth and upside potential. Just four years ago at this time, we were still two months away from launching our first of the current generic products. That was phentermine tablets; which we launched in April of 2011. And as of December we now have seven products on the market and we added an eighth product, which was Isradipine just last month.

As you know, it takes time to establish new products. And while our products are pretty much new to the market, the steady growth in revues clearly show that they have taken root and established a solid market share that is also increasing. So we do expect this trend to continue from the existing products, and to be further increased by the launch of the products in our generic pipeline. We just launched Isradipine and we expect to introduce Hydroxyzine and Dantrolene in the near term. Moving down the P&L, there is of course research and development expenses, which have increased by one million dollars from 1.3 million in 2013 to 2.3 million for the December 2014 quarter.

Nasrat will give an update on R and D activities, but as far as the financials are concerned, these are the costs relating to the final development and filing of ELI-200. Depreciation expense was $213,000, which was an increase of 68% from the December 2013 quarter; once again, this is entirely due to the significant expansion and upgrade of our Northvale facility. So far this year we've invested 1.5 million dollars in our facility. We have increased generic volumes and we're ramping up for the ELI-200 filing and this requires more equipment, facility upgrades, and financially this impacts our P&L in the form of depreciation expense.

So just as with R and D costs, these capital expenditures are critical to achieving Elite's strategic plans. Once again, another clear indication on our financials of Elite's continued and systematic execution of this strategic plan. Lastly, a brief comment on our balance sheet, which is the strongest since I joined Elite in July of 2009. As of December 31st, our working capital was 8.9 million dollars; including cash of 8.3 million. Those are solid numbers.