Dianne Will, Christopher Dick, George Kenneth Smith Dianne Will, Christopher Dick, George Kenneth Smith 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 statements except as required by law. More complete information regarding forward-looking statements, risks, and uncertainties can be found on Reports Elite files with the SEC, which is available on the Elite's website at ElitePharma.com. Thank you, Matthew, and good morning, ladies and gentlemen, and thank you for joining us today. This is Elite's earnings call, our CFO Carter Ward.

will give us the financial update, after which I'll come back with a brief update and answer some of the questions that you've submitted to Dianne. Mr. Ward, you have the floor.

Thank you, Nasrat. Good morning, everybody. Thank you for calling in yesterday. We filed our 10-Q. That's our quarterly report. It's for the quarter ended June 30th, 2026. We're on the March 31st fiscal year, so the June quarter is our first quarter of the fiscal 2027. It's available on our website, EliteFarmer.com, under the Investor Relations section. If you haven't seen it yet, please go there, take a copy. As always, I'm going to provide some context, some color to the financial statements and answer any finance questions we received. Received a lot of questions this time. Thank you very, very much. I really appreciate everybody taking the time to ask the questions and paying attention. Nice to know people are out there. Let me start with the area. I'm going to start with the area that I received the most questions on. Many questions on revenues and operating profit. I'm not going to go to each specific question because they're all pretty much similar. Revenues for the quarter. were 32.4 million and operating profits were 7.5 million. Both in line with the previous three quarters, both solid and steady. The questions I received, however, they were not related to this solid performance, but rather the change as compared to the June 2025 quarter, which is our 10Q presents them, comparison of the quarter-on-quarter changes. The June 2025 quarter was elites Best quarter ever so far. Got a lot of questions on the top line revenue decrease and what we're doing to increase the top line in the future. Got questions on COGS and margins, and I'll address all of them. Let's start by looking at the June 2025 quarter and how it compares to all of the quarters that followed. It's really a textbook example of how the generic market works. Thank you very much. We captured a decent market share and at attractive prices. Most importantly, the Lizdex market was a generic market in its initial stage, and that is the key. Also key is that the generic market is defined by competition. We weren't the only company launching into the Lizdex market. There were more than 10 companies doing the same as Elite at that time, maybe even more than 15. So you put that in the mix, that type of competition, and you have a fluid market at that point in time with competition increasing. As competition increases, prices decrease. Over time, the weaker, more inefficient companies can't make it. At the lower prices, they drop out, and eventually the market stabilizes and an equilibrium is reached. And that's what happened during June July 2025 time period. Elite came out of that correction with an impact market share actually trending up with stable prices, volumes, and stable operations. Prices were lower than the initial market phase but still solid, and Elite is now established as a reliable supplier of choice for generic buybacks. Just as we are the same for generic adderall and have been for years. So count Vyvanse in that category as well now. You need to keep all this in mind when asking about, when the question is asked about comparing June 2026 to June 2025. In June 2025, the market was higher, hadn't reached the equilibrium that it has now. June 2026, we're at the steady state. In fact, we've been in a steady market state for the last four quarters now, approximately. Q3 through Q4 of last year, and this year, Q1. So the results over that time period, those four quarters, they've been pretty steady and solid. Prices are lower than the initial market phase, but the volumes are trending up. Talking about volumes, volumes are our main driver of talks. We get a lot of cost of goods sold. Got a lot of questions overnight on Cost of Goods Sold. And just so you know, there's a positive correlation between the two. More volume, more COGS. But also, with respect to COGS, there's also a different mix this year as compared to last year. It's not just Lizdex in the COGS. Most notable would be Naltrexone, which we weren't selling last year, but we are selling this year and selling quite a bit of it. Naltrexone's an expensive product. I hope that answers the questions on 2026 versus 2025. But there's more going on here than just how a product launch works and what happens. In that regard, I got some questions on what's the next steps? What are we doing to grow revenues in the future? To answer that, Let's look back over the past few years because I always like to say that looking at the past can give you some insight into the future. So let's go back to the beginning of this decade, early 2020s. It was Zola Root Label, and back then we sold Private Label, Phentamine, Naltrexone, a few other products. Then we launched the Private Label Generic Adderall. That took us to another level. Revenues were around in the low 30, 30 millions or so. This is annual revenues. If you notice, we're above that for quarterly revenue now. But we launched a generic private label Adderall. Revenues reached 30 million. Then we launched the elite label in 2023. And that brought us up several levels. And the revenues crossed the 80 million mark. Thank you very much. Vivance, all these products were pipeline products at one time. It's a pipeline that brought us to where we are today. It's also the pipeline that will continue to grow Elite's revenues and our profits. As always, Nasrat's going to talk more about the pipeline, but from a finance perspective, we continue to fund product development, and our business model remains the same as it was for the past product launches. We've grown Elite. by using a robust pipeline that we keep filled and we keep it moving. There's velocity through our pipeline. We're going to continue doing that, and that will grow revenues and profits in the future. I hope that answers those questions. Before moving on, one last question I received on revenues, and it comes from the revenue concentration footnote. The question was, elite's biggest customer Customer Now accounts for 60% of revenues versus 51% last year. Are overall revenues down because this customer is requiring price concessions? Do they control so much of the market that Elite cannot diversify away from them? The generic market is highly concentrated in a few large wholesalers. That's true for everybody, not just for Elite. We all have to deal with them. But the reductions in price, the stabilization of the correction in prices, especially in the LISDACs, it's not a result of customer concentration, but rather it's the overall interaction of supply, demand, competition, the traditional market concepts, the economics that drive prices in the generic market and in pretty much any market. So that's the real explanation for price fluctuations and that. Not really customer concentration. Moving down to P&L, we have research and development. R&D expense was $2 million this year for the quarter compared to $1.7 million last year's June 2025 quarter. That's the pipeline development I just spoke of. We did have quite an eventful quarter for R&D. During this quarter, we launched methadone during this quarter, and just after the quarter, we launched Grapinerol. We filed an NDA and ANDA during this quarter. We had a successful pivotal bio study, which is quite a big deal. So all of that in this quarter itself. Once again, pipeline is the lifeblood and we're very healthy when it comes to that area of the company.

