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10-K true 2026-03-31 --03-31 2026 false 001-15697 Elite Pharmaceuticals, Inc. NV 22-3542636 165 Ludlow Avenue Northvale NJ 07647 (201) 750-2646 Common Stock, par value $0.001 per share ELTP Non-accelerated Filer true false false false false 534000000 1077196442 Risk Management & Strategy Elite maintains a cyber risk management program designed to <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90F_ecyd--CybersecurityRiskManagementProcessesIntegratedFlag_dbT_c20250401__20260331_zTqgRrzWcVB8">identify, assess, manage, mitigate and respond to cybersecurity threats. This program addresses cybersecurity risks to corporate information technology, or IT, environment including systems, hardware, software, data, people and processes. The underlying processes and controls of Elite’s cyber risk management program incorporate recognized best practices and standards for cybersecurity and information technology, including principles of the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework 2.0 (“CSF”), and processes and controls supporting data protection requirements under applicable law. NIST CSF offers a thorough set of guidelines and best practices to help establish a strong cybersecurity posture. Aligning our cybersecurity processes and controls to NIST CSF enables us to systemically identify, assess, and manage cybersecurity risks most relevant and impactful to our business operations. It is important to note that using the NIST CSF as a guide does not imply our cybersecurity program meets any specific technical standards or requirements. Elite engages a <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_906_ecyd--CybersecurityRiskManagementThirdPartyEngagedFlag_dbT_c20250401__20260331_z8wTGpaUjqIf">third-party specialist to perform an annual assessment of its cybersecurity risk management program against the NIST CSF. The annual risk assessment identifies, quantifies, and categorizes material cyber risks. Elite, in conjunction with its third-party cyber risk management specialists, develops a risk mitigation plan to address such risks, and where necessary, remediate potential vulnerabilities identified through the annual assessment process. In evaluating the risks identified through the annual cybersecurity risk assessment process, our cybersecurity specialists and partners, including but not limited to Managed Service Providers, assist Elite to assess and prioritize the likelihood, severity, and impact of relevant risks, including the impact on employees, stakeholders, and vendors. In addition, Elite maintains governance processes and controls designed to protect Elite’s IT assets, data, and services from threats and vulnerabilities. Elite employs key practices within the cybersecurity risk management program including maintaining restricted access to privileged accounts, intrusion prevention systems/detection systems including maintenance of protection systems such as firewalls, network and data traffic monitoring, and critical data backups to mitigate cybersecurity risk. Elite’s cybersecurity partners, including consultants and other third-party service providers, are a key part of Elite’s cybersecurity risk management strategy and infrastructure. Elite partners with industry-recognized cybersecurity providers leveraging third-party technology and expertise and engages with these partners to monitor and maintain the performance and effectiveness of IT assets, data, and services that are deployed in company data and technology environment. The cybersecurity partners provide services necessary to maintain Elite’s IT infrastructure and execute the current cybersecurity strategy, including continuous improvement and remediation efforts. Elite monitors service level agreements and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_905_ecyd--CybersecurityRiskThirdPartyOversightAndIdentificationProcessesFlag_dbT_c20250401__20260331_ziooCxXY0b4">third-party contracts as part of our efforts to monitor third-party risks associated with reliance on vendors, critical service providers, and other third-parties that may lead to service disruption or an adverse cybersecurity incident. Our cybersecurity risk management program includes an incident response plan that includes relevant and critical members of management and third-party service providers alike. This team is responsible for assessing and managing cybersecurity incident response processes, response times, and communication plans in the event corrective actions and mitigation procedures are required to isolate and eradicate an incident. true true true Governance & Oversight Elite’s management team, with assistance from cybersecurity service providers, is responsible for oversight and administration of Elite’s cyber risk management program, and for informing senior management and other relevant stakeholders regarding the prevention, detection, mitigation, and remediation of cybersecurity incidents. Elite’s management team has prior experience selecting, deploying, and overseeing cybersecurity technologies, initiatives, and processes directly or via the use of strategic third-party partners. Elite’s management team also relies on threat intelligence as well as other information obtained from governmental, public or private sources, including external consultants engaged by Elite for strategic cyber risk management, advisory and decision making. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_904_ecyd--CybersecurityRiskBoardCommitteeOrSubcommitteeResponsibleForOversightTextBlock_c20250401__20260331_zqNJyHLtrC88">The <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_909_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20250401__20260331_zVjzLd8aq7H">Audit Committee of the Board of Directors oversees Elite’s cybersecurity risk exposures and the steps taken by management to monitor and mitigate cybersecurity risks. The cybersecurity stakeholders, including members of management assigned with cybersecurity oversight responsibility and/or third-party consultants providing cyber risk services, brief the Audit Committee on cyber vulnerabilities identified through the risk management process, the effectiveness of Elite’s cyber risk management program, and the emerging threat landscape and new cyber risks on at least an annual basis. This includes updates on processes to prevent, detect, and mitigate cybersecurity incidents. <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_90A_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantTextBlock_c20250401__20260331_zCmwmGBHdz0f">Elite faces risks from cybersecurity threats that could have a <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_903_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbT_c20250401__20260331_z2TMJsBMiXid">material adverse effect on its business, financial condition, results of operations, cash flows or reputation. Elite acknowledges that the risk of cyber incidents is prevalent in the current threat landscape and that a future cyber incident may occur in the normal course of its business. However, as of the date of this Annual Report on Form 10-K, Elite is not aware of any risks from cybersecurity threats that have materially affected or are reasonably likely to materially affect Elite’s business strategy, financial condition, results of operations, or cash flows. Elite proactively seeks to detect and investigate unauthorized attempts and attacks against IT assets, data, and services, and to prevent their occurrence and recurrence where practicable through changes or updates to internal processes and tools and changes or updates to Elite’s service delivery; however, potential vulnerabilities to known or unknown threats will still remain. Further, there are continuous regulatory considerations regarding responses to cybersecurity incidents, including reporting to regulators, investors, and additional stakeholders, which could subject Elite to additional liability and reputational harm. In response to such risks, Elite has implemented initiatives such as implementation of the cybersecurity risk assessment process and development of an incident response plan. See Item 1A. “Risk Factors” for more information on cybersecurity risks. The <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_909_ecyd--CybersecurityRiskManagementPositionsOrCommitteesResponsibleFlag_dbT_c20250401__20260331_zVjzLd8aq7H">Audit Committee of the Board of Directors oversees Elite’s cybersecurity risk exposures and the steps taken by management to monitor and mitigate cybersecurity risks. The cybersecurity stakeholders, including members of management assigned with cybersecurity oversight responsibility and/or third-party consultants providing cyber risk services, brief the Audit Committee on cyber vulnerabilities identified through the risk management process, the effectiveness of Elite’s cyber risk management program, and the emerging threat landscape and new cyber risks on at least an annual basis. This includes updates on processes to prevent, detect, and mitigate cybersecurity incidents. true Elite faces risks from cybersecurity threats that could have a <span class="xdx_phnt_RGlzY2xvc3VyZSAtIEN5YmVyc2VjdXJpdHkgUmlzayBNYW5hZ2VtZW50IGFuZCBTdHJhdGVneSBEaXNjbG9zdXJlAA__" id="xdx_903_ecyd--CybersecurityRiskMateriallyAffectedOrReasonablyLikelyToMateriallyAffectRegistrantFlag_dbT_c20250401__20260331_z2TMJsBMiXid">material adverse effect on its business, financial condition, results of operations, cash flows or reputation. true false false false false Forvis Mazars, LLP Iselin, NJ 686 We have audited the accompanying consolidated balance sheets of Elite Pharmaceuticals, Inc. (the “Company”) as of March 31, 2026 and 2025, the related consolidated statements of operations, shareholders’ equity, and cash flows for each of the years in the two-year period ended March 31, 2026, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2026, in conformity with accounting principles generally accepted in the United States of America.

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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Overview Elite Pharmaceuticals, Inc. (the “Company” or “Elite”) was incorporated on October 1, 1997 under the laws of the State of Delaware, and its wholly-owned subsidiary Elite Laboratories, Inc. (“Elite Labs”) was incorporated on August 23, 1990 under the laws of the State of Delaware. On January 5, 2012, Elite Pharmaceuticals was reincorporated under the laws of the State of Nevada. Elite Labs engages primarily in researching, developing, licensing, manufacturing, and sales of generic, oral dose pharmaceuticals. The Company is equipped to manufacture controlled-release products on a contract basis for third parties and itself, if and when the product candidates are approved. These products include drugs that cover therapeutic areas for allergy, bariatric, attention deficit and infection. Research and development activities are performed with an objective of developing product candidates that will secure marketing approvals from the United States Food and Drug Administration (“FDA”), and thereafter, commercially exploiting such products. Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. The audited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Elite Labs. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the Company’s consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, chargeback liabilities related to revenue recognition, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense, and income taxes. The Company continuously evaluates its estimates, which are based on the information that is currently available to the Company and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates. Segment Information Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 280 (“ASC 280”), Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer, who reviews the financial performance and the results of operations of the segments prepared in accordance with GAAP when making decisions about allocating resources and assessing performance of the Company. The Company previously determined that its reportable segments were products whose marketing approvals were secured via an Abbreviated New Drug Application (“ANDA”) and products whose marketing approvals were secured via a New Drug Application (“NDA”). ANDA products are referred to as generic pharmaceuticals and NDA products are referred to as branded pharmaceuticals. The Company identifies its reporting segments based on the marketing authorization relating to each and the financial information used by its chief operating decision maker to make decisions regarding the allocation of resources to and the financial performance of the reporting segments. The Company has paused further development of NDAs and has not engaged in business activities for several years, and does not intend to engage in business activities related to the development of NDAs for the foreseeable future. Therefore, as of March 31, 2026, the Company has determined that it operates in a 1single operating and reportable segment. Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment. The ANDA segment follows the same accounting policies used in the preparation of the Company’s consolidated financial statements. Please see Note 14 for further details. Revenue Recognition The Company generates revenue from manufacturing and licensing fees and direct sales to pharmaceutical distributors for pharmacies and institutions. Manufacturing fees include the development of pain management products, manufacturing of a line of generic pharmaceutical products with approved ANDA, through the manufacture of formulations and the development of new products. Licensing fees include the commercialization of products either by license and the collection of royalties, or the expansion of licensing agreements with other pharmaceutical companies, including co-development projects, joint ventures and other collaborations. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenues following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenues when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. Nature of goods and services The following is a description of the Company’s goods and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each, as applicable: a) Manufacturing Fees The Company is equipped to manufacture controlled-release products on a contract basis for third parties, if, and when, the products are approved. These products include products using controlled-release drug technology. The Company also develops and markets (either on its own or by license to other companies) generic and proprietary controlled-release pharmaceutical products. The Company recognizes manufacturing fees related to revenue generated from wholesale customers and from direct sale customers. Wholesalers represent customers that purchase the Company’s products and sell them to end customers such as hospitals, group purchasing organizations, institutions, and pharmacies. Direct sales customers purchase products directly from the Company. The Company provides for chargebacks to wholesalers for sales to various end-customers to include, but not limited to, hospitals, group purchasing organizations, and pharmacies. Chargebacks represent the difference between the price the wholesaler pays and the price that the end-customer pays for a product. The Company’s estimate for chargebacks is developed based upon management’s assumption of anticipated claims as well as historical information. Chargebacks represent variable consideration within the Company’s contracts and therefore as such, revenue recognized is limited to the amount for which a significant reversal of revenue related to this variable consideration is not probable. The Company recognizes revenue when the customer obtains control of the Company’s product based on the contractual shipping terms of the contract, at which time the performance obligation is deemed to be completed. The Company is primarily responsible for ensuring that the product is produced in accordance with the related supply agreement, and fulfilling the promise to deliver the product and bearing the risk of loss while the inventory is in-transit to the purchaser or commercial partner. Revenue is measured as the amount of consideration the Company expects to receive from the sale of its products, including Elite-labeled pharmaceutical products, and is recorded at net realizable value which consists of gross amounts invoiced reduced by contractual reductions, including, without limitation, chargebacks, discounts and program rebates, as applicable. b) License Fees The Company enters into licensing and development agreements, which may include multiple revenue generating activities, including milestones payments, licensing fees, product sales and services. The Company analyzes each element of its licensing and development agreements in accordance with ASC 606 to determine appropriate revenue recognition. The terms of the license agreement may include payment to the Company of licensing fees, non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company recognizes revenue from non-refundable upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. For those milestone payments which are contingent on the occurrence of particular future events (for example, payments due upon a product receiving FDA approval), the Company determined that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty of the occurrence of future events, the Company will recognize revenue from the milestone when there is not a high probability of a reversal of revenue, which typically occurs near or upon achievement of the event. Judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in ASC 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of March 31, 2026. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the customer’s products occurs. Disaggregation of revenue In the following table, revenue is disaggregated by type of revenue generated by the Company. The Company recognizes revenue at a point in time for all performance obligations. During the fiscal years ended March 31, 2026 and 2025, the Company has paused further development of NDAs and has not engaged in business activities in that segment. Accordingly during the fiscal years ended March 31, 2026 and 2025, the Company has only engaged in business activities in a single operating segment. Selected information on reportable segments and the reconciliation of operating income by segment to income from operation and to income (loss) before income taxes are disclosed within Note 14. The Company disaggregates manufacturing fees revenue by sales channel, consisting of revenues from direct and indirect wholesalers, which have different cash flows and contract economics as margins generated differ between direct and indirect revenues. Additionally, although the underlying arrangements are substantially similar, pricing to direct wholesalers yields higher margins than pricing to indirect wholesalers, while the timing and uncertainty of cash flows do not differ materially. The following table summarizes manufacturing fees by sales channel for the fiscal years ended March 31, 2026 and 2025: SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zW91aVhrM5Td" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_zPd0zKlKDu7c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--DirectSalesToWholesalersMember_zH6iP4x7k2A5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Direct sales to Wholesalers</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">65,273,763</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">48,008,986</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--IndirectSalesToWholesalersMember_zuX45Xf0G1va" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Indirect sales to Wholesalers</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">82,536,359</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,977,093</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ManufacturingFeesMember_zzawYnzAowIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Manufacturing Fees</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">147,810,122</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">81,986,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company’s revenue-generating products consist of two categories: (i) products containing an active ingredient listed by the United States Drug Enforcement Agency as a scheduled substance under the Controlled Substances Act of 1970 (“Scheduled Products”) and (ii) products not containing such a scheduled active ingredient (“Unscheduled Products”). The following table summarizes the breakdown of revenues by product category for the fiscal years ended March 31, 2026 and 2025: <div id="xdx_C05_gL3DORTTB-UJF_zFMDrwucg6A1"><table cellpadding="0" cellspacing="0" id="xdx_30C_134_ztLCZQMktaZi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF DISAGGREGATION OF REVENUE (Details)"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zKNLOPfh0mRh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_z9YbmsMewCRc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsManufacturingFeesMember_z0A93yOCSr41" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Scheduled Products – Manufacturing Fees</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">141,465,975</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">74,756,506</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsLicensingFeesMember_zIcO1TAaVUvf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Scheduled Products – Licensing Fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">465,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">248,789</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnScheduledProductsManufacturingFeesMember_zkEr4SL2ePZ9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unscheduled Products – Manufacturing Fees</td><td> </td> <td style="text-align: left"></td><td style="text-align: right">6,344,147</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,229,573</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnscheduledProductsLicensingFeesMember_ztcUhMdTf7Oh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Unscheduled Products – Licensing Fees</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"></td><td style="border-bottom: Black 1pt solid; text-align: right">594,486</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,809,061</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zKYXvPE7Rork" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">148,870,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,043,929</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> </div> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Cash Cash consists of cash on deposit with banks and money market instruments. The Company places its cash with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances. Restricted Cash As of March 31, 2026 and 2025, the Company had $471,520 and $453,776, of restricted cash, respectively, related to debt service reserve in regard to the New Jersey Economic Development Authority (“NJEDA”) bonds (see Note 6). Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are comprised of balances due from customers, net of estimated allowances for expected credit losses, and other contractual deductions, including, without limitation, chargebacks, discounts and program rebates. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. The allowance for expected credit losses is based on the probability of future collection under the current expected credited loss (“CECL”) impairment model under Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Assets. Under the CECL impairment model, the Company determines its allowance by applying a loss-rate method based on an aging schedule using the Company’s historical loss rate. The Company also considers reasonable and supportable current information in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customers’ credit risk and historical loss experience. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded as adjustments to credit losses in the period incurred. The Company’s quantitative allowance for credit loss estimates under CECL was determined using the loss rate method, which is impacted by certain forecasted economic factors. In addition to the Company’s quantitative allowance for credit losses, the Company also incorporates qualitative adjustments that may relate to unique risks, changes in current economic conditions that may not be reflected in quantitatively derived results, or other relevant factors to further inform the Company’s estimate of the allowance for credit losses. Additionally, due to the expansion of the time horizon over which the Company is required to estimate future credit losses, the Company may experience increased volatility in its future provisions for credit losses. Factors that could contribute to such volatility include, but are not limited to, changes in the composition and credit quality of customer base, economic conditions and forecasts, the allowance for credit loss models that are used, the data that is included in the models, the associated qualitative allowance framework, and the Company’s estimation techniques. During the fiscal years ended March 31, 2026 and 2025, the Company incurred bad debt expenses of $1,053,990 and $151,258, respectively. As of March 31, 2026 and 2025, the Company’s allowance for credit losses was $1,441,523 and $387,533, respectively. Inventory Inventory is recorded at the lower of cost or net realizable value on specific identification by lot number basis. Long-Lived Assets The Company periodically evaluates the fair value of long-lived assets, which include property and equipment and intangibles, whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Property and equipment are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from 3three to forty years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Upon retirement or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Intangible Assets The Company capitalizes certain costs to acquire intangible assets; if such assets are determined to have a finite useful life they are amortized on a straight-line basis over the estimated useful life. Costs to acquire indefinite lived intangible assets, such as costs related to ANDAs are capitalized accordingly. The Company tests its intangible assets for impairment at least annually (as of March 31st) and whenever events or circumstances change that indicate impairment may have occurred. Judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others and without limitation: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in legal factors or in the business climate of the Company’s segments; unanticipated competition; and slower growth rates. Research and Development Research and development expenditures are charged to expenses as incurred. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company operates in multiple tax jurisdictions within the United States of America. The Company remains subject to examination in all tax jurisdiction until the applicable statutes of limitation expire. As of March 31, 2026, a summary of the tax years that remain subject to examination in the Company’s major tax jurisdictions are: United States – Federal, 2022 and forward, and State, 2021 and forward. The Company did not have any unrecognized tax positions for the years ended March 31, 2026 and 2025. Warrants and Preferred Shares The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by ASC 470, Debt, ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging, as applicable. Each feature of a freestanding financial instrument including, without limitation, any rights relating to subsequent dilutive issuances, dividend issuances, equity sales, rights offerings, forced conversions, optional redemptions, automatic monthly conversions, dividends and exercise is assessed with determinations made regarding the proper classification in the Company’s financial statements. Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. Under the fair value recognition provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, based on the terms of the awards. The cost of the stock-based payments to nonemployees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for forfeitures as they occur. Earnings (Loss) Per Share The Company follows ASC 260, Earnings Per Share, which requires presentation of basic and diluted income (loss) per share (“EPS”) on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding during the period. The computation of diluted net income (loss) per share includes the assumed exercise of options and warrants if the effect is dilutive. The assumed exercise of the Series J Warrants was dilutive for the year ended March 31, 2026, and is therefore included in the diluted EPS calculation for that period. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As the Company was in a net loss position for the year ended March 31, 2025, the potential dilution from the Series J Warrants converting into <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240401__20250331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z85IMhtslzBg" title="Conversion of warrants into stock">79,008,661 shares of Common Stock and the stock options being exercised for <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240401__20250331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zKqD3CjgPJQ8" title="Conversion of warrants and options into common stock">15,640,000 shares of Common Stock for these periods have been excluded from the number of shares used in calculating diluted net income (loss) per share as their inclusion would have been antidilutive. The following is the computation of earnings per share applicable to common shareholders for the periods indicated: SCHEDULE OF EARNINGS (LOSS) PER SHARE APPLICABLE TO COMMON SHAREHOLDERS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250401__20260331_zTBYpcnP6Upj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240401__20250331_zOsfqRq8voa4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Numerator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_maNILATztZi_ztiSgtS9z694" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net income (loss) - basic</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">44,872,686</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(4,314,659</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DilutiveSecuritiesEffectOnBasicEarningsPerShareOther_maNILATztZi_zimErtV4Rkk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Effect of dilutive instrument on net income - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_iT_mtNILATztZi_zddNt8IIWLee" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss) - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">37,017,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,314,659</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline">Denominator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_ma1_zEQGcqBPlYg4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average shares of Common Stock outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,072,837,856</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,068,290,368</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DilutiveSecurities_ma1_zSc6HfkTaKkd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Dilutive effect of stock options and convertible securities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">65,530,379</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_iT_mt1_zOkp6TPbh6u1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average shares of Common Stock outstanding - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,138,368,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,068,290,368</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--EarningsPerShareAbstract_iB_zo5PJCVRbSlb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net income (loss) per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--EarningsPerShareBasic_i01_zVEWTpKrGqr3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.04</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareDiluted_i01_zwNPpBNa2sfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> </table> Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820 are described as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3 – Inputs that are unobservable for the asset or liability.</td></tr></table> The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. Based upon current borrowing rates with similar maturities the carrying value of long-term debt, and related party loans payable approximates fair value. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Non-Financial Assets that are Measured at Fair Value on a Non-Recurring Basis Non-financial assets such as intangible assets and property and equipment are measured at fair value only when an impairment loss is recognized. See Note 4 for additional information for the impairment loss recorded in relation to the Company’s intangible assets. Treasury Stock The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of shareholders’ equity. Right-of-Use Asset and Lease Liability The Company accounts for leases in accordance with ASC 842, Leases (Topic 842) (“ASC 842”). A lessee should recognize the lease liability to make lease payments and the right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases and finance leases, a right-of-use asset and a lease liability are initially measured at the present value of the lease payments by discount rates. The Company’s lease discount rates are generally based on its incremental borrowing rate, as the discount rates implicit in the Company’s leases is readily determinable. Operating leases are included in operating lease right-of-use assets and lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment and lease liability in the Company’s consolidated balance sheets. Lease expense for operating expense payments is recognized on a straight-line basis over the lease term. Interest and amortization expenses are recognized for finance leases on a straight-line basis over the lease term. For the leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 for the year ended March 31, 2026, and applied the new disclosure requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect the new disclosure requirements. See Note 16 Income Taxes in the accompanying notes to the consolidated financial statements for further detail. Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Clarifying the Effective Date (“ASU-2024-03”). ASU 2024-03 requires public companies to disclose, in interim and reporting periods, additional information about certain expenses in the financial statements. ASU 2024-03, as clarified by ASU 2025-01, is effective for public entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently evaluating the impact that the updated standard will have on the Company’s disclosures within the consolidated financial statements. In May 2025, the FASB issued ASU 2025-04, Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. The ASU is effective for fiscal years beginning after December 15, 2026 with updates to be applied on a retrospective or modified retrospective basis. Early adoption is permitted. The Company is evaluating the impact that this standard will have on the Company’s consolidated financial statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU introduces a practical expedient and an accounting policy election to simplify the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The practical expedient allows entities to assume that conditions at the balance sheet date remain unchanged for the asset’s remaining life when preparing forecasts as part of estimating expected credit losses. The ASU is effective for fiscal years beginning after December 15, 2025, and is to be adopted on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements. The ASU clarifies the scope of interim reporting guidance, reorganizes disclosure requirements for ease of navigation, and introduces a principle requiring disclosure of material events occurring after the last annual reporting period but before interim financial statements are issued. The ASU does not create new disclosure requirements but improves clarity and consistency in presentation. The ASU is effective for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on the Company’s consolidated financial statements. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Management has evaluated recently issued accounting pronouncements outside of those mentioned above and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures.

