EXHIBIT 1
ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended March 31, | ||||||||||||
2016 (Audited) | 2015 (Audited and | 2014 (Audited and | ||||||||||
REVENUES | ||||||||||||
Manufacturing Fees | $ | 8,002,866 | $ | 3,870,457 | $ | 2,982,400 | ||||||
Licensing Fees | 4,495,466 | 1,139,789 | 1,536,039 | |||||||||
Lab Fee Revenues | — | 5,000 | 82,937 | |||||||||
Total Revenues | 12,498,332 | 5,015,246 | 4,601,376 | |||||||||
COSTS OF REVENUES | 4,484,162 | 3,013,592 | 3,236,106 | |||||||||
Gross Profit | 8,014,170 | 2,001,654 | 1,365,270 | |||||||||
OPERATING EXPENSES | ||||||||||||
Research and Development | 12,428,783 | 14,727,472 | 3,959,316 | |||||||||
General and Administrative | 2,903,178 | 2,904,114 | 2,105,725 | |||||||||
Non-cash compensation through issuance of stock options | 333,362 | 260,045 | 82,947 | |||||||||
Depreciation and Amortization | 665,647 | 616,995 | 500,906 | |||||||||
Total Operating Expenses | 16,330,970 | 18,508,626 | 6,648,894 | |||||||||
(LOSS) FROM OPERATIONS | (8,316,800 | ) | (16,506,972 | ) | (5,283,624 | ) | ||||||
OTHER INCOME / (EXPENSES) | ||||||||||||
Interest expense, net | (280,670 | ) | (287,231 | ) | (859,328 | ) | ||||||
Change in fair value of derivative liabilities | 7,394,006 | 20,340,874 | (35,389,799 | ) | ||||||||
Derivative interest expense | —- | — | (40,588 | ) | ||||||||
Gain on Sale of Investment | — | 1,670,685 | — | |||||||||
Other Income | — | — | 19,831 | |||||||||
Total Other Income / (Expense) | 7,113,336 | 21,724,328 | (36,269,884 | ) | ||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (1,203,464 | ) | 5,217,356 | (41,553,508 | ) | |||||||
CREDIT FOR INCOME TAXES | 520,452 | 3,249 | 292,611 | |||||||||
NET INCOME (LOSS) | (683,012 | ) | 5,220,605 | (41,260,897 | ) | |||||||
Change in value of convertible preferred share mezzanine equity | (9,285,715 | ) | 23,709,069 | (55,314,374 | ) | |||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | (9,968,727 | ) | $ | 28,929,674 | $ | (96,575,271 | ) | ||||
NET INCOME (LOSS) PER SHARE | ||||||||||||
Basic | $ | (0.01 | ) | $ | 0.05 | $ | (0.21 | ) | ||||
Diluted | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.21 | ) | |||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | ||||||||||||
Basic | 673,905,485 | 591,214,959 | 463,021,991 | |||||||||
Diluted | 673,905,485 | 757,579,152 | 463,021,991 |