Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2016 | |
Document Information [Line Items] | |
Document Type | S1 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Entity Registrant Name | ELITE PHARMACEUTICALS INC /NV/ |
Entity Central Index Key | 1,053,369 |
Entity Filer Category | Accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 11,512,179 | $ 7,464,180 |
Accounts receivable (net of allowance for doubtful accounts of $ and $272,620 respectively) | 1,530,296 | 1,446,441 |
Inventories | 3,293,729 | 3,032,002 |
Prepaid expenses and other current assets | 377,752 | 388,061 |
Total Current Assets | 16,713,956 | 12,330,684 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $6,726,401 and $6,074,117, respectively | 8,110,721 | 6,401,802 |
INTANGIBLE ASSETS | 6,411,799 | 6,381,774 |
OTHER ASSETS | ||
Security deposits | 48,714 | 198,481 |
Restricted cash - debt service for EDA bonds | 388,959 | 388,959 |
EDA bond offering costs, net of accumulated amortization of $150,052 and $135,874, respectively | 204,401 | 218,579 |
Total Other Assets | 642,074 | 806,019 |
TOTAL ASSETS | 31,878,550 | 25,920,279 |
CURRENT LIABILITIES | ||
Current portion of EDA bonds payable | 220,000 | 210,000 |
Short term loans | 34,681 | 0 |
Current portion of long-term debt | 308,263 | 265,165 |
Related Party Lines of Credit | 718,309 | 583,071 |
Accounts payable | 1,804,429 | 3,383,533 |
Accrued expenses | 555,352 | 613,995 |
Deferred revenues - current | 1,013,333 | 13,333 |
Total Current Liabilities | 4,654,367 | 5,069,097 |
LONG TERM LIABILITIES | ||
EDA Bonds Payable - Non Current | 1,845,000 | 2,065,000 |
Deferred revenues | 3,278,887 | 125,557 |
Other long term liabilities | 568,251 | 629,138 |
Derivative liability - warrants | 10,368,567 | 17,762,573 |
Total Long Term Liabilities | 16,060,705 | 20,582,268 |
TOTAL LIABILITIES | 20,715,072 | 25,651,365 |
MEZZANINE EQUITY | ||
Convertible preferred shares | 44,285,715 | 35,000,000 |
STOCKHOLDERS' DEFICIT | ||
Common stock - par value $0.001, Authorized 995,000,000 and 690,000,000 shares, respectively. Issued 711,544,352 shares and 631,160,701 shares, respectively. Outstanding 711,444,352 shares and 631,060,701 shares, respectively. | 711,546 | 631,162 |
Additional paid-in-capital | 109,137,805 | 106,926,328 |
Accumulated deficit | (142,664,747) | (141,981,735) |
Treasury stock at cost (100,000 common shares) | (306,841) | (306,841) |
TOTAL STOCKHOLDERS’ DEFICIT | (33,122,237) | (34,731,086) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 31,878,550 | $ 25,920,279 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Allowance for doubtful accounts (in dollars) | $ 0 | $ 272,620 |
Accumulated depreciation on property and equipment (in dollars) | 6,726,401 | 6,074,117 |
Accumulated amortization on EDA bond offering costs (in dollars) | $ 150,052 | $ 135,874 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 995,000,000 | 690,000,000 |
Common stock, shares issued | 711,544,352 | 631,160,701 |
Common stock, shares outstanding | 711,444,352 | 631,060,701 |
Treasury stock, shares | 100,000 | 100,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
REVENUES | |||
Manufacturing Fees | $ 8,002,866 | $ 3,870,457 | $ 2,982,400 |
Licensing Fees | 4,495,466 | 1,139,789 | 1,536,039 |
Lab Fee Revenues | 0 | 5,000 | 82,937 |
Total Revenues | 12,498,332 | 5,015,246 | 4,601,376 |
COSTS OF REVENUES | 4,484,162 | 3,013,592 | 3,236,106 |
Gross Profit | 8,014,170 | 2,001,654 | 1,365,270 |
OPERATING EXPENSES | |||
Research and Development | 12,428,783 | 14,727,472 | 3,959,316 |
General and Administrative | 2,903,178 | 2,904,114 | 2,105,725 |
Non-cash compensation through issuance of stock options | 333,362 | 260,045 | 82,947 |
Depreciation and Amortization | 665,647 | 616,995 | 500,906 |
Total Operating Expenses | 16,330,970 | 18,508,626 | 6,648,894 |
(LOSS) FROM OPERATIONS | (8,316,800) | (16,506,972) | (5,283,624) |
OTHER INCOME / (EXPENSES) | |||
Interest expense, net | (280,670) | (287,231) | (859,328) |
Change in fair value of derivative liabilities | 7,394,006 | 20,340,874 | (35,389,799) |
Derivative interest expense | 0 | 0 | (40,588) |
Gain on Sale of Investment | 0 | 1,670,685 | 0 |
Other Income | 0 | 0 | 19,831 |
Total Other Income / (Expense) | 7,113,336 | 21,724,328 | (36,269,884) |
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (1,203,464) | 5,217,356 | (41,553,508) |
CREDIT FOR INCOME TAXES | 520,452 | 3,249 | 292,611 |
NET INCOME (LOSS) | (683,012) | 5,220,605 | (41,260,897) |
Change in value of convertible preferred share mezzanine equity | (9,285,715) | 23,709,069 | (55,314,374) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (9,968,727) | $ 28,929,674 | $ (96,575,271) |
NET INCOME (LOSS) PER SHARE | |||
Basic | $ (0.01) | $ 0.05 | $ (0.21) |
Diluted | $ (0.01) | $ (0.02) | $ (0.21) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||
Basic | 673,905,485 | 591,214,959 | 463,021,991 |
Diluted | 673,905,485 | 757,579,152 | 463,021,991 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS (DEFICIT) EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Balane at Mar. 31, 2013 | $ (8,673,388) | $ 374,495 | $ 97,200,401 | $ (306,841) | $ (105,941,443) |
Balance (in shares) at Mar. 31, 2013 | 374,493,959 | 100,000 | |||
Net Income (Loss) | (41,260,897) | (41,260,897) | |||
Change in value of convertible preferred mezzanine equity | (55,314,374) | (55,314,374) | |||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement | 10,000,000 | $ 65,143 | 9,934,857 | ||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement (in shares) | 65,143,216 | ||||
Non-cash compensation through the issuance of stock options | 82,947 | 82,947 | |||
Costs associated with raising capital (net of adjustments) | (47,987) | (47,987) | |||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement | 0 | $ 5,858 | (5,858) | ||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement (in shares) | 5,858,230 | ||||
Issuance of Common Shares pursuant to the exercise of warrants | 3,601,020 | $ 16,904 | 3,584,116 | ||
Issuance of Common Shares pursuant to the exercise of warrants (in shares) | 16,904,038 | ||||
Issuance of Common Shares pursuant to the exercise of options | $ 24,300 | $ 308 | 23,992 | ||
Issuance of Common Shares pursuant to the exercise of options (in shares) | 308,333 | 308,333 | |||
Common shares issued in payment of Directors’ Fees | $ 110,000 | $ 1,211 | 108,789 | ||
Common shares issued in payment of Directors’ Fees (in shares) | 1,210,583 | ||||
Common shares issued in payment of employee salaries | 368,233 | $ 3,439 | 364,794 | ||
Common shares issued in payment of employee salaries (in shares) | 3,439,467 | ||||
Common shares issued in payment of consulting expenses | 18,836 | $ 210 | 18,626 | ||
Common shares issued in payment of consulting expenses (in shares) | 210,018 | ||||
Milestone shares issued pursuant to EPIC Strategic Alliance Agreement (in shares) | 0 | ||||
Conversion of Series I Preferred Shares into Common Shares | 9,825,066 | ||||
Common shares issued in lieu of cash in payment of preferred share derivative interest expense | 68,089 | $ 879 | 67,210 | ||
Common shares issued in lieu of cash in payment of preferred share derivative interest expense (in shares) | 878,543 | ||||
Conversion of Series B, Series C and Series E Preferred Shares into Common Shares | 9,825,066 | $ 91,797 | 9,733,269 | ||
Conversion of Series B, Series C and Series E Preferred Shares into Common Shares (in shares) | 91,796,043 | ||||
Balance at Mar. 31, 2014 | (81,198,155) | $ 560,244 | 65,750,782 | $ (306,841) | (147,202,340) |
Balance (in shares) at Mar. 31, 2014 | 560,242,430 | 100,000 | |||
Net Income (Loss) | 5,220,605 | 5,220,605 | |||
Change in value of convertible preferred mezzanine equity | 23,709,069 | 23,709,069 | |||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement | 13,236,624 | $ 47,172 | 13,189,452 | ||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement (in shares) | 47,172,240 | ||||
Non-cash compensation through the issuance of stock options | 260,047 | 260,047 | |||
Costs associated with raising capital (net of adjustments) | (16,365) | (16,365) | |||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement | 0 | $ 2,567 | (2,567) | ||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement (in shares) | 2,566,861 | ||||
Issuance of Common Shares pursuant to the exercise of warrants | 774,853 | $ 11,985 | 762,868 | ||
Issuance of Common Shares pursuant to the exercise of warrants (in shares) | 11,985,388 | ||||
Issuance of Common Shares pursuant to the exercise of options | $ 26,000 | $ 223 | 25,777 | ||
Issuance of Common Shares pursuant to the exercise of options (in shares) | 223,334 | 223,334 | |||
Common shares issued in payment of Directors’ Fees | $ 110,000 | $ 322 | 109,678 | ||
Common shares issued in payment of Directors’ Fees (in shares) | 321,611 | ||||
Common shares issued in payment of employee salaries | 849,737 | $ 2,519 | 847,218 | ||
Common shares issued in payment of employee salaries (in shares) | 2,518,668 | ||||
Common shares issued in payment of consulting expenses | 23,999 | $ 70 | 23,929 | ||
Common shares issued in payment of consulting expenses (in shares) | 70,169 | ||||
Milestone shares issued pursuant to EPIC Strategic Alliance Agreement (in shares) | 0 | ||||
Conversion of Series I Preferred Shares into Common Shares | 2,272,500 | $ 6,060 | 2,266,440 | ||
Conversion of Series I Preferred Shares into Common Shares (in shares) | 6,060,000 | ||||
Common shares issued in lieu of cash in payment of preferred share derivative interest expense | 0 | ||||
Balance at Mar. 31, 2015 | (34,731,086) | $ 631,162 | 106,926,328 | $ (306,841) | (141,981,735) |
Balance (in shares) at Mar. 31, 2015 | 631,160,701 | 100,000 | |||
Net Income (Loss) | (683,012) | (683,012) | |||
Change in value of convertible preferred mezzanine equity | (9,285,715) | (9,285,715) | |||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement | 6,199,643 | $ 23,945 | 6,175,698 | ||
Common shares sold pursuant to the Lincoln Park Capital purchase agreement (in shares) | 23,945,346 | ||||
Non-cash compensation through the issuance of stock options | 333,363 | 333,363 | |||
Costs associated with raising capital (net of adjustments) | (84,102) | (84,102) | |||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement | 84,102 | $ 299 | 83,803 | ||
Common shares issued as commitment shares pursuant to the Lincoln Park purchase agreement (in shares) | 298,923 | ||||
Issuance of Common Shares pursuant to the exercise of warrants | 3,017,748 | $ 48,284 | 2,969,464 | ||
Issuance of Common Shares pursuant to the exercise of warrants (in shares) | 48,283,968 | ||||
Issuance of Common Shares pursuant to the exercise of options | $ 23,751 | $ 113 | 23,638 | ||
Issuance of Common Shares pursuant to the exercise of options (in shares) | 112,500 | 112,500 | |||
Common shares issued in payment of Directors’ Fees | $ 100,071 | $ 409 | 99,662 | ||
Common shares issued in payment of Directors’ Fees (in shares) | 408,892 | ||||
Common shares issued in payment of employee salaries | 1,039,000 | $ 4,237 | 1,034,763 | ||
Common shares issued in payment of employee salaries (in shares) | 4,236,555 | ||||
Common shares issued in payment of consulting expenses | 24,000 | $ 97 | 23,903 | ||
Common shares issued in payment of consulting expenses (in shares) | 97,467 | ||||
Milestone shares issued pursuant to EPIC Strategic Alliance Agreement | 840,000 | $ 3,000 | 837,000 | ||
Milestone shares issued pursuant to EPIC Strategic Alliance Agreement (in shares) | 3,000,000 | ||||
Conversion of Series I Preferred Shares into Common Shares | 0 | ||||
Common shares issued in lieu of cash in payment of preferred share derivative interest expense | 0 | ||||
Balance at Mar. 31, 2016 | $ (33,122,237) | $ 711,546 | $ 109,137,805 | $ (306,841) | $ (142,664,747) |
Balance (in shares) at Mar. 31, 2016 | 711,544,352 | 100,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net Income (Loss) | $ (683,012) | $ 5,220,605 | $ (41,260,897) |
Adjustments to reconcile net loss to cash used in operating activities: | |||
Depreciation and amortization | 666,461 | 581,855 | 453,746 |
Change in fair value of derivative liabilities | (7,394,006) | (20,340,874) | 35,389,799 |
Preferred share derivative interest satisfied by the issuance of common stock | 0 | 0 | 68,089 |
Non-cash compensation accrued | 573,667 | 679,771 | 95,000 |
Salaries and Directors Fees satisfied by the issuance of common stock | 1,139,071 | 959,737 | 478,233 |
Consulting expenses paid via the issuance of common stock | 24,000 | 23,999 | 18,836 |
Non-cash compensation satisfied by the issuance of common stock and options | 333,363 | 260,047 | 82,947 |
Milestone shares issued pursuant to Epic Strategic Alliance Agreement | 840,000 | 0 | 0 |
Non-cash interest expense | 0 | 0 | 568,395 |
Non-cash rent expense | (22,996) | 23,703 | (49,439) |
Non-cash lease accretion | 1,621 | 1,526 | 1,438 |
Gain on Sale of Investment | 0 | (1,670,685) | 0 |
Recovery of Bad Debt | (117,095) | 0 | 0 |
Changes in Assets and Liabilities | |||
Accounts receivable | 33,240 | (714,355) | (66,922) |
Inventories | (261,727) | (1,099,518) | (574,340) |
Prepaid and other current assets | 160,076 | (147,188) | (169,373) |
Accounts payable, accrued expenses and other current liabilities | (2,211,414) | 1,131,477 | 788,445 |
Deferred revenues and Customer deposits | 4,153,330 | (13,333) | (13,333) |
Derivative interest payable | 0 | 0 | (27,500) |
NET CASH USED IN OPERATING ACTIVITIES | (2,765,421) | (15,103,233) | (4,216,876) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | (1,918,804) | (1,965,018) | (502,268) |
Costs incurred for intellectual property assets | (30,025) | (31,853) | (58,178) |
Withdrawals from restricted cash, net | 0 | (123,916) | 2,777 |
Proceeds from Sale of Investment in Novel | 0 | 5,000,000 | 0 |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,948,829) | 2,879,213 | (557,669) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from Exercise of Cash Warrants and Options | 3,041,499 | 800,853 | 868,051 |
Proceeds from draws against related party Credit Lines | 135,238 | 54,322 | 528,750 |
Payment of NJEDA Bonds | (210,000) | (1,110,000) | 0 |
Other loan payments | (404,131) | (219,010) | (1,515) |
Proceeds from sale of common stock to Lincoln Park Capital | 6,199,643 | 13,236,624 | 10,000,000 |
Costs associated with raising capital | 0 | (16,365) | (47,987) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 8,762,249 | 12,746,424 | 11,347,299 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,047,999 | 522,404 | 6,572,754 |
