Replies to post #376840 on Elite Pharmaceuticals Inc (ELTP)

[no2koolaid]

hyder, good question and let me use the exact wording from Nasrat in Q 1 2022 call...EXACT WORDING...and I will complete the answer thereafter...

The next question is about the payment of salary and stocks. Will HN consider taking his salary and bonus in all-cash, then purchase Elite share on the open market? This is funny. The first part is valid, the second one is funny. I used to get 100% of my compensation in stocks, which meant at the end of the year, I had to pay 50% of my salary, equivalent to 50% of my salary to work at Elite.

A while back, the board changed that to half and half, so now I just work for free. They -- half goes to the government, and half is issued in a piece of paper that Marc now and all the starter used to store somewhere. I hope and I would love to see the Board pay me 100% in cash next year.

Now, the reason I've never pushed for that, is because we need the money, even now when we're profitable at the end of the day, you saw Marc's numbers, we make a million dollars. That's not a heck of a lot of money for R&D, and that's why we're partnering with Mikah and doing other things in order to increase that number.

The cash available from operations has increased since then and doubled to about $6.5 M. While not getting the credit due, until that time Nasrat was freeing up cash to help keep the lights on. Had he not done that his shares would be worthless, as would ours. The company would have been BK'd.

As to the "others", only bonuses are paid in shares and that is as it should be. For all too many companies the executives have little skin in the game. The problem for Elite shareholders is that we have "scar" tissue from the dilution that was the only manner of access to investment capital through the LPC agreements. We felt it was a zero sum game and that is a small-minded thought process. What Elite did was a necessary evil without which we are not having this discussion. In truth, investments in product development have been and will be the avenue to profit and growth. How the company is valued will be based on its worth, not its O/S count.