Basis of Presentation The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the SEC. The audited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Elite Labs. All significant intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires management to make certain estimates and assumptions affecting amounts reported in the Company’s consolidated financial statements.

Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, chargeback liabilities related to revenue recognition, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense, and income taxes. The Company continuously evaluates its estimates, which are based on the information that is currently available to the Company and on various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from those estimates.

Segment Information Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 280 (“ASC 280”), Segment Reporting, establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Chief Executive Officer, who reviews the financial performance and the results of operations of the segments prepared in accordance with GAAP when making decisions about allocating resources and assessing performance of the Company. The Company previously determined that its reportable segments were products whose marketing approvals were secured via an Abbreviated New Drug Application (“ANDA”) and products whose marketing approvals were secured via a New Drug Application (“NDA”). ANDA products are referred to as generic pharmaceuticals and NDA products are referred to as branded pharmaceuticals. The Company identifies its reporting segments based on the marketing authorization relating to each and the financial information used by its chief operating decision maker to make decisions regarding the allocation of resources to and the financial performance of the reporting segments. The Company has paused further development of NDAs and has not engaged in business activities for several years, and does not intend to engage in business activities related to the development of NDAs for the foreseeable future. Therefore, as of March 31, 2026, the Company has determined that it operates in a 1single operating and reportable segment. Asset information by operating segment is not presented below since the chief operating decision maker does not review this information by segment. The ANDA segment follows the same accounting policies used in the preparation of the Company’s consolidated financial statements. Please see Note 14 for further details.

Revenue Recognition The Company generates revenue from manufacturing and licensing fees and direct sales to pharmaceutical distributors for pharmacies and institutions. Manufacturing fees include the development of pain management products, manufacturing of a line of generic pharmaceutical products with approved ANDA, through the manufacture of formulations and the development of new products. Licensing fees include the commercialization of products either by license and the collection of royalties, or the expansion of licensing agreements with other pharmaceutical companies, including co-development projects, joint ventures and other collaborations. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Under ASC 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when the customer obtains control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenues following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize revenues when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue.

Nature of goods and services The following is a description of the Company’s goods and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each, as applicable: a) Manufacturing Fees The Company is equipped to manufacture controlled-release products on a contract basis for third parties, if, and when, the products are approved. These products include products using controlled-release drug technology. The Company also develops and markets (either on its own or by license to other companies) generic and proprietary controlled-release pharmaceutical products. The Company recognizes manufacturing fees related to revenue generated from wholesale customers and from direct sale customers. Wholesalers represent customers that purchase the Company’s products and sell them to end customers such as hospitals, group purchasing organizations, institutions, and pharmacies. Direct sales customers purchase products directly from the Company. The Company provides for chargebacks to wholesalers for sales to various end-customers to include, but not limited to, hospitals, group purchasing organizations, and pharmacies. Chargebacks represent the difference between the price the wholesaler pays and the price that the end-customer pays for a product. The Company’s estimate for chargebacks is developed based upon management’s assumption of anticipated claims as well as historical information. Chargebacks represent variable consideration within the Company’s contracts and therefore as such, revenue recognized is limited to the amount for which a significant reversal of revenue related to this variable consideration is not probable. The Company recognizes revenue when the customer obtains control of the Company’s product based on the contractual shipping terms of the contract, at which time the performance obligation is deemed to be completed. The Company is primarily responsible for ensuring that the product is produced in accordance with the related supply agreement, and fulfilling the promise to deliver the product and bearing the risk of loss while the inventory is in-transit to the purchaser or commercial partner. Revenue is measured as the amount of consideration the Company expects to receive from the sale of its products, including Elite-labeled pharmaceutical products, and is recorded at net realizable value which consists of gross amounts invoiced reduced by contractual reductions, including, without limitation, chargebacks, discounts and program rebates, as applicable. b) License Fees The Company enters into licensing and development agreements, which may include multiple revenue generating activities, including milestones payments, licensing fees, product sales and services. The Company analyzes each element of its licensing and development agreements in accordance with ASC 606 to determine appropriate revenue recognition. The terms of the license agreement may include payment to the Company of licensing fees, non-refundable upfront license fees, milestone payments if specified objectives are achieved, and/or royalties on product sales. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. The Company determines standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company recognizes revenue from non-refundable upfront payments at a point in time, typically upon fulfilling the delivery of the associated intellectual property to the customer. For those milestone payments which are contingent on the occurrence of particular future events (for example, payments due upon a product receiving FDA approval), the Company determined that these need to be considered for inclusion in the calculation of total consideration from the contract as a component of variable consideration using the most-likely amount method. As such, the Company assesses each milestone to determine the probability and substance behind achieving each milestone. Given the inherent uncertainty of the occurrence of future events, the Company will recognize revenue from the milestone when there is not a high probability of a reversal of revenue, which typically occurs near or upon achievement of the event. Judgment is required to determine the level of effort required under an arrangement and the period over which the Company expects to complete its performance obligations under the arrangement. If the Company cannot reasonably estimate when its performance obligations either are completed or become inconsequential, then revenue recognition is deferred until the Company can reasonably make such estimates. Revenue is then recognized over the remaining estimated period of performance using the cumulative catch-up method. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. Applying the practical expedient in ASC 606-10-32-18, the Company does not assess whether a significant financing component exists if the period between when the Company performs its obligations under the contract and when the customer pays is one year or less. None of the Company’s contracts contained a significant financing component as of March 31, 2026. In accordance with ASC 606-10-55-65, royalties are recognized when the subsequent sale of the customer’s products occurs.

Disaggregation of revenue In the following table, revenue is disaggregated by type of revenue generated by the Company. The Company recognizes revenue at a point in time for all performance obligations. During the fiscal years ended March 31, 2026 and 2025, the Company has paused further development of NDAs and has not engaged in business activities in that segment. Accordingly during the fiscal years ended March 31, 2026 and 2025, the Company has only engaged in business activities in a single operating segment. Selected information on reportable segments and the reconciliation of operating income by segment to income from operation and to income (loss) before income taxes are disclosed within Note 14. The Company disaggregates manufacturing fees revenue by sales channel, consisting of revenues from direct and indirect wholesalers, which have different cash flows and contract economics as margins generated differ between direct and indirect revenues. Additionally, although the underlying arrangements are substantially similar, pricing to direct wholesalers yields higher margins than pricing to indirect wholesalers, while the timing and uncertainty of cash flows do not differ materially. The following table summarizes manufacturing fees by sales channel for the fiscal years ended March 31, 2026 and 2025: SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zW91aVhrM5Td" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_zPd0zKlKDu7c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--DirectSalesToWholesalersMember_zH6iP4x7k2A5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Direct sales to Wholesalers</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">65,273,763</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">48,008,986</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--IndirectSalesToWholesalersMember_zuX45Xf0G1va" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Indirect sales to Wholesalers</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">82,536,359</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,977,093</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ManufacturingFeesMember_zzawYnzAowIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Manufacturing Fees</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">147,810,122</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">81,986,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company’s revenue-generating products consist of two categories: (i) products containing an active ingredient listed by the United States Drug Enforcement Agency as a scheduled substance under the Controlled Substances Act of 1970 (“Scheduled Products”) and (ii) products not containing such a scheduled active ingredient (“Unscheduled Products”). The following table summarizes the breakdown of revenues by product category for the fiscal years ended March 31, 2026 and 2025: <div id="xdx_C05_gL3DORTTB-UJF_zFMDrwucg6A1"><table cellpadding="0" cellspacing="0" id="xdx_30C_134_ztLCZQMktaZi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF DISAGGREGATION OF REVENUE (Details)"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zKNLOPfh0mRh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_z9YbmsMewCRc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsManufacturingFeesMember_z0A93yOCSr41" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Scheduled Products – Manufacturing Fees</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">141,465,975</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">74,756,506</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsLicensingFeesMember_zIcO1TAaVUvf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Scheduled Products – Licensing Fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">465,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">248,789</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnScheduledProductsManufacturingFeesMember_zkEr4SL2ePZ9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unscheduled Products – Manufacturing Fees</td><td> </td> <td style="text-align: left"></td><td style="text-align: right">6,344,147</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,229,573</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnscheduledProductsLicensingFeesMember_ztcUhMdTf7Oh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Unscheduled Products – Licensing Fees</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"></td><td style="border-bottom: Black 1pt solid; text-align: right">594,486</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,809,061</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zKYXvPE7Rork" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">148,870,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,043,929</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> </div> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE OF DISAGGREGATION OF REVENUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zW91aVhrM5Td" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_zPd0zKlKDu7c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--DirectSalesToWholesalersMember_zH6iP4x7k2A5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Direct sales to Wholesalers</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">65,273,763</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">48,008,986</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--IndirectSalesToWholesalersMember_zuX45Xf0G1va" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Indirect sales to Wholesalers</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">82,536,359</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33,977,093</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ManufacturingFeesMember_zzawYnzAowIg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Manufacturing Fees</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">147,810,122</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">81,986,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" id="xdx_30C_134_ztLCZQMktaZi" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%" summary="xdx: Disclosure - SCHEDULE OF DISAGGREGATION OF REVENUE (Details)"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zKNLOPfh0mRh" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20240401__20250331_z9YbmsMewCRc" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsManufacturingFeesMember_z0A93yOCSr41" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Scheduled Products – Manufacturing Fees</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">141,465,975</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">74,756,506</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--ScheduledProductsLicensingFeesMember_zIcO1TAaVUvf" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Scheduled Products – Licensing Fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">465,511</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">248,789</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnScheduledProductsManufacturingFeesMember_zkEr4SL2ePZ9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unscheduled Products – Manufacturing Fees</td><td> </td> <td style="text-align: left"></td><td style="text-align: right">6,344,147</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,229,573</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_hsrt--ProductOrServiceAxis__custom--UnscheduledProductsLicensingFeesMember_ztcUhMdTf7Oh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Unscheduled Products – Licensing Fees</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"></td><td style="border-bottom: Black 1pt solid; text-align: right">594,486</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,809,061</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_zKYXvPE7Rork" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">148,870,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">84,043,929</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

65273763

48008986

82536359

33977093

147810122

81986079

141465975

74756506

465511

248789

6344147

7229573

594486

1809061

148870119

84043929

Cash Cash consists of cash on deposit with banks and money market instruments. The Company places its cash with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances.

Restricted Cash As of March 31, 2026 and 2025, the Company had $471,520 and $453,776, of restricted cash, respectively, related to debt service reserve in regard to the New Jersey Economic Development Authority (“NJEDA”) bonds (see Note 6).

471520

453776

Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are comprised of balances due from customers, net of estimated allowances for expected credit losses, and other contractual deductions, including, without limitation, chargebacks, discounts and program rebates. In determining collectability, historical trends are evaluated, and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. The allowance for expected credit losses is based on the probability of future collection under the current expected credited loss (“CECL”) impairment model under Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Assets. Under the CECL impairment model, the Company determines its allowance by applying a loss-rate method based on an aging schedule using the Company’s historical loss rate. The Company also considers reasonable and supportable current information in determining its estimated loss rates, such as external forecasts, macroeconomic trends or other factors including customers’ credit risk and historical loss experience. The adequacy of the allowance is evaluated on a regular basis. Account balances are written off after all means of collection are exhausted and the balance is deemed uncollectible. Subsequent recoveries are credited to the allowance. Changes in the allowance are recorded as adjustments to credit losses in the period incurred. The Company’s quantitative allowance for credit loss estimates under CECL was determined using the loss rate method, which is impacted by certain forecasted economic factors. In addition to the Company’s quantitative allowance for credit losses, the Company also incorporates qualitative adjustments that may relate to unique risks, changes in current economic conditions that may not be reflected in quantitatively derived results, or other relevant factors to further inform the Company’s estimate of the allowance for credit losses. Additionally, due to the expansion of the time horizon over which the Company is required to estimate future credit losses, the Company may experience increased volatility in its future provisions for credit losses. Factors that could contribute to such volatility include, but are not limited to, changes in the composition and credit quality of customer base, economic conditions and forecasts, the allowance for credit loss models that are used, the data that is included in the models, the associated qualitative allowance framework, and the Company’s estimation techniques. During the fiscal years ended March 31, 2026 and 2025, the Company incurred bad debt expenses of $1,053,990 and $151,258, respectively. As of March 31, 2026 and 2025, the Company’s allowance for credit losses was $1,441,523 and $387,533, respectively.

1053990

151258

1441523

387533

Inventory Inventory is recorded at the lower of cost or net realizable value on specific identification by lot number basis.

Long-Lived Assets The Company periodically evaluates the fair value of long-lived assets, which include property and equipment and intangibles, whenever events or changes in circumstances indicate that its carrying amounts may not be recoverable. Property and equipment are stated at cost. Depreciation is provided on the straight-line method based on the estimated useful lives of the respective assets which range from 3three to forty years. Major repairs or improvements are capitalized. Minor replacements and maintenance and repairs which do not improve or extend asset lives are expensed currently. Upon retirement or other disposition of assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is recognized in income. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

P3Y

P40Y

Intangible Assets The Company capitalizes certain costs to acquire intangible assets; if such assets are determined to have a finite useful life they are amortized on a straight-line basis over the estimated useful life. Costs to acquire indefinite lived intangible assets, such as costs related to ANDAs are capitalized accordingly. The Company tests its intangible assets for impairment at least annually (as of March 31st) and whenever events or circumstances change that indicate impairment may have occurred. Judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others and without limitation: a significant decline in the Company’s expected future cash flows; a sustained, significant decline in the Company’s stock price and market capitalization; a significant adverse change in legal factors or in the business climate of the Company’s segments; unanticipated competition; and slower growth rates.

Research and Development Research and development expenditures are charged to expenses as incurred.

Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Where applicable, the Company records a valuation allowance to reduce any deferred tax assets that it determines will not be realizable in the future. The Company recognizes the benefit of an uncertain tax position that it has taken or expects to take on income tax returns it files if such tax position is more likely than not to be sustained on examination by the taxing authorities, based on the technical merits of the position. These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company operates in multiple tax jurisdictions within the United States of America. The Company remains subject to examination in all tax jurisdiction until the applicable statutes of limitation expire. As of March 31, 2026, a summary of the tax years that remain subject to examination in the Company’s major tax jurisdictions are: United States – Federal, 2022 and forward, and State, 2021 and forward. The Company did not have any unrecognized tax positions for the years ended March 31, 2026 and 2025.

These tax benefits are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.

Warrants and Preferred Shares The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by ASC 470, Debt, ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging, as applicable. Each feature of a freestanding financial instrument including, without limitation, any rights relating to subsequent dilutive issuances, dividend issuances, equity sales, rights offerings, forced conversions, optional redemptions, automatic monthly conversions, dividends and exercise is assessed with determinations made regarding the proper classification in the Company’s financial statements.

Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation. Under the fair value recognition provisions, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, based on the terms of the awards. The cost of the stock-based payments to nonemployees that are fully vested and non-forfeitable as at the grant date is measured and recognized at that date, unless there is a contractual term for services in which case such compensation would be amortized over the contractual term. The Company accounts for forfeitures as they occur.