CASH AND CASH EQUIVALENTS - beginning of period | 7,464,180 | 6,941,776 | 369,023 |
CASH AND CASH EQUIVALENTS - end of period | 11,512,179 | 7,464,180 | 6,941,776 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 215,878 | 89,336 | 289,494 |
Cash paid for taxes | 4,048 | 2,500 | 3,099 |
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Commitment shares issued to Lincoln Park Capital | 84,102 | 830,521 | 1,112,838 |
Conversion of Preferred Shares to Common Shares | 0 | 2,272,500 | 9,825,066 |
Acquisition of Intellectual Property with convertible note payable | 0 | 0 | 5,597,317 |
Issuance of note payable to related party in payment of balance due on line of credit owed to the same related party | 0 | 0 | 600,000 |
Issuance of Series I Preferred Shares in satisfaction of amounts due on Notes Payable | 0 | 0 | 7,953,591 |
Change in maximum redemption value of convertible preferred mezzanine equity | (9,285,715) | 23,709,069 | 55,314,374 |
Financing of equipment purchases | $ 442,399 | $ 804,861 | $ 107,960 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated balance sheet as of March 31, 2015 and the consolidated statement of operations for the year ended March 31, 2015, the consolidated statement of cash flows for the year ended March 31, 2015 and the consolidated statement of changes in stockholders equity (deficit) for the year ended March 31, 2015, included in this prospectus are restated to correct errors in accounting that were identified in the Company's annual report on Form 10-K for the year ended March 31, 2015. Please refer to Note 2 for further details on the specifics and effects of these corrections of accounting error. The consolidated balance sheet as of March 31, 2014 and the consolidated statement of operations for the year ended March 31, 2014, the consolidated statement of cash flows for the year ended March 31, 2014 and the consolidated statement of changes in stockholders equity (deficit) for the year ended March 31, 2014, included in this prospectus are restated to correct errors in accounting that were identified in the Company's annual report on Form 10-K for the year ended March 31, 2014. Please refer to Note 2 for further details on the specifics and effects of these corrections of accounting error. The consolidated financial statements include the accounts of Elite Pharmaceuticals, Inc. and its wholly-owned subsidiary, Elite Laboratories, Inc. (“Elite Labs”, and collectively, the “Company”). The financial statements of its wholly-owned entity are consolidated and all significant intercompany accounts are eliminated upon consolidation. Elite Pharmaceuticals, Inc. was incorporated on October 1, 1997 under the laws of the State of Delaware, and its wholly-owned subsidiary Elite Laboratories, Inc. 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 and licensing proprietary orally administered, controlled-release drug delivery systems and products with abuse deterrent capabilities and the manufacture 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 products are approved. These products include drugs that cover therapeutic areas for pain, allergy, bariatric and infection. Research and development activities are done so with an objective of developing products that will secure marketing approvals from the United States Food and Drug Administration (“US-FDA”), and thereafter, commercially exploiting such products. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances. Accounts receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. Inventories are stated at the lower of cost (first-in, first-out basis) or market (net realizable value). 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. Such conditions may include an economic downturn or a change in the assessment of future operations. A charge for impairment is recognized whenever the carrying amount of a long-lived asset exceeds its fair value. Management has determined that no impairment of long-lived assets has occurred. Property and equipment are stated at cost. Depreciation is provided on the straight-line method 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. Costs to acquire intangible assets are capitalized and, if such assets are determined to have a finite useful life, amortized to expense on a straight-line method All intangible assets are tested for impairment on at least an annual basis, or sooner, should events or changes in circumstances occur that may indicate a potential impairment of a listed intangible assets. Research and development expenditures are charged to expense as incurred. The Company maintains cash balances, which, at times, may exceed the amounts insured by the Federal Deposit Insurance Corp. Uninsured balances at March 31, 2016 are $ 11.5 The Company in the normal course of business extends credit to its customers based on contract terms and performs ongoing credit evaluations. An allowance for doubtful accounts due to uncertainty of collection is established based on historical collection experience. Amounts are written off when payment is not received after exhaustive collection efforts. During Fiscal 2016, Fiscal 2015 and Fiscal 2014, the Company generated all its revenues from six, seven and ten companies, respectively. The termination of the contracts with either of such companies will result in the loss of a significant amount of revenues currently being earned. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, the recognition of revenue, the amount of the allowance for doubtful accounts receivable and the fair value of intangible assets, stock-based awards and derivatives. The Company uses the liability method for reporting income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Under the liability method, the amounts of deferred tax liabilities and assets at the end of each period are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. Further tax benefits are recognized when it is more likely than not, that such benefits will be realized. Valuation allowances are provided to reduce deferred tax assets to the amount considered likely to be realized. GAAP prescribes a recognition threshold and measurement attribute for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. GAAP requires that the financial statements reflect expected future tax consequences of such positions presuming the taxing authorities’ full knowledge of the position and all relevant facts, but without considering time values. No adjustments related to uncertain tax positions were recognized during Fiscal 2016 and Fiscal 2015. The Company recognizes interest and penalties related to uncertain tax positions as a reduction of the income tax benefit. No interest and penalties related to uncertain tax positions were accrued as of March 31, 2016 and March 31, 2015. The Company operates in multiple tax jurisdictions within the United States of America. Although we do not believe that we are currently under examination in any of our major tax jurisdictions, we remain subject to examination in all of our tax jurisdiction until the applicable statutes of limitation expire. As of March 31, 2016, a summary of the tax years that remain subject to examination in our major tax jurisdictions are: United States Federal, 2012 and forward, and State, 2008 and forward. The Company did not record unrecognized tax positions for the years ended March 31, 2016, 2015 and 2014. Basic earnings per common share is calculated by dividing net earnings by the weighted average number of shares outstanding during each period presented. Diluted earnings per share are calculated by dividing earnings by the weighted average number of shares and common stock equivalents. The Company’s common stock equivalents consist of options, warrants and convertible securities. Contracts are considered to be collaborative arrangements when they satisfy the following criteria defined in ASC 808, “Collaborative Arrangements”: · The parties to the contract must actively participate in the joint operating activity; and · The joint operating activity must expose the parties to the possibility of significant risks and rewards, based on whether or not the activity is successful. The Company entered into a sales and distribution licensing agreement with Epic Pharma LLC, dated June 4, 2015 (the “2015 Epic License Agreement”), which has been determined to satisfy the criteria for consideration as a collaborative agreement, and is accounted for accordingly, in accordance with GAAP. The Company enters into licensing, manufacturing and development agreements which may include multiple revenue generating activities, including, without limitation, milestones, license fees, product sales and services. These multiple elements are assessed in accordance ASC 605-25 Revenue Recognition for Multiple-Element Arrangements in order to determine whether particular components of the arrangement represent separate units of accounting. An arrangement component is considered to be a separate unit of accounting if the deliverable relating to the component has value to the customer on a standalone basis, and if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in control of the Company. The Company recognizes payments received pursuant to a multiple revenue agreement as revenue, only if the related delivered item(s) have stand-alone value, with the arrangement being accordingly accounted for as a separate unit of accounting. If such delivered item(s) are considered to either not have stand-alone value, the arrangement is accounted for as a single unit of accounting, and the payments received are recognized as revenue over the estimated period of when performance obligations relating to the item(s) will be performed. Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it determines the period over which the performance obligations will be performed and revenue will be recognized. If it cannot reasonably estimate the timing and the level of effort to complete its performance obligations under a multiple-element arrangement, revenues are then recognized on a straight-line basis over the period encompassing the expected completion of such obligations, with such period being reassessed at each subsequent reporting period. Arrangement consideration is allocated at the inception of the arrangement to all deliverables on the basis of their relative selling price (the relative selling price method). When applying the relative selling price method, the selling price of each deliverable is determined using vendor-specific objective evidence of selling price, if such exists; otherwise, third-part evidence of selling price. If neither vendor-specific objective evidence nor third-party evidence of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable when applying the relative selling price method. In deciding whether we can determine vendor-specific objective evidence or third-party evidence of selling price, the Company does not ignore information that is reasonably available without undue cost and effort. When determining the selling price for significant deliverables under a multiple-element revenue arrangement, the Company considers any or all of the following, depending on information available or information that could be reasonably available without undue cost and effort: vendor-specific objective evidence, third party evidence or best estimate of selling price. More specifically, factors considered can include, without limitation and as appropriate, size of market for specific a product, number of suppliers and other competitive market factors, forecast market shares and gross profits, barriers/time frames to market entry/launch, intellectual property rights and protections, exclusive or non-exclusive arrangements, costs of similar/identical deliverables from third parties, contractual terms, including, without limitation, length of contract, renewal rights, commercial terms, profit allocations, and other commercial, financial, tangible and intangible factors that may be relevant in the valuation of a specific deliverable. Milestone payments are accounted for in accordance with ASC 605-28 “Revenue Recognition-Milestone Method” for any deliverables or units of accounting under which the Company must achieve a defined performance obligation which is contingent upon future events or circumstances that are uncertain as of the inception of the arrangement providing for such future milestone payment. Determination of the substantiveness of a milestone is a matter of subjective assessment performed at the inception of the arrangement, and with consideration earned from the achievement of a milestone meeting all of the following: · It must be either commensurate with the Company's performance in achieving the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company's performance to achieve the milestone; and · It relates solely to past performance; and · It is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. FASB ASC 280-10-50, “Disclosure about Segments of an Enterprise and Related Information” requires use of the “management approach” model for segment reporting. The management approach is based on the way a company’s management organizes 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. The Company disaggregates its product revenues into the type of marketing authorization relating to each product, specifically the following two reportable segments: 1. ANDA’s for generic products; or 2. NDA’s for branded products. Asset information is not reviewed or included within the Company’s internal management reporting. Accordingly, the Company does not disclose asset information for each reportable segment. Please see note 3 for further details. LEASES Lease agreements are evaluated to determine if they are capital leases meeting any of the following criteria at inception: (a) transfer of ownership; (b) bargain purchase option; (c) the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or (d) the present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. If at its inception a lease meets any of the four lease criteria above, the lease is classified by the Company as a capital lease; and if none of the four criteria are met, the lease is classified by the Company as an operating lease. TREASURY STOCK The Company records common shares purchased and held in treasury at cost. The carrying amounts of current assets and liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of noncurrent assets are reasonable estimates of their fair values based on management’s evaluation of future cash flows. The long-term liabilities are carried at amounts that approximate fair value based on borrowing rates available to the Company for obligations with similar terms, degrees of risk and remaining maturities. The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by subtopics 470, “ Debt Distinguishing liabilities from equity” “Derivatives and Hedging” Please see notes 15 and 16 for further details. The Company accounts for all stock-based payments and awards under the fair value based method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments on an accelerated basis. 