Earnings call transcript: Elite Pharma’s Q1 FY2026 reveals strong growth

Elite Pharmaceuticals, with a market capitalization of $603.59 million, reported significant growth in its Q1 FY2026 earnings call, with total revenues reaching $40.2 million, marking a 114% increase from Q1 FY2024. The company, known for its generic pharmaceutical products, also saw a substantial rise in gross profit and operating income. Despite these gains, Elite Pharma reported a net loss of $55.4 million due to derivative valuation and tax expenses. The stock price rose by 5.72% to $0.5298, reflecting investor optimism. According to InvestingPro analysis, the company maintains a "GREAT" overall financial health score of 3.16 out of 5.

Key Takeaways

• Total revenues surged by 114% YoY to $40.2 million.
• Gross profit increased by 220%, with a gross margin of 68%.
• Operating income soared by 456%, despite a net loss of $55.4 million.
• Stock price increased by 5.72% post-earnings announcement.

Company Performance

Elite Pharmaceuticals demonstrated robust performance in Q1 FY2026, driven by strong demand for its generic products. The company launched a generic version of Lisdexamfetamine (Lisdex) in January 2025, capturing an 8% market share. The overall conversion from brand to generic in the market increased from 63% to 73%, with expectations to reach 90%. This growth positions Elite as a reliable supplier in the competitive generic pharmaceutical landscape.

Financial Highlights

• Revenue: $40.2 million, up 114% YoY
• Gross Profit: $27.2 million, up 220% YoY
• Gross Margin: 68%
• Operating Income: $21.7 million, up 456% YoY
• Net Loss: $55.4 million

Outlook & Guidance

Looking ahead, Elite Pharmaceuticals is focused on mergers and acquisitions (M&A) and potential Nasdaq uplisting by Q1 2026. The company anticipates continued growth in its Lisdex market and aims to maintain strong market shares in existing products. Elite plans to launch new generics such as Naltrexone and Phentermine, which could further enhance its market position.

Executive Commentary

CEO Masrath Hakim emphasized the company’s strategic direction, stating, "Elite continues to make R&D a priority." He also highlighted the company’s attractive position as a mid-sized generic pharmaceutical entity with "consistent profits, steady growth, and no debt."

Risks and Challenges

• Market saturation in the generic pharmaceutical sector could limit growth.
• Regulatory changes could impact product approvals and market access.
• Potential supply chain disruptions may affect manufacturing capabilities.
• Competitive pressures from other generic manufacturers remain a challenge.

Elite Pharmaceuticals’ Q1 FY2026 performance showcases its strong market position and growth potential amid a competitive landscape. The company’s strategic initiatives and focus on innovation are likely to drive future success.

Full transcript - Elite Pharma Inc (ELTP) Q1 2026:

Matthew, Conference Call Moderator: Good morning, ladies and gentlemen, and welcome to the Elite Pharmaceuticals First Quarter of Fiscal Year twenty twenty six Conference Call. At this time, all lines have been placed on a listen only mode. Before management begins speaking, the conference has the following statement. Elite would like to remind the listeners that remarks made during this call may contain forward looking statements that involve risks and uncertainties that are subject to change at any time, including but not limited to statements about Elite’s expectations regarding forward operating results. Forward looking statements are made pursuant to the safe harbor provisions of the federal securities laws and represent management’s current expectations.

Actual results may differ materially. Elite disclaims any obligation to update or revise its forward looking statement, except as required by law. More complete information regarding forward looking statements, risks and uncertainties can be found in the reports of Elite files with the SEC, which is 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, mister Najrad Hakim, president and chief executive officer of Elite Pharmaceuticals.

Sir, the floor is yours.

Masrath Hakim, Chairman and CEO, Elite Pharmaceuticals: Thank you, Matthew, and good morning, ladies and gentlemen. And thank you for joining us today. My name is Masrath Hakim. I am Elite’s Chairman and CEO. This is our earnings call.

Our CFO, Carter Ward, will give you a summary of the company’s financials, after which I’ll give you an update and answer some of the questions you submitted to Diane. Mister Ward, you are on.