Moving on to the cash flow statement.

Cash provided by operations was $10.1 million this year compared to $14.8 million last year. Again, very solid, $10.1 million. While it's less than last year's extraordinary quarter, the cash flow this quarter was better than the subsequent quarters to last year, so the last three quarters. We had better cash flow in the June 2020 sixth quarter than we did Qs 2, 3, and 4 of last year. On to the balance sheet, which continues to strengthen. Cash is $38.9 million, up from $29.8 million at the beginning of the year. Did receive a question noting this cash accumulation and asking what plans do we have as far as deploying and utilizing that level of liquidity. As always, we say all the time, new products, they're a top priority for us. as is ensuring we're able to make the products, the operational capacity. So we're always evaluating options in those areas and having this type of liquidity definitely helps us as to options that are feasible for us to achieve. So to answer the question, plans for utilization of cash resources are focused on new products, growing our product line, and facility improvements enabling us to make the new products and to increase our volumes on our existing products. Working capital was 84.1 million as of June 30th of this year, 2026. That's actually down from the beginning of the year. Where working capital was 94.7 million. So I got a question on that. They wanted to know why the decrease since we had such profits, such positive cash flow How could working capital go down? Logical question. Good question. Well, remember, working capital is current assets minus current liabilities. And if you look at the line item in the liability section for warrant derivatives, you'll see at the beginning of the year, the warrants were classified as long-term liabilities, meaning not part of working capital. But at June 30th, they were classified as current liability, meaning part of working capital bringing working capital down. Current liabilities, they come due in less than a year, and the warrants expire in April 2027. So April 2027 is less than a year from June 2026, so they are current more than a year from March 2026, so they were not current. The result is we have a $17 million non-cash, that's the key, non-cash liability, which was previously not included as a reduction in working capital, and it's now included as a reduction in working capital. That's how working capital can go down, even if you have profits and strong cash flow. Working capital decreased overall by $10 million, but we moved $17 million in non-cash liabilities from long-term to current during this quarter. So it's easy to do the math, and you can see there's effectively a strengthening of our working capital position, which you should have when you have this type of profits and this type of cash flow. And finally, since we're on the subject of warrant derivatives, I got the usual questions on what's going on with the warrants. Well, like I said, they expire in April 2027, so there's three possible outcomes with these warrants, all of which will happen on or before April 2027. The first outcome that's possible is the warrants will be exercised for cash. That would be nice. The league would get around $12 million in cash for the warrant exercise. Second outcome, the warrants provide for a cashless exercise. So the number of shares will be in a cashless exercise less than $79 million, and it's really based upon the stock price at the time of the exercise. The higher the price at the time, the more shares of the $79 million that get issued, the lower price. are less shares that get issued. But in all cases, it will be less than 79 million shares. That's just how the math works. And the third outcome is probably not going to happen, but it's that the warrants expire without exercise on their expiration date. So they just end in accordance with contract without anything happening. We're discussing these options with Nasrat Hakim, the warrant holder, and we expect a resolution before April 2027 of these. To sum up the financials, we had strong performance, revenues, profits, cash flow, all steady and strong, and they're all in line with the last three quarters. If you're comparing this year to last year, remember the June 2025 quarter was An extraordinary quarter really due to the natural price adjustment cycle that defines how generic markets work. We launched LizX into a fluid initial state market which had higher prices which eventually corrected and has since reached a steady state and that's where we are today. Product development, most important, product development continues. It's on schedule for future product line expansion and the same growth, through the generic lifecycle that brought us to where we are today. Now I'd like to introduce our chairman and CEO, Mr. Nasrat Hakim.

