What changed in this filing

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Item 5. Other Information

2022-08-15 compared with 2022-02-14 · 41 added, 2 removed, 24 unchanged (64% of the section changed)

OTHER INFORMATION

April 2, 2022, the Company and Elite Labs entered into a Loan and Security Agreement (the “EWB Loan Agreement”) with East West

Bank (“EWB”).

Pursuant to the EWB Loan Agreement, the Company and Elite Labs received one term loan for a principal amount

of $12,000,000 (the “EWB Term Loan”) and a revolving line of credit up to $2,000,000 (the “EWB Revolver,” together

with the “EWB Term Loan,” the EWB Loans” ), each of which shall be used for working capital.

The EWB Term Loan bears

interest at a rate of 6.48% (1.73% plus the prime rate (“Prime”)) and is repayable over five years, maturing on May 1, 2027.

The EWB Revolver bears interest at a rate of (5.65% (0.87% plus Prime)) and matures on May 1, 2027.

The total transaction costs associated

with the EWB Loans incurred as of June 30, 2022, were $40,120, which are being amortized on a monthly basis over five years, beginning

in April 2022.

The EWB Loans are secured by a security interest in the personal property of the Company and Elite Labs.

Agreement contains customary representations, warranties and covenants.

These covenants include, but are not limited to, maintaining

maximum leverage ratios of 3.50 to 1.00, minimum liquidity of $5,000,000, minimum cash of $1,000,000, a fixed charge coverage ratio of

1.25 to 1.00 and restrictions on mergers or sales of assets and debt borrowings.

As of June 30, 2022, the Company is in compliance

with each financial covenant and the Company has not used any of the Revolving line of credit The foregoing description of the EWB Loan

Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the EWB Loan Agreement, a copy

of which is attached hereto as Exhibit 10.3 and is incorporated by reference herein.

April 8, 2022, the Company entered into an Agreement for Sale and Purchase of Real Estate, by and between Clyde Wesp and Margaret Wesp

as Trustees of the Wesp Family Joint Living Trust UTD November 19, 2015 and the Company, to purchase the building located at 135-137

Ludlow Avenue in Northvale, New Jersey for a purchase price of $5,100,000.00 (the “Real Estate Agreement”).

The Company had

leased the entire 35,000 square feet of floor space since 2014.

This property is occupied by the Company’s Quality Assurance department,

commercial manufacturing, packaging, and warehouse.

The purchase was contingent upon the Company’s ability to obtain a sufficient

commercial mortgage loan, and the purchase closed on July 1, 2022.

July 1, 2022, the EWB provided a mortgage loan in the amount of $2.55 million for the purchase of the above property.

loan matures in 10 years and bears interest at a rate of 4.75% fixed for 5 years then adjustable at WSJP plus 0.5% with floor rate

The foregoing description of

the Real Estate Agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Real Estate

Agreement, a copy of which is attached hereto as Exhibit 10.2 and is incorporated by reference herein.

Employment Agreement, dated May 5, 2022, between Elite Pharmaceuticals, Inc.

and Robert Chen, incorporated by reference to Exhibit 10.1 to Form 8-K filed with the Securities and Exchange Commission on May 11, 2022.

Agreement for Sale and Purchase of Real Estate, dated April 8, 2022, by and between Clyde Wesp and Margaret Wesp as trustees of the Wesp Family Joint Living Trust UTD November 19, 2015 and the Company.*

Loan and Security Agreement, dated April 1, 2022, by and among East West Bank, Elite Pharmaceuticals, Inc.

and Elite Laboratories, Inc.

Certification

21 unchanged sentences

Executive Officer)

Financial Officer, Treasurer and Secretary

Financial and Accounting Officer)

Financial Officer

(Principal Accounting and Financial Officer)

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information