Matthew, Conference Call Moderator: Thank you, Madhurat, and thanks to everybody for calling in today. Yesterday, we filed our 10 q. That’s the quarterly report. It was for the quarter ended 06/30/2025. We are on a March 31 fiscal year, so this is the first quarter of the fiscal year ending 03/31/2026.

Pen two is available at elitefarmer.com under the investor relations section. If you haven’t seen it already, please get a copy from our website. Gonna provide some context and color to the financial statements and answer the questions we’ve we’ve been receiving, receiving overnight. And as always, thanks so much for the questions. Really appreciate your interest in in Elite.

Gonna start with the p and l. Total revenues for the quarter were $40,200,000. Compare that to 18,800,000.0 for the June 2024 quarter, It is more than double, 21,400,000 increase, which is a 114%. So our revenues more than doubled as compared to last year. Also note that our revenues for the entire year last year were 84,000,000.

This quarter alone, we had almost half of last year’s revenue. This increase is attributed to two main factors. First, the elite label is doing really well. It has become well established in our niche markets. We launched the elite label during the 2024 fiscal year.

We were unknown then. Elite label was not in the market until 2024. Actually, 04/01/2023, was when we launched it. That initial product launch included few products, including our generic Adderall, which is our which was our leading product at the time. Now it’s two years later.

We’ve been in the market for two years. We’re a known entity. The product lines from that initial launch, they have secured a nice place in the market. We have a growing market share and growing revenue streams for those initial products. We, Elite, continue to distinguish ourselves as a reliable supplier of quality products, and that translates into a nice p and l and good financials.

The second main factor is the contribution received from the lisdexamfetamine product line. Lisdexamfetamine, we call it Lisdex. It’s the generic for Vyvanse. This has a large market with high demand. It’s it was not part of the initial launch from two years ago.

Matter of fact, this quarter, the June was only the second quarter of substantial commercial operations for Lisdex. It really got launched in a big way the January 2025. So less than six months in the market. And so keep that in mind when comparing June 2025 with June 2024. 2025 has the specs, 2024 does not, and that is a big difference.

So moving down to p and l, we had gross profit of 27,200,000.0. Compare that to 8,500,000.0 for the June, more than tripled. It’s an 18,700,000.0 increase of 220%. We went from 20 from 8,500,000.0 last year in profit gross profit to 27,000,000 this year. And the gross profit percentage, if if you look at the gross profit percentage, which is the gross profit divided by revenue, it was quite a bit higher this year as well as compared to last year.

Gross profit percentage this year, the June was 68%. Compare that to last year’s gross profit percentage, which was 45% for the quarter of June 2024. Much higher gross profit percentage. Again, it’s mostly due to Lisdexamfetamine, had a higher margin, but there’s some important factors to keep in mind regarding this. I mentioned this during our last call, the LIVX market is highly competitive.

There are more than 10 suppliers currently in the market, Elite being one of them. Elite has grabbed a decent share of the market. It’s reflected in our p and l. You can all see it, but the competition is strong. In a competitive market, it creates downward price pressure, very typical for generic markets.

When you’re in such a competitive market, maintaining an increasing market share usually results in increased distribution through the large national wholesalers as opposed to direct to customer sales. We had a nice high proportion of direct customer sales, and we’re getting more and more into the distribution through the national wholesalers. The wholesalers, they provide a breadth of market access that’s multiples of what we’re able to achieve via direct sales alone. This results in increased volumes, but it comes at the price of lower margins. Again, typical.

This is how generic marketplace works. This is the phase that the lead is in right now, and we’re operating in that market. The takeaway here with regards to the gross profit margin percentage, the percentage is that it will be difficult to maintain the level of the percentage achieved during this June 2025 port. And we are seeing regard we are seeing decreased margins with regards to the Lizzx as expected. The Lizzx is this is a product that’s relatively new in the generic market, and this type of settling in price and margins is common.

