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“If you look at just 2023, January through December, that alone will be way north of $45 million.”
Jan-Mar (Q4): $8.64M
Apr-Jun (Q1): $8.98M
Jul-Sep (Q2): $14.16M
Oct-Dec (Q3): $20M?
With Prasco launch does Elite surpass $20M for Q3 and break a $50M revenue threshold for the calendar year? “Way north” is as technical of a finance term as “squishy”, but I’m eager to see another blowout quarter.
By now, they should have already surpassed last year’s $34M total revenues in the final stretch of Q3 with a month left to go + a whole new quarter.
Let the good times roll. Elite finally brings Christmas joy to all. Solid news coming right around the corner.
It’s purely cash timing at this point.
I disagree with your profit split accounting and overall profitability comments. The income statement includes the profit split in the period it’s incurred as an expense. What doesn’t get paid out simply sits on balance sheet as a liability. The current accounting is correct.
I don’t believe so or I believe it would be noted in the filings. We’d also see dilution from it, which we haven’t.
I didn’t say you were wrong, but just clarifying how they got those shares.
I’d have to research, but other than Nasrat I don’t think any have bought shares on open market.
They have been paid in shares for being on the BOD in lieu of cash payment.
Maybe. GameStop has less than 1/3 O/S that Elite has.
Not in 10Q as nothing has shipped yet. Nasrat mentioned that it will be a material event, but the timing on when it becomes material is the question - upon early shipments or at some point in calendar 2024?
The operating profits will cover all this and more. Once we buy Mikah’s share of IR/XR that only further increases profit dollars and % to sales.
I thought $5 was for initial listing and $2 was the floor for continual listing. Unless we have absolutely explosive growth propelling forward multiples into the clouds, organic is unlikely.
One thing that he mentioned during call made me wonder if we will get first to file for oxy or just be among the first. On flip side Nasrat also clarified GDUFA estimated dates for all, except oxy. FDA hasn’t reached out for our oxy filing yet and if we had a Q1 GDUFA I would think FDA would be all over it. I’m not sure the partial filing bought us any favorable timing. Would be nice, but this may not have any financial impact until late calendar year 2024/early 2025.
Anyone pick up on clear GDUFA date guidance for oxy?
I think the reverse split and share repurchase program(s) will still take place. It’s just a matter of timing. During Q1 cc, Nasrat responded to a question regarding a small buyback that it won’t do much with 1 billion shares outstanding. He did say that profits will reach a point to sustain both R&D and an ongoing share repurchase program. At that point, shares will cost more, but it will also be less risky to allocate cash towards such a program vs taking from R&D.
He stated last cc that we are not staying on the OTC and the only way we would do a reverse split is to get to NASDAQ. We will not get to $5/share organically and he knows it.
I believe both a R/S and share repurchase program will be implemented within the next couple of years. I’d like to see a merger/acquisition take place after about 4 more years to really get sales/distribution going, clean up share count, pay off debts, achieve higher utilization of new packaging/storage facility, expand shifts, fill R&D pipeline with the next generation of needle movers as he calls them, international expansion, etc. We have a ton more to execute to support the share price as we move to NASDAQ. Maybe even one day we’ll have an investor relations group that does something. Looking forward to Elite ringing the bell down the road to start the NASDAQ trading session. Much to do before that takes place.
Just going back through some old messages. Remember that P/E stands for Price to Earnings, not sales. This uses flow through to net income for the multiple, not revenue. A sales multiple uses the top line, not not the PE ratio. Your figure would be significantly overstated of a PPS when $175M in revenue is attained and it will be.
Already have few years back
What is a little fart with a little something else?
The profit splits are recorded as they are earned. Basics of accounting are you tie expenses to period they are incurred.
It sits on the balance sheet as a liability until it is actually paid out - it’s simply timing when it hits cash. Benefit is we can be slow to pay to use cash for R&D until fully reconciled and we pay all we owe Mikah before end of March fiscal year. No impact on past profitability.
Different type of loan. Mortgage loan is asset backed. Banks are adverse to risk.
I see a whopping 8K traded pre via Schwab
For real?
So says the golden parachute…
My comment was regarding the fact that you can’t look at the $2M as a benefit in a bubble. There was a significant aspect that was missing from a fair look. Blame it on FDA/gov all you want. Nasrat doesn’t get a free pass.
For me, it’s in the past. I’m more interested in diversifying away from CNS/opioids in case something happens here. Too much concentration. Solid growth, I’m excited. Many fumbles along the way and yet we’re finally in the growth stretch. I’m beyond content.
I think that’s Adderall ER that was launched few years back. That’s not Concerta.
$2M received for how many more millions doled out from dilution? That math isn’t even close.
Isn’t Nasrat the one who went all in on ADT causing the significant dilution only to have it fail to be moved across the finish line?
Did you pick up on the question during the cc, why would we diversify away from CNS & opioids? He doesn’t see the risk or is he ignoring the risk?
Yes, this is us. There is another Elite Labs that focuses on exercise supplements.
We don’t know the acquisition price, but I remember seeing a 3 year payback or less on certain acquisitions after integration & synergy capture. Not out of the question, but we simply don’t know.
All the same? Come on. Very ignorant comment, but not surprised in the slightest.
Also, sales is recognized upon receipt, but what was discussed was flip side of entry, the A/R hit until payment is made, which then hits cash.
That’s basically 1-2 days. I can’t imagine shipping adds ton of time to cycle, but until they scan goods in their systems, you are correct.
Yes, will hit A/R until payment is received by Elite, which then hits cash. If Prasco pays by check, there is a couple more days of check float too that favors the payor.
Then we buy API/IPI on credit, which hits our A/P until payment terms and then pay cash when payment is due, which is probably net 30, but just a guess. Swings both ways. It’s what’s called the cash conversion cycle.
How is that gloomy? It’s reality of the stage we are finally entering, which is fantastic for shareholders.
This is normal trade credit. As mentioned on recent call why A/R is so big. Terms are net 30-45 depending on agreement. Shorter the terms, the faster we get paid assuming partners are paying timely.
Collect fast & pay late is the normal treasury strategy to manage cash flow tightly.
Slight tweak. We will recognize the revenue in Q4, but will hit A/R on balance sheet until they actually get paid according to payment terms.
Elite is FINALLY in a high growth mode. Revenues have grown a little bit over the past fiscal year. $32 to $34M is basically flat to down considering inflationary trends. When you compare growth against last year Q AND to the prior Q, now we will start to get higher forward growth multiples, especially with Prasco + next year anticipated approvals and launches. Enjoy the ride folks.
It is already filed. We are simply waiting for the FDA acceptance of the filing submission.
Huh? If you think a board comment has influence, I really feel sorry.
Destiny reminded me about Abuse deterrent properties for generic oxy. Completely spaced on that.
I’d love to see a 10% capture rate for the generic portion of the total CNS market. I think it’s highly unlikely with the aggressive competition. Assume conservatively and best expectations. Hands down they have done amazingly well with Adderall IR.
Lannett could barely sell ER. Our contract with Prasco will be sweet, but it is a 2-year contract. Might be extended, might not. API getting relaxed will open more doors for Elite’s ER too. This is a huge untapped market for Elite.
Vyvanse coming off patent I think has 12+ generic manufacturers already approved. It is a huge market, but it’s also swimming in a shark tank. There will be plenty of opportunity for Elite. Will we capture 5%? I think we can. 10% would be a stretch. Nothing would make me happier than if we do execute at that level. We’ll need much more mfg & storage space…
That’s right, great point. Layer on REMS, additional protocol for pharmacists, patients and manufacturers, etc.