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Indemnification is completely standard.
There's no question this filing is in anticipation of some M/A activity which could still be years away.
Nasrat did say he would update shareholders on his plans in the June update, implying there may be something to talk about at that point.
This is definitely house cleaning for some sort of buy out or M/A. Seen this before. Early stages.
All these shares were already known to anyone reading the quarterly filing. It is absolutely not new dilution.
I don't love that they chose to file this after hours going into a long weekend though. Reminds me of Sequestox CRL being filed after hours Friday. Makes it seem like they expect a bad market reaction from this.
oh I know, I was being sarcastic in responding to that valuation along with you.
So funny.
If Mikah's half is worth .30 then why is Elite's half plus the rest of the business only worth .16. lol lol don't actually answer that. Mikah's half of Adderall is not worth 300 million.
I will speculate though, that 2 quarters of Mikah's profit splits were valued at about 3 million judging from the liability accrual 2 quarters ago. (no idea why it stayed at 3 million this past quarter, maybe they made some payments) So tack on full year and give multiple of 3 and it would take something like 18 million for Elite to buy Mikah's half.
Who knows really though, those profit split accruals are not very straight forward at all.
Something I've been wondering though, Mikah may now get a much larger percentage of total profits. Not only because Lannet does not take a cut but more specifically because revenue is no longer broken down into contract manufacturing and license fees (going forward). I certainly hope Elite keeps a significantly larger portion than Mikah for doing the manufacturing and does not split it down the line after cost. With Lanett they had a cost-plus agreement but now who knows.
haha yes, I agree.
I was at odds with myself with how little I cared about the action last week. Have learned to take a beating.
I'm honestly surprised this was the first major beating this stock has taken since the run began in August.
Company is in a verified rapid growth phase and is literally trading with a negative growth valuation after last week. Its hilarious frankly how little sense it makes.
It got as low as .126 intraday.
Many would consider that filled.
19$ just moved the market cap down by 8.4 million dollars.
.1899 to .1816 on exactly 100 shares.
"And I got a lot of questions, and the answer to the question is, yes, Prasco shipment made in December is included in the revenue numbers." - Carter Ward
It will almost certainly pick up in volume substantially though
"they are a good partner. Prasco has been a very good partner. They have just started transition to us as a supplier, and they are doing very well" - NH
"What would Mr. Hakim say is the likelihood that Elite will uplift to NASDAQ within the next five years? What would Mr. Hakim say is the likelihood that Elite will get bought out by a large arrival within the next five years?"
"Two things I'll say to that. One, cut that prediction in half or more than half. Five years is a very long time to do either. We are at a point where our fundamentals are solid, and we are in a growth stage, as I said earlier. We're not flattening out at $30 million and $40 million. We skip the 40s, went to 50s. And we'll talk in June once I have a little more data, what I expect for the future. But definitely, the year after, we're going to beat that. And the year after, we're going to be that. So we're at a growth stage. So the fundamentals are looking great, a buyout is looking great. And five years is way too long for that. So I would say either of this will happen in a couple of years." - CEO N.H
The first Prasco shipment revenue was included in yesterday's revenue. They specified that the launch did not happen until January though. So future volume should be higher.
They were adamant that all products were seeing increases and that sales were not flattening.
Purdue litigation was expected and business as usual.
Only guidance given was that full fiscal year revenue will be over 50 million.
4 products under fda review.
Multiple products under r and d but only pr them when/if they pass BE study.
Company is in rapid growth phase.
Facilty expansion going well. Will be good for 5 years.
Someone asked if Nasrat thinks there be Nasdaq uplifting or buyout in 5 years. He said cut that number in half. He seemed pretty confident about this. My opinion but he seemed to have more emphasis when he said "buyout is looking good"
The first Prasco shipment revenue was included in yesterday's revenue. They specified that the launch did not happen until January though. So future volume should be higher.
They were adamant that all products were seeing increases and that sales were not flattening.
Purdue litigation was expected and business as usual.
Only guidance given was that full fiscal year revenue will be over 50 million.
4 products under fda review.
Multiple products under r and d but only pr them when/if they pass BE study.
Company is in rapid growth phase.
Facilty expansion going well. Will be good for 5 years.
Someone asked if Nasrat thinks there be Nasdaq uplifting or buyout in 5 years. He said cut that number in half. He seemed pretty confident about this. My opinion but he seemed to have more emphasis when he said "buyout is looking good"
It was already accounted for in the revenue but it was not paid out yet.
It is a lagging indication of sales growth
I'm pretty sure the amount in the AR was already included in the revenue amount for the quarter. It's recognized at point of sale for reporting purposes and AR is credited at that time. When it is paid and the money comes in AR is debited and cash is credited resulting in a balance sheet adjustment, but these previous sales have no impact on future income statements.
I think it shows a longer time to getting paid from sales than under Lanett and really is a lagging indicator of revenue growth already reported.
Accounts receivable is at 16 million
18,000,000
Sure but I'd still presume they would recognize the revenue in the quarter the product was delivered, even if its still on Accounts payable on balance sheet, and not yet physically paid.
I remember years ago Lanett Adderall launch quantities were recorded in the quarter before Lanett began sales, and they were substantial.
This situation with Prasco is similar except that elite will only be receiving the contract manufacturing fees from Prasco and not license fees or profit splits on the back end, and still they were paid on delivery even then.
I cannot imagine Elite would be willing to ship product to Prasco without being paid on delivery. That would be millions in interest free loans. Why would they need to wait until Prasco launches to get paid? This is contract manufacturing, not a profit split situation. They get paid for the product they deliver.