Earnings (Loss) Per Share The Company follows ASC 260, Earnings Per Share, which requires presentation of basic and diluted income (loss) per share (“EPS”) on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. In the accompanying financial statements, basic income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding during the period. The computation of diluted net income (loss) per share includes the assumed exercise of options and warrants if the effect is dilutive. The assumed exercise of the Series J Warrants was dilutive for the year ended March 31, 2026, and is therefore included in the diluted EPS calculation for that period. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As the Company was in a net loss position for the year ended March 31, 2025, the potential dilution from the Series J Warrants converting into <span id="xdx_90A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240401__20250331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z85IMhtslzBg" title="Conversion of warrants into stock">79,008,661 shares of Common Stock and the stock options being exercised for <span id="xdx_909_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20240401__20250331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--EmployeeStockOptionMember_zKqD3CjgPJQ8" title="Conversion of warrants and options into common stock">15,640,000 shares of Common Stock for these periods have been excluded from the number of shares used in calculating diluted net income (loss) per share as their inclusion would have been antidilutive. The following is the computation of earnings per share applicable to common shareholders for the periods indicated: SCHEDULE OF EARNINGS (LOSS) PER SHARE APPLICABLE TO COMMON SHAREHOLDERS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250401__20260331_zTBYpcnP6Upj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240401__20250331_zOsfqRq8voa4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Numerator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_maNILATztZi_ztiSgtS9z694" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net income (loss) - basic</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">44,872,686</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(4,314,659</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DilutiveSecuritiesEffectOnBasicEarningsPerShareOther_maNILATztZi_zimErtV4Rkk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Effect of dilutive instrument on net income - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_iT_mtNILATztZi_zddNt8IIWLee" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss) - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">37,017,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,314,659</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline">Denominator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_ma1_zEQGcqBPlYg4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average shares of Common Stock outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,072,837,856</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,068,290,368</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DilutiveSecurities_ma1_zSc6HfkTaKkd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Dilutive effect of stock options and convertible securities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">65,530,379</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_iT_mt1_zOkp6TPbh6u1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average shares of Common Stock outstanding - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,138,368,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,068,290,368</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--EarningsPerShareAbstract_iB_zo5PJCVRbSlb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net income (loss) per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--EarningsPerShareBasic_i01_zVEWTpKrGqr3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.04</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareDiluted_i01_zwNPpBNa2sfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> </table>

79008661

15640000

The following is the computation of earnings per share applicable to common shareholders for the periods indicated: SCHEDULE OF EARNINGS (LOSS) PER SHARE APPLICABLE TO COMMON SHAREHOLDERS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250401__20260331_zTBYpcnP6Upj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49F_20240401__20250331_zOsfqRq8voa4" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline">Numerator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_maNILATztZi_ztiSgtS9z694" style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left">Net income (loss) - basic</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">44,872,686</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(4,314,659</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--DilutiveSecuritiesEffectOnBasicEarningsPerShareOther_maNILATztZi_zimErtV4Rkk6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Effect of dilutive instrument on net income - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--NetIncomeLossAvailableToCommonStockholdersDiluted_iT_mtNILATztZi_zddNt8IIWLee" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Net income (loss) - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">37,017,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(4,314,659</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline">Denominator</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--WeightedAverageNumberOfSharesOutstandingBasic_ma1_zEQGcqBPlYg4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Weighted average shares of Common Stock outstanding - basic</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,072,837,856</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,068,290,368</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DilutiveSecurities_ma1_zSc6HfkTaKkd" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Dilutive effect of stock options and convertible securities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">65,530,379</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--WeightedAverageNumberOfDilutedSharesOutstanding_iT_mt1_zOkp6TPbh6u1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Weighted average shares of Common Stock outstanding - diluted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,138,368,235</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">1,068,290,368</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--EarningsPerShareAbstract_iB_zo5PJCVRbSlb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Net income (loss) per share</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--EarningsPerShareBasic_i01_zVEWTpKrGqr3" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Basic</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.04</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--EarningsPerShareDiluted_i01_zwNPpBNa2sfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Diluted</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">0.03</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(0.00</td><td style="text-align: left">)</td></tr> </table>

44872686

-4314659

-7855607

37017079

-4314659

1072837856

1068290368

65530379

1138368235

1068290368

0.04

-0.00

0.03

-0.00

Fair Value of Financial Instruments ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) provides a framework for measuring fair value in accordance with generally accepted accounting principles. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under ASC 820 are described as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.</td></tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify; width: 0.25in">●</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Level 3 – Inputs that are unobservable for the asset or liability.</td></tr></table> The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments. Based upon current borrowing rates with similar maturities the carrying value of long-term debt, and related party loans payable approximates fair value. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Non-Financial Assets that are Measured at Fair Value on a Non-Recurring Basis Non-financial assets such as intangible assets and property and equipment are measured at fair value only when an impairment loss is recognized. See Note 4 for additional information for the impairment loss recorded in relation to the Company’s intangible assets.

Treasury Stock The Company records treasury stock at the cost to acquire it and includes treasury stock as a component of shareholders’ equity.

Right-of-Use Asset and Lease Liability The Company accounts for leases in accordance with ASC 842, Leases (Topic 842) (“ASC 842”). A lessee should recognize the lease liability to make lease payments and the right-of-use asset representing its right to use the underlying asset for the lease term. For operating leases and finance leases, a right-of-use asset and a lease liability are initially measured at the present value of the lease payments by discount rates. The Company’s lease discount rates are generally based on its incremental borrowing rate, as the discount rates implicit in the Company’s leases is readily determinable. Operating leases are included in operating lease right-of-use assets and lease liabilities in the consolidated balance sheets. Finance leases are included in property and equipment and lease liability in the Company’s consolidated balance sheets. Lease expense for operating expense payments is recognized on a straight-line basis over the lease term. Interest and amortization expenses are recognized for finance leases on a straight-line basis over the lease term. For the leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term.

Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public entities, on an annual basis, to provide disclosure of specific categories in the rate reconciliation, as well as disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-09 for the year ended March 31, 2026, and applied the new disclosure requirements prospectively to the current annual period. Prior period disclosures have not been adjusted to reflect the new disclosure requirements. See Note 16 Income Taxes in the accompanying notes to the consolidated financial statements for further detail.

Recently Issued Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. In January 2025, the FASB issued ASU No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), Clarifying the Effective Date (“ASU-2024-03”). ASU 2024-03 requires public companies to disclose, in interim and reporting periods, additional information about certain expenses in the financial statements. ASU 2024-03, as clarified by ASU 2025-01, is effective for public entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted and is effective on either a prospective basis or retrospective basis. The Company is currently evaluating the impact that the updated standard will have on the Company’s disclosures within the consolidated financial statements. In May 2025, the FASB issued ASU 2025-04, Compensation-Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606): Clarifications to Share-Based Consideration Payable to a Customer to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services. The ASU is effective for fiscal years beginning after December 15, 2026 with updates to be applied on a retrospective or modified retrospective basis. Early adoption is permitted. The Company is evaluating the impact that this standard will have on the Company’s consolidated financial statements. In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The ASU introduces a practical expedient and an accounting policy election to simplify the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The practical expedient allows entities to assume that conditions at the balance sheet date remain unchanged for the asset’s remaining life when preparing forecasts as part of estimating expected credit losses. The ASU is effective for fiscal years beginning after December 15, 2025, and is to be adopted on a prospective basis. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements. The ASU clarifies the scope of interim reporting guidance, reorganizes disclosure requirements for ease of navigation, and introduces a principle requiring disclosure of material events occurring after the last annual reporting period but before interim financial statements are issued. The ASU does not create new disclosure requirements but improves clarity and consistency in presentation. The ASU is effective for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact this standard will have on the Company’s consolidated financial statements. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Management has evaluated recently issued accounting pronouncements outside of those mentioned above and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures.

NOTE 2. INVENTORY Inventory consisted of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_zD9K3k7P6R5k" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250331_z4opi5xLAR1h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_maINzVRp_zdJND8fqFRlf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">5,389,291</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,816,458</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryWorkInProcess_iI_maINzVRp_zIvscer3xUab" style="vertical-align: bottom; background-color: White"> <td>Work-in-progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,267,705</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,422,005</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryRawMaterials_iI_maINzVRp_zD4EZu9uHM0l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Raw materials</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,602,902</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,001,913</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryNet_iTI_mtINzVRp_zsbIzssNVYtk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,259,898</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,240,376</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Inventory consisted of the following: SCHEDULE OF INVENTORY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20260331_zD9K3k7P6R5k" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_499_20250331_z4opi5xLAR1h" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_402_eus-gaap--InventoryFinishedGoods_iI_maINzVRp_zdJND8fqFRlf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Finished goods</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">5,389,291</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">4,816,458</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--InventoryWorkInProcess_iI_maINzVRp_zIvscer3xUab" style="vertical-align: bottom; background-color: White"> <td>Work-in-progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,267,705</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,422,005</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryRawMaterials_iI_maINzVRp_zD4EZu9uHM0l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Raw materials</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,602,902</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,001,913</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryNet_iTI_mtINzVRp_zsbIzssNVYtk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Inventory</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,259,898</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,240,376</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

5389291

4816458

3267705

1422005

12602902

10001913

21259898

16240376

NOTE 3. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260331_zQcubqYabgi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20250331_z2NdD29KSos2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandBuildingsAndImprovementsMember_zxi3eNP85598" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Land, building and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,649,918</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,649,918</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--LaboratoryManufacturingWarehouseAndTransportationEquipmentMember_z2hVShs9L5S9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Laboratory, manufacturing, warehouse and transportation equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,701,634</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,776,008</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeEquipmentAndSoftwareMember_zI3yyMSMuNJl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office equipment and software</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373,601</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373,601</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zryCJFIlGpUe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">556,418</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">556,418</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzDF9_zQ53kSz3VWHg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,281,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,355,945</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzDF9_zXtOgtwnRdrc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,100,243</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(17,028,700</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzDF9_znNeYTwXOt4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,181,328</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,327,245</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depreciation expense was $1,071,543 and $1,226,399 for the years ended March 31, 2026 and 2025, respectively.

Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20260331_zQcubqYabgi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_492_20250331_z2NdD29KSos2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--LandBuildingsAndImprovementsMember_zxi3eNP85598" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Land, building and improvements</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,649,918</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,649,918</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--LaboratoryManufacturingWarehouseAndTransportationEquipmentMember_z2hVShs9L5S9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Laboratory, manufacturing, warehouse and transportation equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">15,701,634</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,776,008</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficeEquipmentAndSoftwareMember_zI3yyMSMuNJl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Office equipment and software</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373,601</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">373,601</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--PropertyPlantAndEquipmentGross_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--FurnitureAndFixturesMember_zryCJFIlGpUe" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">556,418</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">556,418</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--PropertyPlantAndEquipmentGross_iI_maPPAENzDF9_zQ53kSz3VWHg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Property and equipment, gross</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">28,281,571</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,355,945</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_di_msPPAENzDF9_zXtOgtwnRdrc" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Less: Accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(18,100,243</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(17,028,700</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzDF9_znNeYTwXOt4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,181,328</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,327,245</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

11649918

15701634

14776008

373601

556418

28281571

27355945

18100243

17028700

10181328

10327245

1071543

1226399

NOTE 4. INTANGIBLE ASSETS <p id="xdx_894_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_gL3SOFLIATTB-CWUNZGX_zyQj8aJ9LZ62" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The following table summarizes the Company’s intangible assets as of and for the periods ended March 31, 2026 and 2025: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="21" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Impairment losses</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Book Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left">Patent application costs</td><td style="width: 2%"> </td> <td style="width: 9%; text-align: center">-*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zs8AiWW1vyul" style="width: 9%; text-align: right" title="Gross Carrying Amount">289,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zu0VXQx5Swrf" style="width: 9%; text-align: right" title="Additions">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zLCMQToUqMfc" style="width: 9%; text-align: right" title="Impairment losses">(289,039</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zyb3JgBktebg" style="width: 9%; text-align: right" title="Accumulated Amortization">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zUlJVt8ugqzj" style="width: 9%; text-align: right" title="Net Book Value">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">ANDA acquisition costs</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_903_eus-gaap--ImpairedIntangibleAssetDescription_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zvdg694knj" title="Estimated Useful Life">Indefinite</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zdRwFdQFNsF2" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying Amount">5,348,763</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zVvyNVChkNVk" style="border-bottom: Black 1pt solid; text-align: right" title="Additions">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zQoebrAJnEKj" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment losses">(557,973</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zjInWS8d0Nqf" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zQdTILY4JDDa" style="border-bottom: Black 1pt solid; text-align: right" title="Net Book Value">4,790,790</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331_zL4R4blTvFMk" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross Carrying Amount">5,637,802</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331_zizncU24BgCk" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331_zTqZKGMbk5w" style="border-bottom: Black 2.5pt double; text-align: right" title="Impairment losses">(847,012</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331_zbleP2ngXAaa" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331_zriYQTZ72Bfe" style="border-bottom: Black 2.5pt double; text-align: right" title="Net Book Value">4,790,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="21" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Impairment losses</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Book Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left">Patent application costs</td><td style="width: 2%"> </td> <td style="width: 9%; text-align: center">-*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zURI6FrmhwKb" style="width: 9%; text-align: right" title="Gross Carrying Amount">289,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zeOCNtKjuggc" style="width: 9%; text-align: right" title="Additions">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zDFMoKbgqfqb" style="width: 9%; text-align: right" title="Impairment losses">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zyEhZmlp77uf" style="width: 9%; text-align: right" title="Accumulated Amortization">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zSeP5KjFjnx3" style="width: 9%; text-align: right" title="Net Book Value">289,039</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">ANDA acquisition costs</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_907_eus-gaap--ImpairedIntangibleAssetDescription_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zHbIiJFSEbLk" title="Estimated Useful Life">Indefinite</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zxBruMLESXGd" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying Amount">6,052,189</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zh80GYhzLk9l" style="border-bottom: Black 1pt solid; text-align: right" title="Additions">900,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_z78rUvbjTrPj" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment losses">(1,603,426</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zXPVGnAg6B4i" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zcYuL9yak6Y6" style="border-bottom: Black 1pt solid; text-align: right" title="Net Book Value">5,348,763</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331_znf21orJVTRj" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross Carrying Amount">6,341,228</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331_zhHkj8RYaiJl" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions">900,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331_zzwGk3yc3cT7" style="border-bottom: Black 2.5pt double; text-align: right" title="Impairment losses">(1,603,426</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331_zx5zxWEGnNzh" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331_z5JnOgUb7iq4" style="border-bottom: Black 2.5pt double; text-align: right" title="Net Book Value">5,637,802</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; display: none; margin-top: 0pt; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td id="xdx_F09_zHEvn2fbhiEg" style="width: 15pt; text-align: right">*</td><td style="width: 5pt"></td><td id="xdx_F16_zd3cq7jAS2Bl" style="text-align: justify">Patent application costs were incurred in relation to the Company’s abuse deterrent opioid technology. Amortization of the patent costs would have begun upon the issuance of marketing authorization by the FDA. During the year ended March 31, 2026, these costs were impaired in full as discussed above.</td> </tr></table> On June 17, 2024, the Company and Nostrum Laboratories Inc. (“Nostrum”) entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”), pursuant to which Nostrum was obligated to (i) sell to the Company all of its rights in and to the approved abbreviated new drug applications (ANDAs) for generic Norco® (Hydrocodone Bitartrate and Acetaminophen tablets, USP CII), generic Percocet® (Oxycodone Hydrochloride and Acetaminophen, USP CII), and generic Dolophine® (Methadone Hydrochloride tablets), each a “Product”, and (ii) grant to the Company a royalty-free, non-exclusive perpetual license to use the manufacturing technology, proprietary information, processes, techniques, protocols, methods, know-how, and improvements necessary or used to manufacture each Product in accordance with the applicable ANDA, in exchange for $900,000 in cash (the “Transaction”). The Asset Purchase Agreement includes customary representations and warranties and various customary covenants. The closing of the Transaction occurred on June 21, 2024. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS During the year ended March 31, 2026, the Company determined indicators of impairment occurred related to the Loxapine intangible asset, an ANDA product, and recorded impairment expense of $557,973. Additionally, the patent related to the Company’s abuse deterrent opioid technology expired during the year ended March 31, 2026, before marketing authorization was obtained from the FDA, and as such the Company impaired this intangible asset in full in the amount of $<span id="xdx_904_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_do_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zuwwAKly4C2b" title="Gross Carrying Amount">289,039. During the year ended March 31, 2025, the Company determined indicators of impairment occurred related to the Dantrolene and Phentermine intangible assets, both ANDA products, and recorded impairment expense of $1,603,426. <div id="xdx_C04_gL3SOFLIATTB-CWUNZGX_z05GxtMQYOlj">* Patent application costs were incurred in relation to the Company’s abuse deterrent opioid technology. Amortization of the patent costs would have begun upon the issuance of marketing authorization by the FDA. During the year ended March 31, 2026, these costs were impaired in full as discussed above. </div>

<p id="xdx_894_eus-gaap--ScheduleOfFiniteLivedIntangibleAssetsTableTextBlock_gL3SOFLIATTB-CWUNZGX_zyQj8aJ9LZ62" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The following table summarizes the Company’s intangible assets as of and for the periods ended March 31, 2026 and 2025: SCHEDULE OF INTANGIBLE ASSETS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="21" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Impairment losses</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Book Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left">Patent application costs</td><td style="width: 2%"> </td> <td style="width: 9%; text-align: center">-*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zs8AiWW1vyul" style="width: 9%; text-align: right" title="Gross Carrying Amount">289,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zu0VXQx5Swrf" style="width: 9%; text-align: right" title="Additions">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zLCMQToUqMfc" style="width: 9%; text-align: right" title="Impairment losses">(289,039</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zyb3JgBktebg" style="width: 9%; text-align: right" title="Accumulated Amortization">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zUlJVt8ugqzj" style="width: 9%; text-align: right" title="Net Book Value">—</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">ANDA acquisition costs</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_903_eus-gaap--ImpairedIntangibleAssetDescription_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zvdg694knj" title="Estimated Useful Life">Indefinite</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zdRwFdQFNsF2" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying Amount">5,348,763</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zVvyNVChkNVk" style="border-bottom: Black 1pt solid; text-align: right" title="Additions">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zQoebrAJnEKj" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment losses">(557,973</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zjInWS8d0Nqf" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zQdTILY4JDDa" style="border-bottom: Black 1pt solid; text-align: right" title="Net Book Value">4,790,790</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20260331_zL4R4blTvFMk" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross Carrying Amount">5,637,802</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20250401__20260331_zizncU24BgCk" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20250401__20260331_zTqZKGMbk5w" style="border-bottom: Black 2.5pt double; text-align: right" title="Impairment losses">(847,012</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20260331_zbleP2ngXAaa" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20260331_zriYQTZ72Bfe" style="border-bottom: Black 2.5pt double; text-align: right" title="Net Book Value">4,790,790</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="21" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Estimated Useful Life</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Gross Carrying Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Additions</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Impairment losses</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Accumulated Amortization</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Net Book Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 24%; text-align: left">Patent application costs</td><td style="width: 2%"> </td> <td style="width: 9%; text-align: center">-*</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zURI6FrmhwKb" style="width: 9%; text-align: right" title="Gross Carrying Amount">289,039</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zeOCNtKjuggc" style="width: 9%; text-align: right" title="Additions">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_981_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zDFMoKbgqfqb" style="width: 9%; text-align: right" title="Impairment losses">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zyEhZmlp77uf" style="width: 9%; text-align: right" title="Accumulated Amortization">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--PatentApplicationCostsMember_zSeP5KjFjnx3" style="width: 9%; text-align: right" title="Net Book Value">289,039</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">ANDA acquisition costs</td><td style="padding-bottom: 1pt"> </td> <td style="text-align: center; padding-bottom: 1pt"><span id="xdx_907_eus-gaap--ImpairedIntangibleAssetDescription_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zHbIiJFSEbLk" title="Estimated Useful Life">Indefinite</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zxBruMLESXGd" style="border-bottom: Black 1pt solid; text-align: right" title="Gross Carrying Amount">6,052,189</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zh80GYhzLk9l" style="border-bottom: Black 1pt solid; text-align: right" title="Additions">900,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_z78rUvbjTrPj" style="border-bottom: Black 1pt solid; text-align: right" title="Impairment losses">(1,603,426</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zXPVGnAg6B4i" style="border-bottom: Black 1pt solid; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331__us-gaap--FiniteLivedIntangibleAssetsByMajorClassAxis__custom--ANDAAcquisitionCostsMember_zcYuL9yak6Y6" style="border-bottom: Black 1pt solid; text-align: right" title="Net Book Value">5,348,763</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98D_eus-gaap--FiniteLivedIntangibleAssetsGross_iI_c20250331_znf21orJVTRj" style="border-bottom: Black 2.5pt double; text-align: right" title="Gross Carrying Amount">6,341,228</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--FinitelivedIntangibleAssetsAcquired1_c20240401__20250331_zhHkj8RYaiJl" style="border-bottom: Black 2.5pt double; text-align: right" title="Additions">900,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--OtherAssetImpairmentCharges_iN_di_c20240401__20250331_zzwGk3yc3cT7" style="border-bottom: Black 2.5pt double; text-align: right" title="Impairment losses">(1,603,426</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--FiniteLivedIntangibleAssetsAccumulatedAmortization_iI_c20250331_zx5zxWEGnNzh" style="border-bottom: Black 2.5pt double; text-align: right" title="Accumulated Amortization">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--FiniteLivedIntangibleAssetsNet_iI_c20250331_z5JnOgUb7iq4" style="border-bottom: Black 2.5pt double; text-align: right" title="Net Book Value">5,637,802</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> * Patent application costs were incurred in relation to the Company’s abuse deterrent opioid technology. Amortization of the patent costs would have begun upon the issuance of marketing authorization by the FDA. During the year ended March 31, 2026, these costs were impaired in full as discussed above.