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 the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. Share based awards granted to employees with a performance condition are measured based on the probable outcome of that performance condition during the requisite service period. Such an award with a performance condition is accrued if it is probable that a performance condition will be achieved. Compensation costs for stock-based payments to employees that do not include performance conditions are recognized on a straight-line basis. The fair value of all share purchase options is expensed over their vesting period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is recorded as an increase to share capital The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. The compensation expense recognized for the years ended March 31, 2016, March 31, 2015 and March 31, 2014 in relation to the granting of share purchase options to employees was $ 333,362 260,045 82,947 The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities. ASC 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company utilizes the market approach. The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The authoritative guidance is effective for annual reporting periods beginning after December 15, 2016. In July 2015, the FASB extended the effective date of the guidance by one year to December 15, 2017. The Company is currently in the process of assessing the impact this guidance will have on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory. ASU 2015-11 requires inventory to be subsequently measured using the lower of cost and net realizable value, thereby eliminating the market value approach. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 is effective for reporting periods beginning after December 15, 2016 and is applied prospectively. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In February, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which provides new guidance on leases. The new guidance will increase transparency and comparability among organizations that lease buildings, equipment, and other assets by recognizing the assets and liabilities that arise from lease transactions. Current off-balance sheet leasing activities will be required to be reflected on balance sheets so that investors and other users of financial statements can more readily and accurately understand the rights and obligations associated with these transactions. Consistent with the current lease standard, the new guidance addresses both finance and operating leases. Finance leases will be accounted for in substantially the same manner as capital leases are accounted for under current GAAP. Operating leases will be accounted for (both in the income statement and statement of cash flows) in a manner consistent with operating leases under existing GAAP. However, as it relates to the balance sheet, lessees will recognize lease liabilities based upon the present value of remaining lease payments and corresponding lease assets for operating leases with limited exceptions. The new guidance will also require lessees and lessors to provide additional qualitative and quantitative disclosures to help investors and other users for financials statements assess the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an organization’s leasing activities. The new guidance is effective annual reporting periods, including interim reporting periods with those annual periods, beginning after December 15, 2018, with early application being also permitted, but not required. The Company is evaluating the impact of adoption of this guidance on its financial position, results of operations and disclosures. |
RESTATEMENT OF PRIOR FINANCIAL
RESTATEMENT OF PRIOR FINANCIAL INFORMATION | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | NOTE 2 - RESTATEMENT OF PRIOR FINANCIAL INFORMATION After receiving a comment letter from the SEC in connection with its standard periodic review of our Form 10-K for the Fiscal Year Ended March 31, 2015, our Form 10-Q for the Quarterly Period Ended June 30, 2015 and, in the process of review, our Form 10-Q, as amended, for the Quarterly Period Ended September 30, 2015, we conducted further reviews of our financial statements. Based on such reviews, the following determinations were made with regards to previously filed annual reports on Form 10-K: Accounting for convertible preferred shares prior to the fiscal year ended March 31, 2016 The Company determined that the accounting for Convertible Preferred Stock (“Mezzanine Preferred”) for annual periods prior to the fiscal year ended March 31, 2016 was incorrect. Specifically, it has been determined the Mezzanine Preferred which had originally been classified as derivative liabilities on annual reports filed on Form 10-K prior to the fiscal year ended March 31, 2016, should instead be accounted for as quasi equity instruments and recorded as mezzanine equity. In addition, the Mezzanine Preferred which were recorded at fair value each annual reporting period, with changes recorded in net income (loss), will instead be recorded at the maximum redemption amount each annual reporting period with changes to this amount being recorded in additional paid in capital. Accordingly, the change in carrying value of the Mezzanine Preferred, which was originally included in the calculation of net income as well as the calculation of net income attributable to common shareholders for annual periods prior to the fiscal year ended March 31, 2016, should instead be included only in the calculation of net income attributable to common shareholders. Consequently, correction of this error in accounting has no effect on earnings per share. The correction of this accounting error has no effect on financial statements relating to the fiscal year ended March 31, 2016, which include the correct accounting for the Mezzanine Preferred. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements Effects on financials for the Year Ended March 31, 2015 As of March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Balance Sheet Derivative Liabilities $ 52,762,573 $ (35,000,000) 1 $ 17,762,573 Convertible preferred shares 35,000,000 1 35,000,000 Additional paid-in capital 1,610,221,568 (54,095,240) 1 106,926,328 Accumulated Deficit (196,076,975) 54,095,240 1 (141,981,735) Year Ended March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Statement of Operations Change in Fair Value of derivative Liabilities $ 44,049,943 $ (23,709,070) 1 $ 20,340,874 Net Income (Loss) 2 28,929,674 (23,709,070) 1 5,220,604 Change in carrying value of convertible preferred mezzanine equity 23,709,070 1 23,707,070 Net Income (Loss) attributable to common shareholders 2 28,929,674 28,929,674 Net Income (Loss) per share Basic $ 0.05 $ 0.05 Diluted $ (0.02) $ (0.02) Year Ended March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Statement of Cash Flows Net Income (Loss) 2 $ 28,929,674 $ (23,709,070) 1 $ 5,220,604 Change in Fair Value of derivative Liabilities (44,049,943) 23,709,070 1 (20,340,874) Net cash used in operating activities (15,103,233) (15,103,233) Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) 23,709,070 1 23,709,070 Effects on financials for the year ended March 31, 2014 As of March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Balance Sheet Derivative Liabilities-Preferred Shares $ 60,981,570 $ (60,981,570) 1 $ Convertible Preferred Shares 60,981,570 1 60,981,570 Additional paid-in capital 143,555,091 (77,804,310) 1 65,750,781 Accumulated Deficit (255,006,646) 77,804,310 1 177,202,336 Year Ended March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Statement of Operations Change in fair value of derivatives $ (90,704,173) $ 55,314,374 1 $ (35,389,799) Net Income (Loss) 2 (96,575,271) 55,314,374 1 (41,260,897) Change in maximum redemption value of convertible preferred mezzanine equity (55,314,374) 1 (55,314,374) Net Income (Loss) attributable to common shareholders 2 (96,575,271) (96,575,271) Net Income (Loss) per share Basic $ (0.21) $ (0.21) Diluted $ (0.21) $ (0.21) Year Ended March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Statement of Cash Flows Net Income (Loss) 2 $ (96,575,271) $ 55,314,374 1 $ (41,260,897) Change in Fair Value of derivative Liabilities 90,704,173 (55,314,374) 1 35,389,799 Net cash used in operating activities (4,216,875) (4,216,875) Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) (55,314,374) 1 (55,314,374) 1 Adjustments relate solely to correction of errors in accounting for convertible preferred shares. 2 For annual periods prior to the fiscal year ended March 31, 2016, as previously reported Net Income (Loss) and Net Income (Loss) Attributable to Common Shareholders, were the same and, accordingly, both amounts were reported on a single line item identified as Net Income (Loss) Attributable to Common Shareholders |
SEGMENT RESULTS
SEGMENT RESULTS | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 3 SEGMENT RESULTS FASB ASC 280-10-50, “Disclosure about Segments of an Enterprise and Related Information” requires use of the “management approach” model for segment reporting. The management approach is based on the way a company’s management organizes 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. The Company disaggregates its product revenues into the type of marketing authorization relating to each product, specifically the following two reportable segments: 1. ANDA’s for generic products; or 2. NDA’s for branded products. Years Ended March 31, 2016 2015 2014 Revenues from External Customers ANDA $ 9,164,999 $ 5,015,246 $ 4,601,376 NDA 3,333,333 Total revenues from external customers $ 12,498,332 $ 5,015,246 $ 4,601,376 Adjusted income from continuing operations before income tax ANDA 4,940,515 1,650,128 1,272,172 NDA (9,305,998) (14,939,115) (3,933,203) Years Ended March 31, 2016 2015 2014 Total segment adjusted (loss) from continuing operations before income tax $ (4,365,483) $ (13,288,987) $ (2,661,031) Corporate unallocated costs (1,772,241) (1,319,939) (1,351,921) Interest revenue 9,802 7 Interest expense (290,468) (287,231) (859,328) Depreciation and amortization expense (665,647) (616,994) (500,906) Significant noncash items other than depreciation and amortization expense (1,513,433) (1,281,052) (749,935) Change in value of derivatives 7,394,006 20,340,874 (35,430,386) Gain on sale of investment 1,670,678 Total income (loss) from continuing operations before income tax $ (1,203,464) $ 5,217,356 $ 41,553,507 Asset information is not reviewed or included within the Company’s internal management reporting. Accordingly, the Company has not disclosed asset for each reportable segment. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 4 INVENTORIES Inventories are recorded at the lower of cost or market on a first-in-first-out basis. Inventories at March 31, 2016 and 2015 consist of the 2016 (Audited) 2015 Finished Goods $ 225,699 $ 122,773 Work-in-Process 222,784 58,770 Raw Materials 2,845,246 2,850,459 $ 3,293,729 $ 3,032,002 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 PROPERTY AND EQUIPMENT 2016 2015 Laboratory, manufacturing, and warehouse equipment $ 8,255,286 $ 7,593,017 Office equipment and Software 234,634 209,551 Furniture and fixtures 49,804 49,804 Transportation equipment 66,855 66,855 Land, building and improvements 6,230,543 4,556,692 14,837,122 12,475,919 Less: Accumulated depreciation (6,726,401) (6,074,117 $ 8,110,721 $ 6,401,802 Depreciation expense amounted to $ 652,284 566,028 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | NOTE 6 INTANGIBLE ASSETS Costs to acquire intangible assets are capitalized and if such assets are determined to have a finite useful life, amortized to expense using a straight line method Patent application costs capitalized were incurred in relation to the Company’s abuse deterrent opioid technology. Amortization of such patent costs will begin upon the issuance of marketing authorization by the FDA of a product incorporating such patented technology and be calculated on a straight line basis through the expiry of the related patent(s). All intangible assets are tested for impairment on at least an annual basis, as close to year end as practical, or sooner, should events or changes in circumstances occur that may indicate a potential impairment of a listed intangible asset. 2016 2015 Intangible assets at beginning of fiscal year Patent application costs $ 334,457 $ 302,602 ANDA acquisitions 6,047,317 6,047,317 Less: Accumulated Amortization Net Intangible Assets at beginning of fiscal year $ 6,381,774 $ 6,349,919 Intangible asset costs capitalized during the fiscal year Patent application costs $ 30,025 $ 31,855 ANDA acquisition costs Total cost of intangible assets capitalized $ 30,025 $ 31,855 Intangible assets at end of fiscal year Patent application costs $ 364,482 $ 334,457 ANDA acquisition costs 6,047,317 6,047,317 Less: Accumulated Amortization Net Intangible Assets $ 6,411,799 $ 6,381,774 The costs incurred in patent applications totaling $ 30,025 31,855 The ANDA acquisition costs of $ 450,000 The ANDA acquisition costs incurred during Fiscal 2014, totaling approximately $ 5.6 |
INVESTMENT IN NOVEL LABORATORIE
INVESTMENT IN NOVEL LABORATORIES INC. | 12 Months Ended |
Mar. 31, 2016 | |
Cost Method Investments In Joint Ventures Disclosure [Abstract] | |
Cost Method Investments In Joint Ventures Disclosure [Text Block] | NOTE 7 INVESTMENT IN NOVEL LABORATORIES INC. At the end of 2006, Elite entered into a joint venture with VGS Pharma, LLC (“ VGS Novel 9,800 On June 10, 2014, the Company received $ 5 9,800 3,329,322 1,670,685 |
NJEDA BONDS