I think it is almost a sure thing that launch quantity revenue will be reported tomorrow.
Nasrat did say a few calls ago that it would the third quarter of selling under Kirkov that would show the most growth.
Nasrat said in the cc before the oxycodone filing that he expected this to happen. It was accounted for in the decision to continue forward with the filing and planned for. The fact that this has not even been 8k'd means it's not even a material event at the moment.
Most likely it is this. Sometimes it could mean the two parties have reached an agreement but more than likely they are waiting on the appellate decision.
3 or 4 calls ago, Nasrat said that it would be the third quarter of sales under Kirkov that would show the highest growth. That is this coming quarter financials being reported in a month. This together with nearly a month of selling to Prascoe, its not hard to speculate going well above the previous quarter's 14.2 M.
I think 20M reported in Feb is not out of the question. Over 100M for the calendar year 2024 would be my guess.
After holding this stock through nearly 15 years it seems almost unreal to even say that and believe it, but its very feasible.
I think so too. They were the authorized generic so they could very well have an above average market share.
Prasco deal alone could produce more revenue than the entire Lannett deal. At least more than Lannett was getting for XR.
So was low of day .126 close enough to consider the gap from .123 closed?
No need for name calling.
Is this a preschool
Why are you making racist comments about Indian call centers and calling people liars.
I am guessing that your game here to make irrelevant comments and logical fallacies until everyone forgets what this conversation was even about.
Honestly, the back and forth discussion here is so odd, its like no one reads the other person's comments but immediately calls them liars and morons and then go on some copy and paste rant about monsters coming.
Your initial statement said .10 for every 1 million
Hope you're right, but a liability is a future expense, so it's unlikely.
Refreshing to not be insulted by someone who disagrees.
Man, are yall OK?
PharmaS stated exactly what I said about pe and then accused me of lieing.
Also, quoting random cc statements does not mean I am wrong. No relevance from anything either one of you quoted to what I said.
To clarify, there is no problem with Nasrat making a ton of money off profit splits. Good for him. It is a win for both sides. I am clarifying that deferring payments to him does not make Elite currently profitable on an annualized basis after the payments are made. That's all.
I'm not gonna get in a lengthy argument here though.
It's obvious I am correct and mindlessly stating that I am lieing or whatever will never change that.
It must be hard having to turn off one's logic filters to mindlessly push some agenda on a message board.
Have a good day and let's hope after this gap fill we move to the .20's.
If any new or potential investors want acurate info feel free to ask but otherwise I'll let the bullies have their way and sign off for a while.
It's .01 for every million per month profit on 10x pe, not .10.
12 million earnings a year on 10x pe is 120 million market cap, or around .12 cents a share.
I'm also confused by the sentiment on this board that R and D is not a real expense and that it can be added back into profit. R and d will always be an expense and will always be necessary to maintain and grow revenues. They are never going to stop doing it. Sure it's voluntary but its not rational to add it back into profit.
Lastly, the company is currently not profitable. It only looks that way since Nasrat is allowing them to delay the profit splits. These profit split amounts are in excess of the stated earnings amount.
Fun fact, at the current revenue rate, Nasrat is making over 7 million a year in profit just from Adderall ir and er profit splits. Elite would need well over 20 million $ to purchase it from him. Nasrat could retire today and make 7 million a year in annuities from this.
I know how yall get with the insults and name calling when anyone disagrees with you so do what u need to do.
New investors deserve accurate information.
I hold millions of shares and expect 1$ in a few years, but your "basic math" needs to be checked.
and you used one to call me a moron yesterday
No need for insults
I think so too.
Thanks
Saying R&D is not a real expense is like saying marketing is not a real expense.
You don't have to do it, but you won't make any new sales without it.
I did check the filings, there was nothing to indicate the Revenue and profit numbers were adjusted for the profit splits. I looked and was hoping to find something to that point but nothing. It is simply a delayed expense and liability until it is paid out, which will then show as a large loss on the last quarter of the year. The annual 10k will average it all out.
yes it appears so.
If they were paid out at the time of receipt then Elite would have posted a loss for the last 2 quarters.
For those throwing insults out at me, this is not meant to criticize Mikah, the profit splits, or Mikah allowing Elite to delay the payments As those are good things for Elite.
It is only meant to acknowledge that Elite is not quite profitable yet on an annualized basis under the new in house sales and marketing, but will be so soon.
yeah thats my question really
I agree, It is good that Mikah bought it instead of someone else. That is not what my point.
My point is that it appears Elite is not actually currently profitable, but is being made to appear profitable through delaying the payment of profit splits to Mikah. I'm honestly hoping for someone to explain how I might be wrong.
They will surely be very profitable in the near future and stock is way undervalued.
Can anyone who understands this stuff better than me comment?
If Elite now has to pay out the Mikah profit split these past 2 quarters instead of Lannet, then wouldn't that mean that revenue and profit are artificially inflated for those quarters? As they show essentially fake revenue and profit now that will need to be paid out later and recognized as an expense at that time? Previously they did not have to account for that.
Unfortunately, wouldn't this mean that there was no profit the past 2 quarters?
Mikah is owed 3.3 M while profit was 1.2M + 1.9M = 3.1M
Nice pun lol. Love it.
Yeah they are really good in most everything, margin rates, restrictions, execution price.
Trading penny stocks with them is a double edged sword though bc while the above are good, they sometimes charge a percentage of the trade instead of a flat rate for some otc stocks. Which can be terrible sometimes.