289039

Indefinite

5348763

557973

4790790

5637802

847012

4790790

289039

Indefinite

6052189

900000

1603426

5348763

6341228

900000

1603426

5637802

900000

557973

289039

1603426

NOTE 5. ACCRUED EXPENSES Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20260331_zVOJ7K8sQO23" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250331_zGkbVnwHFfBe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--AccruedCodevelopmentProfitSplit_iI_maALCzIQJ_zFEljB773q6i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Co-development profit split</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,616,950</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,617,210</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedIncomeTaxesCurrent_iI_maALCzIQJ_ztnsByzYSX63" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">594,181</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">340,614</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccruedBonusesCurrent_iI_maALCzIQJ_zMpZzYaWH4U" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Employee bonuses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,285,256</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">121,885</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccruedProfessionalFeesCurrent_iI_maALCzIQJ_zrT1Qy9d6pi5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Audit fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">75,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LitigationReserveCurrent_iI_maALCzIQJ_zNJuy2o4JTgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legal and professional expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">282,672</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AccruedDirectorDues_iI_maALCzIQJ_zQKIYNIGeVv7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Director dues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccruedSalariesCurrent_iI_maALCzIQJ_zMGc1ERRkxHe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Salaries and fees payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">273,059</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">172,655</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--AccruedInterestRelatedParties_iI_maALCzIQJ_ztjBmHmq02Nk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest - related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_maALCzIQJ_zz0Cc6gaFKGb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other accrued expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">619,604</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">290,363</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedLiabilitiesCurrent_iTI_mtALCzIQJ_z7NNDglbZG19" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total accrued expenses</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,194,222</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,795,227</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Accrued expenses consisted of the following: SCHEDULE OF ACCRUED EXPENSES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_498_20260331_zVOJ7K8sQO23" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_493_20250331_zGkbVnwHFfBe" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_407_ecustom--AccruedCodevelopmentProfitSplit_iI_maALCzIQJ_zFEljB773q6i" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Co-development profit split</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,616,950</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,617,210</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--AccruedIncomeTaxesCurrent_iI_maALCzIQJ_ztnsByzYSX63" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">594,181</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">340,614</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--AccruedBonusesCurrent_iI_maALCzIQJ_zMpZzYaWH4U" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Employee bonuses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">5,285,256</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">121,885</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--AccruedProfessionalFeesCurrent_iI_maALCzIQJ_zrT1Qy9d6pi5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Audit fees</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">500,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">75,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LitigationReserveCurrent_iI_maALCzIQJ_zNJuy2o4JTgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Legal and professional expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">282,672</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">55,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--AccruedDirectorDues_iI_maALCzIQJ_zQKIYNIGeVv7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Director dues</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">22,500</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--AccruedSalariesCurrent_iI_maALCzIQJ_zMGc1ERRkxHe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Salaries and fees payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">273,059</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">172,655</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--AccruedInterestRelatedParties_iI_maALCzIQJ_ztjBmHmq02Nk" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Accrued interest - related parties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--OtherAccruedLiabilitiesCurrent_iI_maALCzIQJ_zz0Cc6gaFKGb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Other accrued expenses</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">619,604</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">290,363</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--AccruedLiabilitiesCurrent_iTI_mtALCzIQJ_z7NNDglbZG19" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total accrued expenses</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,194,222</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">3,795,227</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2616950 2617210

594181

340614

5285256

121885

500000

75000

282672

55000

22500 22500

273059

172655

100000

619604

290363

10194222

3795227

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 <span id="xdx_903_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20050831__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zitpKdfiEgEj" title="Interest rate stated percentage">6.5% Series A Note in the principal amount of $3,660,000 maturing on September 1, 2030 and a <span id="xdx_90B_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20050831__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesBNotesMember_zKpsd1onB2Rd" title="Interest rate stated percentage">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: SCHEDULE OF BONDS PAYABLE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Gross bonds payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">NJEDA Bonds - Series A Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--BondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zx27QIMQrrCi" style="width: 16%; text-align: right" title="NJEDA Bonds - Series A Notes">850,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--BondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zorHdoS3Q2Q" style="width: 16%; text-align: right" title="NJEDA Bonds - Series A Notes">990,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Current portion of bonds payable (prior to deduction of bond offering costs)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--BondsPayableCurrentGross_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zjvlK02yithf" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Current portion of bonds payable (prior to deduction of bond offering costs)">(150,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_ecustom--BondsPayableCurrentGross_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zk16UI0xceFe" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Current portion of bonds payable (prior to deduction of bond offering costs)">(140,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Long-term portion of bonds payable (prior to deduction of bond offering costs)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zjrFYbXr5wD7" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term portion of bonds payable (prior to deduction of bond offering costs)">700,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_z8LnJGxo2WDd" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term portion of bonds payable (prior to deduction of bond offering costs)">850,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Bond offering costs</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DeferredFinanceCostsGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zbwQwJBcGMpl" style="text-align: right" title="Bond offering costs">354,454</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--DeferredFinanceCostsGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zYBewRM8wtQ8" style="text-align: right" title="Bond offering costs">354,454</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AccumulatedAmortizationDeferredFinanceCosts_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zfRd30ACNvtf" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated amortization">(291,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--AccumulatedAmortizationDeferredFinanceCosts_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_z1pd3jN2z5Mc" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated amortization">(277,657</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Bond offering costs, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DeferredFinanceCostsNet_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zeS2nbvcgSwh" style="border-bottom: Black 2.5pt double; text-align: right" title="Bond offering costs, net">62,619</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DeferredFinanceCostsNet_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zE6FMWCl1ba3" style="border-bottom: Black 2.5pt double; text-align: right" title="Bond offering costs, net">76,797</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Current portion of bonds payable - net of bond offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Current portions of bonds payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--BondsPayableGrossCurrent_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z1LDcLSJONlb" style="text-align: right" title="Current portions of bonds payable">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--BondsPayableGrossCurrent_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z2jxyVAk8Lpd" style="text-align: right" title="Current portions of bonds payable">140,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Bonds offering costs to be amortized in the next 12 months</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zAXq5ylt4dbk" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bonds offering costs to be amortized in the next 12 months">(14,178</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z6KtU5cgucJ4" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bonds offering costs to be amortized in the next 12 months">(14,178</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Current portion of bonds payable, net of bond offering costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DebtSecuritiesCurrent_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zlkL1Ito0Q77" style="border-bottom: Black 2.5pt double; text-align: right" title="Current portion of bonds payable, net of bond offering costs">135,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DebtSecuritiesCurrent_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zNXlyFLkJoT1" style="border-bottom: Black 2.5pt double; text-align: right" title="Current portion of bonds payable, net of bond offering costs">125,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Long term portion of bonds payable - net of bond offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Long term portion of bonds payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_z1CbydejYJOd" style="text-align: right" title="Long term portion of bonds payable">700,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zbGZkJnbArpl" style="text-align: right" title="Long term portion of bonds payable">850,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Bond offering costs to be amortized subsequent to the next 12 months</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--DeferredFinanceCostsNoncurrentNet_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zbj0VFWyxhY4" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bond offering costs to be amortized subsequent to the next 12 months">(48,441</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DeferredFinanceCostsNoncurrentNet_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zN5X0qFuGDba" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bond offering costs to be amortized subsequent to the next 12 months">(62,619</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Long term portion of bonds payable, net of bond offering costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--LongTermDebt_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zDcuPqZo7vLf" style="border-bottom: Black 2.5pt double; text-align: right" title="Long term portion of bonds payable, net of bond offering costs">651,559</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LongTermDebt_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zL2AxJfuUfNf" style="border-bottom: Black 2.5pt double; text-align: right" title="Long term portion of bonds payable, net of bond offering costs">787,381</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 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 $67,871 for the years ended March 31, 2026 and 2025, respectively. Maturities of bonds for the next five years are as follows: SCHEDULE OF MATURITIES OF BONDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20260331__us-gaap--LongtermDebtTypeAxis__custom--NJEDABondsMember_zG4mQn6Pcd9l" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzzZi_zw1zjh4nNsMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">150,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzzZi_zWdH2camEet3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLTDzzZi_z4nIGu8O2V32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzzZi_z1iZN1UlcnMg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzzZi_zxcqaUbI7CRj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">2031</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">190,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LongTermDebt_iTI_mtLTDzzZi_z1Q0PBjULst8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">850,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4155000

0.065

3660000

2030-09-01

0.09

495000

2012-09-01

0.065

The following tables summarize the Company’s bonds payable liability: SCHEDULE OF BONDS PAYABLE LIABILITY <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Gross bonds payable</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">NJEDA Bonds - Series A Notes</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--BondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zx27QIMQrrCi" style="width: 16%; text-align: right" title="NJEDA Bonds - Series A Notes">850,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--BondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zorHdoS3Q2Q" style="width: 16%; text-align: right" title="NJEDA Bonds - Series A Notes">990,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Current portion of bonds payable (prior to deduction of bond offering costs)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_ecustom--BondsPayableCurrentGross_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zjvlK02yithf" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Current portion of bonds payable (prior to deduction of bond offering costs)">(150,000</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_ecustom--BondsPayableCurrentGross_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zk16UI0xceFe" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Current portion of bonds payable (prior to deduction of bond offering costs)">(140,000</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Long-term portion of bonds payable (prior to deduction of bond offering costs)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zjrFYbXr5wD7" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term portion of bonds payable (prior to deduction of bond offering costs)">700,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_z8LnJGxo2WDd" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term portion of bonds payable (prior to deduction of bond offering costs)">850,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Bond offering costs</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--DeferredFinanceCostsGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zbwQwJBcGMpl" style="text-align: right" title="Bond offering costs">354,454</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--DeferredFinanceCostsGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zYBewRM8wtQ8" style="text-align: right" title="Bond offering costs">354,454</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Accumulated amortization</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--AccumulatedAmortizationDeferredFinanceCosts_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zfRd30ACNvtf" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated amortization">(291,835</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--AccumulatedAmortizationDeferredFinanceCosts_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_z1pd3jN2z5Mc" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Accumulated amortization">(277,657</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Bond offering costs, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DeferredFinanceCostsNet_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zeS2nbvcgSwh" style="border-bottom: Black 2.5pt double; text-align: right" title="Bond offering costs, net">62,619</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--DeferredFinanceCostsNet_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsSeriesANotesMember_zE6FMWCl1ba3" style="border-bottom: Black 2.5pt double; text-align: right" title="Bond offering costs, net">76,797</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left">Current portion of bonds payable - net of bond offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Current portions of bonds payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_ecustom--BondsPayableGrossCurrent_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z1LDcLSJONlb" style="text-align: right" title="Current portions of bonds payable">150,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--BondsPayableGrossCurrent_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z2jxyVAk8Lpd" style="text-align: right" title="Current portions of bonds payable">140,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Bonds offering costs to be amortized in the next 12 months</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zAXq5ylt4dbk" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bonds offering costs to be amortized in the next 12 months">(14,178</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--DeferredFinanceCostsCurrentNet_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_z6KtU5cgucJ4" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bonds offering costs to be amortized in the next 12 months">(14,178</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Current portion of bonds payable, net of bond offering costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DebtSecuritiesCurrent_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zlkL1Ito0Q77" style="border-bottom: Black 2.5pt double; text-align: right" title="Current portion of bonds payable, net of bond offering costs">135,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DebtSecuritiesCurrent_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsCurrentMember_zNXlyFLkJoT1" style="border-bottom: Black 2.5pt double; text-align: right" title="Current portion of bonds payable, net of bond offering costs">125,822</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-decoration: underline; text-align: left">Long term portion of bonds payable - net of bond offering costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Long term portion of bonds payable</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_z1CbydejYJOd" style="text-align: right" title="Long term portion of bonds payable">700,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--LongTermBondsPayableGross_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zbGZkJnbArpl" style="text-align: right" title="Long term portion of bonds payable">850,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Less: Bond offering costs to be amortized subsequent to the next 12 months</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--DeferredFinanceCostsNoncurrentNet_iNI_pp0p0_di_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zbj0VFWyxhY4" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bond offering costs to be amortized subsequent to the next 12 months">(48,441</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DeferredFinanceCostsNoncurrentNet_iNI_pp0p0_di_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zN5X0qFuGDba" style="border-bottom: Black 1pt solid; text-align: right" title="Less: Bond offering costs to be amortized subsequent to the next 12 months">(62,619</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Long term portion of bonds payable, net of bond offering costs</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--LongTermDebt_iI_pp0p0_c20260331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zDcuPqZo7vLf" style="border-bottom: Black 2.5pt double; text-align: right" title="Long term portion of bonds payable, net of bond offering costs">651,559</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--LongTermDebt_iI_pp0p0_c20250331__us-gaap--LongtermDebtTypeAxis__custom--NjedaBondsNoncurrentMember_zL2AxJfuUfNf" style="border-bottom: Black 2.5pt double; text-align: right" title="Long term portion of bonds payable, net of bond offering costs">787,381</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

850000 990000 150000 140000 700000 850000

354454

291835

277657

62619

76797

150000 140000

14178

135822

125822

700000 850000

48441

62619

651559

787381

14178

4604

5363

59042

67871

Maturities of bonds for the next five years are as follows: SCHEDULE OF MATURITIES OF BONDS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20260331__us-gaap--LongtermDebtTypeAxis__custom--NJEDABondsMember_zG4mQn6Pcd9l" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_404_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLTDzzZi_zw1zjh4nNsMj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: justify">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">150,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLTDzzZi_zWdH2camEet3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">160,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLTDzzZi_z4nIGu8O2V32" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">170,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLTDzzZi_z1iZN1UlcnMg" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">180,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLTDzzZi_zxcqaUbI7CRj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1pt">2031</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">190,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LongTermDebt_iTI_mtLTDzzZi_z1Q0PBjULst8" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">850,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

150000

160000

170000

180000

190000

850000

NOTE 7. LOANS PAYABLE On July 1, 2022, the East West Bank (“EWB”) provided a mortgage loan (“EWB Mortgage Loan”) in the amount of $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfDebt_pn4n6_c20220701__20220701__dei--LegalEntityAxis__custom--EastWestBankMember__us-gaap--LongtermDebtTypeAxis__us-gaap--MortgagesMember_z17KtAXQezS3" title="Proceeds from issuance of debt">2.55 million for the purchase of the property at 135-137 Ludlow Avenue, which was formerly a lease held by the Company. The EWB Mortgage Loan matures in <span id="xdx_90C_eus-gaap--DebtInstrumentTerm_dtY_c20220701__20220701__dei--LegalEntityAxis__custom--EastWestBankMember__us-gaap--LongtermDebtTypeAxis__us-gaap--MortgagesMember_zTruk8WXOIb2" title="Debt term">10 years and <span id="xdx_903_eus-gaap--DebtInstrumentInterestRateTerms_c20220701__20220701__dei--LegalEntityAxis__custom--EastWestBankMember__us-gaap--LongtermDebtTypeAxis__us-gaap--MortgagesMember_zONTKuXNWEAe" title="Interest rate, description">bears interest at a rate of 4.75% fixed for 5 years then adjustable at the Wall Street Journal Prime Rate (“WSJP”) plus 0.5% with floor rate of 4.5%. <span id="xdx_905_eus-gaap--DebtInstrumentDescription_c20220701__20220701__dei--LegalEntityAxis__custom--EastWestBankMember__us-gaap--LongtermDebtTypeAxis__us-gaap--MortgagesMember_z74pZ7v3F4ue" title="Debt instrument, description">The EWB Mortgage Loan contains customary representations, warranties and covenants. These covenants include maintaining a minimum debt coverage ratio of 1.50 to 1.00 tested annually and a minimum trailing 12-month debt coverage ratio of 1.50 to 1.00. As of the date of this filing, the Company was in compliance with each financial covenant. The Company has entered into a collateralized promissory note with individual lenders (a “Promissory Note”). As of June 2, 2023, a Promissory Note was placed with Nasrat Hakim, CEO and Chairman of the Board of Directors, for $3,000,000. Refer to Note 8 for information regarding the Promissory Note. Loans payable consisted of the following: SCHEDULE OF LOANS PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_z5MsKgd8CGq3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20250331_zeUTBI19amob" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_ecustom--MortgageLoanPayable_iI_zjXQy96g67Fa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Mortgage loan payable <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_905_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20260331__us-gaap--LongtermDebtTypeAxis__custom--MortgageLoanMember_zKjc7wnidMg6" title="Mortgage loan interest rate"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--LongtermDebtTypeAxis__custom--MortgageLoanMember_znxmPyC3TmVa" title="Mortgage loan interest rate">4.75% interest and maturing June 2032</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,245,743</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,334,163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LoansPayable_iI_ziXwdhRmosmj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment and insurance financing loans payable, between <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_903_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--LongtermDebtTypeAxis__custom--EquipmentAndInsuranceFinancingLoanMember_z5y3nfxo8SCl" title="Equipment and insurance financing loans payable interest rate">5.99% and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--LongtermDebtTypeAxis__custom--EquipmentAndInsuranceFinancingLoanMember_zaFWxLxEaXqf" title="Equipment and insurance financing loans payable interest rate">12.02% interest and maturing between April 2025 and October 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,324</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LoansPayableCurrent_iNI_di_zcHkrb7kQmE9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Current portion of loans payable</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(92,774</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(120,744</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--LongTermLoansPayable_iI_zVC5x9pCd0l7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term portion of loans payable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,152,969</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,245,743</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The interest expense associated with the loans payable was $111,361 and $128,234 for the years ended March 31, 2026 and 2025, respectively. Loan principal payments for the next five years are as follows: SCHEDULE OF LOAN PRINCIPAL PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; font-weight: bold">Future principal balances</td><td> </td> <td colspan="2" id="xdx_499_20260331__us-gaap--LongtermDebtTypeAxis__us-gaap--LoansPayableMember_zuCNhJn6zU1k"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left; font-weight: bold">Years ending March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLPz2Cv_zpK0llMgz6ok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">92,774</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLPz2Cv_zafLUkgYYCy7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94,433</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLPz2Cv_zYfICKRoM5ub" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,447</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLPz2Cv_zIBNGeifjeJ2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,817</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLPz2Cv_zEHubsFdkTz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2031</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109,482</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFour_iI_maLPz2Cv_zuEpprW3qCJ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,746,790</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LongTermDebt_iTI_mtLPz2Cv_zsuLVmZZuYq4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total remaining principal balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,245,743</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2550000

P10Y

bears interest at a rate of 4.75% fixed for 5 years then adjustable at the Wall Street Journal Prime Rate (“WSJP”) plus 0.5% with floor rate of 4.5%.

The EWB Mortgage Loan contains customary representations, warranties and covenants. These covenants include maintaining a minimum debt coverage ratio of 1.50 to 1.00 tested annually and a minimum trailing 12-month debt coverage ratio of 1.50 to 1.00. As of the date of this filing, the Company was in compliance with each financial covenant.

