Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

DD is hard.

Your mistake here is to confuse the 2013 Epic Agreement on generic drugs with the 2015 Epic Agreement on ELI-200. The $403,999 is cash received for the 2013 generic drugs, whereas the $5,000,000 ELI-200 milestone payment is on the very next line down of the original 10Q. If one is really interested in proper DD on this subject, one could refer to the discussion in the same 10Q of the "Milestone Method" of accounting for this $5,000,000 payment, which was subsequently re-stated following comment from SEC to realize the $5,000,000 over the entire term of the agreement. You can find the links for yourself, but the most relevant passage for those interested in accurate information on the ELI-200 milestone can be found here:

http://www.edgarexplorer.com/EFX_dll/EdgarPro.dll?FetchFilingConvPDF1?SessionID=HTWEe33gpUeB8-9&ID=11159374

Please note that the $5 million payment received from Epic is non-refundable. Recognition of this payment as revenue on its date of receipt or over
the exclusivity period (currently coinciding with the five year term of the 2015 Epic License Agreement), does not alter the fact that the Company
is not required to return any portion of this $5 million received from Epic, and the Company can, and has, used these funds to advance the
Company’s business objectives. Accordingly, management believes that this correction of accounting error has no material effect on the
Company’s operations or future prospects.

Not concerned at all.

Epic Licensing fee - heres some info!

In the 10Q ending June 30, 2015, which encompasses.. the new Epic licensing agreement dated June 4th, LICENSING REVENUES for the quarter totaled the following:


Quote:
-------------------------------------------------------
Licensing Fees 403,999
-------------------------------------------------------



Therefore, anywhere from $0 - $403,999 were supposed to be paid to ELTP upon signing the agreement, which occurred June 4th.

This is the apparent upfront cost to license the $multiBIllion Eli200.

To be clear, for the corresponding period in 2014, $207,645 were recorded for licensing fees

I'd be a little concerned if I were you