v3.26.1
NJEDA BONDS
 12 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
NJEDA BONDS

NOTE 6. NJEDA BONDS

 

During August 2005, the Company refinanced a prior 1999 bond issue occurring in 1999 through the issuance of Series A and B Notes new tax-exempt bonds (the “NJEDA Bonds”). The refinancing involved borrowing $4,155,000, evidenced by a 6.5% Series A Note in the principal amount of $3,660,000 maturing on September 1, 2030 and a 9% Series B Note in the principal amount of $495,000 maturing on September 1, 2012. During July 2014, the Company retired all the outstanding Series B Notes, at par, along with all accrued interest due and owed.

 

In relation to the Series A Notes, the Company is required to maintain a debt service reserve fund. The debt service reserve is classified as restricted cash on the accompanying consolidated balance sheets. The NJEDA Bonds require the Company to make an annual principal payment on September 1st based on the amount specified in the loan documents and semi-annual interest payments on March 1st and September 1st, equal to interest due on the outstanding principal. The annual interest rate on the Series A Note is 6.5%. The NJEDA Bonds are collateralized by a first lien on the Company’s facility and equipment acquired with the proceeds of the original and refinanced bonds. The bonds mature on September 1, 2030.

 

 

ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

The following tables summarize the Company’s bonds payable liability:

 

   March 31, 2026   March 31, 2025 
Gross bonds payable          
NJEDA Bonds - Series A Notes  $850,000   $990,000 
Less: Current portion of bonds payable (prior to deduction of bond offering costs)   (150,000)   (140,000)
Long-term portion of bonds payable (prior to deduction of bond offering costs)  $700,000   $850,000 
           
Bond offering costs  $354,454   $354,454 
Less: Accumulated amortization   (291,835)   (277,657)
Bond offering costs, net  $62,619   $76,797 
           
Current portion of bonds payable - net of bond offering costs          
Current portions of bonds payable  $150,000   $140,000 
Less: Bonds offering costs to be amortized in the next 12 months   (14,178)   (14,178)
Current portion of bonds payable, net of bond offering costs  $135,822   $125,822 
           
Long term portion of bonds payable - net of bond offering costs          
Long term portion of bonds payable  $700,000   $850,000 
Less: Bond offering costs to be amortized subsequent to the next 12 months   (48,441)   (62,619)
Long term portion of bonds payable, net of bond offering costs  $651,559   $787,381 

 

Amortization expense was $14,178 and $14,178 for the years ended March 31, 2026 and 2025, respectively. Interest payable was $4,604 and $5,363 as of March 31, 2026 and 2025, respectively. Interest expense was $59,042 and $67,871 for the years ended March 31, 2026 and 2025, respectively.

 

Maturities of bonds for the next five years are as follows:

 

Years ending March 31,  Amount 
2027  $150,000 
2028   160,000 
2029   170,000 
2030   180,000 
2031   190,000 
Total  $850,000