3000000

Loans payable consisted of the following: SCHEDULE OF LOANS PAYABLE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_z5MsKgd8CGq3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20250331_zeUTBI19amob" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_ecustom--MortgageLoanPayable_iI_zjXQy96g67Fa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Mortgage loan payable <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_905_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20260331__us-gaap--LongtermDebtTypeAxis__custom--MortgageLoanMember_zKjc7wnidMg6" title="Mortgage loan interest rate"><span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_90D_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_uPure_c20250331__us-gaap--LongtermDebtTypeAxis__custom--MortgageLoanMember_znxmPyC3TmVa" title="Mortgage loan interest rate">4.75% interest and maturing June 2032</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,245,743</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">2,334,163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--LoansPayable_iI_ziXwdhRmosmj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Equipment and insurance financing loans payable, between <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_903_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260331__srt--RangeAxis__srt--MinimumMember__us-gaap--LongtermDebtTypeAxis__custom--EquipmentAndInsuranceFinancingLoanMember_z5y3nfxo8SCl" title="Equipment and insurance financing loans payable interest rate">5.99% and <span class="xdx_phnt_RGlzY2xvc3VyZSAtIFNDSEVEVUxFIE9GIExPQU5TIFBBWUFCTEUgKERldGFpbHMpIChQYXJlbnRoZXRpY2FsKQA_" id="xdx_900_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_uPure_c20260331__srt--RangeAxis__srt--MaximumMember__us-gaap--LongtermDebtTypeAxis__custom--EquipmentAndInsuranceFinancingLoanMember_zaFWxLxEaXqf" title="Equipment and insurance financing loans payable interest rate">12.02% interest and maturing between April 2025 and October 2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">32,324</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LoansPayableCurrent_iNI_di_zcHkrb7kQmE9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: Current portion of loans payable</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(92,774</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(120,744</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--LongTermLoansPayable_iI_zVC5x9pCd0l7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term portion of loans payable</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,152,969</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,245,743</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

0.0475

2245743 2334163

0.0599

0.1202

32324

92774

120744

2152969

2245743

111361

128234

Loan principal payments for the next five years are as follows: SCHEDULE OF LOAN PRINCIPAL PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: left; font-weight: bold">Future principal balances</td><td> </td> <td colspan="2" id="xdx_499_20260331__us-gaap--LongtermDebtTypeAxis__us-gaap--LoansPayableMember_zuCNhJn6zU1k"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: left; font-weight: bold">Years ending March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths_iI_maLPz2Cv_zpK0llMgz6ok" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">92,774</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo_iI_maLPz2Cv_zafLUkgYYCy7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">94,433</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree_iI_maLPz2Cv_zYfICKRoM5ub" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">98,447</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFour_iI_maLPz2Cv_zIBNGeifjeJ2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,817</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--LongTermDebtMaturitiesRepaymentsOfPrincipalInYearFive_iI_maLPz2Cv_zEHubsFdkTz6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2031</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">109,482</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_ecustom--LongTermDebtMaturitiesRepaymentsOfPrincipalAfterYearFour_iI_maLPz2Cv_zuEpprW3qCJ5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Thereafter</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,746,790</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--LongTermDebt_iTI_mtLPz2Cv_zsuLVmZZuYq4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total remaining principal balance</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,245,743</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

92774

94433

98447

103817

109482

1746790

2245743

NOTE 8. RELATED PARTY LOANS PAYABLE The Company has entered into a collateralized promissory note with individual lenders with rates comparable to the mortgage loan, dated July 1, 2022, provided by East West Bank to the Company but with fewer covenants. These covenants include filing timely tax returns and financial statements, and an agreement not to sell, lease, or transfer a substantial portion of the Company’s assets during the term of the Hakim Promissory Note. On June 2, 2023, the Company entered into a Promissory Note with Nasrat Hakim, President, Chief Executive Officer and Chairman of the Board of Directors of the Company (the “Board”), pursuant to which the Company borrowed funds in the aggregate principal amount of $3,000,000 (the “Hakim Promissory Note”). The Hakim Promissory Note had an interest rate of <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20230602__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--NasratHakimCEOAndChairmanMember__custom--DebtInstrumentPeriodAxis__custom--FirstYearMember_zTpyjaht7zrc">9% for the first year and <span id="xdx_901_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20230602__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DavisCaskeyMember__custom--DebtInstrumentPeriodAxis__custom--SecondYearMember_zb5YUFtteDed" title="Promissory note, interest rate">10% for an optional second year and the proceeds were used for working capital and other business purposes. The original maturity date of the Hakim Promissory Note was June 2, 2024, with an optional second year extension. The second year extension was exercised pursuant to the terms of the Hakim Promissory Note. For the years ended March 31, 2026 and 2025, interest expense on the Hakim Promissory Note totaled $50,000 and $292,500, respectively, recorded on the Consolidated Statements of Operations in interest expense and amortization of debt issuance costs. On June 2, 2025, the Hakim Promissory Note was paid in full and no balance was outstanding as of this date. On June 30, 2023, the Company entered into a collateralized promissory note with Davis Caskey (the “Caskey Promissory Note”). The Caskey Promissory Note has a principal balance of $1,000,000 and an interest rate of <span id="xdx_90A_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_pid_dp_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DavisCaskeyMember__custom--DebtInstrumentPeriodAxis__custom--FirstYearMember_zNkHAsqxXGf3" title="Promissory note, interest rate">9% for the first year and <span id="xdx_907_eus-gaap--DebtInstrumentInterestRateEffectivePercentage_iI_dp_c20230630__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--DavisCaskeyMember__custom--DebtInstrumentPeriodAxis__custom--SecondYearMember_zckosVQ5EERl" title="Promissory note, interest rate">10% for an optional second year. The Caskey Promissory Note is subject to the same covenants as are contained in the Hakim Promissory Note. The proceeds will be used for working capital and other business purposes. The original maturity date of the Caskey Promissory Note was June 30, 2024, with an optional second year extension. The second year extension was exercised pursuant to the terms of the Caskey Promissory Note. For the years ended March 31, 2026 and 2025, interest expense on the Caskey Promissory Note totaled $25,000 and $100,000, respectively, recorded on the Consolidated Statements of Operations in interest expense and amortization of debt issuance costs. On June 26, 2025, the Caskey Promissory Note was paid in full and no balance was outstanding as of this date.

3000000

0.09

0.10

50000

292500

1000000

0.09

0.10

25000

100000

NOTE 9. COMMITMENTS AND CONTINGENCIES Occasionally, the Company may be involved in claims and legal proceedings arising from the ordinary course of its business. The Company records a provision for a liability when it believes that it is both probable that a liability has been incurred, and the amount can be reasonably estimated. If these estimates and assumptions change or prove to be incorrect, it could have a material impact on the Company’s consolidated financial statements. Contingencies are inherently unpredictable, and the assessments of the value can involve a series of complex judgments about future events and can rely heavily on estimates and assumptions. On August 17, 2023, Elite filed a paragraph IV certification with its ANDA to generic OxyContin® and after Elite got acceptance of the ANDA by the FDA on September 19, 2023, Elite sent the patentee and NDA holder a Notice Letter as required under the Hatch-Waxman Act. On November 14, 2023, a patent infringement suit was filed in the District Court of New Jersey by Purdue Pharma. The Parties agreed to a stipulated dismissal of the case and the judge signed the order dismissing the case on June 12, 2026. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Elite’s launch of a generic OxyContin® will depend on the approval by the FDA and the outcome of various litigation involving Purdue or the expiry of the patents listed on the Orange Book. Operating Leases In October 2020, the Company entered into an operating lease for office space in Pompano Beach, Florida (the “Pompano Office Lease”). The Pompano Office Lease was for approximately 1,275 square feet of office space, with the Company taking occupancy on November 1, 2020. The Pompano Office Lease had a term of three years, ending on October 31, 2023. The Pompano Office Lease was extended for one additional year to October 31, 2024. Accordingly, the Pompano Office Lease expired at the end of the renewal term on October 31, 2024. The Company entered into an operating lease for office space in North Bay Village, Pompano FL (the “NBV Pompano Office Lease”). The Company took occupancy on October 1, 2024. The NBV Pompano Office Lease has a term of three years, ending on September 30, 2027. The Company entered into a lease agreement for a portion of a one-story warehouse, located at 144 Ludlow Avenue, Northvale, New Jersey (the “144 Ludlow Ave. Lease”). The lease agreement began on January 22, 2024, and has a term of <span id="xdx_90F_eus-gaap--LesseeOperatingLeaseTermOfContract_iI_dc_c20240122__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OneHundredFortyLudlowLeaseMember_zRHgOJK0NAMd" title="Operating lease term">five years. The 144 Ludlow Ave. Lease will expire on December 31, 2028. The Company assesses whether an arrangement is a lease or contains a lease at inception. For arrangements considered leases or that contain a lease that is accounted for separately, the Company determines the classification and initial measurement of the right-of-use asset and lease liability at the lease commencement date, which is the date that the underlying asset becomes available for use. The Company has elected to account for non-lease components associated with its leases and lease components as a single lease component. The Company recognizes a right-of-use asset, which represents the Company’s right to use the underlying asset for the lease term, and a lease liability, which represents the present value of the Company’s obligation to make payments arising over the lease term. The present value of the lease payments is calculated using either the implicit interest rate in the lease or an incremental borrowing rate. Operating leases are included in operating lease right-of-use assets and lease liabilities in the consolidated balance sheets. Lease expense for operating expense payment is recognized on a straight-line basis over the lease term. Finance Leases In November 2023, the Company entered into a finance lease for equipment (the “Waters Equipment Lease”). The Waters Equipment Lease is related to lab equipment with an acquisition cost of $<span id="xdx_905_eus-gaap--PaymentsToAcquireEquipmentOnLease_c20231101__20231130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WaterEquipmentLeaseMember_z8oVlYFbLPy" title="Finance lease acquisition cost">499,775, with the Company taking ownership of the asset on December 1, 2023. The Waters Equipment Lease has a term of five years, ending on November 29, 2028. The Company also has the option to purchase the asset at the end of the lease term for the amount of $<span id="xdx_906_ecustom--FinanceLeaseOptionToPurchaseOfAsset_iI_c20231130__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WaterEquipmentLeaseMember_zH28bmvEVRm4" title="Finance lease purchase of asset">1, which is probable to be exercised. In February 2024, the Company entered into a finance lease for warehouse equipment (the “Warehouse Equipment Lease”). The Warehouse Equipment Lease is related to warehouse equipment with an acquisition cost of $<span id="xdx_902_eus-gaap--PaymentsToAcquireEquipmentOnLease_c20240201__20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentLeaseMember_zaU2AVqSSZRc" title="Finance lease acquisition cost">37,500, with the Company taking ownership of the asset during February 2024. The Warehouse Equipment Lease had a term of two years, which ended in February 2026. The Company had the option to purchase the asset at the end of the lease term for the amount of $<span id="xdx_90F_ecustom--FinanceLeaseOptionToPurchaseOfAsset_iI_c20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--WarehouseEquipmentLeaseMember_zSDeeAzS2Ub8" title="Finance lease purchase of asset">1, which the Company exercised. In February 2024, the Company entered into a finance lease for equipment (the “February 2024 Equipment Lease”). The February 2024 Equipment Lease is related to manufacturing equipment with an acquisition cost of $<span id="xdx_903_eus-gaap--PaymentsToAcquireEquipmentOnLease_c20240201__20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FebruaryTwoThousandTwentyFourEquipmentLeaseMember_zFXoC8Ms0mZ2" title="Finance lease acquisition cost">455,000, with the Company taking ownership of the asset during February 2024. The February 2024 Equipment Lease has a term of <span id="xdx_908_eus-gaap--LesseeFinanceLeaseTermOfContract1_iI_c20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FebruaryTwoThousandTwentyFourEquipmentLeaseMember_z9E78kIskOxd" title="Finance lease term">five years, ending in <span id="xdx_90E_ecustom--LeaseExpirationDate_c20240201__20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FebruaryTwoThousandTwentyFourEquipmentLeaseMember_zna2oB6hYHIk" title="Finance lease expiration">February 2029. <span id="xdx_906_eus-gaap--LesseeFinanceLeaseOptionToTerminate_c20240201__20240229__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--FebruaryTwoThousandTwentyFourEquipmentLeaseMember_zbZRGeyucCRc" title="Finance lease option to terminate">The Company will retain ownership of the equipment at lease termination. In March 2024, the Company entered into three separate finance leases for manufacturing assets (the “March 2024 Equipment Leases”). The March 2024 Equipment Leases are related to manufacturing equipment and vault installed at the Company’s facility located at 144 Ludlow Avenue, Northvale NJ with an aggregate acquisition cost of $<span id="xdx_906_eus-gaap--PaymentsToAcquireEquipmentOnLease_c20240301__20240331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MarchTwoThousandTwentyFourEquipmentLeaseMember_zOwdnsmG6kj" title="Finance lease acquisition cost">1,085,177. Each of the separate leases included in the March 2024 Equipment Leases have a term of <span id="xdx_900_eus-gaap--LesseeFinanceLeaseTermOfContract1_iI_dc_c20240331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MarchTwoThousandTwentyFourEquipmentLeaseMember_zgBU2RPtCZe9" title="Finance lease term">five years, ending in <span id="xdx_90F_ecustom--LeaseExpirationDate_c20240301__20240331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MarchTwoThousandTwentyFourEquipmentLeaseMember_zsvHlz6TXU4h" title="Finance lease expire">March 2029. <span id="xdx_909_eus-gaap--LesseeFinanceLeaseOptionToTerminate_c20240301__20240331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--MarchTwoThousandTwentyFourEquipmentLeaseMember_zR4sfTCtadka" title="Finance lease option to terminate">The Company will retain ownership of all related assets at lease termination. In July 2024, the Company entered into two separate finance leases for manufacturing assets (the “July 2024 Equipment Leases”). The July 2024 Equipment Leases are related to warehouse and laboratory equipment with an aggregate acquisition cost of $<span id="xdx_905_eus-gaap--PaymentsToAcquireEquipmentOnLease_c20240701__20240731__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--JulyTwoThousandTwentyFourEquipmentLeaseMember_zP16HzBReMP6" title="Finance lease acquisition cost">153,745. One of the July 2024 Equipment Leases has a term of <span id="xdx_90A_eus-gaap--LesseeFinanceLeaseTermOfContract1_iI_dc_c20240731__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--JulyTwoThousandTwentyFourEquipmentLeaseMember_z703cAtc5UOd" title="Finance lease term">five years, ending in <span id="xdx_90F_ecustom--LeaseExpirationDate_c20240701__20240731__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--JulyTwoThousandTwentyFourEquipmentLeaseMember_zRD8CboAAzb" title="Finance lease expire">July 2029, and the other lease has a term of two years, ending in July 2026. <span id="xdx_906_eus-gaap--LesseeFinanceLeaseOptionToTerminate_c20240701__20240731__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--JulyTwoThousandTwentyFourEquipmentLeaseMember_zCjeOBcBsSc4" title="Finance lease option to terminate">The Company will retain ownership of all related assets at lease terminations. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A lease is classified as a finance lease if any of the following criteria are met: (i) ownership of the underlying asset transfers to the Company by the end of the lease term; (ii) the lease contains an option to purchase the underlying asset that the Company is reasonably expected to exercise; (iii) the lease term is for a major part of the remaining economic life of the underlying asset; (iv) the present value of the sum of lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset; or (v) the underlying asset is of a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. A lease that does not meet any of the criteria to be classified as a finance lease is classified as an operating lease. As the Company expects to exercise the option to purchase the asset at the end of the lease term, the Waters equipment lease was determined to be a finance lease. The finance lease is included on the consolidated balance sheets as Finance lease - right-of-use asset and Lease obligation - finance lease. The finance lease costs are split between Depreciation and amortization expense related to the asset and interest expense on the lease liability, using the effective rate charged by the lessor. The Company has elected to account for lease and non-lease components separately. Rent expense is recorded on the straight-line basis and is recorded in cost of manufacturing and general and administrative expense in the consolidated statements of operations. Rent expense is as follows: SCHEDULE OF RENT EXPENSE STRAIGHT-LINE BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold">Lease</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250401__20260331_zMhnhJFlt2Qf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zQVtMpKg7I0c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Lease</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--LudlowOneFortyFourMember_zht6nzlw0phe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Ludlow-144</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">633,269</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">610,409</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--PompanoTwoThousandThreeHundredElevenMember_zHPAQ0KbwmCk" style="vertical-align: bottom; background-color: White"> <td>Pompano-2311</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,870</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--NbvSixHundredTenMember_zeuGeZh7ciVl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>NBV-610</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,605</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--NbvSixHundredTenMember_zoFpqabGky7i" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Rent expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,605</td><td style="text-align: left"> </td></tr> </table> The table below shows the future minimum rental payments, exclusive of taxes, insurance and other costs: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Lease Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Financing Lease Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingTwelveMonths_iI_c20260331_zoDRjNuvGWQ" style="width: 14%; text-align: right" title="Operating Lease Amount, 2027">667,307</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsDueInNextRollingTwelveMonths_iI_c20260331_zT9FLrE3xrW3" style="width: 14%; text-align: right" title="Financing Lease Amount, 2027">484,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_ecustom--LeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260331_zAynQWc6kBX" style="width: 14%; text-align: right" title="Total Lease Amount, 2027">1,151,458</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20260331_z1h5vW1Ipvj4" style="text-align: right" title="Operating Lease Amount 2028">666,207</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_c20260331_z1RzEXGWMTWj" style="text-align: right" title="Financing Lease Amount 2028">479,337</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LeaseLiabilityPaymentsDueYearTwo_iI_c20260331_zFGxWsnvcTod" style="text-align: right" title="Total Lease Amount 2028">1,145,544</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20260331_z4fJhn9SUD41" style="text-align: right" title="Operating Lease Amount 2029">440,159</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_c20260331_zDYQCjtUtlC1" style="text-align: right" title="Financing Lease Amount 2029">438,045</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LeaseLiabilityPaymentsDueYearThree_iI_c20260331_zui1Y1P2IWCc" style="text-align: right" title="Total Lease Amount 2029">878,204</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20260331_zhTnjlSlMa7d" style="text-align: right" title="Operating Lease Amount 2030">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_c20260331_zjzsEhY7QSX" style="text-align: right" title="Financing Lease Amount 2030">13,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--LeaseLiabilityPaymentsDueYearFour_iI_c20260331_zBYDhmUauIid" style="text-align: right" title="Total Lease Amount 2030">13,740</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_zwmM1OVg3sn2" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Lease Amount Less: interest">(221,599</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_ztZB90NZ6Oxe" style="border-bottom: Black 1pt solid; text-align: right" title="Financing Lease Amount Less: interest">(184,858</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_ecustom--LeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_z5Tt2D3j1874" style="border-bottom: Black 1pt solid; text-align: right" title="Total Lease Amount Less: interest">(406,457</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Present value of lease payments</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_c20260331_zaPgNhaYMhil" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating Lease Amount Present value of lease payments">1,552,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--FinanceLeaseLiability_iI_c20260331_zJ6wHIml9VD" style="border-bottom: Black 2.5pt double; text-align: right" title="Financing Lease Amount Present value of lease payments">1,230,415</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--LeaseLiabilities_iI_c20260331_zdTC49iIs65c" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Amount Present value of lease payments">2,782,489</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_89D_ecustom--ScheduleOfWeightedaverageRemainingLeaseTermAndWeightedaverageDiscountRateTextBlock_zezlHOUClG3e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The weighted-average remaining lease term and the weighted-average discount rate of the Company’s leases were as follows: SCHEDULE OF WEIGHTED -AVERAGE REMAINING TERM AND THE WEIGHTED-AVERAGE DISCOUNT RATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Lease Term and Discount Rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Remaining lease term (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">Operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2.6</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.8</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9.5</td><td style="text-align: left">%</td></tr> </table>

1275

P3Y

2023-10-31

P3Y

2027-09-30

P5Y

499775

P5Y

2028-11-29

37500

P2Y

2026-02 1

455000

P5Y

2029-02

The Company will retain ownership of the equipment at lease termination.

1085177

P5Y

2029-03

The Company will retain ownership of all related assets at lease termination.

153745

P5Y

2029-07

P2Y

2026-07

The Company will retain ownership of all related assets at lease terminations.