Eventually, competition even things out and equilibrium is reached, and the bar market becomes more stable. That’s what happened in the Adderall, the generic Adderall markets, which is a much more mature market, and it will surely happen with Lisdex one day as well. Kirkland and his team are continually, doing well in establishing Elite’s, LISDEX. But, with regards to the gross profit percentage, and and the margins, that old saying about past performance not being indicative of future results holds true for us as well. We’re generic pharma manufacturer, and that’s just part of the fabric of our industry.

Got some questions on the operating expense section of the p and l. First was r and d expense, which was lower this year as compared to last year. This year or this quarter, the the June 2025 quarter was we had already spent 1,700,000.0 versus 2,200,000.0 last year, June. Couple things. First, we’re doing product development now in India this year and less expensive than product development not in India.

Also, our lab was proportionally more involved in commercial operations during the twenty twenty five quarter as compared to being involved in r and d. Remember last year at this time, for this quarter, we were involved in the last favors of the LIVZEX approval. We all seen we’ve all seen how well that has done. And this year, the same lab is tasked with supporting the commercialized LIVZEX. So we’ve kinda allocated some of the resources that went into product development of LYNX.

It’s now supporting the commercialized products. I also got a question on the increase in professional and legal expense. This year or for this quarter, it was $600,000, And June, it was $55,000. Now first of all, this date is in one of the footnotes. I believe it’s footnote five to the financials.

Very impressive. Thank you for reading, such giving such a detailed read for the financial statements. Don’t usually get a question on a footnote, so excellent job there. But the large increase this year is from consulting costs this quarter relating to, I guess, call it the m and a project and and our evaluation of options in that area. And I was just gonna have more to say on this subject.

But as far as the financials are concerned, as you see from our footnotes, we accrued quite a bit of expenses for this project. So moving down our p and l, our operating income, so that’s gross profit minus cost of goods sold. Our operating income was $21,700,000 for the June 2025 quarter. Compare that to 3,900,000.0 for last year’s June. So that’s a $17,800,000 or a 456% increase.

Actually, I should say operating income is gross profit minus operating expenses, g and a, r and d, those expenses. So we had 21,700,000.0 this quarter compared to 3,900,000.0 for the June. One thing I wanna point out, the operating income for all of last year, the twelve months ended 03/31/2025, was 19,600,000.0. So we had higher operating income in these three months than we did all of last fiscal year. 21,700,000.0 three months versus 19,600,000.0 for twelve months ended March 31.

In the below the line section of the p and l, I got the usual test question. I’ll be getting a lot is why is our net income so much lower than the operating income? Operating income was $20,000,000, yet we’re showing a net loss net loss of $55,400,000.0. Take a look at the below the line section of the p and l, and you’ll find your answer. Number one, change in fair value of derivative financial instruments was an expense of $22,000,000, and we also had 5,000,000 in income tax expense.

I’m gonna adjust each one separately. First, go through this again, the change in value of derivatives. This is related to the valuation of warrants issued in 2017. It’s noncash. It’s a technical entry required by GAAP.

GAAP is generally accepted accounting principles, G A A P. If the valuation of the warrants goes up, we record an expense, and we record an increased liability. If the valuation goes down, we record income and a decreased liability. The warrants are valued using the Black Scholes model, which means that if our stock price increases, the valuation will also increase, and therefore, we book an expense. If the stock price goes down, the opposite happens.

Valuation goes down, and we book income. The stock price up expense, stock price down income. During the June 2025 quarter, our stock price rose by almost 67%. We went from 44¢ to 73¢ as of 06/30/2025. When that’s where the Black Scholes model, the result is an increase in valuation of approximately $22,000,000, and that’s the expense we’re showing on the p and l.

The most important thing here with regards to this, and I stress this a lot, is we will never pay cash for any expense shown here for these derivatives, and we will also never receive cash if the stock price goes down and we report income. There is no cash ever. This is just technical GAAP book entries that we are required to make. Also, please note that our stock price today is much lower than 73¢, the closing price from June 30. So the price at September 30 is below 73¢.