NJEDA BONDS | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 8 NJEDA BONDS Summary Description and History of NJEDA Bonds Description Principal Interest Maturity Series A Note $ 3,660,000 6.50 % September 1, 2030 Series B Note 495,000 9.0 % September 1, 2012 The net proceeds, after payment of issuance costs, were used (i) to redeem the outstanding tax-exempt Bonds originally issued by the Authority on September 2, 1999, (ii) refinance other equipment financing and (iii) for the purchase of certain equipment to be used in the manufacture of pharmaceutical products. As of March 31, 2016, all of the proceeds were utilized by the Company for such stated purposes. On July 23, 2014, the Company retired all outstanding Series B notes, at par, along with all accrued interest due and owing as of such date. As of March 31, 2016, there are no amounts due and owing in relation the Series B notes. Interest is payable semiannually on March 1 and September 1 of each year. The 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 related Indenture requires the maintenance of a Debt Service Reserve Fund of $ 366,000 The Debt Service Reserve is maintained in restricted cash accounts that are classified in Other Assets. Description Balances Amortization Balances Bond Issue Costs $ 354,453 $ 354,453 Accumulated Amortization (135,874) (14,178) (150,052) Unamortized Balance $ 218,579 $ 204,401 The NJEDA Bonds require the Company to make an annual principal payment on September 1 st st st Balance Sheet Classification of Bond Liability Bond principal amounts scheduled to mature within 12 months of the balance sheet date were recorded as current liabilities as of such date. Bond principal amounts scheduled to mature on dates later than 12 months from the balance sheet date were recorded as non-current liabilities as of such date. 2016 2015 Refinanced NJEDA Bonds $ 2,065,000 $ 2,275,000 Current portion (220,000) (210,000) Long term portion, net of current maturities $ 1,845,000 $ 2,065,000 YEAR ENDING MARCH 31, AMOUNT 2017 $ 220,000 2018 85,000 2019 90,000 2020 95,000 2021 105,000 Thereafter 1,470,000 $ 2,065,000 |
LOANS PAYABLE AND LONG TERM DEB
LOANS PAYABLE AND LONG TERM DEBT | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | NOTE 9 - LOANS PAYABLE AND LONG TERM DEBT Loans Payable During the ordinary course of business, the Company has secured loans to support the collateralized financing of fixed asset acquisition, or the renewal of insurance policies. The Company has secured such loans with initial principal amounts totaling $ 442,399 909,477 9 60 6.8 12.2 Principal amounts scheduled for payment within 12 months of the balance sheet date are classified as current liabilities on the balance sheet. Principal amounts scheduled for payment on dates later than 12 months after the balance sheet date are classified as non-current liabilities on the balance sheet. March 31, 2016 March 31, 2015 Current Long- Current Long- Equipment and Insurance financing loans payable $ 342,945 $ 520,827 $ 265,165 $ 560,338 Deferred Rent-135 Ludlow Ave Lease (see note 9) 19,528 42,524 Lease termination costs 135 Ludlow Ave lease (see note 9) 27,896 26,275 TOTAL $ 342,945 $ 568,251 $ 265,165 $ 629,137 YEAR ENDING MARCH 31, AMOUNT 2017 $ 342,945 2018 199,164 2019 174,229 2020 129,476 2021 17,958 Thereafter $ 863,772 |
RELATED PARTY LINES OF CREDIT A
RELATED PARTY LINES OF CREDIT AND NOTES PAYABLE | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Lines Of Credit And Notes Payable [Text Block] | NOTE 10 - RELATED PARTY LINES OF CREDIT AND NOTES PAYABLE Hakim $1,000,000 Bridge Revolving Credit Line On October 15, 2013 (the “Hakim Credit Line Effective Date”), we entered into a bridge loan agreement (the “Hakim Loan Agreement”) with Mr. Nasrat Hakim, our President and CEO. Under the terms of the Hakim Loan Agreement, we have the right, in our sole discretion, to a line of credit (“Hakim Credit Line”) in the maximum principal amount of up to $ 1,000,000 March 31, 2016 10 As of March 31, 2016, the principal balance owed under the Hakim Credit Line was $ 718,309 70,784 9,134 As of March 31, 2015, the principal balance owed under the Hakim Credit Line was $ 583,071 18,105 As of March 31, 2014, the principal balance owed under the Hakim Credit Line was $ 528,750 9,810 Total interest expense accrued pursuant to the Hakim Credit Line was $ 52,678 63,947 16,674 9,134 Please note that this transaction is not to be considered as an arms-length transaction. Convertible Note Payable to Mikah Pharma LLC On August 1, 2013, Elite Laboratories Inc. (“Elite Labs”), a wholly owned subsidiary of the Company, executed an asset purchase agreement (the “Mikah Purchase Agreement”) with Mikah Pharma LLC (“Mikah”), an entity that is wholly owned by Mr. Nasrat Hakim, who, in conjunction with this transaction, was appointed as Elite’s CEO, President and a Director on August 2, 2012, and acquired from Mikah a total of 13 Abbreviated New Drug Applications (“ANDAs”) consisting of 12 ANDAs approved by the FDA and one ANDA under active review with the FDA, and all amendments thereto (the “Acquisition”) for aggregate consideration of $ 10,000,000 The Mikah Note, as amended, was interest free and due and payable on the third anniversary of its issuance. Subject to certain limitations, the principal amount of the Mikah Note was convertible at the option of Mikah into shares of Common Stock at a rate of $ 0.07 14,286 1,000 1 100,000 On February 7, 2014, Mikah converted the principal amount of $ 10,000,000 100 Please note that this transaction is not to be considered as an arms-length transaction. |
LEASES OF RENTAL PROPERTIES
LEASES OF RENTAL PROPERTIES | 12 Months Ended |
Mar. 31, 2016 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessor Disclosure [Text Block] | NOTE 11 - LEASES OF RENTAL PROPERTIES 135 Ludlow Ave Effective Date July 1, 2010 (3) Termination Date December 31, 2016 Lease term 6 years with 2 tenant renewal options for 5 years each Rent expense for the 2016 Fiscal Year $180,854 Rent expense for the 2015 Fiscal Year $153,430 Minimum 5 Year Lease Payments (1) Fiscal year ended March 31, 2017 (2) 155,169 Fiscal year ended March 31, 2018 (2) Fiscal year ended March 31, 2019 (2) Fiscal year ended March 31, 2020 (2) Fiscal year ended March 31, 2021 (2) $155,169 (1) Minimum lease payments are exclusive of additional expenses related to certain expenses incurred in the operation and maintenance of the premises, including, without limitation, real estate taxes and common area charges which may be due under the terms and conditions of the lease. (2) Minimum lease payments calculated for the initial term of the lease only, with such initial term expiring on December 31, 2016. (3) Inclusive of a modification of lease agreement dated July 29, 2014 Summary of Rent Expense 135 Ludlow Avenue Fiscal Year Fiscal Year Rent Expense $ 180,854 $ 153,430 Actual lease payments 203,850 114,321 Increase (Decrease) in deferred rent liability (22,996) 39,109 Adjustments to deferred rent liability (15,409) Balance of deferred rent liability 19,528 42,524 |
LEASE OF 135 LUDLOW AVENUE
LEASE OF 135 LUDLOW AVENUE | 12 Months Ended |
Mar. 31, 2016 | |
Operating Leases Rental Properties 135 Ludlow Avenue Disclosure [Abstract] | |
Operating Leases Rental Properties 135 Ludlow Avenue Disclosure [Text Block] | NOTE 12 - LEASE OF 135 LUDLOW AVENUE The Company entered into a lease for a portion of a one-story warehouse, located at 135 Ludlow Avenue, Northvale, New Jersey, consisting of approximately 15,000 On July 29, 2014, the Company modified this operating lease, with the material terms of the modification including the Company being permitted to occupy the entire 35,000 The lease, as modified, includes an initial term which expires on December 31, 2016 The additional 20,000 Please refer to Note 9 of these financial statements for details on minimum lease payments, rent expense and deferred rent liabilities. |
LEASE TERMINATION COSTS - 135 L
LEASE TERMINATION COSTS - 135 LUDLOW AVENUE | 12 Months Ended |
Mar. 31, 2016 | |
Operating Leases Rental Properties Termination Costs Disclosure [Abstract] | |
Operating Leases Rental Properties Termination Costs Disclosure [Text Block] | NOTE 13 - LEASE TERMINATION COSTS - 135 LUDLOW AVENUE The lease for the property located at 135 Ludlow Avenue, Northvale NJ, includes a requirement that, at termination, the Company return the property to its condition at the inception of the lease, with normal wear and tear excepted. Such requirement accordingly represents an unconditional obligation associated with the retirement of a long-lived asset and subject to ASC 410 of the Codification. The Company estimates such costs would amount to $ 50,000 |
DEFERRED REVENUES
DEFERRED REVENUES | 12 Months Ended |
Mar. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue Disclosure [Text Block] | NOTE 14 - DEFERRED REVENUES Deferred revenues in the aggregate amount of $ 4,292,220 1,013,333 3,278,887 200,000 fifteen year 5,000,000 five year straight line basis |
MEZZANINE EQUITY - CONVERTIBLE
MEZZANINE EQUITY - CONVERTIBLE PREFERRED SHARES | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock [Text Block] | MEZZANINE EQUITY CONVERTIBLE PREFERRED SHARES On February 6, 2014, the Company created the Series I Convertible Preferred Stock (“Series I Preferred”). A total of 500 100 100,000 0.01 · Conversion feature - the Series I Preferred Shares may be converted, at the option of the Holder, into the Company’s Common Stock at a stated conversion price of $ 0.07 · Subsequent dilutive issuances - if the Company issues options at a price below the Conversion Price, then the Conversion Price will be reduced. · Subsequent dividend issuances - if the Company issues Common Stock in lieu of cash in satisfaction of its dividend obligation on its Series C Certificate, the applicable Conversion Price of the Series I Preferred is adjusted. Management has determined that the Series I Preferred host instrument is more akin to equity than debt and also that the above financial instruments are clearly and closely related to the host instrument, with bifurcation and classification as a derivative liability being not required. Based on Management’s review of the COD, the host instrument, the Series I Preferred Shares, will be classified as mezzanine equity. The above identified embedded financial instruments: Conversion Feature, Subsequent Dilutive Issuances and Subsequent Dividend Issuances will not be bifurcated from the host and are therefore classified as mezzanine equity with the Series I Preferred. The Series I Preferred will be carried at the maximum redemption value, with changes in this value charged to retained earnings or to additional paid-in capital in the absence of retained earnings. CONVERTIBLE PREFERRED MEZZANINE EQUITY March 31, March 31, Shares authorized 500 500 Shares outstanding 100 100 Par value $ 0.01 $ 0.01 Stated value $ 100,000 $ 100,000 Conversion Price $ 0.07 $ 0.07 Common shares to be issued upon redemption 142,857,143 142,857,143 Closing price on valuation date $ 0.31 $ 0.2450 Carrying value of convertible preferred mezzanine equity $ 44,285,714 $ 35,000,000 INCREASE / (DECREASE) IN VALUE OF CONVERTIBLE PREFERRED MEZZANINE EQUITY FISCAL YEAR ENDED March 31, March 31, Series I Preferred 9,285,715 (23,709,069) |
DERIVATIVE LIABILITIES - WARRAN
DERIVATIVE LIABILITIES - WARRANTS | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Liabilities Warrants Disclosure [Abstract] | |
Derivative Liabilities Warrants Disclosure [Text Block] | NOTE 16 - DERIVATIVE LIABILITIES - WARRANTS To date, the Company has authorized the issuance of Common Stock Purchase Warrants, with terms of five to seven years, to various corporations and individuals, in connection with the sale of securities, loan agreements and consulting agreements. Exercise prices on those warrants outstanding during Fiscal 2016 and Fiscal 2015 range from $ 0.0625 0.25 Fiscal Year 2016 Fiscal Year 2015 Warrant Weighted Warrant Weighted Balance at beginning of year 89,870,034 $ 0.06 102,143,091 $ 0.06 Warrant exercises, forfeited or expired 48,283,968 $ 0.06 12,273,057 $ 0.07 Ending Balance 41,586,066 $ 0.06 89,870,034 $ 0.06 Accounting Standard Codification “ASC” 815 Derivatives and Hedging The Warrant Derivative Liabilities are measured at fair market value, using the market approach and a level 3 fair value hierarchy, on a recurring basis as of March 31, 2016 and March 31, 2015, in accordance with the valuation techniques discussed in ASC 820. March 31 March 31 March 31 2016 2015 2014 Risk-Free interest rate 0.18% - 0.73% 0.05% - 0.89% 0.05% - 1.32% Expected volatility 52% - 81% 93% - 113% 111% - 207% Expected life (in years) 0.2 2.1 1.2 3.1 0.3 - 4.1 Expected dividend yield 0% 0% 0% Number of warrants 41,586,066 89,870,034 102,143,093 Fair value Warrant Derivative Liability $10,368,567 $17,762,573 $38,103,446 Change in warrant derivative liability for the twelve months ended $7,394,006 $(18,447,573) $32,997,869 The risk free interest rate was based on rates established by the US Treasury Department. The expected volatility was based on the historical volatility of the Company’s share price for periods equal to the expected life of the outstanding warrants at each valuation date. The expected dividend rate was based on the fact that the Company has not historically paid dividends on common stock and does not expect to pay dividends on common stock in the future. The changes of $ 7,394,006 (18,447,573) 32,997,869 Fair value measurements of warrants using significant unobservable inputs (Level 3) March 31 March 31 March 31 2016 2015 2014 Balance at Beginning of Fiscal Year $ 17,762,573 $ 38,103,446 $ 7,862,848 Warrants Exercised (14,788,012) (2,578,300) (2,757,271) Change in fair value of warrant liability 7,394,006 (18,447,573) 32,997,869 Balance at End of Fiscal Year $ 10,368,567 $ 17,762,573 $ 38,103,446 |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | COMMON STOCK Lincoln Park Capital Pursuant to an April 19, 2013 purchase agreement with Lincoln Park Capital Fund, LLC (“Lincoln Park”) we had the right to sell to and Lincoln Park was obligated to purchase up to $ 10 10 On April 10, 2014, we entered into another Purchase Agreement and a Registration Rights Agreement with Lincoln Park. Pursuant to the terms of the Purchase Agreement, Lincoln Park has agreed to purchase from us up to $ 40 Upon execution of the Purchase Agreement, we have issued 1,928,641 1,928,641 76.7 21.2 1.0 We may, from time to time and at our sole discretion but no more frequently than every other business day, direct Lincoln Park to purchase (a “Regular Purchase”) up to 500,000 800,000 760,000 0.10 In addition to Regular Purchases, on any business day on which we have properly submitted a Regular Purchase notice and the closing sale price is not below $0.15, we may purchase (an “Accelerated Purchase”) an additional “accelerated amount” under certain circumstances. The amount of any Accelerated Purchase cannot exceed the lesser of three times the number of purchase shares purchased pursuant to the corresponding Regular Purchase; and 30 97 In the case of both Regular Purchases and Accelerated Purchases, the purchase price