In This Story
Elite Pharmaceuticals, Inc. (ELTP-0.62%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $18,880,345 from $14,157,185 in the same quarter the previous year. This increase is attributed to higher sales of Elite label products.
Cost of manufacturing for the quarter was $10,682,917, representing 57% of sales, compared to 54% in the same quarter of the previous year. This increase in cost ratio is due to increased labor costs.
The company reported a gross profit of $8,197,428 for the quarter, compared to $6,447,079 in the previous year, with the increase attributed to higher sales volume.
Research and development expenses decreased to $1,966,094 from $2,618,349, while general and administrative expenses increased to $2,273,744 from $1,533,208, primarily due to higher human resource costs.
Net loss for the quarter was $11,036,229, compared to a net income of $14,934,601 in the previous year. The loss is primarily due to changes in the fair value of derivative financial instruments.
Cash provided by operating activities was $4,601,307, while cash used in investing and financing activities was $1,645,722 and $495,592, respectively.
Elite had a working capital of $32,440,129 as of September 30, 2024. The company continues to focus on expanding its manufacturing facilities and capacity.
The filing details various financial agreements, including promissory notes with Nasrat Hakim and Davis Caskey, and a mortgage loan with East West Bank (EWBC-0.41%).
Elite does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to insufficient segregation of duties and oversight.
Elite is working on remediating these weaknesses by revising its control environment documentation and implementing new controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Elite Pharmaceuticals, Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.