The next 10 q that we file for the September will show revenue for changes to value of derivatives as a result of this. Let’s just see what happens. We still have about six weeks to go before June September 30. One other thing regarding the change in derivative values and people listening to these calls, you know, I get this question a lot. But I remember many, many, many years ago, we had operating losses on our p and l and our stock price was dropping, and that resulted in change in derivative value that would result in income because the stock price is dropping.

Sometimes the amount of income that we recorded would be more than our loss. So we would have we would show a net income even though we had an operating loss. Here, we’re showing, you know, a net a net loss while we have an operating income. But back then, we had an operating loss and a net income because of these derivatives, and I really don’t remember getting too many questions about this back then. But I’m very happy to answer these questions today as our financials are so much better today than they were all those years ago.

Now with regards to income tax expense, the other component of the below the line expenses, it should be noted that the IRS and the tax authorities, they don’t recognize income or expenses from change in derivative value. This is what’s known as a permanent difference between generally accepted accounting principles and the tax code. So they don’t they just ignore that as well. And also note that changing derivative value is not considered in any enterprise valuation models. Anybody looking to value our company, they adjust the the derivative entries out.

So with the tax code not recognizing the derivative item, our tax expense is really based on the 20,000,000 plus of operating income. And based on that, we booked the tax expense of $5,300,000. So you put the derivatives and the taxes together, and that’s how you end up with a net income that’s so much lower than the operating income. Now to the cash flow statement, Our operating cash flow for the three months ended June 2025 was positive 14,800,000.0. Compare that to a positive cash flow of $3,100,000 for the June 2024 quarter.

So we improved our cash flow by 17,900,000.0 compared to last year. That’s 577 percent increase in operating cash flows. Not much to say really. We have strong earnings, drive cash flows, as simple as that, and it’s it’s true for us. Now for the balance sheet, which continues to strengthen, been saying that for some time.

Our working capital as of 06/30/2025 was $67,000,000. That’s one of my favorite metrics. Working capital, you compare that to $46,000,000 three months earlier. As of March 2025, the $21,000,000 increase in working capital over the three month period, 46% increase as well. I would like to drill a little further into working capital, which is current assets minus current liabilities.

Current assets increased from 58,000,000 to $78,000,000, like, $20,000,000 increase. Our current liabilities total decreased from 12,000,000 to 11,000,000. I mentioned this this has happened in in in our last financials, and I said that you don’t see that happen too often, but it happens again. Our current assets increased by 20,000,000 with current liabilities decreasing by 1,000,000. Usually, you’re gonna see the ratio.

You’ll see them both increase at different ratios, and that’s how you end up a larger working capital. But in in for this case, our assets went up, and our liabilities went down. If you look at the noncurrent liabilities, you’re gonna see the same you’re gonna see similar trends. Noncurrent liabilities, which are not part of working capital, excluding the derivatives, were $5,600,000 at 06/30/2025. Compare that to 5,800,000.0 at 03/31/2025, three months earlier.

So those went down as well from 5.8 to 5.6. Takeaway here is that Lee has low debt, and we have low debt that continues to decrease and working capital that continues to increase. These are hallmarks of a strong balance sheet. And I did get one question overnight on the balance sheet, and that was on the where is it? It was on the real estate.

Here it is. Regarding the real estate that that we own, you know, we we own our factory. We own a couple of properties that we operate under. And then what it has to do with the market value of our real estate versus the book value shown on our financials. And, person asking the question, we use the real property as a hidden asset.

Wants to know, can we adjust the financial statements to reflect the real value, of the real estate? And the answer is, to GAP, no. We cannot. You we can decrease, and we if if the if the value of the of the real estate were ever to be less than our cost, then we we are required to decrease. That’s called an impairment of an asset.

We can decrease it. We can only decrease it. We can never increase it. So you’re right about it being a hidden asset. So the value whatever the market value is, we are not allowed to increase our cost to reflect that.

So thank you for that question. Excellent, excellent question. Some of these financials, we had record revenues, more than 40,000,000 for the quarter. We had record profits, almost $22,000,000 for the quarter, which were more than the profits than for all of last year. The elite label continues to perform well in the market.

