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Elite Pharmaceuticals, Inc. (ELTP-2.47%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $14,364,248 from $15,538,800 in the same quarter the previous year. This decrease is attributed to reduced sales of Elite label products due to extended holiday periods.
Cost of manufacturing for the quarter was $8,244,907, representing 57% of sales, compared to 55% in the same quarter of the previous year. The increase in cost ratio is due to a higher proportion of lower margin product lines.
The company reported a gross profit of $6,119,341 for the quarter, compared to $7,041,073 in the previous year, with the decline attributed to decreased sales and changes in product line mix.
Research and development expenses increased to $1,793,803 from $1,403,790, reflecting increased product development activities.
General and administrative expenses rose to $2,724,616 from $1,711,275, due to increased human resource costs and compliance expenses.
Net loss for the quarter was $10,891,940, compared to a net income of $706,354 in the previous year. The loss is primarily due to changes in fair value of derivative financial instruments.
Cash provided by operating activities was $3,537,608, while cash used in investing and financing activities was $1,645,722 and $688,696, respectively.
Elite had a working capital of $33,360,845 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various financial agreements, including a promissory note with Nasrat Hakim and a mortgage loan with East West Bank.
Elite continues to focus on marketing its Elite label products and highlights its transition away from licensing products to third parties.
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 February 13, 2025. To report an error, please email earnings@qz.com.