per share will be equitably adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction occurring during the business days used to compute the purchase price. Other than as set forth above, there are no trading volume requirements or restrictions under the Purchase Agreement, and we will control the timing and amount of any sales of our common stock to Lincoln Park. Our sales of shares of Common Stock to Lincoln Park under the Lincoln Park Purchase Agreement are limited to no more than the number of shares that would result in the beneficial ownership by Lincoln Park and its affiliates, at any single point in time, of more than 9.99 The Lincoln Park Purchase Agreement and the Lincoln Park Registration Rights Agreement contain customary representations, warranties, agreements and conditions to completing future sale transactions, indemnification rights and obligations of the parties. The Company has the right to terminate the Lincoln Park Purchase Agreement at any time, at no cost or penalty. Actual sales of shares of Common Stock to Lincoln Park under the Lincoln Park Purchase Agreement will depend on a variety of factors to be determined by the Company from time to time, including, without limitation, market conditions, the trading price of the Common Stock and determinations by the Company as to appropriate sources of funding for the Company and its operations. There are no trading volume requirements or restrictions under the Lincoln Park Purchase Agreement. Lincoln Park has no right to require any sales by the Company, but is obligated to make purchases from the Company as it directs in accordance with the Lincoln Park Purchase Agreement. Lincoln Park has covenanted not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of our shares. The net proceeds under the Purchase Agreement to the Company will depend on the frequency and prices at which the Company sells shares of its stock to Lincoln Park. The Company expects that any proceeds received by the Company from such sales to Lincoln Park under the Lincoln Park Purchase Agreement will be used for general corporate purposes and working capital requirements. Summary of Common Stock Activity 80,386,651 70,918,271 and 185,748,471 Fiscal Year Fiscal Year Fiscal Year Description 2016 2015 2014 Common shares sold pursuant to the Lincoln Park Capital Purchase Agreements, with net proceeds of such shares totaling $6,199,643, $13,236,624 and $10,000,000 in Fiscal 2016, Fiscal 2015, and Fiscal 2014, respectively. 23,945,346 47,172,240 65,143,216 Common shares issued as commitment shares pursuant to the Lincoln Park Capital Purchase Agreements 298,923 2,566,861 5,858,230 Common Shares issued in lieu of cash payment in payment of preferred share derivative interest expenses totaling zero, zero and $68,089 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively --- --- 878,543 Common Shares issued pursuant to the conversion of Series B, Series C, Series E and Series I Convertible Preferred Share derivatives, with such derivative liabilities totaling zero, $2,272,500, and 9,825,066 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively, at the time of their conversion. --- 6,060,000 91,796,043 Common Shares issued in payment of Director’s fees totaling $100,071, $110,000 and $110,000 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 408,892 321,611 1,210,583 Common shares issued in payment of employee salaries totaling $1,039,000, $849,737 and $368,233 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. 4,236,555 2,518,668 3,439,467 Common shares issued in payment of consulting expenses totaling $24,000, $23,999 and $18,836 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 97,467 70,169 210,018 Common shares issued pursuant to warrants exercised 48,283,968 11,985,388 16,904,038 Common shares issued pursuant to options exercised 112,500 223,334 308,333 Milestone shares issued pursuant to EPIC Strategic Alliance Agreement totaling $840,000, zero and zero for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 3,000,000 --- --- Total Common Shares issued during Fiscal 2016, Fiscal 2015 and Fiscal 2014 80,383,651 70,918,271 185,748,471 Common Shares issued at March 31, 711,544,352 631,160,701 560,242,430 |
PER SHARE INFORMATION
PER SHARE INFORMATION | 12 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 18 - PER SHARE INFORMATION Basic earnings per share of common stock (“Basic EPS”) is computed by dividing the net income(loss) by the weighted-average number of shares of common stock outstanding. Diluted earnings per share of common stock (“Diluted EPS”) is computed by dividing the net income(loss) by the weighted-average number of shares of common stock and dilutive common stock equivalents and convertible securities then outstanding. GAAP requires the presentation of both Basic EPS and Diluted EPS, if such Diluted EPS is not anti-dilutive, on the face of the Company’s Consolidated Statements of Operations. As the Company had a net loss for Fiscal Year 2016 and 2014, Diluted EPS is not presented as the effect of the Company’s common stock equivalents and convertible securities is anti-dilutive. Fiscal Year Fiscal Year Fiscal Year Numerator Net Income (Loss) attributable to common shareholders $ (9,968,727) $ 28,929,674 $ (96,575,271) Denominator Weighted average shares of common stock outstanding 673,905,485 591,214,959 463,021,991 Net Earnings (Loss) per Share Basic $ (0.01) $ 0.05 $ (0.21) Potentially dilutive securities excluded from the calculation of diluted loss per share for Fiscal 2016 and 2014 Stock Options 581,020 n/a 174,359 Convertible Preferred Mezzanine Equity 142,857,143 n/a 148,917,143 Warrants 22,926,029 n/a 15,782,718 Diluted Earnings (Loss) per share (for Fiscal 2015) is calculated as follows: Fiscal Year Net Income attributable to common shareholders $ 28,929,674 Adjustments to Net Income Reversal of Change in Value of Warrant Derivatives (18,447,573) Reversal of Change in Value of Convertible Preferred Share Mezzanine Equity (25,602,370) Net loss attributable to common shareholders on a diluted basis $ (15,120,269) Denominator Weighted average shares of common stock outstanding 591,214,959 Dilutive effects of convertible preferred mezzanine equity and warrants Convertible preferred mezzanine equity 142,857,143 Warrants 22,926,029 Stock Options 581,020 Weighted average shares outstanding - diluted 757,579,152 Fully Diluted Earnings (Loss) per Share $ (0.02) |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | NOTE 19 - STOCK-BASED COMPENSATION Part or all of the compensation paid by the Company to its Directors and employees consists of the issuance of Common Stock or via the granting of options to purchase Common Stock Stock-based Director Compensation The Company’s Director compensation policy instituted in October 2009 includes provisions that Director’s fees are to be paid via the issuance of shares of the Company’s Common Stock, in lieu of cash, with the valuation of such shares being calculated on a quarterly basis and equal to the average closing price of the Company’s common stock for the quarter just ended. During Fiscal 2016, the Company issued 408,892 100,071 During Fiscal 2015, the Company issued 321,611 110,000 During Fiscal 2014, the Company issued 1,210,583 110,000 As of March 31, 2016, the Company owes its Directors a total of 46,125 15,000 Stock-based Employee Compensation Employment contracts with the Company’s President and Chief Executive Officer, Chief Financial Officer and certain other employees includes provisions for a portion of each employee’s salaries to be paid via the issuance of shares of the Company’s Common, in lieu of cash, with the valuation of such shares being calculated on a quarterly basis and equal to the average closing price of the Company’s common stock for the quarter just ended. During Fiscal Year 2016, the Company issued a total of 4,236,555 1,039,000 During Fiscal Year 2015, the Company issued a total of 2,518,668 849,737 During Fiscal Year 2014, the Company issued a total of 3,439,467 368,233 As of March 31, 2016, the Company owes its President and Chief Executive Officer, Chief Financial Officer and certain other employees a total of 638,407 207,500 Stock option based Employee Compensation During Fiscal 2016, the Company issued, to various employees, options to purchase a total of 360,000 0.23 0.415 129,913 During Fiscal 2015, the Company issued, to various employees, options to purchase a total of 2,590,000 0.26 0.46 769,400 During Fiscal 2014, the Company issued, to various employees, options to purchase a total of 3,000,000 0.07 202,497 The Company measures stock-based compensation cost for options using the Black-Scholes option pricing model. The following table presents a summary of the assumptions used to estimate fair values of the stock options granted during Fiscal 2016, Fiscal 2015 and Fiscal 2014: Fiscal Fiscal Fiscal Exercise prices $0.23 - $0.42 $0.27 - $0.46 $ 0.07 Options Granted (shares) 360,000 2,590,000 3,000,000 Risk-free interest rate 2.1% - 2.2 % 2.2% - 2.8 % 2.5 % Expected volatility 119% - 120 % 120% - 121 % 130 % Expected dividend yield 0.0 % 0.0 % 0.0 % Forfeiture rate 2.7 % 0.0 % 0.0 % Expected term (in years) 10 10 10 Fair value of options granted $ 129,913 $ 769,421 $ 202,497 Non-cash compensation through issuance of stock options $ 333,363 $ 260,045 $ 82,947 As of March 31, 2016, the total remaining unrecognized non-cash compensation costs related to stock options granted was $ 462,308 |
STOCK OPTION PLANS
STOCK OPTION PLANS | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 20 - STOCK OPTION PLANS Under its 2014 Stock Option Plan and prior options plans, the Company may grant stock options to officers, selected employees, as well as members of the Board of Directors and advisory board members. 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. Fiscal Year 2016 Fiscal Year 2015 Fiscal Year 2014 Options Weighted Options Weighted Options Weighted Outstanding at beginning of year 7,642,167 $ 0.48 5,435,667 $ 0.54 3,939,000 $ 1.18 Options Granted 360,000 $ 0.38 2,590,000 $ 0.31 3,000,000 $ 0.07 Options Exercised 112,500 $ 0.21 223,334 $ 0.12 308,333 $ 0.08 Options Expired/Forfeited 280,000 $ 0.60 160,166 $ 0.18 1,195,000 $ 1.60 Outstanding at end of year 7,609,667 $ 0.48 7,642,167 $ 0.48 5,435,667 $ 0.54 Range Options Weighted Weighted Options Weighted $ 0.01 0.25 3,766,667 6.9 $ 0.08 2,766,668 $ 0.09 $ 0.26 0.50 2,650,000 8.5 $ 0.32 783,333 $ 1.08 $ 0.51 1.00 $ 1.01 2.00 96,000 1.8 1.08 96,000 $ 2.01 3.00 1,097,000 0.7 $ 2.16 847,000 $ 2.18 $ 0.01 3.00 7,609,667 6.5 $ 0.48 4,493,001 $ 0.54 As of March 31, 2016, there were 5,595,066 The aggregate intrinsic value of options outstanding as of March 31, 2016, calculated as the difference between the exercise price and the closing price of the Company’s Common Stock on March 31, 2016 was $ 904,409 642,981 The total intrinsic value of options exercised during the Fiscal 2016, 2015 and 2014 was $ 22,173 31,513 101,962 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 21 - INCOME TAXES Year Ended March 31, 2016 2015 2014 Federal: Current $ $ $ Deferred State Current (4,048) $ (3,248) $ (3,099) Deferred Sale of New Jersey Net Operating Losses 524,500 295,710 Net Credit for Income Taxes $ 520,452 $ (3,248) $ 292,611 March 31, 2016 2015 2014 Federal Net Operating Loss Carry forward $ 27,033 $ 24,547 $ 19,813 Valuation Allowance (27,033) (24,547) (19,813) $ $ $ State Net Operating Loss Carryforwards $ 2,722 $ 2,602 $ 1,318 Valuation Allowance (2,722) (2,602) (1,318) $ $ $ At March 31, 2016 and 2015, a 100% valuation allowance is provided The company believes that temporary timing differences between accrual and payment of income taxes are not material to the financial position of the Company. |
CONCENTRATIONS
CONCENTRATIONS | 12 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 22 - CONCENTRATIONS Revenue Concentrations Five customers accounted for substantially all of the Company’s revenues for Fiscal 2016. Included in these customers are three customers that accounted for approximately 37 28 27 Seven customers accounted for substantially all of the Company’s revenues for Fiscal 2015. Included in these customers are three customers that accounted for approximately 55 24 11 Ten customers accounted for substantially all of the Company’s revenues for Fiscal 2014. Included in these customers are three customers that accounted for approximately 88 Accounts Receivable Concentrations Four customers accounted for substantially all of the Company’s accounts receivable as of March 31, 2016. Included in these customers are three customers that accounted for approximately 54 30 8 Five customers accounted for substantially all of the Company’s accounts receivable as of March 31, 2015. Included in these customers are four customers that accounted for approximately 46 26 17 11 Five customers accounted for substantially all of the Company’s accounts receivable as of March 31, 2014. Included in these customers are three customers that accounted for approximately 83 Purchasing Concentrations Seven suppliers accounted for more than 80 44 20 10 Seven suppliers accounted for more than 80 38 11 10 10 Seven suppliers accounted for more than 80 52 |
COLLABORATIVE AGREEMENT WITH EP
COLLABORATIVE AGREEMENT WITH EPIC PHARMA LLC | 12 Months Ended |
Mar. 31, 2016 | |
Collaborative Arrangement [Abstract] | |
Collaborative Arrangement Disclosure [Text Block] | NOTE 23 COLLABORATIVE AGREEMENT WITH EPIC PHARMA LLC 15 In June 2015, Elite received non-refundable payments totaling $ 5 In addition, in January 2016, a New Drug Application (“NDA”) for SequestOx was filed, thereby earning the Company a non-refundable $2.5 million milestone, pursuant to the 2015 Epic License Agreement. The filing of this NDA represents a significant deliverable element as defined within the Epic Collaborative pursuant to ASC 605-25, Revenue Recognition Multiple Element Arrangements. Accordingly, the Company has recognized the $ 2.5 In total, during Fiscal 2016, the Company received payments totaling $ 7.5 |
RELATED PARTY TRANSACTION AGREE
RELATED PARTY TRANSACTION AGREEMENTS WITH EPIC PHARMA LLC | 12 Months Ended |
Mar. 31, 2016 | |
Epic Pharma Llc [Member] | |
