Elite Pharmaceuticals Inc (ELTP)

[Couch]

Last year at this point the quarterly report reflected a current ratio of 2.32. This means Elite had the ability to pay back its debts 2.3 times. Any company above 1.00 is considered to not be at risk for meeting its debt obligations. But to be MORE than double is outstanding and indicative of Elite's strong financial position. But what about this year? Well, Elite’s current ratio at this point in the fiscal year is 2.81...or an ability to pay all its debts by almost three times. A YOY comparison shows Elite’s ability to pay its debts has increased 21% over the previous year…twenty-one percent! For some context, Pfizer’s current ratio is 1.37 and for the entire pharma industry it is 1.47. So please, the facts are clear…Elite has no toxic debt nor are they facing bankruptcy. Elite is on very solid financial ground. And when we start to add in additional products (as we note the recent ANDA filing) its value increases significantly. Long term shareholders are well positioned.

Indeed N2k long term shareholders are well positioned at that. The increase in revenue base cannot be denied (see below). Thus the 12.6 million cash on hand could easily pay down any current existing debt.

Cash at September 30 was $12.6 million, that’s up more $1 million from the beginning of the fiscal year, and it is right about where we were at June 30. Working capital was $14.5 million. It is almost $1 million increase during the quarter and it is a $2.5 million improvement from working capital at the beginning of the fiscal year, March 31. This is a good metric demonstrating our strong financial position, which is continuing to strengthen.

I will start with the highlights, or by highlighting our progress for the last three years and our strategy for this quarter and the next three years. We are now exceeding $10 million in revenue. We are exceeding 50% per year growth in the last three years. We developed and filed SequestOx. We developed and filed oxy/APAP. We developed and will file several products in 2017.

We launched Phendimetrazine, Isradipine and Hydroxyzine and strengthened our current generic profile. We created infrastructure for the [Indiscernible] and built a new facility. We strengthened our board of directors and our management team.

Finally Elite is in the best financial shape in her history, has the best infrastructure ever and most importantly an excellent pipeline that is so charged up that it is becoming a little forgiving. It allow us to tolerate regulatory delays, and less-than-perfect performances, and it is still forgiving enough for us to be able to get the fundamentals necessary to get to dollar land and get into NASDAQ.

On a side note related to Elite's pipeline being a touch forgiving, I was also very pleased to hear during the recent CC that Nasrat mention that Eugene Pfeifer approved of and helped draft Elite's response to the FDA's warning letter. I would imagine Eugene's expertise also came in handy in terms of proceeding with the FDA around the CRL.

Regarding the warning letter, we used a third party to ensure complete and adequate response. We responded fully to concerns in the letter. We tightened up the SOPs and had them evaluated by a third party, and we were very happy that Dr. Eugene Pfeifer was instrumental in helping us with the regulatory strategy and in writing the response.