Thank you, Carter, and thanks for the analysis. It's not The best way to look at financials is to compare today's quarter with a year ago because of seasonal changes and because of so many other factors. So you compare apples to apples. For example, most of sales of perfume have been around Christmas. So you cannot say that the following quarter we didn't do very well or the prices crashed. You have to look at an entire year and compare that. Our business is no different, so we do that. However, there are exceptions, okay? I've been in this business for 40 years, and I've seen this phenomenon many times. Whenever a company gets an exclusivity, because they are the first to file, they get 180 days to sell the product alone with the brand. Okay, that's two quarters. And during these quarters, they make a lot of money. They may be killing because they're selling at brand prices, which is hundreds of times higher than generics. Well, that expires in two quarters, and then a year later, when you're comparing that quarter to a quarter a year later, their revenues and profits will go down. And statistically, it looked bad in comparison. However, it's a very good problem to have. In our case, we were really lucky. We came in at the tail end of the higher prices and ended up having a very good quarter. That's not a bad thing. It looks bad when you compare it to today's quarter. However, our sales are steady, our profits are excellent, and the company is doing great. So, saying the revenues from 2027 first fiscal quarter are lower than the same period of the prior fiscal quarter revenues and income, Not because Elite did not do very well this quarter, but because this specific quarter was very good due to LISTEX launch and higher prices. For the last four quarters, our market shares have been increasing for all of our major products. LISTEX, Amphetamine IR, Amphetamine ER, and Neltexone. I'll give you a couple of high-level numbers. The difference between The quarter last year and this quarter, the volume went up 14.75 overall, 10% for list tax. Again, even though the price tightened a year ago, have been steadily selling and expanding our market. We've expanded it by 10.2%, which is an excellent achievement. The reason we made money a year ago is again because the prices were a lot higher than it just came out as generic. So for our four largest products, Listex, Generical Vyvanse, Mixed Amphetamine IR, Amphetamine ER, and Nasrexone, we have increased the market share and now maintaining prices. Our legacy products, Izradapine, Tremetramine, Tendiametrazine, and Phentermine sales and marketing shares were also in line with previous. Our recently launched combo products, APAP with codeine, Oxy-APAP, Hydro-APAP, and Methadone were in line with historical sales and improving. In the long term, all of these products are expected to continue to grow. New product launches. We've had also two of them. We've had Methadone in April and Rupanrol ER in July. Both products will contribute to our future growth. We have a good quarter for our pipeline. Elise reported a successful DE study for an undisclosed anticonvulsant product, a seizure medication. The brand product has annual sales of $840 million according to IQDIA. We are currently putting together the FDA filing for this product. We filed an undisclosed anticoagulant product in June. It is a substantial product that is not yet off patent and IQRIA report 26 billion in sales. We are in negotiation with the brand about the patent and filing for market entry. Elite Oxy ER, generic for Oxy Cotton ER, which we have reported on previous calls. continue to be under review by the FDA. Regarding merger and acquisition, as discussed in our last call, we continue to evaluate buyout and uplifting, and I will be speaking about that more in Q&A, which is coming up next. We are looking for the alternative that provides the most value for our shareholders. and we'll talk about that in a second. As we proceed with these alternatives, we will update you when a material event occurs. So let me go to Q&A and speak about three of the different sorts of questions you've asked in sequence. The TERF and their effect on M&A, M&A and then NASDAQ before I get into the rest of the questions. and I have a couple of questions just to honor the people who have been sending questions and I'm not going to read them all because many of you sent similar questions about the same subject. A couple of the questions, you said all API have been TURF exempt and TURFs aren't affecting M&A negotiations. Have any of the parties that approach you in companies specifically pressured by the Trump turf environment looking to acquire domestic manufacturing, and does that change the profile of who likely to make an adequate offer? Can you please clarify if the upcoming turf deadlines can affect or not affect the acquisition of a lead by a foreign drug company? All right. I'm not going to read that to the questions. These two will give you enough flavor of what's on people's mind. Right now, there are no tariffs currently. There are plans to have 100% tariffs imposed on genetics. It could start in August of 2028. and it could go up to 200% a year later. This is very big and possible news for elite. Any way you look at it. If they put TERFs even on the API, we'll be like everybody else. And that will then disadvantage us. But if they put the TERFs like the Trump administration is proposing on the finished product, then that will give us a huge advantage over many manufacturers in India, China, and Eastern Europe who will have to pay these tariffs. So a company like that who is in India or China now is going to have to pay 100 or 200%. That gives us advantage in two ways. One, okay, our pricing will be more competitive and hopefully we'll command more of the market. Two, these companies would want a presence in the U.S. and it would look like a very attractive company to either acquire or merge with. So, yes, the thefts will happen. The issue is that they have not happened yet. And a lot of companies are waiting to see if the administration is going to force the issue or back down. In fact, the reason stated by Trump for the third strategy is to reward companies that manufacture here in the United States, whether they're Indian or Chinese. And if they move their manufacturing facility or acquire somebody in the U.S., they'll give them the reward of reading these terms. So this is a great news for us. It just hasn't happened yet. It is in the plans, and everybody is watching it, and if it materializes, it's very welcome for us in both avenues. That leads us to what we can do next and NASDAQ. We're still working on finding a suitor and we're renewing the contract or extending the contract by six months with the current company we're working with so we can find a large couple of things. But regardless, NASDAQ is in motion and I'll talk about that in a moment. So let me read you at least one of the questions about NASDAQ and then I'll elaborate on that. Mr. Carter said, you are ready for NASDAQ and Mr. Hakim called OTC not an option anymore. Given the September serious 2026 flota test that determines accelerated filer status, is there a target date for uplisting?