Related Party Transactions Disclosure [Text Block] | - RELATED PARTY TRANSACTION AGREEMENTS WITH EPIC PHARMA LLC The Company has entered into two agreements with Epic which constitute agreements with a related party due to the management of Epic including a member on our Board of Directors. On June 4, 2015, the Company entered into the 2015 Epic License Agreement (please see Note 23 above) The 2015 Epic License Agreement includes milestone payments totaling $ 10 · The Company’s performance is required to achieve each milestone; and · The milestones will relate to past performance, when achieved; and · The milestones are reasonable relative to all of the deliverables and payment terms within the 2015 Epic License Agreement. After marketing authorization is received from the FDA, Elite will receive a license fee which is based on profits achieved from the commercial sales of ELI-200. On January 14, 2016, the Company filed an NDA with the FDA for SequestOx, thereby earning a $ 2.5 7.5 On October 2, 2013, Elite executed the Epic Pharma Manufacturing and License Agreement (the “Epic Generic Agreement”), which granted rights to Epic to manufacture twelve generic products whose ANDA’s are owned by Elite, and to market, in the United States and Puerto Rico, six of these products on an exclusive basis, and the remaining six products on a non-exclusive basis. These products will be manufactured at Epic, with Epic being responsible for the manufacturing site transfer supplements that are a prerequisite to each product being approved for commercial sale. In addition, Epic is responsible for all regulatory and pharmacovigilance matters, as well as all marketing and distribution activities. Elite has no further obligations or deliverables under the Epic Generic Agreement. Pursuant to the Epic Generic Agreement, Elite will receive $ 1.8 1.0 800 Both the 2015 Epic License Agreement and the Epic Generic Agreement contain license fees that will be earned and payable to the Company, after the FDA has issued marketing authorization(s) for the related product(s). License fees are based on commercial sales of the products achieved by Epic and calculated as a percentage of net sales dollars realized from such commercial sales. Net sales dollars consist of gross invoiced sales less those costs and deductions directly attributable to each invoiced sale, including, without limitation, cost of goods sold, cash discounts, Medicaid rebates, state program rebates, price adjustments, returns, short date adjustments, charge backs, promotions and marketing costs. The rate applied to the net sales dollars to determine license fees due to the Company is equal to an amount negotiated and agreed to by the parties to each agreement, with the following significant factors, inputs, assumptions and methods, without limitation, being considered by either or both parties: · Assessment of the opportunity for each product in the market, including consideration of the following, without limitation: market size, number of competitors, the current and estimated future regulatory, legislative and social environment for abuse deterrent opioids and the other generic products to which the underlying contracts are relevant; · Assessment of various avenues for monetizing SequestOx and the twelve ANDA’s owned by the Company, including the various combinations of sites of manufacture and marketing options; · Elite’s resources and capabilities with regards to the concurrent development of abuse deterrent opioids and expansion of its generic business segment, including financial and operational resources required to achieve manufacturing site transfers for twelve approved ANDA’s; · Capabilities of each party with regards to various factors, including, one or more of the following: manufacturing, marketing, regulatory and financial resources, distribution capabilities, ownership structure, personnel, assessments of operational efficiencies and entity stability, company culture and image; · Stage of development of SequestOx and manufacturing site transfer and regulatory requirements relating to the commercialization of the generic products at the time of the discussions/negotiations, and an assessment of the risks, probability and time frames for achieving marketing authorizations from the FDA for each product. · Assessment of consideration offered; and · Comparison of the above factors among the various entities with whom the Company was engaged in discussions relating to the commercialization of SequestOx and the manufacture/marketing of the twelve generics related to the Epic Generic Agreement. Please note that this transaction is not to be considered as an arms-length transaction. |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES - NASRAT HAKIM AND MIKAH PHARMA LLC | 12 Months Ended |
Mar. 31, 2016 | |
Nasrat Hakim And Mikah Pharma LLC [Member] | |
Related Party Transactions Disclosure [Text Block] | - TRANSACTIONS WITH RELATED PARTIES NASRAT HAKIM AND MIKAH PHARMA LLC On August 1, 2013, Elite Laboratories Inc. (“Elite Labs”), our wholly owned subsidiary, executed an asset purchase agreement (the “Mikah Purchase Agreement”) with Mikah Pharma LLC (“Mikah”), an entity that is wholly owned by Mr. Nasrat Hakim, who, in conjunction with this transaction, was appointed as our Chief Executive Officer, President and a Director on August 2, 2012, and acquired from Mikah a total of 13 Abbreviated New Drug Applications (“ANDAs”) consisting of 12 ANDAs approved by the FDA and one ANDA under active review with the FDA, and all amendments thereto (the “Acquisition”) for aggregate consideration of $ 10,000,000 The Mikah Note, as amended, was interest free and due and payable on the third anniversary of its issuance. Subject to certain limitations, the principal amount of the Mikah Note was convertible at the option of Mikah into shares of Common Stock at a rate of $ 0.07 14,286 1,000 1 share of Series I Preferred Stock for each $100,000 of principal owed on the Mikah Note On February 7, 2014, Mikah converted the principal amount of $ 10,000,000 100 On August 27, 2010, Elite executed an asset purchase with Mikah (the “Naltrexone Agreement”). Pursuant to the Naltrexone Agreement, Elite acquired from Mikah the Abbreviated New Drug Application number 75-274 (Naltrexone Hydrochloride Tablets USP, 50 mg), and all amendments thereto (the “ANDA”), that have to date been filed with the FDA seeking authorization and approval to manufacture, package, ship and sell the products described in the ANDA within the United States and its territories (including Puerto Rico) for aggregate consideration of $ 200,000 The manufacturing of Naltrexone 50mg was successfully transferred to the Company’s Northvale facility, and the first commercial shipment of this product was made in September 2013. On January 28, 2015, the Mikah Development Agreement was terminated by mutual agreement of the parties thereto. Pursuant to the Mikah Development Agreement, Mikah made advance consideration payments to the Company totaling $200,000 in exchange for product development services to be provided at a future date. Subsequent to the execution of the Mikah Development Agreement, and before any development milestones were achieved, the sole owner of Mikah, Mr. Nasrat Hakim, became the President and Chief Executive Officer of the Company. Mikah has accordingly ceased operating and is in the process of winding down and liquidating its assets. Any further development of the product related to the Mikah Development Agreement will belong to the Company, although there can be no assurances that such development will occur or be successful. The Mikah Development Agreement requires that the consideration paid in advance to the Company be refunded in the event of no milestones being achieved. Mr. Hakim, as owner of Mikah, has directed that the $ 200,000 Please note that this transaction is not to be considered as an arms-length transaction. |
MANUFACTURING, LICENSE AND DEVE
MANUFACTURING, LICENSE AND DEVELOPMENT AGREEMENTS | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transaction, Manufacturing And License Agreement Disclosure [Text Block] | MANUFACTURING, LICENSE AND DEVELOPMENT AGREEMENTS The Company has entered into the following active agreements: · License agreement with Precision Dose, dated September 10, 2010 (the “Precision Dose License Agreement”) · Manufacturing and Supply Agreement with Ascend Laboratories Inc., dated June 23, 2011 and as amended on September 24, 2012 and January 19, 2015 (the “Ascend Manufacturing Agreement”) and · Development agreement with Akorn Pharmaceuticals, dated January 10, 2011 (the “Akorn Agreement”). The Precision Dose Agreement provides for the marketing and distribution, by Precision Dose and its wholly owned subsidiary, TAGI Pharma, of Phentermine 37.5mg tablets (launched in April 2011), Phentermine 15mg capsules (launched in April 2013), Phentermine 30mg capsules (launched in April 2013), Hydromorphone 8mg tablets (launched in March 2012), Naltrexone 50mg tablets (launched in September 2013) and certain additional products that require approval from the FDA which has not been received. Precision Dose will have the exclusive right to market these products in the United States and Puerto Rico and a non-exclusive right to market the products in Canada. Pursuant to the Precision Dose License Agreement, Elite received $200k at signing, and is receiving milestone payments and a license fee which is based on profits achieved from the commercial sale of the products included in the agreement. Revenue from the $ 200 The milestones, totaling $500k, consist of amounts due upon the first shipment of each identified product, as follows: Phentermine 37.5mg tablets ($145k), Phentermine 15 & 30mg capsules ($45k), Hydromorphone 8mg ($125k), Naltrexone 50mg ($95k) and the balance of $95k due in relation to the first shipment of generic products which still require marketing authorizations from the FDA, and to which there can be no assurances of such marketing authorizations being granted and accordingly there can be no assurances that the Company will earn and receive these milestone amounts. · The Company’s performance is required to achieve each milestone; and · The milestones will relate to past performance, when achieved; and · The milestones are reasonable relative to all of the deliverables and payment terms within the Precision Dose License Agreement. The license fees provided for in the Precision Dose Agreement are calculated as a percentage of net sales dollars realized from commercial sales of the related products. Net sales dollars consist of gross invoiced sales less those costs and deductions directly attributable to each invoiced sale, including, without limitation, cost of goods sold, cash discounts, Medicaid rebates, state program rebates, price adjustments, returns, short date adjustments, charge backs, promotions and marketing costs. The rate applied to the net sales dollars to determine license fees due to the Company is equal to an amount negotiated and agreed to by the parties to the Precision Dose License Agreement, with the following significant factors, inputs, assumptions and methods, without limitation, being considered by either or both parties: · Assessment of the opportunity for each generic product in the market, including consideration of the following, without limitation: market size, number of competitors, the current and estimated future regulatory, legislative and social environment for each generic product, and the maturity of the market; · Assessment of various avenues for monetizing the generic products, including the various combinations of sites of manufacture and marketing options; · Capabilities of each party with regards to various factors, including, one or more of the following: manufacturing resources, marketing resources, financial resources, distribution capabilities, ownership structure, personnel, assessment of operational efficiencies and stability, company culture and image; · Stage of development of each generic products, all of which did not have FDA approval at the time of the discussions/negotiations and an assessment of the risks, probability and time frame for achieving marketing authorizations from the FDA for the products; · Assessment of consideration offered by Precision and other entities with whom discussions were conducted; and · Comparison of the above factors among the various entities with whom the Company was engaged in discussions relating to the commercialization of the generic products. The Ascend Manufacturing Agreement provides for the manufacturing by Elite of Methadone 10mg for supply to Ascend Laboratories LLC (“Ascend”). Ascend is the owner of the approved ANDA for Methadone 10mg, and the Northvale Facility is an approved manufacturing site for this ANDA. There are no license fees or milestones relating to this agreement. All revenues earned are recognized as manufacturing revenues on the date of shipment of the product, when title for the goods is transferred, and for which the price is agreed to and it has been determined that collectability is reasonably assured. The initial shipment of Methadone 10mg pursuant to the Ascend Manufacturing Agreement occurred in January 2012. The Akorn Agreement was executed on January 10, 2011 between Hi-Tech Pharmacal Inc. (subsequently acquired by Akorn Pharmaceuticals) and provides for Elite to develop an intermediate product which will be incorporated into the finished formulation of a generic version of a prescription product for Akorn Pharmaceuticals (“Akorn”). There is currently no development activity being conducted pursuant to this agreement and there was no activity during the last fiscal year as well. There can be no assurances that development activities will resume or that a resumption of development activities will result in the successful development of the relevant product. |
CONVERSIONS OF PREFERRED STOCK
CONVERSIONS OF PREFERRED STOCK MEZZANINE EQUITY TO COMMON STOCK | 12 Months Ended |
Mar. 31, 2016 | |
Conversions Of Preferred Stock Derivatives To Common Stock Abstract [Abstract] | |
Conversions Of Preferred Stock Derivatives To Common Stock Disclosure [Text Block] | NOTE 27 - CONVERSIONS OF PREFERRED STOCK MEZZANINE EQUITY TO COMMON STOCK The Certificate of Designations of the Series I Convertible Preferred Stock Mezzanine Equity (the “Series I Mezzanine Equity”), includes provisions entitling its rights to convert shares of the Series I Mezzanine Equity into shares of Common Stock. Fiscal 2016 Fiscal 2015 Series I Preferred Derivatives Number of Derivative Shares Converted 4.242 Number of Common Shares issued pursuant to conversion 6,060,000 Value of Preferred Derivative shares at time of conversion (represents decrease in derivative liability resulting from conversions) 2,272,500 Change in value of preferred share derivative liability recorded at time of conversion (303,000) Par value of Common Shares issued 6,060 Additional paid in capital recorded as a result of the conversions 2,266,440 Please also see Note 15 for further details on the Series I Mezzanine Equity. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Mar. 31, 2016 | |
