Replies to post #358808 on Elite Pharmaceuticals Inc (ELTP)

[WeeZuhl]

Mikah holds half ownership of Adderall IR & ER. If/when Hakim decides he wants shares for those properties, then that number would dwarf the previous 140M (shares).

I think Nasrat Hakim could go a long way toward re-establishing his credibility with shareholders by the way he handles the Adderall ownership issue. Step one is to be a lot more forthright than he was with the original ANDA's and then again with trimipramine. Besides how much he paid, another important question is who financed the deal. Who else owns a piece? Mikah may be a private company, but its owner is the CEO of a public one. If he continues down the path of secretive self-dealing, it is a bad sign for us and a bad sign for the company. And if he just keeps kicking the can down the road without doing anything, well, we know what that means, too.

[YJ4LIFE]

Great post. Thanks Doc.!

[The ELTP King]

LMAO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You do realize that was paid, right?

Surprised you didn't read the 10-K filed last month.

It's listed RIGHT on the balance sheet!!!

Senior secured promissory note - related party, current portion

March 31, 2020: 1,200,000
March 31, 2021: --------------

In addition, the new CFO HIMSELF said this on the LIVE CC last month, "Our cash from operating activities brought in $3.2 million, of which we use some of the cash to pay down some loans"..........referring to the $1.2 million.

-------------------------------------------------------------------------------------------------------------

NOTE 7. RELATED PARTY SECURED PROMISSORY NOTE WITH MIKAH PHARMA, LLC

For consideration of the assets acquired on May 15, 2017, the Company issued a Secured Promissory Note (the “Mikah Note”) to Mikah Pharma, LLC (“Mikah”) for the principal sum of $1,200,000. Mikah was founded in 2009 by Nasrat Hakim (“Hakim”), a related party and, the Company’s President, Chief Executive Officer and Chairman of the Board.

The Mikah Note matured on December 31, 2020 and was retired at par in March 2021. The principal amount of $1,200,000 was repaid by the Company at maturity.

Interest expense associated with the Note was $90,000 and $120,000 for the years ended March 31, 2021 and 2020, respectively. A total of $435,000 in accrued interest expense, representing interest expense accrued during the life of the Mikah Note was due and owing as of the maturity date of the Note. Of the $435,000 accrued interest due at maturity, $238,451 of accrued interest was satisfied by offset against amounts due from Mikah pursuant to the development agreement between the Company and Mikah, dated December 3, 2018 (see Note 16). The balance of $196,549 of accrued interest expense owing in relation to the Mikah Note is recorded as a non-interest bearing, general liability of the Company.

I will also point out that the company currently owes Mikah $1.2M + 10% annual interest for trimipramine