Intellipharmaceutics International Inc. (IPCI)

[wimuskyfisherman]

I had a chance to quickly read through the report. People that just look at the loss statistic are really missing the details:

1. The $3M payment form MNK was reported as deferred revenue and only partially recognized:

Deferred revenue represents the funds received from clients, for which the revenues have not yet been earned, as the milestones have not been achieved, or in the case of upfront fees for drug development, where the work remains to be completed. During the year ended November 30, 2016, the Company received a non-refundable up-front payment of $3,000,000 from Mallinckrodt pursuant to the Mallinckrodt agreement, and initially recorded it as deferred revenue, as it did not meet the criteria for recognition. As of November 30, 2016, the Company recognized $37,500 of revenue based on a straight-line basis over the expected term of the Mallinckrodt agreement of 10 years. In 2015, the Company received an up-front payment of $150,000 from Teva which it continues to record as deferred revenue as the criteria for revenue recognition have not been met.

2. The accounting mumbo jumbo reported by Cysonic is important to recognize as well.

I think everyone needs to keep in mind the positives as well:

1. They are sounding positive on Focalin and Seroquel revenues. This is big news and the type that keeps giving quarter after quarter after quarter...
2. They are looking to step up development. Yes this costs money, but the science/scientists are the future of the company. Great developments can pay big year after year after year... Penny pinching can only hamper development. And if they need to sell a few shares to get PODRAS and Regabatin moving then so be it.