Loss Contingency [Abstract] | |
Contingencies Disclosure [Text Block] | NOTE 28 - CONTINGENCIES As part of the Company’s efforts to ensure the retention and continuity of key employees, officers and directors in the event of a change of control of the ownership of the Company, the Board of Directors passed a resolution whereby, in the event of a change in control of the ownership of the Company, key executives would receive an amount equal to twelve months of such executive’s salary, and certain Directors and managers would receive an amount equal to six months of such Director’s or managers fees or salaries, as applicable. In addition, the resolution passed provided for the immediate vesting of outstanding options, in the event of a change of control. |
RIGHTS PLAN
RIGHTS PLAN | 12 Months Ended |
Mar. 31, 2016 | |
Distribution Of Rights Issue [Abstract] | |
Rights Plan Disclosure [Text Block] | NOTE 29 - RIGHTS PLAN On November 15, 2013, our board of directors declared a dividend distribution of one right for each outstanding share of our common stock and one right for each share of Common Stock into which any of our outstanding Preferred Stock is convertible, to stockholders of record at the close of business on that date. Each Right entitles the registered holder to purchase from us one “Unit” consisting of one one-millionth (1/1,000,000) of a share of Series H Junior Participating preferred stock, par value $0.01 per share (the “H Preferred Stock”), at a purchase price of $2.10 per Unit 0.000001 15 November 15, 2013 |
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | NOTE 30 - LEGAL PROCEEDINGS In the ordinary course of business, we may be subject to litigation from time to time. Except as discussed below, there is no current, pending or, to our knowledge, threatened litigation or administrative action to which we are a party or of which our property is the subject (including litigation or actions involving our officers, directors, affiliates, or other key personnel, or holders of record or beneficially of more than 5% of any class of our voting securities, or any associate of such party) which in our opinion has, or is expected to have, a material adverse effect upon our business, prospects, financial condition or operations. Arbitration with Precision Dose Inc. On May 9, 2014, Precision Dose Inc, the parent company of TAGI Pharmaceuticals, Inc., commenced an arbitration against the Company alleging that the Company failed to properly supply, price and satisfy gross profit minimums regarding Phentermine 37.5mg tablets, as required by the parties' agreements. Elite denied Precision Dose's allegations and has counterclaimed that Precision Dose is no longer entitled to exclusivity rights with respect to Phentermine 37.5mg tablets, and is responsible for certain costs, expenses, price increases and lost profits relating to Phentermine 37.5mg tablets and the parties' agreements. The parties have reached agreement in settlement of these issues, with Precision Dose agreeing to pay certain amounts to the Company in exchange for Elite agreeing to restore exclusivity rights with respect to Phentermine 37.5mg tablets, subject to certain defined conditions. Both parties have been complying with the agreed settlement terms and the Company has notified the Arbitrator of this settlement, requesting the issuance of proceeding termination documents. Generally Accepted Accounting Principles require that a contingency loss may only be recognized if the event is (i) probable and (ii) the amount of the loss can be reasonably estimated. There were no liabilities meeting this criteria at March 31, 2016. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | - QUARTERLY FINANCIAL INFORMATION (UNADITED) (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2016 Total revenues $ 5,195 $ 2,194 $ 2,947 $ 2,163 Costs of revenues 1,036 836 1,415 1,197 Gross Profit 4,159 1,358 1,532 966 Operating Expenses 3,588 4,071 5,299 3,373 Income (Loss) from Operations 571 (2,713) (3,767) (2,407) Other income (expense) 7,408 (9,520) 2,086 7,139 Income tax (credit) expense (520) Net Income 8,499 (12,233) (1,681) 4,732 Change in carrying value of convertible preferred mezzanine equity 14,142 (24,786) (5,071) 6,429 Net income attributable to common shareholders 22,641 (37,019) (6,753) 11,161 Earnings per share basic $ 0.03 $ (0.05) $ (0.01) $ 0.02 Earnings per share - Diluted $ 0.00 $ (0.05) $ (0.01) $ (0.00) (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2015 Total revenues 1,234 1,363 1,256 1,162 Costs of revenues 904 700 682 729 Gross Profit 331 663 575 433 Operating Expenses 5,788 3,221 4,636 4,864 Income (Loss) from Operations (5,457) (2,557) (4,061) (4,431) Other income (expense) (898) 9,974 10,310 2,338 Income tax (credit) expense (3) Net Income (6,350) 7,417 6,248 (2,094) Change in carrying value of convertible preferred mezzanine equity (2,715) 13,600 15,132 (2,308) Net income attributable to common shareholders (9,065) 21,017 21,380 (4,402) Earnings (Loss) per share basic $ (0.01) $ 0.03 $ 0.04 $ (0.01) Earnings (Loss) per share - diluted $ (0.01) $ (0.01) $ (0.01) $ (0.01) (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2014 Total revenues 1,028 1,693 1,159 722 Costs of revenues 1,046 995 617 579 Gross Profit (18) 699 542 143 Operating Expenses 2,365 1,936 1,229 1,118 Income (Loss) from Operations (2,384) (1,237) (687) (976) Other income (expense) (31,652) 175 (6,887) 2,095 Income tax (credit) expense (295) 2 Net Income (33,741) (1,061) (7,576) 1,119 Change in carrying value of convertible preferred mezzanine equity (53,056) 1 (2,061) (197) Net income attributable to common shareholders (86,798) (1,062) (9,638) 922 Earnings (Loss) per share basic $ (0.16) $ (0.00) $ (0.02) $ 0.00 Earnings (Loss) per share - diluted $ (0.16) $ (0.00) $ (0.02) $ (0.00) |
ADVERTISING COSTS
ADVERTISING COSTS | 12 Months Ended |
Mar. 31, 2016 | |
Advertising Costs [Abstract] | |
Advertising Costs Disclosure [Text Block] | NOTE 32 - ADVERTISING COSTS The Company's advertising costs for Fiscal 2016, Fiscal 2015 and Fiscal 2014 were immaterial. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | - SUBSEQUENT EVENTS The Company has evaluated subsequent events from the balance sheet date through June 15, 2016, the date the accompanying financial statements were issued. The following are material subsequent events: Common Stock sold pursuant to the LPC-40 Purchase Agreement Subsequent to March 31, 2016 and up to June 7, 2016 (the latest practicable date), a total of 5.5 0.1 1.7 Common Stock issued pursuant to the exercise of cash warrants Subsequent to March 31, 2016 and up to June 7, 2016 (the latest practicable date), a total of 9.3 0.6 Repayment of Hakim Credit Line On May 24, 2016 all amounts due and owing pursuant to the Hakim Credit Line, which expired on March 31, 2016, were paid in full. These payments, which totaled $ 798,227 718,309 79,918 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | BASIS OF PRESENTATION The accompanying audited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated balance sheet as of March 31, 2015 and the consolidated statement of operations for the year ended March 31, 2015, the consolidated statement of cash flows for the year ended March 31, 2015 and the consolidated statement of changes in stockholders equity (deficit) for the year ended March 31, 2015, included in this prospectus are restated to correct errors in accounting that were identified in the Company's annual report on Form 10-K for the year ended March 31, 2015. Please refer to Note 2 for further details on the specifics and effects of these corrections of accounting error. The consolidated balance sheet as of March 31, 2014 and the consolidated statement of operations for the year ended March 31, 2014, the consolidated statement of cash flows for the year ended March 31, 2014 and the consolidated statement of changes in stockholders equity (deficit) for the year ended March 31, 2014, included in this prospectus are restated to correct errors in accounting that were identified in the Company's annual report on Form 10-K for the year ended March 31, 2014. Please refer to Note 2 for further details on the specifics and effects of these corrections of accounting error. |
Consolidation, Policy [Policy Text Block] | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Elite Pharmaceuticals, Inc. and its wholly-owned subsidiary, Elite Laboratories, Inc. (“Elite Labs”, and collectively, the “Company”). The financial statements of its wholly-owned entity are consolidated and all significant intercompany accounts are eliminated upon consolidation. |
Nature of Operations [Policy Text Block] | NATURE OF BUSINESS Elite Pharmaceuticals, Inc. was incorporated on October 1, 1997 under the laws of the State of Delaware, and its wholly-owned subsidiary Elite Laboratories, Inc. 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 and licensing proprietary orally administered, controlled-release drug delivery systems and products with abuse deterrent capabilities and the manufacture 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 products are approved. These products include drugs that cover therapeutic areas for pain, allergy, bariatric and infection. Research and development activities are done so with an objective of developing products that will secure marketing approvals from the United States Food and Drug Administration (“US-FDA”), and thereafter, commercially exploiting such products. |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on deposit with banks and money market instruments. The Company places its cash and cash equivalents with high-quality, U.S. financial institutions and, to date has not experienced losses on any of its balances. |
Receivables, Policy [Policy Text Block] | ACCOUNTS RECEIVABLE Accounts receivable are comprised of balances due from customers, net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated and specific customer issues are reviewed on a periodic basis to arrive at appropriate allowances. |
Inventory, Policy [Policy Text Block] | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out basis) or market (net realizable value). |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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. Such conditions may include an economic downturn or a change in the assessment of future operations. A charge for impairment is recognized whenever the carrying amount of a long-lived asset exceeds its fair value. Management has determined that no impairment of long-lived assets has occurred. Property and equipment are stated at cost. Depreciation is provided on the straight-line method 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. Costs to acquire intangible assets are capitalized and, if such assets are determined to have a finite useful life, amortized to expense on a straight-line method All intangible assets are tested for impairment on at least an annual basis, or sooner, should events or changes in circumstances occur that may indicate a potential impairment of a listed intangible assets. |
Research and Development Expense, Policy [Policy Text Block] | RESEARCH AND DEVELOPMENT Research and development expenditures are charged to expense as incurred. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | The Company maintains cash balances, which, at times, may exceed the amounts insured by the Federal Deposit Insurance Corp. Uninsured balances at March 31, 2016 are $ 11.5 The Company in the normal course of business extends credit to its customers based on contract terms and performs ongoing credit evaluations. An allowance for doubtful accounts due to uncertainty of collection is established based on historical collection experience. Amounts are written off when payment is not received after exhaustive collection efforts. During Fiscal 2016, Fiscal 2015 and Fiscal 2014, the Company generated all its revenues from six, seven and ten companies, respectively. The termination of the contracts with either of such companies will result in the loss of a significant amount of revenues currently being earned. |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, but are not limited to, the recognition of revenue, the amount of the allowance for doubtful accounts receivable and the fair value of intangible assets, stock-based awards and derivatives. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company uses the liability method for reporting income taxes, under which current and deferred tax liabilities and assets are recorded in accordance with enacted tax laws and rates. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Under the liability method, the amounts of deferred tax liabilities and assets at the end of each period are determined using the tax rate expected to be in effect when taxes are actually paid or recovered. Further tax benefits are recognized when it is more likely than not, that such benefits will be realized. Valuation allowances are provided to reduce deferred tax assets to the amount considered likely to be realized. GAAP prescribes a recognition threshold and measurement attribute for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. GAAP requires that the financial statements reflect expected future tax consequences of such positions presuming the taxing authorities’ full knowledge of the position and all relevant facts, but without considering time values. No adjustments related to uncertain tax positions were recognized during Fiscal 2016 and Fiscal 2015. The Company recognizes interest and penalties related to uncertain tax positions as a reduction of the income tax benefit. No interest and penalties related to uncertain tax positions were accrued as of March 31, 2016 and March 31, 2015. The Company operates in multiple tax jurisdictions within the United States of America. Although we do not believe that we are currently under examination in any of our major tax jurisdictions, we remain subject to examination in all of our tax jurisdiction until the applicable statutes of limitation expire. As of March 31, 2016, a summary of the tax years that remain subject to examination in our major tax jurisdictions are: United States Federal, 2012 and forward, and State, 2008 and forward. The Company did not record unrecognized tax positions for the years ended March 31, 2016, 2015 and 2014. |
