Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

For consideration of the assets acquired on May 15, 2017, the Company issued a Secured Promissory Note (the “Note”) to Mikah for the principal sum of $1,200,000. The Note matures on December 31, 2020 at which time the Company shall pay the outstanding principal balance of the Note. Interest shall be computed on the unpaid principal amount at the per annum rate of ten percent (10%);

...

No principal or interest payments have been made on the Note since its issuance. All unpaid principal and accrued but unpaid interest shall be due and payable in full on the Maturity Date. The interest expense associated with the Note was $30,000 for the three months ended June 30, 2020 and 2019. Accrued interest due and owing on this note was $375,000 and $345,000 as of June 30, 2020 and March 31, 2020, respectively.

https://ih.advfn.com/stock-market/USOTC/elite-pharmaceuticals-qb-ELTP/stock-news/83077754/quarterly-report-10-q




Elite shareholders are paying Nasrat $10,000 per month just in interest for the trimipramine deal. He is owed nearly $400k already, just in interest on the promissory note. I highly doubt trimipramine has had $10,000 in sales in any month that we have paid (owed) Nasrat $10,000 in interest. Likewise, I guarantee that Elite shareholders owe Nasrat more in interest than Mikah paid in cash for the ANDA. A lot more. Of course, if I am wrong, Nasrat could easily prove it, but he hid the details behind the Mikah shield. The secrecy serves only him. It is time to expect better from Elite management. A lot better.