(i) ownership of the underlying asset transfers to the Company by the end of the lease term; (ii) the lease contains an option to purchase the underlying asset that the Company is reasonably expected to exercise; (iii) the lease term is for a major part of the remaining economic life of the underlying asset; (iv) the present value of the sum of lease payments and any residual value guaranteed by the Company equals or exceeds substantially all of the fair value of the underlying asset; or (v) the underlying asset is of a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

Rent expense is recorded on the straight-line basis and is recorded in cost of manufacturing and general and administrative expense in the consolidated statements of operations. Rent expense is as follows: SCHEDULE OF RENT EXPENSE STRAIGHT-LINE BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="font-weight: bold">Lease</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_495_20250401__20260331_zMhnhJFlt2Qf" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zQVtMpKg7I0c" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold">Lease</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--LudlowOneFortyFourMember_zht6nzlw0phe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Ludlow-144</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">633,269</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">610,409</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--PompanoTwoThousandThreeHundredElevenMember_zHPAQ0KbwmCk" style="vertical-align: bottom; background-color: White"> <td>Pompano-2311</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,870</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--NbvSixHundredTenMember_zeuGeZh7ciVl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>NBV-610</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,605</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--PaymentsForRent_hus-gaap--NatureOfExpenseAxis__custom--NbvSixHundredTenMember_zoFpqabGky7i" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Rent expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">18,249</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">14,605</td><td style="text-align: left"> </td></tr> </table>

633269

610409

18870

18249

14605

18249

14605

The table below shows the future minimum rental payments, exclusive of taxes, insurance and other costs: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; text-align: left; font-weight: bold">Years ending March 31,</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Operating Lease Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Financing Lease Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Total</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: left">2027</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextRollingTwelveMonths_iI_c20260331_zoDRjNuvGWQ" style="width: 14%; text-align: right" title="Operating Lease Amount, 2027">667,307</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98C_eus-gaap--FinanceLeaseLiabilityPaymentsDueInNextRollingTwelveMonths_iI_c20260331_zT9FLrE3xrW3" style="width: 14%; text-align: right" title="Financing Lease Amount, 2027">484,151</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_ecustom--LeaseLiabilityPaymentsDueNextTwelveMonths_iI_c20260331_zAynQWc6kBX" style="width: 14%; text-align: right" title="Total Lease Amount, 2027">1,151,458</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2028</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_c20260331_z1h5vW1Ipvj4" style="text-align: right" title="Operating Lease Amount 2028">666,207</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearTwo_iI_c20260331_z1RzEXGWMTWj" style="text-align: right" title="Financing Lease Amount 2028">479,337</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_ecustom--LeaseLiabilityPaymentsDueYearTwo_iI_c20260331_zFGxWsnvcTod" style="text-align: right" title="Total Lease Amount 2028">1,145,544</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">2029</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_c20260331_z4fJhn9SUD41" style="text-align: right" title="Operating Lease Amount 2029">440,159</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearThree_iI_c20260331_zDYQCjtUtlC1" style="text-align: right" title="Financing Lease Amount 2029">438,045</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_ecustom--LeaseLiabilityPaymentsDueYearThree_iI_c20260331_zui1Y1P2IWCc" style="text-align: right" title="Total Lease Amount 2029">878,204</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2030</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearFour_iI_c20260331_zhTnjlSlMa7d" style="text-align: right" title="Operating Lease Amount 2030">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--FinanceLeaseLiabilityPaymentsDueYearFour_iI_c20260331_zjzsEhY7QSX" style="text-align: right" title="Financing Lease Amount 2030">13,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--LeaseLiabilityPaymentsDueYearFour_iI_c20260331_zBYDhmUauIid" style="text-align: right" title="Total Lease Amount 2030">13,740</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less: interest</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_zwmM1OVg3sn2" style="border-bottom: Black 1pt solid; text-align: right" title="Operating Lease Amount Less: interest">(221,599</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--FinanceLeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_ztZB90NZ6Oxe" style="border-bottom: Black 1pt solid; text-align: right" title="Financing Lease Amount Less: interest">(184,858</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_ecustom--LeaseLiabilityUndiscountedExcessAmount_iNI_di_c20260331_z5Tt2D3j1874" style="border-bottom: Black 1pt solid; text-align: right" title="Total Lease Amount Less: interest">(406,457</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 2.5pt">Present value of lease payments</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iI_c20260331_zaPgNhaYMhil" style="border-bottom: Black 2.5pt double; text-align: right" title="Operating Lease Amount Present value of lease payments">1,552,074</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_eus-gaap--FinanceLeaseLiability_iI_c20260331_zJ6wHIml9VD" style="border-bottom: Black 2.5pt double; text-align: right" title="Financing Lease Amount Present value of lease payments">1,230,415</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_ecustom--LeaseLiabilities_iI_c20260331_zdTC49iIs65c" style="border-bottom: Black 2.5pt double; text-align: right" title="Total Lease Amount Present value of lease payments">2,782,489</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

667307

484151

1151458

666207

479337

1145544

440159

438045

878204

13740

221599

184858

406457

1552074

1230415

2782489 <p id="xdx_89D_ecustom--ScheduleOfWeightedaverageRemainingLeaseTermAndWeightedaverageDiscountRateTextBlock_zezlHOUClG3e" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The weighted-average remaining lease term and the weighted-average discount rate of the Company’s leases were as follows: SCHEDULE OF WEIGHTED -AVERAGE REMAINING TERM AND THE WEIGHTED-AVERAGE DISCOUNT RATE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">Lease Term and Discount Rate</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Remaining lease term (years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">Operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2.6</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">3.6</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.9</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3.8</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Operating leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10.0</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Finance leases</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9.5</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9.5</td><td style="text-align: left">%</td></tr> </table>

P2Y7M6D

P3Y7M6D

P2Y10M24D

P3Y9M18D

0.100

0.095

NOTE 10. PREFERRED STOCK Series J convertible preferred stock On April 28, 2017, the Company created the Series J Convertible Preferred Stock (“Series J Preferred”) in conjunction with the Certificate of Designations. A total of <span id="xdx_900_eus-gaap--PreferredStockSharesAuthorized_iI_c20170428__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_zsZzO4KeYrsc" title="Preferred stock, share authorized">50 shares of Series J Preferred were authorized, <span id="xdx_903_eus-gaap--PreferredStockSharesIssued_iI_dc_c20170428__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_zeFwFAlAnHCh" title="Preferred stock, shares issued"><span id="xdx_90E_eus-gaap--PreferredStockSharesOutstanding_iI_dc_c20170428__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_z1SALfwURpN5" title="Preferred stock, shares outstanding">zero shares are issued and outstanding, with a stated value of $<span id="xdx_90C_ecustom--ConvertiblePreferredStockStatedValue_iI_c20170428__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_znfmf3SjwjTk" title="Convertible preferred stock stated value">1,000,000 per share and a par value of $<span id="xdx_903_ecustom--ConvertiblePreferredStockParValuePerShare_iI_c20170428__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_z2ypeEZFcp62" title="Convertible preferred stock par value per share">0.01.

1000000 0.01

NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS – WARRANTS The Company evaluates and accounts for its freestanding instruments in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities. The Company issued warrants, with a term of ten years, to affiliates in connection with an exchange agreement dated April 28, 2017, as further described in this note below. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company has <span id="xdx_90E_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcNrad1oS1ib" title="Warrant to purchase shares"><span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20250331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zBkuMei5ijmg" title="Warrant to purchase shares">79,008,661 total warrants to purchase shares of Common Stock outstanding with a weighted average exercise price of $<span id="xdx_90F_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20260331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zYMDKR0tuar2" title="Weighted Average Exercise Price"><span id="xdx_903_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_pid_c20250331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcav9KR39Awk" title="Weighted Average Exercise Price">0.1521 as of March 31, 2026 and 2025. On April 28, 2017, the Company entered into an Exchange Agreement with Hakim, the Chairman of the Board, President, and Chief Executive Officer of the Company, pursuant to which the Company issued to Hakim <span id="xdx_904_eus-gaap--SharesIssued_iI_pid_c20170428__srt--TitleOfIndividualAxis__custom--NasratHakimMember__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember_zPi2SYdC9vVb" title="Shares issued">24.0344 shares of its Series J Preferred and warrants to purchase an aggregate of <span id="xdx_90A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20170428__srt--TitleOfIndividualAxis__custom--NasratHakimMember__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_z6Ny4VSVRjuh" title="Warrant to purchase shares">79,008,661 shares of its Common Stock (the “Series J Warrants” and, along with the Series J Preferred issued to Hakim, the “Securities”) in exchange for <span id="xdx_902_eus-gaap--ConversionOfStockSharesIssued1_c20170428__20170428__srt--TitleOfIndividualAxis__custom--NasratHakimMember__us-gaap--StatementClassOfStockAxis__custom--SeriesJConvertiblePreferredStockMember__us-gaap--StatementEquityComponentsAxis__us-gaap--CommonStockMember_zWvo92cVoari" title="Conversion of stock, shares issued">158,017,321 shares of Common Stock owned by Hakim. The fair value of the Series J Warrants was determined to be $6,474,674 upon issuance at April 28, 2017. The Series J Warrants are exercisable for a period of 10 years from the date of issuance, commencing April 28, 2020. The initial exercise price is $0.1521 per share and the Series J Warrants can be exercised for cash or on a cashless basis, including a provision within that provides the holder a choice of net cash settlement or settlement in shares upon a cashless exercise. The net cash settlement amount is the cash value obtained by subtracting the then exercise price from the closing price of the Company’s Common Stock (provided such closing price is higher than the exercise price) and multiplying the difference by the number of shares exercised. As this event is at the holder’s option, it is considered outside of the Company’s control. As a result of the net cash settlement at the option of the holder, such warrants are classified as liabilities and measured initially and subsequently at fair value. The exercise price is subject to adjustment for any issuances or deemed issuances of Common Stock or Common Stock equivalents at an effective price below the then exercise price. The Series J Warrants also provide for other standard adjustments upon the happening of certain customary events. <p id="xdx_895_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_znklCoYy7rvg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The fair value of the Series J Warrants was calculated using a Black-Scholes model. The following assumptions were used in the Black-Scholes model to calculate the fair value of the Series J Warrants: SCHEDULE OF FAIR VALUE OF WARRANTS ISSUED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Fair value of the Company’s Common Stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zcsn87BGMzb2" style="width: 16%; text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.3601</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_z148gzPZGHj2" style="width: 16%; text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.4350</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zJIslswAykJe" title="Warrants and Rights Outstanding, Measurement Input">63.96</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zFwVmvc5vO2" title="Warrants and Rights Outstanding, Measurement Input">82.80</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Initial exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExercisePriceMember_zUVbKNZARjW2" style="text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.1521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExercisePriceMember_zfFLcDWca8u3" style="text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.1521</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.1</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk free rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z2gY9HVz1Ks4" title="Warrants and rights outstanding, measurement input">3.47</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zh9mrLtwebCi" title="Warrants and rights outstanding, measurement input">3.89</td><td style="text-align: left">%</td></tr> </table> <p id="xdx_892_ecustom--ScheduleOfWarrantsMeasurementWithUnobservableInputsReconciliationRecurringBasisTableTextBlock_zXioNBh26539" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The changes in warrants (Level 3 financial instruments) measured at fair value on a recurring basis were as follows: SCHEDULE OF CHANGES IN WARRANTS MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Balance at March 31, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_ztySrPjODQQ5" style="width: 16%; text-align: right" title="Beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeGainLossOnDerivativeNet_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zTdvQpZ1g4J1" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative financial instruments - warrants">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance at March 31, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zrc62hHDJVxe" style="text-align: right" title="Beginning balance">25,199,193</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeGainLossOnDerivativeNet_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zL0XMBKhSmD5" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative financial instruments - warrants">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zZXkGQbaC3hd" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Measured on a Recurring Basis The following table presents information about the Company’s liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: SCHEDULE OF LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount at Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Balance as of March 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331_zioYN1z2DYf1" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">25,199,193</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zxGY7Lu0MaD" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zNiXmJkcWy1f" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z3Ig3oJU3Jf5" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">25,199,193</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331_zklFl8gppgcl" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zD4pK9rdsFdd" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zTmWdKgHzOmi" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z3m5qjGWtmKh" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331_zjNo0xtT9Cef" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zgHNEtRbCgd4" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zPAFKrUCOiPh" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zLPl0xRrhnvj" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount at Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Balance as of March 31, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331_zx89ruKJhKth" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zmH31rFrmrrl" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zHC5i53EOVS8" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z1WMa1cf9mWc" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331_z2PC3rknKFc6" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zztAJLKXmuu" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zhS4APdSIPSj" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zw8WMJbOYdUd" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance as of March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331_zXJxTKW4jIO6" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">25,199,193</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z9qCDvRFyqBh" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zSJH6KgxNULj" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zExh9RJCFDph" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">25,199,193</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

P10Y

79008661

0.1521

24.0344

79008661

158017321

6474674

P10Y

0.1521

<p id="xdx_895_eus-gaap--FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock_znklCoYy7rvg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The fair value of the Series J Warrants was calculated using a Black-Scholes model. The following assumptions were used in the Black-Scholes model to calculate the fair value of the Series J Warrants: SCHEDULE OF FAIR VALUE OF WARRANTS ISSUED <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Fair value of the Company’s Common Stock</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_986_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_zcsn87BGMzb2" style="width: 16%; text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.3601</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_z148gzPZGHj2" style="width: 16%; text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.4350</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_903_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zJIslswAykJe" title="Warrants and Rights Outstanding, Measurement Input">63.96</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_909_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zFwVmvc5vO2" title="Warrants and Rights Outstanding, Measurement Input">82.80</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Initial exercise price</td><td> </td> <td style="text-align: left">$</td><td id="xdx_986_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExercisePriceMember_zUVbKNZARjW2" style="text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.1521</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExercisePriceMember_zfFLcDWca8u3" style="text-align: right" title="Warrants and Rights Outstanding, Measurement Input">0.1521</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Warrant term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1.1</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2.1</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Risk free rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20260331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_z2gY9HVz1Ks4" title="Warrants and rights outstanding, measurement input">3.47</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_c20250331__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zh9mrLtwebCi" title="Warrants and rights outstanding, measurement input">3.89</td><td style="text-align: left">%</td></tr> </table>

0.3601

0.4350

63.96

82.80

0.1521

P1Y1M6D

P2Y1M6D

3.47

3.89

<p id="xdx_892_ecustom--ScheduleOfWarrantsMeasurementWithUnobservableInputsReconciliationRecurringBasisTableTextBlock_zXioNBh26539" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The changes in warrants (Level 3 financial instruments) measured at fair value on a recurring basis were as follows: SCHEDULE OF CHANGES IN WARRANTS MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Balance at March 31, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_ztySrPjODQQ5" style="width: 16%; text-align: right" title="Beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--DerivativeGainLossOnDerivativeNet_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zTdvQpZ1g4J1" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative financial instruments - warrants">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Balance at March 31, 2025</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zrc62hHDJVxe" style="text-align: right" title="Beginning balance">25,199,193</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--DerivativeGainLossOnDerivativeNet_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zL0XMBKhSmD5" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative financial instruments - warrants">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance at March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilityFairValueOfCollateral_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member__us-gaap--FinancialInstrumentAxis__us-gaap--WarrantMember_zZXkGQbaC3hd" style="border-bottom: Black 2.5pt double; text-align: right" title="Ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

6298008

18901185

25199193

-7855607

17343586

The following table presents information about the Company’s liabilities measured at fair value on a recurring basis, aggregated by the level in the fair value hierarchy within which those measurements fell: SCHEDULE OF LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount at Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Balance as of March 31, 2025</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331_zioYN1z2DYf1" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">25,199,193</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zxGY7Lu0MaD" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zNiXmJkcWy1f" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z3Ig3oJU3Jf5" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">25,199,193</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331_zklFl8gppgcl" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zD4pK9rdsFdd" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zTmWdKgHzOmi" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z3m5qjGWtmKh" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">(7,855,607</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance as of March 31, 2026</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_986_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331_zjNo0xtT9Cef" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zgHNEtRbCgd4" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zPAFKrUCOiPh" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20250401__20260331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zLPl0xRrhnvj" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">17,343,586</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount at Fair Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 1</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 2</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Level 3</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; font-weight: bold">Balance as of March 31, 2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331_zx89ruKJhKth" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zmH31rFrmrrl" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zHC5i53EOVS8" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">—</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_eus-gaap--DerivativeLiabilitiesNoncurrent_iS_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_z1WMa1cf9mWc" style="width: 10%; text-align: right" title="Derivative liabilities, beginning balance">6,298,008</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Change in fair value of derivative financial instruments - warrants</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331_z2PC3rknKFc6" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_zztAJLKXmuu" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_983_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zhS4APdSIPSj" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--DerivativeGainLossOnDerivativeNet_iN_di_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zw8WMJbOYdUd" style="border-bottom: Black 1pt solid; text-align: right" title="Change in fair value of derivative instruments">18,901,185</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; padding-bottom: 2.5pt">Balance as of March 31, 2025</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331_zXJxTKW4jIO6" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">25,199,193</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98F_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel1Member_z9qCDvRFyqBh" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel2Member_zSJH6KgxNULj" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">—</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--DerivativeLiabilitiesNoncurrent_iE_c20240401__20250331__us-gaap--FairValueByFairValueHierarchyLevelAxis__us-gaap--FairValueInputsLevel3Member_zExh9RJCFDph" style="border-bottom: Black 2.5pt double; text-align: right" title="Derivative liabilities, ending balance">25,199,193</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

25199193

7855607

17343586

6298008

-18901185

25199193

NOTE 12. STOCK-BASED COMPENSATION Under its 2014 Equity Incentive Plan and its 2024 Equity Incentive Plan, the Company did grant and may grant stock options to officers, selected employees, as well as members of the Board of Directors and advisory board members. On July 1, 2024 the Company restated the 2014 Equity Incentive Plan to increase the shares reserved under the option plan by <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfAdditionalSharesAuthorized_pid_c20240701__20240701__us-gaap--PlanNameAxis__custom--TwoThousandFourteenEquityIncentivePlanMember_zjRmFWtSFiNg" title="Increase in shares reserved">12,730,000. Under the 2024 Equity Incentive Plan, <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_c20240701__us-gaap--PlanNameAxis__custom--TwoThousandTwentyFourEquityIncentivePlanMember_zSxWPy66Fnvd" title="Options available for grant">80,000,000 options are available for grant. All options have generally been granted at a price equal to or greater than the fair market value of the Company’s Common Stock at the date of the grant. Generally, options are granted with a vesting period of up to three years and expire ten years from the date of grant. The fair value of option awards is estimated on the date of grant using the Black-Scholes option-pricing model. The exercise price of each award is generally not less than the per share fair value in effect as of that award date. The determination of fair value using the Black-Scholes model is affected by the Company’s share fair value as well as assumptions regarding a number of complex and subjective variables, including expected price volatility, risk-free interest rate and projected employee share option exercise behaviors. The Company estimates its expected volatility by using a combination of historical share price volatilities of similar companies within the Company’s industry. The expected term of the Company’s stock options for employees has been determined utilizing the “simplified” method for awards, since the Company does not have sufficient exercise history to estimate term of its historical option awards. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve. Expected dividend yield is zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. <p id="xdx_891_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zv0lZKuNezOf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">A summary of the activity of Company’s 2024 Equity Incentive plan and prior equity incentive plans for the year ended March 31, 2026 is as follows: SCHEDULE OF STOCK OPTION PLAN <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares Underlying Options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term (in years)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; padding-bottom: 1pt">Outstanding at March 31, 2025</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250401__20260331_zxLKtkn5xz9" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Shares Underlying Options, Outstanding, Beginning Balance">15,640,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250401__20260331_zaFi1TCJLF7f" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning Balance">0.05</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 10%; text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230401__20240331_z7XvXsHXLTi8" title="Weighted Average Remaining Contractual Term (in years), Outstanding">7.8</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20250401__20260331_zhJjVAFYnuUi" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Beginning Balance">6,000,552</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250401__20260331_zTEq2Mjd69Wh" style="text-align: right" title="Shares Underlying Options, Granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20250401__20260331_zeoI6kRFz9c7" style="text-align: right" title="Weighted Average Exercise Price, Granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250401__20260331_zftkjHH0klhb" style="text-align: right" title="Shares Underlying Options, Exercised">(8,733,334</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20250401__20260331_z1N5WqKhg6Yf" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.04</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Expired and Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20250401__20260331_zQcqgI0kupV4" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Expired and Forfeited">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20250401__20260331_z7dMlYjzwOwk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Expired and Forfeited">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding at March 31, 2026</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250401__20260331_z3o0ydbHiYo3" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Outstanding, Ending Balance">6,906,666</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250401__20260331_zgp1xBYAE0mi" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending Balance">0.07</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250401__20260331_zPRCFKd652Y6" title="Weighted Average Remaining Contractual Term (in years), Outstanding">6.8</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20250401__20260331_zNpJLnWXGeKj" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Ending Balance">2,002,996</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Exercisable at March 31, 2026</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20250401__20260331_znqk0n7YZPn3" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Exercisable">5,440,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20250401__20260331_zQxzXIeQJich" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercisable">0.06</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250401__20260331_zPIV4zZ9hHhe" title="Weighted Average Remaining Contractual Term (in years), Exercisable">6.6</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pp0d_c20250401__20260331_ztSg3w9AS1N5" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Exerciseable">1,610,856</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table> The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s Common Stock as of March 31, 2026 of $0.36 for those awards with strike prices lower than the quoted price of the Company’s Common Stock as of March 31, 2026. As of March 31, 2026, there was $51,659 in unrecognized stock based compensation expense that will be recognized over a weighted average <span id="xdx_90B_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1_dtY_c20250401__20260331_zRNZWchBbcZ5" title="Weighted average period">0.49 year period. The total intrinsic value of options exercised during the year ended March 31, 2026 was $<span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue_c20250401__20260331_zERvTZBPBCVi" title="Intrinsic value of options exercised">2,826,120.