LYNX is doing excellent. The margins, however, are difficult to maintain in the future due to generic market competition. Our balance sheet is strengthening. Our cash flow is solid. Our working capital is increasing.

Our debt, which is already low, continues to decrease. All in all, I should say the $20.20 fifth fiscal year has started off extremely well. Probably the best start to a fiscal year, that I’ve certainly seen. Our next quarterly report is due in November, and I’m looking forward to speaking to everyone then. Now I’d like to introduce our chairman and CEO, mister Naza

Masrath Hakim, Chairman and CEO, Elite Pharmaceuticals: Hakim. Thank you, Carter. For this wonderful news and great numbers, It’s only been six weeks since we spoke last. Our positive trend continues. Revenues for Elite’s first fiscal quarter were 42 point 40,200,000.0 and 21,700,000.0 in profit.

That that is impressive. Elite’s new product launches, especially list tax, have allowed Elite to continue to grow rapidly. Elite’s generic Listex, a central nervous system, product used to treat ADHD with with the brand name Vyvanse was launched in January. Elite has roughly 8% of market share according to IQVIA and an opportunity for more volume growth. The market volume for this generic product is growing, and the conversion from brand to generic continues.

Last quarter, the generic portion was 63%. Now it’s 73%. So the market keep on expanding, and it will probably end up reaching 90% within three, four quarters. Additional market penetration by the generic company is definitely expected. This is out of the ordinary.

That’s what happens with every product that goes generic. But the second factor that is very positive is that the the market itself for Liptex is expanding. It’s by expanded by 2% this last quarter alone over the quarter before because now doctors write more scripts because the insurance companies encourage it because now it’s generic. So there are two factors that are continuing to make the market bigger. One is the insurance companies and doctors are gonna write more scripts.

And two, it’s the fact that the brand is losing part of their share. So this is why we expect our share of the market to grow. Now you heard what Carter said. It’s a highly competitive market. Therefore, the price per bottle may go down, but that would be compensated for to some extent with the fact that the market is getting bigger.

Matthew, Conference Call Moderator: Admiral IR

Masrath Hakim, Chairman and CEO, Elite Pharmaceuticals: is our second best product. And as per IQVIA numbers, we continue to hold 18 to 20% market share. There’s, like, about 12 competitors out there, and Elite is one of the smaller companies. And, yes, we hold almost one fifth of the market. We are in a very good position to defend our shares doing a doing a Circle is doing an outstanding job, and that is really not because our prices are cheap, but because we are considered a reliable supplier.

The margins for IR are very attractive, and this is a key product for Elite. Another key product for Elite is the amphetamine ER, and we hold 11% of the market on that. Prasco, which we terminated the agreement with on March 31, still have a product that they’re selling, and they have about 3% of the market, and we will end up converting that sooner or later. As of today, between our share that we sell to Presto and our shares that we sold to the market, we are about 14 to 15%. Isradipine, tramipramine are smaller products.

We don’t talk about a lot, but they have a attractive margins because each one of them has only one competitor in the market. So when the market is only couple of million or $5,000,000 and we are one of two, that’s not a bad place to be. Pandymasuridine, our baryatric product, we hold about 30% of the market. Presenting those license for the generic naltrexone and fentermine in September, and Elite will start selling these under our label. Naltrexone API supply has been limited this year due to shortage.

Carter Ward, CFO, Elite Pharmaceuticals: We

Masrath Hakim, Chairman and CEO, Elite Pharmaceuticals: expect Naltrexone to be one of our better products for next year and going forward. We have recently launched three products, generic Percocet, which is oxyApab that we launched in April, generic Norco, which we launched in December, and aPab with Clodine, which we lost lost last October. We are building market shares for each of these products. Generic methotrexate launch was in August, and the pricing is very competitive for this one, and we have a minor market share for this product. I get a lot of questions about methadone.

