Elite Pharmaceuticals Inc (ELTP)

[NASDAQ2020]

Signed back on December 3, 2018:


NOTE 20. RELATED PARTY AGREEMENTS WITH MIKAH PHARMA LLC

-- On December 3, 2018, the Company executed a development agreement with Mikah, pursuant to which Mikah and the Company will collaborate to develop and commercialize generic products including formulation development, analytical method development, bioequivalence studies and manufacture of development batches of generic products.

-- The Company received a total of $480,000 from Mikah as an advance payment for the purchase of pharmaceutical materials relating to future product development conducted pursuant to this agreement. This amount was recorded as a deposit and contained within the customer deposits financial statement line item on the consolidated balance sheet.

-- As of the date of this report, the Company has purchased raw materials with an aggregate cost of $542,214 pursuant to this agreement. As of March 31, 2020, the balance due from Mikah was $62,214 and was included in the financial statement line of prepaid expenses and other current assets on the accompanying consolidated balance sheet.

ELTP