12730000

80000000

<p id="xdx_891_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_zv0lZKuNezOf" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">A summary of the activity of Company’s 2024 Equity Incentive plan and prior equity incentive plans for the year ended March 31, 2026 is as follows: SCHEDULE OF STOCK OPTION PLAN <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares Underlying Options</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Exercise Price</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Weighted Average Remaining Contractual Term (in years)</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 44%; padding-bottom: 1pt">Outstanding at March 31, 2025</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20250401__20260331_zxLKtkn5xz9" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Shares Underlying Options, Outstanding, Beginning Balance">15,640,000</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20250401__20260331_zaFi1TCJLF7f" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Weighted Average Exercise Price, Outstanding, Beginning Balance">0.05</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 10%; text-align: right"><span id="xdx_907_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20230401__20240331_z7XvXsHXLTi8" title="Weighted Average Remaining Contractual Term (in years), Outstanding">7.8</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_c20250401__20260331_zhJjVAFYnuUi" style="border-bottom: Black 1pt solid; width: 10%; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Beginning Balance">6,000,552</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20250401__20260331_zTEq2Mjd69Wh" style="text-align: right" title="Shares Underlying Options, Granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20250401__20260331_zeoI6kRFz9c7" style="text-align: right" title="Weighted Average Exercise Price, Granted">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20250401__20260331_zftkjHH0klhb" style="text-align: right" title="Shares Underlying Options, Exercised">(8,733,334</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_c20250401__20260331_z1N5WqKhg6Yf" style="text-align: right" title="Weighted Average Exercise Price, Exercised">0.04</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Expired and Forfeited</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod_iN_pid_di_c20250401__20260331_zQcqgI0kupV4" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Expired and Forfeited">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_c20250401__20260331_z7dMlYjzwOwk" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Expired and Forfeited">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt">Outstanding at March 31, 2026</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_c20250401__20260331_z3o0ydbHiYo3" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Outstanding, Ending Balance">6,906,666</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20250401__20260331_zgp1xBYAE0mi" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Outstanding, Ending Balance">0.07</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_904_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20250401__20260331_zPRCFKd652Y6" title="Weighted Average Remaining Contractual Term (in years), Outstanding">6.8</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_c20250401__20260331_zNpJLnWXGeKj" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Ending Balance">2,002,996</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Exercisable at March 31, 2026</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_c20250401__20260331_znqk0n7YZPn3" style="border-bottom: Black 1pt solid; text-align: right" title="Shares Underlying Options, Exercisable">5,440,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20250401__20260331_zQxzXIeQJich" style="border-bottom: Black 1pt solid; text-align: right" title="Weighted Average Exercise Price, Exercisable">0.06</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><span id="xdx_901_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20250401__20260331_zPIV4zZ9hHhe" title="Weighted Average Remaining Contractual Term (in years), Exercisable">6.6</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pp0d_c20250401__20260331_ztSg3w9AS1N5" style="border-bottom: Black 1pt solid; text-align: right" title="Aggregate Intrinsic Value, Outstanding, Exerciseable">1,610,856</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> </table>

15640000

0.05

P7Y9M18D

6000552

8733334

0.04

6906666

0.07

P6Y9M18D

2002996

5440000

0.06

P6Y7M6D

1610856

0.36

51659

P0Y5M26D

2826120

NOTE 13. CONCENTRATIONS AND CREDIT RISK Revenues Two customers accounted for approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zMyMWo8cShDj" title="Concentration risk, percentage">74% of the Company’s revenues for the year ended March 31, 2026. These two customers accounted for approximately <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zBbgg41Mlcuf" title="Concentration risk, percentage">64% and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_z4r5gincqNV3" title="Concentration risk, percentage">10% of revenues each, respectively. Two customers accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomersMember_zIF8YezHS1v3" title="Concentration risk, percentage">58% of the Company’s revenues for the year ended March 31, 2025. These two customers accounted for approximately <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_z5pGsUHdPdL8" title="Concentration risk, percentage">39% and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zD7gjZhyPVjl" title="Concentration risk, percentage">19% of revenue each, respectively. ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Accounts Receivable One customer accounted for approximately <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__srt--MajorCustomersAxis__custom--OneCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zOG0v8NGLQhh" title="Concentration risk, percentage">69% of the Company’s accounts receivable as of March 31, 2026. Three customers accounted for approximately <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomersMember_zyFHzqgvj8r8" title="Concentration risk, percentage">75% of the Company’s accounts receivable as of March 31, 2025. These three customers accounted for approximately <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerOneMember_zB9iDB5FOpL" title="Concentration risk, percentage">46%, <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerTwoMember_zjgjNwSpypc" title="Concentration risk, percentage">19%, and <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerThreeMember_zCuvgfPuwcok" title="Concentration risk, percentage">10% of accounts receivable each, respectively. Purchasing Three suppliers accounted for approximately <span id="xdx_906_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_z9KHa6Nrc9se" title="Concentration risk, percentage">73% of the Company’s purchases of raw materials for the year ended March 31, 2026. These three customers accounted for approximately <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_zXz7r0PKIIHh" title="Concentration risk, percentage">36%, <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierTwoMember_z0IYbhaWQx9i" title="Concentration risk, percentage">24%, and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20250401__20260331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierThreeMember_ziFMMOhMYx9d" title="Concentration risk, percentage">13% of purchasing each, respectively. Three suppliers accounted for approximately <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeSuppliersMember_zwDas0GpAso2" title="Concentration risk, percentage">69% of the Company’s purchases of raw materials for the year ended March 31, 2025. These three customers accounted for approximately <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierOneMember_zwVlW7sDKUrh" title="Concentration risk, percentage">43%, <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierTwoMember_zT1fBZmxwYA1" title="Concentration risk, percentage">13%, and <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20240401__20250331__us-gaap--ConcentrationRiskByBenchmarkAxis__custom--PurchasesMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember__srt--MajorCustomersAxis__custom--SupplierThreeMember_z98zsZ3gRGW" title="Concentration risk, percentage">13%, of purchasing each, respectively.

0.74

0.64

0.10

0.58

0.39

0.19

0.69

0.75

0.46

0.19

0.10

0.73

0.36

0.24

0.13

0.69

0.43

0.13

NOTE 14. SEGMENT RESULTS FASB ASC 280-10-50 requires use of the “management approach” model for segment reporting. The management approach is based on the way a company’s management organized segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. Consolidated income from operations, which is reported in the accompanying consolidated statements of operations, is the measure of segment profit or loss that is regularly reviewed by the CODM. This enables the CODM to assess the overall level of available resources and determine how best to deploy these resources across research and development projects in line with the long-term company-wide strategic goals. There are no significant segment expenses or other segment items that are separately provided to the CODM beyond research and development and general and administrative expenses. The CODM does not receive segment level information related to depreciation, amortization, capital expenditures, or other non-cash items, and therefore such items are excluded. The ANDA segment follows the same accounting policies used in the preparation of the Company’s consolidated financial statements. <p id="xdx_89B_ecustom--ScheduleOfSelectedSegmentReportingInformationByReportableSegmentTableTextBlock_zHrD4Q9P4pK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The following represents selected information for the Company’s reportable segment: SCHEDULE OF SELECTED INFORMATION FOR REPORTABLE SEGMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250401__20260331_zDGRDKDnHB4e" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zMUlHubANMAl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; font-style: italic; text-align: left">Operating Income by Segment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--SegmentOperatingIncomeLoss_pp0p0_hus-gaap--StatementBusinessSegmentsAxis__custom--AbbreviatedNewDrugApplicationsMember_zW739nPwX6K5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; padding-bottom: 1pt">ANDA</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">69,281,380</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">32,121,818</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--SegmentOperatingIncomeLoss_pp0p0_zZN7HgX2rL27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Operating income by Segment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">69,281,380</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32,121,818</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The table below reconciles the Company’s operating income by segment to income from operations and to income (loss) before income taxes as reported in the Company’s consolidated statements of operations: SCHEDULE OF OPERATING INCOME BY SEGMENT TO INCOME FROM OPERATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250401__20260331_zBfByTLuPIjj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zbBw0DzfVJo6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--SegmentOperatingIncomeLoss_maOILz5Kj_zu2w0S0vtgji" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating income by segment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">69,281,380</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">32,121,818</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--CorporateUnallocatedCosts_iN_pp0p0_di_msOILz5Kj_zeLabogPpj63" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Corporate unallocated costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(17,596,803</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,001,930</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AssetImpairmentCharges_iN_pp0p0_di_msOILz5Kj_z9dNWPYf4An8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Impairment of intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(847,012</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,603,426</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DepreciationAndAmortization_iN_pp0p0_di_msOILz5Kj_zu1QgtSja2d1" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Depreciation and amortization expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,547,874</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,688,429</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_ecustom--NoncashExpense_iN_pp0p0_di_msOILz5Kj_z8AkgiYWoaj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt; text-align: left">Significant non-cash items</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(176,507</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(227,565</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingIncomeLoss_iT_pp0p0_mtOILz5Kj_maILFCOzCWi_zCwrPzukSZqb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Income from operations</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">49,113,184</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">19,600,468</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--GainLossOnSaleOfDerivatives_pp0p0_maILFCOzCWi_zBD2JDYahL1k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Change in fair value of derivative instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,855,607</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(18,901,185</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--InterestAndDebtExpense_iN_pp0p0_di_msILFCOzCWi_zFfEEMUYGlXk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Interest expense and amortization of debt issuance costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(396,664</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(772,367</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--InvestmentIncomeInterest_pp0p0_maILFCOzCWi_zFSpvKXP61Ul" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Interest income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207,857</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,944</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherNonoperatingIncome_pp0p0_maILFCOzCWi_zqsiz7JqWGo4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Other income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_iT_pp0p0_mtILFCOzCWi_zg2zRTSYDn5e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Income (loss) before income taxes</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">56,814,484</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(52,140</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

<p id="xdx_89B_ecustom--ScheduleOfSelectedSegmentReportingInformationByReportableSegmentTableTextBlock_zHrD4Q9P4pK6" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in">The following represents selected information for the Company’s reportable segment: SCHEDULE OF SELECTED INFORMATION FOR REPORTABLE SEGMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250401__20260331_zDGRDKDnHB4e" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zMUlHubANMAl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; font-style: italic; text-align: left">Operating Income by Segment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--SegmentOperatingIncomeLoss_pp0p0_hus-gaap--StatementBusinessSegmentsAxis__custom--AbbreviatedNewDrugApplicationsMember_zW739nPwX6K5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; padding-bottom: 1pt">ANDA</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">69,281,380</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left">$</td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">32,121,818</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--SegmentOperatingIncomeLoss_pp0p0_zZN7HgX2rL27" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Operating income by Segment</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">69,281,380</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">32,121,818</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 69281380 32121818 69281380 32121818

The table below reconciles the Company’s operating income by segment to income from operations and to income (loss) before income taxes as reported in the Company’s consolidated statements of operations: SCHEDULE OF OPERATING INCOME BY SEGMENT TO INCOME FROM OPERATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20250401__20260331_zBfByTLuPIjj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_491_20240401__20250331_zbBw0DzfVJo6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Years Ended March 31,</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_401_ecustom--SegmentOperatingIncomeLoss_maOILz5Kj_zu2w0S0vtgji" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Operating income by segment</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">69,281,380</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">32,121,818</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40F_ecustom--CorporateUnallocatedCosts_iN_pp0p0_di_msOILz5Kj_zeLabogPpj63" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Corporate unallocated costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(17,596,803</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(9,001,930</td><td style="text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--AssetImpairmentCharges_iN_pp0p0_di_msOILz5Kj_z9dNWPYf4An8" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Impairment of intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(847,012</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,603,426</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DepreciationAndAmortization_iN_pp0p0_di_msOILz5Kj_zu1QgtSja2d1" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Depreciation and amortization expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,547,874</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,688,429</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_ecustom--NoncashExpense_iN_pp0p0_di_msOILz5Kj_z8AkgiYWoaj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt; text-align: left">Significant non-cash items</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(176,507</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(227,565</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--OperatingIncomeLoss_iT_pp0p0_mtOILz5Kj_maILFCOzCWi_zCwrPzukSZqb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-weight: bold; text-align: left">Income from operations</td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">49,113,184</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td> <td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">19,600,468</td><td style="font-weight: bold; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--GainLossOnSaleOfDerivatives_pp0p0_maILFCOzCWi_zBD2JDYahL1k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Change in fair value of derivative instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">7,855,607</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(18,901,185</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--InterestAndDebtExpense_iN_pp0p0_di_msILFCOzCWi_zFfEEMUYGlXk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Interest expense and amortization of debt issuance costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(396,664</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(772,367</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--InvestmentIncomeInterest_pp0p0_maILFCOzCWi_zFSpvKXP61Ul" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Interest income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">207,857</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,944</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--OtherNonoperatingIncome_pp0p0_maILFCOzCWi_zqsiz7JqWGo4" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Other income</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">34,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest_iT_pp0p0_mtILFCOzCWi_zg2zRTSYDn5e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Income (loss) before income taxes</td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">56,814,484</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left"> </td><td style="font-weight: bold; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(52,140</td><td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr> </table>

69281380 32121818 17596803 9001930

847012

1603426

1547874

1688429

176507 227565

49113184

19600468

7855607

-18901185

396664

772367

207857

20944

34500

56814484

-52140

NOTE 15. RELATED PARTY AGREEMENTS Mikah Pharma, LLC Agreements In May 2020, Praxgen (formerly known as SunGen Pharma LLC), pursuant to an asset purchase agreement, assigned its rights and obligations under the Praxgen Agreement for Amphetamine IR and Amphetamine ER to Mikah Pharma LLC (“Mikah”). The ANDAs for Amphetamine IR and Amphetamine ER are now registered under Elite’s name. Mikah will now be Elite’s partner with respect to Amphetamine IR and ER and will assume all the rights and obligations for these products from Praxgen. Mikah was founded in 2009 by Nasrat Hakim, a related party and the Company’s President, Chief Executive Officer and Chairman of the Board. In June 2021, the Company entered into a development and license agreement with Mikah, pursuant to which Mikah will engage in the research, development, sales and licensing of generic pharmaceutical products. In addition, Mikah will collaborate to develop and commercialize generic products including formulation development, analytical method development, manufacturing, sales and marketing of generic products. Initially two generic products were identified for the parties to develop. As of March 31, 2026 and 2025, the Company owed an aggregate of $2,616,950 and $2,617,210, respectively, to Mikah in accordance with the agreements, with such amounts being recorded as an accrued expense on the consolidated balance sheets.

2616950

2617210

NOTE 16. INCOME TAXES The earnings (loss) before income taxes for the years ended March 31, 2026 and 2025 were $56.8 million and $(0.1) million, respectively. Components of the provision for income taxes were (amounts in thousands): SCHEDULE OF PROVISION FOR INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">For the Year Ended March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zc9R5eDrW9nj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240401__20250331_zYR4oeZyG6yg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zbr4RSu8L9F4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current provision (benefit):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pn3n3_maCITEBz7Zf_zPMU3ksfJpT2" style="vertical-align: bottom; background-color: White"> <td>Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_maCITEBz7Zf_zCM7tW76N514" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">State and local</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">1,399</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">468</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pn3n3_mtCITEBz7Zf_maITEBzwVy_z69rxKZN0LXk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total current provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,399</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">468</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zmoebqTXx2fi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred provision (benefit):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBzevI_zvpxYDcZTt2k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,335</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,871</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBzevI_zMMIB4ozUTs2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">State and local</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">208</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(76</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pn3n3_mtDITEBzevI_maITEBzwVy_zbh1eq5Ie1Gh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt; text-align: left">Total deferred provision</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,543</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,795</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtITEBzwVy_zULyWWBJB2wg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Provision for income taxes</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2026 is as follows (amounts in thousands of dollars): SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_z4pSVyKf8MDl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_maITEBz7p3_zPTIpa5i4997" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">U.S. Federal Statutory Tax Rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,682</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maEtr_c20250401__20260331_z4JGmuzFBqpl" style="width: 16%; text-align: right" title="U.S. Federal Statutory Tax Rate, Percent">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_maITEBz7p3_zt3dhhKeUcAg" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">State and Local Income Taxes, Net of Federal Income Tax Effect (a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,313</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maEtr_c20250401__20260331_fKGEp_zK0HwfyPuMBk" style="text-align: right" title="State and Local Income Taxes, Net of Federal Income Tax Effect, Percent">2.36</td><td style="text-align: left">%</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_maITEBz7p3_zTalcGt4V2Ei" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Foreign Tax Effects</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_maEtr_c20250401__20260331_zoXXYbxb0Msc" style="text-align: right" title="Foreign Tax Effects, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pn3n3_maITEBz7p3_zxSe5YuE7Nyf" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Effect of Changes in Tax Law or Rates Enacted in the Current Period</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maEtr_c20250401__20260331_z6jCvwtxuTr6" style="text-align: right" title="Effect of Changes in Tax Law or Rates Enacted in the Current Period, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationCrossBorderTaxEffectAmount_pn3n3_maITEBz7p3_zvrDDpqQU9t9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Effect of Cross-Border Tax Laws</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationCrossBorderTaxEffectPercent_pid_dp_maEtr_c20250401__20260331_zsTK82EvoHM" style="text-align: right" title="Effect of Cross-Border Tax Laws, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationTaxCreditsAbstract_iB_zPwnEVn2wNih" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Tax Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationTaxCredits_i01N_pn3n3_di_msITEBz7p3_z5C9wXo54zdf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Federal R&D Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(360</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_i01N_pid_dpi_msEtr_c20250401__20260331_z1sv8ReqEqQb" style="text-align: right" title="Federal R&D Credits, Percent">(0.65</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_maITEBz7p3_zdsxx1UXtNJ4" style="display: none; vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Prior year deferred true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_maITEBz7p3_zCRsLbmqXr63" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Changes in Valuation Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_maEtr_c20250401__20260331_zAFr58l2lnUc" style="text-align: right" title="Changes in Valuation Allowance, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseAbstract_iB_znmLu1Vt98re" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Nontaxable or Nondeductible Items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_403_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_i01_pn3n3_maITEBz7p3_zjUrb33aJst5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Non-deductible change in fair value of derivative financial instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,650</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_i01_pid_dp_maEtr_c20250401__20260331_zRuONhY5bHFa" style="text-align: right" title="Non-deductible change in fair value of derivative financial instruments, Percent">(2.96</td><td style="text-align: left">)%</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_i01_pn3n3_z9a7jpLM1Dl1" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Non-deductible change in fair value of stock-based liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Officer's compensation, Percent"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--IncomeTaxReconciliationNondeductibleExpenseOfficerCompensationCost_i01_pn3n3_maITEBz7p3_zUo1rjUit0jh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Officer’s compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,143</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOfficerCompensationCost_i01_pid_dp_maEtr_c20250401__20260331_zSaztEjiszK5" style="text-align: right" title="Officer's compensation, Percent">2.05</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_i01_pn3n3_maITEBz7p3_zNoXFKzYjsD9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(186</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOther_i01_pid_dp_maEtr_c20250401__20260331_z4mZELsxettb" style="text-align: right" title="Other, Percent">(0.33</td><td style="text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_maITEBz7p3_zVcLTYPheJqh" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Other permanent items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Changes in Unrecognized Tax Benefits, Percent"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--IncomeTaxReconciliationChangesInUnrecognizedTaxBenefits_pn3n3_maITEBz7p3_z6ogv0Yeaiac" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Changes in Unrecognized Tax Benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--EffectiveIncomeTaxRateReconciliationChangesInUnrecognizedTaxBenefits_pid_dp_maEtr_c20250401__20260331_zwVuF58PqjAk" style="text-align: right" title="Changes in Unrecognized Tax Benefits, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxReconciliationOtherReconcilingItemsAbstract_iB_zXow2aWGBV4l" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Other Adjustments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationOtherAdjustments_i01N_di_maITEBz7p3_zZl52Keuohsj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_i01_pid_dp_maEtr_c20250401__20260331_zOpNqaIQbXUi" style="border-bottom: Black 1pt solid; text-align: right" title="Other, Percent">—</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtITEBz7p3_z8tx2bl5h2ve" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Effective Tax Rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtEtr_c20250401__20260331_zYwEe4ijnsh7" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective Tax Rate, Percent">21.47</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(a)</td><td style="width: 5pt"></td><td style="text-align: justify">State taxes in New Jersey and Florida made up the majority (greater than 50 percent) of the tax effect in this category.</td> </tr></table> A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2025 is as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">For the Year Ended March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20240401__20250331_z8kzKigzEhB2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_z7K80pSksoDl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Federal income tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(11</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_zr6cVcLMdtr1" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. Federal Statutory Tax Rate</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(11</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_zg415PoBjTk3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local taxes, net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_zwYKDyjbaxJf" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">State and Local Income Taxes, Net of Federal Income Tax Effect</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_pn3n3_zIVn6OQOnr51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-deductible change in fair value of derivative financial instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,969</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_pn3n3_zEi242xHEic4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Non-deductible change in fair value of stock-based liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_zf22qqyZb8Ka" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other permanent items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_za8RgzqcUT79" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prior year deferred true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">110</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationTaxCredits_iN_pn3n3_di_z7Z9SXCRRNNb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Tax credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(115</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationTaxCredits_iN_pn3n3_di_zTs2UiCCm2i7" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Federal R&D Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(115</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_ztqAjgQgsKY" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_zuZC3cv1vqI1" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Changes in Valuation Allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_zMisBWOgCNWh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_z6JfCYQdSevg" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective Tax Rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> ELITE PHARMACEUTICALS, INC. AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The major components of deferred tax assets and liabilities as of March 31, 2026 and 2025 are as follows (amounts in thousands of dollars): SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">As of March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_zLAhEhu13MHa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250331_z9boGPxDXwLi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsNetAbstract_iB_zseKn1P7BHI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxAssetsOperatingLeaseLiability_i01I_pn3n3_maDTAGz8Dw_zfyBvxz8cvQl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">Lease Liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">659</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">865</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--DeferredTaxAssetsCapitalization_i01I_pn3n3_maDTAGz8Dw_zk4BcCIB1byi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Sec. 174 R&E Capitalization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,104</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_maDTAGz8Dw_zdg4z1BGc7a7" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Allowance for Expected Credit Losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">352</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pn3n3_maDTAGz8Dw_zvjdEO0305ee" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Net Operating Loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,489</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pn3n3_maDTAGz8Dw_zCEDtA4TeXd1" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">R&D Credit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,708</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,348</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsGross_i01TI_pn3n3_mtDTAGz8Dw_maDTALNzZvK_zzlwRZ6hy2pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,331</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,073</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_zgZw4dwiI3ch" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--DeferredTaxLiabilitiesFixedAssets_i01NI_pn3n3_di_maDITLz7LS_zWa3n0NsVaS2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Fixed Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(218</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(98</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--DeferredTaxLiabilitiesRightOfUseAsset_i01NI_pn3n3_di_maDITLz7LS_zYFX2QASdnhg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of Use Asset</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(669</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(898</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_i01NI_pn3n3_di_maDITLz7LS_zHOxRCIJ1tUi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(621</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(711</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pn3n3_di_mtDITLz7LS_msDTALNzZvK_z9WzX4rj6mfb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Deferred tax liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,508</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,707</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iTI_pn3n3_mtDTALNzZvK_z9fFz2pDxmL9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">18,366</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Company’s income tax expense was $11.9 million and $4.3 million for the years ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the Company has a federal net operating loss carry forward of $11.9 million of which $10 million can be carried forward indefinitely with limitation of 80% of taxable income and the remaining $1.9 million will expire in 2037 and has no limitation. As of March 31, 2026, the Company’s has a federal research credits carryforward of $5.7 million which will begin to expire in 2032. As of March 31, 2026, the Company’s federal and state income taxes due were $0 and $1.4 million, respectively. The Company’s policy for recording interest and penalties associated with unrecognized tax benefits is to record such interest and penalties as a component of income tax expense. There were no amounts accrued for interest or penalties for the year ended March 31, 2026. Management does not expect any material changes in its unrecognized tax benefits in the next year. There are currently no federal or state income tax examinations underway. The Company’s federal tax returns are open to examination from 2022 and its state tax returns are open to examination from 2021. On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the United States. The OBBBA permanently extends certain provisions of the Tax Cuts and Jobs Act, modifies aspects of the international tax framework, and restores favorable tax treatment for certain business provisions, including the immediate expensing of domestic research and development expenditures. resulting in a decrease in our deferred tax assets of approximately $3.1 million, primarily due to the immediate expensing of domestic research and development expenditures. The amounts of cash income taxes paid by the Company were as follows: SCHEDULE OF INCOME TAXES PAID <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt">(in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20250401__20260331_zIFHm9P6oWDg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zZBq6iXLxBNc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and Local:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--FL_zbMiz1jtOX9e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Florida</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">435</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--NJ_zjX73Qr7vKjj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">New Jersey</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--NY_zlYrexwxQFM6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">New York</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">108</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__custom--AllOtherStatesMember_zSvfFHLdBrBh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">All Other States</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxesPaidNet_pn3n3_zxbPa6QP2k3b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income taxes, net of amounts refunded</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

