Elite Pharms Inc

Good morning, ladies and gentlemen, and welcome to the Elite Pharmaceuticals conference call. At this time, all lines have been placed on a listen-only mode. Before management begins speaking, the company has the following statement. Elite would like to remind their listeners that remarks made during this call may contain forward-looking statements that involve risks and uncertainties that are subject to changes at any time. Included, but not limited to, statements about Elite's expectations regarding future operating results. Forward-looking statements are made pursuant to the safe harbor provisions of the federal securities laws and represent management's current expectation. Actual results may differ materially. Elite disclaims any obligation to update or revise its forward-looking statements except as required by law. More complete information regarding forward-looking statements, risks, and uncertainties can be found in the reports Elite files with the SEC, which are available on Elite's website at ElitePharma.com under the Investor Relations section. Elite encourages you to review these documents carefully. With that covered, it is now my pleasure to turn the floor over to your host, Mr. Nasrat Hakim, President and Chief Executive Officer of Elite Pharmaceuticals. Sir, the floor is yours.

Thank you, Matthew. And good morning, ladies and gentlemen. Thank you for joining us today. My name is Nasrat Hakim. I am Elite's Chairman and CEO. This is Elite's earnings call and our CFO, Mr. Robert Hinn. will give us a summary of the company's financials, after which I'll come back with a corporate update and answer some of the questions that you have submitted to Diane. Robert, the floor is yours.

Thank you, Nazareth, and thank you to everyone for joining our first quarter conference call today. Yesterday, we filed our thank you for our first quarter ended June 30th, year 2022. Release is only March A copy of the 10Q is available in the investor section of our website at ElitePharma.com. It is also on SEC.gov and many other websites that provide links to our filings. Today I would like to give you an overview of the financial and provide some commentary as well. Starting with the income statement, we had a strong sales of about $7.7 million for this quarter. up about 0.6 million or 9% compared to the same quarter last year. This is primarily due to the strong sales of amphetamine IR tablets and amphetamine ER capsules. Again, I would like to remind you the strong, the important fact that our sales have been on an upward trend from 8 million in the fiscal year 2019, 18 million in 2020, 25 million in fiscal year 2021, and then $32 million for year 2022. Moving down, we come to cost of goods sold. As a general trend, our cost of goods sold reflect direct proportionally in percentage increase in revenue. The company posed a gross profit of about $4 million and $0.4 million over last year due to stronger revenue. Our operating income was about $1 million versus $0.97 million for prior quarter last year. Our operating expense maintained at a relative steady level at $3 million for this quarter versus $2.6 million for the prior quarter. Our net income was about $0.3 million compared to $2.4 million for the prior quarter. The main driver contributing to the decrease in net income are two major items. One is the derivative liabilities. due to the outstanding stock warrants, about $1.1 million. And the other is the net operating loss of sales, about $1 million, which the company does not have during this quarter. Let me give you a brief explanation as to the calculation of the derivative liability. The change in the failed value of the derivative instrument is determined in large part by the change in the closing price of the company's common stock with an inverse relationship. In other words, the higher the common stock price, the larger the liability. So that's why the variance is about $1.1 million. And also for your information, the transaction does not have an impact on the company's cash flow. Now let's move down to a balance sheet. Our working capital was strong at about $25 million up about 12.6 million over the prior period. The increase in working capital reflects the company's ability to control its spending and also to a great degree due to the 12 million loan we have obtained from the East West Bank in April this year. The loan will be used for general working capital purpose. Our cash flow, our cash, total cash on hand is about 20 million at the June 30th year 2022. So with that, I'll now turn over the floor back to Nazareth for an overview on the company.