Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

I do not dissemble when I commit errors because that would affect my credibility; which matters to me more than trying to appear that I am right all the time. Although I try and get things right, as a human being, I make errors. When I do, I admit it, correct it, and move on. It was what I learned as a kid, what we did in my Fortune 50, and what I do on this board; and it is what this post is all about. It's not about being right, it is about getting it right.

With that, a little recap would help to indicate how we got here…

There was the allegation that Elite spent “nearly” $100M in R&D during Nasrat’s tenure…remember?

This graph is the perfect summation of Nasrat's failed tenure as CEO. It represents nearly $100M spent in R&D (more than $50M for SequestOx alone)

Then, without researching the other years in question, we have this inference…

The 2016 annual report is just one source that proves these numbers are way off. Frankly, 2014-2016 doesn't even pass the common sense test

So, how about a common-sense test that includes ALL the years? Was that not the matter in question – how much Elite spent on R&D during Nasrat’s tenure? Well, did Elite really spend “about” $100M on R&D during Nasrat’s tenure?

NO!

What do the amended year-end total R&D numbers look like?
2020: 5,532,462 (Correctly ID)
2019: 7,599,820 (Correctly ID)
2018: 9,621,365 (Correctly ID)
2017: 8,301,693 (Correctly ID)
2016: 12,428,213 (Amended from 2,903,178)
2015: 14,727,472 (Amended from 2,904,114)
2014: 3,959,316 (Amended from 2,105,725)

The amended total R&D costs during Nasrat’s tenure = $62,170,341

So…Even after the corrections, the real total R&D costs of $62,170,341 are NOT remotely close to the alleged $100M. In fact, according to the standard college grading scale…62% of 100% is a D minus!

Well...at least it was not an F.