56800000

-100000

Components of the provision for income taxes were (amounts in thousands): SCHEDULE OF PROVISION FOR INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">For the Year Ended March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_zc9R5eDrW9nj" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20240401__20250331_zYR4oeZyG6yg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--CurrentIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zbr4RSu8L9F4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current provision (benefit):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--CurrentFederalTaxExpenseBenefit_i01_pn3n3_maCITEBz7Zf_zPMU3ksfJpT2" style="vertical-align: bottom; background-color: White"> <td>Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--CurrentStateAndLocalTaxExpenseBenefit_i01_pn3n3_maCITEBz7Zf_zCM7tW76N514" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left; padding-bottom: 1pt">State and local</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">1,399</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; width: 1%; text-align: left"> </td><td style="border-bottom: Black 1pt solid; width: 16%; text-align: right">468</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--CurrentIncomeTaxExpenseBenefit_i01T_pn3n3_mtCITEBz7Zf_maITEBzwVy_z69rxKZN0LXk" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Total current provision</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,399</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">468</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredIncomeTaxExpenseBenefitContinuingOperationsAbstract_iB_zmoebqTXx2fi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred provision (benefit):</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--DeferredFederalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBzevI_zvpxYDcZTt2k" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,335</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,871</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--DeferredStateAndLocalIncomeTaxExpenseBenefit_i01_pn3n3_maDITEBzevI_zMMIB4ozUTs2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">State and local</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">208</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(76</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_40E_eus-gaap--DeferredIncomeTaxExpenseBenefit_i01T_pn3n3_mtDITEBzevI_maITEBzwVy_zbh1eq5Ie1Gh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; padding-left: 10pt; text-align: left">Total deferred provision</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">10,543</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,795</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtITEBzwVy_zULyWWBJB2wg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Provision for income taxes</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

1399000

468000

1399000

468000

10335000

3871000

208000

-76000

10543000

3795000

11942000

4263000

A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2026 is as follows (amounts in thousands of dollars): SCHEDULE OF EFFECTIVE INCOME TAX RATE RECONCILIATION <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20250401__20260331_z4pSVyKf8MDl" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="6" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Percent</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_maITEBz7p3_zPTIpa5i4997" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; font-weight: bold; text-align: left">U.S. Federal Statutory Tax Rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">11,682</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate_pid_dp_maEtr_c20250401__20260331_z4JGmuzFBqpl" style="width: 16%; text-align: right" title="U.S. Federal Statutory Tax Rate, Percent">21.00</td><td style="width: 1%; text-align: left">%</td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_maITEBz7p3_zt3dhhKeUcAg" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">State and Local Income Taxes, Net of Federal Income Tax Effect (a)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,313</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationStateAndLocalIncomeTaxes_pid_dp_maEtr_c20250401__20260331_fKGEp_zK0HwfyPuMBk" style="text-align: right" title="State and Local Income Taxes, Net of Federal Income Tax Effect, Percent">2.36</td><td style="text-align: left">%</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_pn3n3_maITEBz7p3_zTalcGt4V2Ei" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Foreign Tax Effects</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationForeignIncomeTaxRateDifferential_pid_dp_maEtr_c20250401__20260331_zoXXYbxb0Msc" style="text-align: right" title="Foreign Tax Effects, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationChangeInEnactedTaxRate_pn3n3_maITEBz7p3_zxSe5YuE7Nyf" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Effect of Changes in Tax Law or Rates Enacted in the Current Period</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_pid_dp_maEtr_c20250401__20260331_z6jCvwtxuTr6" style="text-align: right" title="Effect of Changes in Tax Law or Rates Enacted in the Current Period, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_407_eus-gaap--EffectiveIncomeTaxRateReconciliationCrossBorderTaxEffectAmount_pn3n3_maITEBz7p3_zvrDDpqQU9t9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Effect of Cross-Border Tax Laws</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--EffectiveIncomeTaxRateReconciliationCrossBorderTaxEffectPercent_pid_dp_maEtr_c20250401__20260331_zsTK82EvoHM" style="text-align: right" title="Effect of Cross-Border Tax Laws, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationTaxCreditsAbstract_iB_zPwnEVn2wNih" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Tax Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationTaxCredits_i01N_pn3n3_di_msITEBz7p3_z5C9wXo54zdf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Federal R&D Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(360</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--EffectiveIncomeTaxRateReconciliationTaxCredits_i01N_pid_dpi_msEtr_c20250401__20260331_z1sv8ReqEqQb" style="text-align: right" title="Federal R&D Credits, Percent">(0.65</td><td style="text-align: left">)%</td></tr> <tr id="xdx_40D_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_maITEBz7p3_zdsxx1UXtNJ4" style="display: none; vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Prior year deferred true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_maITEBz7p3_zCRsLbmqXr63" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Changes in Valuation Allowance</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance_pid_dp_maEtr_c20250401__20260331_zAFr58l2lnUc" style="text-align: right" title="Changes in Valuation Allowance, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseAbstract_iB_znmLu1Vt98re" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Nontaxable or Nondeductible Items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_403_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_i01_pn3n3_maITEBz7p3_zjUrb33aJst5" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Non-deductible change in fair value of derivative financial instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(1,650</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_i01_pid_dp_maEtr_c20250401__20260331_zRuONhY5bHFa" style="text-align: right" title="Non-deductible change in fair value of derivative financial instruments, Percent">(2.96</td><td style="text-align: left">)%</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_i01_pn3n3_z9a7jpLM1Dl1" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Non-deductible change in fair value of stock-based liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Officer's compensation, Percent"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_401_ecustom--IncomeTaxReconciliationNondeductibleExpenseOfficerCompensationCost_i01_pn3n3_maITEBz7p3_zUo1rjUit0jh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Officer’s compensation</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,143</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_ecustom--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOfficerCompensationCost_i01_pid_dp_maEtr_c20250401__20260331_zSaztEjiszK5" style="text-align: right" title="Officer's compensation, Percent">2.05</td><td style="text-align: left">%</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseOther_i01_pn3n3_maITEBz7p3_zNoXFKzYjsD9" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(186</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--EffectiveIncomeTaxRateReconciliationNondeductibleExpenseOther_i01_pid_dp_maEtr_c20250401__20260331_z4mZELsxettb" style="text-align: right" title="Other, Percent">(0.33</td><td style="text-align: left">)%</td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_maITEBz7p3_zVcLTYPheJqh" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Other permanent items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right" title="Changes in Unrecognized Tax Benefits, Percent"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_409_ecustom--IncomeTaxReconciliationChangesInUnrecognizedTaxBenefits_pn3n3_maITEBz7p3_z6ogv0Yeaiac" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-weight: bold; text-align: left">Changes in Unrecognized Tax Benefits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--EffectiveIncomeTaxRateReconciliationChangesInUnrecognizedTaxBenefits_pid_dp_maEtr_c20250401__20260331_zwVuF58PqjAk" style="text-align: right" title="Changes in Unrecognized Tax Benefits, Percent">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxReconciliationOtherReconcilingItemsAbstract_iB_zXow2aWGBV4l" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left">Other Adjustments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left">%</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationOtherAdjustments_i01N_di_maITEBz7p3_zZl52Keuohsj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1pt">Other</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--EffectiveIncomeTaxRateReconciliationOtherAdjustments_i01_pid_dp_maEtr_c20250401__20260331_zOpNqaIQbXUi" style="border-bottom: Black 1pt solid; text-align: right" title="Other, Percent">—</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_mtITEBz7p3_z8tx2bl5h2ve" style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding-bottom: 2.5pt">Effective Tax Rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,942</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_983_eus-gaap--EffectiveIncomeTaxRateContinuingOperations_iT_pid_dp_mtEtr_c20250401__20260331_zYwEe4ijnsh7" style="border-bottom: Black 2.5pt double; text-align: right" title="Effective Tax Rate, Percent">21.47</td><td style="padding-bottom: 2.5pt; text-align: left">%</td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt; width: 100%"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">(a)</td><td style="width: 5pt"></td><td style="text-align: justify">State taxes in New Jersey and Florida made up the majority (greater than 50 percent) of the tax effect in this category.</td> </tr></table> A reconciliation between the Company’s effective tax rate and the federal statutory rate for the year ended March 31, 2025 is as follows: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">For the Year Ended March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_497_20240401__20250331_z8kzKigzEhB2" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40B_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_z7K80pSksoDl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">Federal income tax rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">(11</td><td style="width: 1%; text-align: left">)</td></tr> <tr id="xdx_402_eus-gaap--IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate_pn3n3_zr6cVcLMdtr1" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">U.S. Federal Statutory Tax Rate</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(11</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_zg415PoBjTk3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and local taxes, net of federal benefit</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_pn3n3_zwYKDyjbaxJf" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left">State and Local Income Taxes, Net of Federal Income Tax Effect</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">293</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_ecustom--IncomeTaxReconciliationNondeductibleExpenseChangeInFairValueOfDerivativeFinancialInstruments_pn3n3_zIVn6OQOnr51" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Non-deductible change in fair value of derivative financial instruments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,969</td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--IncomeTaxReconciliationNondeductibleExpenseShareBasedCompensationCost_pn3n3_zEi242xHEic4" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Non-deductible change in fair value of stock-based liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxReconciliationOtherReconcilingItems_pn3n3_zf22qqyZb8Ka" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other permanent items</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">17</td><td style="text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_pn3n3_za8RgzqcUT79" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Prior year deferred true-up</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">110</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationTaxCredits_iN_pn3n3_di_z7Z9SXCRRNNb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Tax credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(115</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationTaxCredits_iN_pn3n3_di_zTs2UiCCm2i7" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Federal R&D Credits</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(115</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_ztqAjgQgsKY" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Change in valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_iN_pn3n3_di_zuZC3cv1vqI1" style="display: none; vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">Changes in Valuation Allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_zMisBWOgCNWh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective tax rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IncomeTaxExpenseBenefit_iT_pn3n3_z6JfCYQdSevg" style="display: none; vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Effective Tax Rate</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">4,263</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

11682000

0.2100

1313000

0.0236

360000

0.0065

-1650000 -0.0296 1143000 0.0205

-186000

-0.0033

11942000

0.2147

-11000

293000

3969000

17000

110000

115000

4263000

The major components of deferred tax assets and liabilities as of March 31, 2026 and 2025 are as follows (amounts in thousands of dollars): SCHEDULE OF COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1pt solid; font-weight: bold">As of March 31 (in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49D_20260331_zLAhEhu13MHa" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49A_20250331_z9boGPxDXwLi" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">2025</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsNetAbstract_iB_zseKn1P7BHI7" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_ecustom--DeferredTaxAssetsOperatingLeaseLiability_i01I_pn3n3_maDTAGz8Dw_zfyBvxz8cvQl" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 60%; text-align: left">Lease Liability</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">659</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">865</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_ecustom--DeferredTaxAssetsCapitalization_i01I_pn3n3_maDTAGz8Dw_zk4BcCIB1byi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Sec. 174 R&E Capitalization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">123</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,104</td><td style="text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAllowanceForDoubtfulAccounts_i01I_pn3n3_maDTAGz8Dw_zdg4z1BGc7a7" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Allowance for Expected Credit Losses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">352</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">92</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--DeferredTaxAssetsOperatingLossCarryforwards_i01I_pn3n3_maDTAGz8Dw_zvjdEO0305ee" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Net Operating Loss</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,489</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DeferredTaxAssetsInProcessResearchAndDevelopment_i01I_pn3n3_maDTAGz8Dw_zCEDtA4TeXd1" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">R&D Credit</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,708</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">5,348</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxAssetsGross_i01TI_pn3n3_mtDTAGz8Dw_maDTALNzZvK_zzlwRZ6hy2pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">9,331</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">20,073</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--DeferredTaxLiabilitiesNetAbstract_iB_zgZw4dwiI3ch" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Deferred tax liabilities:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_ecustom--DeferredTaxLiabilitiesFixedAssets_i01NI_pn3n3_di_maDITLz7LS_zWa3n0NsVaS2" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left">Fixed Assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(218</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(98</td><td style="text-align: left">)</td></tr> <tr id="xdx_406_ecustom--DeferredTaxLiabilitiesRightOfUseAsset_i01NI_pn3n3_di_maDITLz7LS_zYFX2QASdnhg" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; text-align: left">Right of Use Asset</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(669</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(898</td><td style="text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsIntangibleAssets_i01NI_pn3n3_di_maDITLz7LS_zHOxRCIJ1tUi" style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-align: left; padding-bottom: 1pt">Intangible Assets</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(621</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(711</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr id="xdx_406_eus-gaap--DeferredIncomeTaxLiabilities_i01NTI_pn3n3_di_mtDITLz7LS_msDTALNzZvK_z9WzX4rj6mfb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Deferred tax liabilities</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,508</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,707</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--DeferredTaxAssetsLiabilitiesNet_iTI_pn3n3_mtDTALNzZvK_z9fFz2pDxmL9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Net deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">7,823</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">18,366</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

659000 865000 123000 3104000

352000

92000

2489000

10664000

5708000

5348000

9331000

20073000

218000 98000 669000 898000

621000

711000

1508000

1707000

7823000

18366000

11900000

4300000

11900000

10000000

1900000

expire in 2037 and has no limitation

5700000

expire in 2032

1400000

-3100000 The amounts of cash income taxes paid by the Company were as follows: SCHEDULE OF INCOME TAXES PAID <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt">(in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt"> </td> <td colspan="2" id="xdx_49E_20250401__20260331_zIFHm9P6oWDg" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2026</td><td style="padding-bottom: 1pt; font-weight: bold"> </td></tr> <tr id="xdx_405_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--DomesticCountryMember_zZBq6iXLxBNc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Federal</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">State and Local:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--FL_zbMiz1jtOX9e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%">Florida</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">435</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--NJ_zjX73Qr7vKjj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">New Jersey</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">575</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__stpr--NY_zlYrexwxQFM6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">New York</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">108</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxesPaidNet_pn3n3_hus-gaap--IncomeTaxAuthorityAxis__us-gaap--StateAndLocalJurisdictionMember__srt--StatementGeographicalAxis__custom--AllOtherStatesMember_zSvfFHLdBrBh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt">All Other States</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">33</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--IncomeTaxesPaidNet_pn3n3_zxbPa6QP2k3b" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Income taxes, net of amounts refunded</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,151</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

435000

575000

108000

33000

1151000

NOTE 17. SUBSEQUENT EVENTS On April 2, 2026, the Company announced the commercial launch of our generic methadone hydrochloride 5 mg and 10 mg tablets. The product is marketed and sold under the Elite Labs label. On June 1, 2026, the Company reported that it had filed an Abbreviated New Drug Application with the US Food and Drug Administration for a generic version of an undisclosed drug product in the class of medications called anticoagulants. On June 12, 2026, pursuant to a stipulated dismissal agreed to by both parties, the District Court of New Jersey signed an order dismissing the patent infringement suit filed by Purdue Pharma against the Company in November 2023.

Patent application costs were incurred in relation to the Company’s abuse deterrent opioid technology. Amortization of the patent costs would have begun upon the issuance of marketing authorization by the FDA. During the year ended March 31, 2026, these costs were impaired in full as discussed above. State taxes in New Jersey and Florida made up the majority (greater than 50 percent) of the tax effect in this category.