We will launch methadone as soon as our resources allow it. There are more important products to work on such as Lisdex, Amphetamine IR, and ER. And we do have limited capacity in manufacturing. In packaging, it’s unlimited, and manufacturing is still limited. So when when the time is right, we will go ahead and launch methadone.

Our partner, Dexel, received approval in Israel for Amphenamine IR, and we shipped product to them recently for their launch. There’s only one other competitor in Israel that sells amphetamine IR. At this time, we shipped the first shipment. And as soon as we did that, they turned around and put in an order for a second one that we will be sending to them later this year. We have two ANDAs in our pipeline that have updated you on few few months ago or six weeks ago.

Generic R CER, that’s a generic for oxycodone. This is a paragraph four filing, and the patent lawsuits are ongoing. We, from our end, are awaiting for due and the courts to make a decision. And the other is the generic dopamine agonist, an NDA for the treatment of Parkinson’s. In addition to that, we’ve recently announced a successful BE study for the undisclosed anticoagulant generic.

The brand has an unexpired patent listed in the Orange Book. So commercialization of this product will require other things on expired patent. We will determine our approach for this product closer to the filing time. We also have other generic products in advanced development stages that we’ll update you on when the time comes. Elite continues to make r and d a priority, and we will update everyone on these products once we have a material event, passing a PE or filing.

We have been pretty busy here in addition to making all of the stuff, hosting the FDA. FDA just completed an inspection of the facility at General GMP, and they issued observations that were minor. We are in the process of correcting and responding to them. Our response should go out a week from Friday or a week from today. We are proud of our facility, including our new expansion.

There were no problems whatsoever on the packaging facility and the new building and new expansion, and are pleased that we have completed the survey inspection. Mergers and acquisition. Okay. Since the last time we spoke six weeks ago, we’ve had strategy meetings with the m and a partner. As discussed in our last call, we continue to focus on m and a.

I am giving the m and a team until the end of the year to see what materializes. If we don’t see a serious progress and or desired outcome, then we will start thinking about Nasdaq in q one calendar year of 2026. However, as of now, we are moving forward full swing with the merger and acquisition. There is a lot that goes into either alternative, whether whether you wanna go through Nasdaq or you wanna go for m and a. And we continue to look for the alternative that provides the most value for our shareholders.

We are not married to the m and a. It is the preferred idea. But if we feel that that is not gonna be as good for the stockholders as Nasdaq, then we have no problem switching policies. But as of now, that’s our focus. And we definitely will update you in case if there’s any material event.

Just to summarize all of this, our trend of growth continues. Elise is excluding the strategy of developing and filing new ANDAs and growing sales while supporting working capital. We have a record working capital now. Pipeline development cost and maintaining a strong cash position, the strongest ever in our history. Our stock price reflects that growth.

LidTech is expected to continue to be a key product for Elite with attractive of reduced margins over the next year. Higher volumes, I expect, as market continues to convert to generics. And for me, in IR and ER, they are in a mature market, and we expect to successfully defend our strong market shares as we have done for the past couple of years. We are positioned as an attractive midsized generic pharmaceutical company with consistent profits, steady growth, and no debt. Our stock price has been strong, and we continue to evaluate M and A and uplifting options.

We are looking for the alternative that is best for our shareholders. Let’s go to q and a. We did not get a ton of questions this time as we usually do. And, actually, I am very pleased to say the questions were intelligent and to the point and most destructive and wanting to own the narrative. So I appreciate the questions this time.

The first one is about the Trump administration, and Trump recently instructed the top pharmaceutical manufacturers to lower the cost of prescription drugs. What impact will this have on the pricing profitability of Elite Elite products? The administration actions should affect the brand of products. The purpose of what the Trump administration is trying to do is to get the brand companies to lower their products. For example, Listex before it became generic, the price was at least 10 to a 100 times more than it is today.

So I do not anticipate that that’s gonna impact us because the generic companies are the cheap drugs, and these are the ones that save the patients and and the and the country billions of dollars per year. So I do not see any impact on us yet, and we are watching this very carefully. With the broader Amos shipping terms going into effect in the August, what impact will this have on Elite? High ingredient cost, so on and so forth. Okay?