Yes.

And would you uplist As a stand alone or only in combination with M&A transactions? No, definitely we will go at Nasdaq alone or we may purchase another company and then go or if somebody acquires us. It's not only, okay. So we are open to all options but regardless of what happens we're going to be at Nasdaq. As to the question as what's your target date, it is not going to happen by the time we talk again, which is in November. But my best guess is that by the time we talk after that in February, it will be either just happened or about to be finalized. An interesting question on operations. If Elite is only currently running a single shift, what is the need for an additional facility expansion? Are you anticipating a large increase in product manufacturing or packaging needs? Our packaging needs are taken care of. We've resolved that issue and we're good for years to come. But we'll talk about manufacturing in a second. Another person asked about you said the last time you're assessing the New facility and you may pull the plug soon. When are you going to do that? It is true that we're running only one shift right now. However, you set up your facility for the future. Currently, we are doing great and our greatest asset is the attention deficit disorder C2 products. That is a great pillar, but it's only one. The second one is a collection of a whole bunch of products. So the vision is to Ensure that we have multiple fillers. The blood thinner anticoagulant will be one. That one is already filed. We're already in negotiations to try and get it in 2028. Second one is an R&D. And between the two of them, that will be a substantial part of the market for blood thinners. And hopefully the second one will get through clinical trials and be in the market also by around the same time. Other products that are perpetual. We have 25 to 50 million diabetics in America. There are excellent diabetic products that are coming of patent. Our hat is in the ring and we are very close to three of the formulations. So having that as a product that is ongoing, this is not something that's seasonal, this is not something you take once in a while. These are products that you need all the time and a huge part of the population have them. That will be another pillar for us to focus on. In order for us to have a viable manufacturing facility, we need to take over a warehouse of one of the buildings next to us, revamp it and make it fit for pharmaceuticals, and then put equipment in it, and then qualify the equipment. And that process takes about two years. So we need to start now. in order for us to have a house for all these products that we have on R&D that's going to make the company what it is in the future. Okay, hopefully that answers your question. Last question is of three parts about the three products in R&D. First about Oxid ER, do you have, you have launch plans for August 2027 or approval by SA for August We have authorization with Purdue to launch by August 2027. But there is unresolved issue in view through anti-abuse, smokeability. I have a question. What is the realistic timeline for resolving the FDA question? And does August 2027 still hold if it slips? The first thing is that we need to fix this one issue that the FDA pointed out to and give us a year to study and get back to them. And we were working with a consultant and the team in-house to try and resolve the issue and we will keep you updated. As of now, we just started working on it. I will have more information in the future. but we need to resolve that issue and then we can launch in August 2027. You flagged a test BE study for an undisclosed anticoagulant and not yet filed and two handlers already pending and said another BE result is likely before year's end. Which new term catalyst do you view as most material to sustain a 40% five-year revenue compound annual growth rate, and when should the investor expect the anti-convulsant and filed? The anti-convulsant and the seizure medication will probably be filed before we go to NASDAQ. I would assume it's going to be in the beginning of the first quarter of this calendar year, okay? As to the rest of it, 40% increase over five years really is not that high. It is doable, but I'm not going to prioritize because I don't know whether we pass the clinical trials or get approval. Anticoagulant, you filed paragraph 13, which implies a 2032 link timeline tied to tetanus spiring, but said you are still working on circumvent or challenge specific patents to truncate it. That is true. What is the probability and timeline of converting any of those patents into a near-year launch? The probability is high. We are in negotiations, and my gut feeling, as of now, we just started the negotiations, is that we're going to be able to launch this product in 2028. All right, that concludes our conference call today. We look forward to talking to you in November. Thank you, Matthew.

Thank you. Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.