As I stated the last time, the API import has been exempt from first. So all of our APIs that we received from overseas, many of them we get from The US because we we deal a lot with controlled substances, and you don’t make them overseas. They are made in The US. But for the products that are made overseas, we have not impacted yet because they’re exempt. However, if the prices go up, we and not only for the APIs, it could be for bottles and other IPIs, inactive pharmaceutical equipment.

We and the rest of the industry will adjust our prices to compensate. K? Now keep in mind, sometimes the contract has the lag time before you can do that. But in general, even if that happen, Elite will survive and we’ll go ahead and adjust our prices because everybody else in the industry is gonna go up with us. Next question was on product pipeline, r and d in India.

Does this happen soon? It is happening. Our first product should go to clinical trials the 2026 if everything goes well. And maybe sooner if everything goes well. Because anytime you’re transferring products like this, you gotta do quite a few things in addition to transferring it and pilot studies and so on before you get to the DE.

So there’s a lot of force that goes on before you finally get the BE and see if you to pass. Partnership, the Excel launch. Did this happen or are we still waiting? As as indicated before, yes, it happened. What is according with the Excel delivery?

It seems as if they should have accounted for it by now. Is there any revenue recognition? I was still waiting to confirm shipment. Okay? Well, Dex Dexel took possession of their product in The US.

And the day they did that, that became their product, and they paid us for it. K? After that, it is their game. They need to get it to customs and get it to Israel and get it through the Israeli Ministry of Health and sell it. That part is on them, but they did receive it from us and they paid us for it.

As a matter of fact, they are so optimistic about the market that they put in for a second order that they want us to deliver before the end of this year. Do we have any new partnerships cooking? Any new partnerships cooking. I don’t know. Chef Ramzi was an investor in the lead.

Well, thank you, chef Ramzi. We we we are as I’ve been reporting to you guys, we are concluding all the partnerships that we have whenever we have the opportunity to do so. For example, Prasco and TAGI Procussion Dosing, for example. And and we wanna convert everything to Elite owned and Elite operated. Now having said that, we are always extremely open minded at Elite.

We will explore any partnership that is advantageous to the company. But as of now, we’re trying to consolidate and and be on our own. But if if some partnership comes up that is advantageous to us, we’ll absolutely consider Potential sale of the company. Was there any activities around the buyout? Did we hire an MMA firm?

I am asking because mister Raffin said it would happen before August 2026, and it may take up to six months to sell the company. As the first part, was there any activities around the buyout? The answer is absolutely yes. We’ve been updating you on this for several months now. There was, and there are a lot of activities around the buyout.

There are a lot of things you have to do before you get to a place where you find the suitor where you have meeting of the minds. We started this process in the 2024. Back then, we had our our legacy business, the baryotic product, isradipine, naltrexone, and we had our new products, amphetamine IR and ER. This part of the business was very easy to evaluate by our m and a company. The wild card is the valuation of Listx and a couple of other political factors.

What’s happening with the turf and the few other countries and investing in The US and all of that. But that was all done before. Listx was the wild card. At the time, we have not launched this Listx, and any assessment would have been just an estimate. And, of course, our estimate of what we believe we can do and somebody else’s estimate are gonna be profoundly different.

Our m and a partner is working on finding us a suitor. If an acceptable offer is presented today, we’ll be more than happy to consider it. But if not, we will wait another quarter or two to show realistic revenues and profits that include less tax and show the trending for the sales of less tax, which would take the guesswork out of how much is the company is really worth. K. The timetable for m and a is flexible.

We will likely continue through the end of this year. Options continue to be acquisition, which is our number one focus. If it does not happen by 2026, then we will start doing the prep work for option number two, which is uplifting. And while we’re doing that, we’ll continue looking for an acquisition as well. This concludes this update.

Thank you all. I’m looking forward to talking to you in in November. Thank you, Matthew, and have a wonderful weekend.

Matthew, Conference Call Moderator: Thank you. Everyone, this concludes today’s event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

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