Earnings Per Share, Policy [Policy Text Block] | EARNINGS PER COMMON SHARE Basic earnings per common share is calculated by dividing net earnings by the weighted average number of shares outstanding during each period presented. Diluted earnings per share are calculated by dividing earnings by the weighted average number of shares and common stock equivalents. The Company’s common stock equivalents consist of options, warrants and convertible securities. |
Collaborative Arrangement, Accounting Policy [Policy Text Block] | COLLABORATIVE ARRANGEMENTS Contracts are considered to be collaborative arrangements when they satisfy the following criteria defined in ASC 808, “Collaborative Arrangements”: · The parties to the contract must actively participate in the joint operating activity; and · The joint operating activity must expose the parties to the possibility of significant risks and rewards, based on whether or not the activity is successful. The Company entered into a sales and distribution licensing agreement with Epic Pharma LLC, dated June 4, 2015 (the “2015 Epic License Agreement”), which has been determined to satisfy the criteria for consideration as a collaborative agreement, and is accounted for accordingly, in accordance with GAAP. |
Revenue Recognition, Policy [Policy Text Block] | The Company enters into licensing, manufacturing and development agreements which may include multiple revenue generating activities, including, without limitation, milestones, license fees, product sales and services. These multiple elements are assessed in accordance ASC 605-25 Revenue Recognition for Multiple-Element Arrangements in order to determine whether particular components of the arrangement represent separate units of accounting. An arrangement component is considered to be a separate unit of accounting if the deliverable relating to the component has value to the customer on a standalone basis, and if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially in control of the Company. The Company recognizes payments received pursuant to a multiple revenue agreement as revenue, only if the related delivered item(s) have stand-alone value, with the arrangement being accordingly accounted for as a separate unit of accounting. If such delivered item(s) are considered to either not have stand-alone value, the arrangement is accounted for as a single unit of accounting, and the payments received are recognized as revenue over the estimated period of when performance obligations relating to the item(s) will be performed. Whenever the Company determines that an arrangement should be accounted for as a single unit of accounting, it determines the period over which the performance obligations will be performed and revenue will be recognized. If it cannot reasonably estimate the timing and the level of effort to complete its performance obligations under a multiple-element arrangement, revenues are then recognized on a straight-line basis over the period encompassing the expected completion of such obligations, with such period being reassessed at each subsequent reporting period. Arrangement consideration is allocated at the inception of the arrangement to all deliverables on the basis of their relative selling price (the relative selling price method). When applying the relative selling price method, the selling price of each deliverable is determined using vendor-specific objective evidence of selling price, if such exists; otherwise, third-part evidence of selling price. If neither vendor-specific objective evidence nor third-party evidence of selling price exists for a deliverable, the Company uses its best estimate of the selling price for that deliverable when applying the relative selling price method. In deciding whether we can determine vendor-specific objective evidence or third-party evidence of selling price, the Company does not ignore information that is reasonably available without undue cost and effort. When determining the selling price for significant deliverables under a multiple-element revenue arrangement, the Company considers any or all of the following, depending on information available or information that could be reasonably available without undue cost and effort: vendor-specific objective evidence, third party evidence or best estimate of selling price. More specifically, factors considered can include, without limitation and as appropriate, size of market for specific a product, number of suppliers and other competitive market factors, forecast market shares and gross profits, barriers/time frames to market entry/launch, intellectual property rights and protections, exclusive or non-exclusive arrangements, costs of similar/identical deliverables from third parties, contractual terms, including, without limitation, length of contract, renewal rights, commercial terms, profit allocations, and other commercial, financial, tangible and intangible factors that may be relevant in the valuation of a specific deliverable. Milestone payments are accounted for in accordance with ASC 605-28 “Revenue Recognition-Milestone Method” for any deliverables or units of accounting under which the Company must achieve a defined performance obligation which is contingent upon future events or circumstances that are uncertain as of the inception of the arrangement providing for such future milestone payment. Determination of the substantiveness of a milestone is a matter of subjective assessment performed at the inception of the arrangement, and with consideration earned from the achievement of a milestone meeting all of the following: · It must be either commensurate with the Company's performance in achieving the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company's performance to achieve the milestone; and · It relates solely to past performance; and · It is reasonable relative to all of the deliverables and payment terms (including other potential milestone consideration) within the arrangement. |
Segment Reporting, Policy [Policy Text Block] | SEGMENT REPORTING FASB ASC 280-10-50, “Disclosure about Segments of an Enterprise and Related Information” requires use of the “management approach” model for segment reporting. The management approach is based on the way a company’s management organizes 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. The Company disaggregates its product revenues into the type of marketing authorization relating to each product, specifically the following two reportable segments: 1. ANDA’s for generic products; or 2. NDA’s for branded products. Asset information is not reviewed or included within the Company’s internal management reporting. Accordingly, the Company does not disclose asset information for each reportable segment. Please see note 3 for further details. |
Lease, Policy [Policy Text Block] | LEASES Lease agreements are evaluated to determine if they are capital leases meeting any of the following criteria at inception: (a) transfer of ownership; (b) bargain purchase option; (c) the lease term is equal to 75 percent or more of the estimated economic life of the leased property; or (d) the present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs such as insurance, maintenance, and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at lease inception over any related investment tax credit retained by the lessor and expected to be realized by the lessor. If at its inception a lease meets any of the four lease criteria above, the lease is classified by the Company as a capital lease; and if none of the four criteria are met, the lease is classified by the Company as an operating lease. |
Treasury Stock Policy [Policy Text Block] | TREASURY STOCK The Company records common shares purchased and held in treasury at cost. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of current assets and liabilities approximate fair value due to the short-term nature of these instruments. The carrying amounts of noncurrent assets are reasonable estimates of their fair values based on management’s evaluation of future cash flows. The long-term liabilities are carried at amounts that approximate fair value based on borrowing rates available to the Company for obligations with similar terms, degrees of risk and remaining maturities. |
Warrants And Preferred Shares [Policy Text Block] | WARRANTS AND PREFERRED SHARES The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by subtopics 470, “ Debt Distinguishing liabilities from equity” “Derivatives and Hedging” Please see notes 15 and 16 for further details. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | STOCK-BASED COMPENSATION The Company accounts for all stock-based payments and awards under the fair value based method. Stock-based payments to non-employees are measured at the fair value of the consideration received, or the fair value of the equity instruments issued, or liabilities incurred, whichever is more reliably measurable. The fair value of stock-based payments to non-employees is periodically re-measured until the counterparty performance is complete, and any change therein is recognized over the vesting period of the award and in the same manner as if the Company had paid cash instead of paying with or using equity based instruments on an accelerated basis. 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 the granting of share purchase options to employees using the fair value method whereby all awards to employees will be recorded at fair value on the date of the grant. Share based awards granted to employees with a performance condition are measured based on the probable outcome of that performance condition during the requisite service period. Such an award with a performance condition is accrued if it is probable that a performance condition will be achieved. Compensation costs for stock-based payments to employees that do not include performance conditions are recognized on a straight-line basis. The fair value of all share purchase options is expensed over their vesting period with a corresponding increase to additional capital surplus. Upon exercise of share purchase options, the consideration paid by the option holder, together with the amount previously recognized in additional capital surplus, is recorded as an increase to share capital The Company uses the Black-Scholes option valuation model to calculate the fair value of share purchase options at the date of the grant. Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in these assumptions can materially affect the fair value estimate. The compensation expense recognized for the years ended March 31, 2016, March 31, 2015 and March 31, 2014 in relation to the granting of share purchase options to employees was $ 333,362 260,045 82,947 |
Fair Value Measurement, Policy [Policy Text Block] | FAIR VALUE MEASUREMENTS The Company adopted Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, for financial and non-financial assets and liabilities. ASC 820 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company utilizes the market approach. The statement utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The authoritative guidance is effective for annual reporting periods beginning after December 15, 2016. In July 2015, the FASB extended the effective date of the guidance by one year to December 15, 2017. The Company is currently in the process of assessing the impact this guidance will have on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory Simplifying the Measurement of Inventory. ASU 2015-11 requires inventory to be subsequently measured using the lower of cost and net realizable value, thereby eliminating the market value approach. Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 is effective for reporting periods beginning after December 15, 2016 and is applied prospectively. Early adoption is permitted. The Company is evaluating the impact, if any, of adopting this new accounting guidance on its financial statements. In February, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which provides new guidance on leases. The new guidance will increase transparency and comparability among organizations that lease buildings, equipment, and other assets by recognizing the assets and liabilities that arise from lease transactions. Current off-balance sheet leasing activities will be required to be reflected on balance sheets so that investors and other users of financial statements can more readily and accurately understand the rights and obligations associated with these transactions. Consistent with the current lease standard, the new guidance addresses both finance and operating leases. Finance leases will be accounted for in substantially the same manner as capital leases are accounted for under current GAAP. Operating leases will be accounted for (both in the income statement and statement of cash flows) in a manner consistent with operating leases under existing GAAP. However, as it relates to the balance sheet, lessees will recognize lease liabilities based upon the present value of remaining lease payments and corresponding lease assets for operating leases with limited exceptions. The new guidance will also require lessees and lessors to provide additional qualitative and quantitative disclosures to help investors and other users for financials statements assess the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an organization’s leasing activities. The new guidance is effective annual reporting periods, including interim reporting periods with those annual periods, beginning after December 15, 2018, with early application being also permitted, but not required. The Company is evaluating the impact of adoption of this guidance on its financial position, results of operations and disclosures. |
RESTATEMENT OF PRIOR FINANCIA41
RESTATEMENT OF PRIOR FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | As a result of the aforementioned correction of accounting errors, the relevant annual financial statements have been restated as follows: Effects on financials for the Year Ended March 31, 2015 As of March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Balance Sheet Derivative Liabilities $ 52,762,573 $ (35,000,000) 1 $ 17,762,573 Convertible preferred shares 35,000,000 1 35,000,000 Additional paid-in capital 1,610,221,568 (54,095,240) 1 106,926,328 Accumulated Deficit (196,076,975) 54,095,240 1 (141,981,735) Year Ended March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Statement of Operations Change in Fair Value of derivative Liabilities $ 44,049,943 $ (23,709,070) 1 $ 20,340,874 Net Income (Loss) 2 28,929,674 (23,709,070) 1 5,220,604 Change in carrying value of convertible preferred mezzanine equity 23,709,070 1 23,707,070 Net Income (Loss) attributable to common shareholders 2 28,929,674 28,929,674 Net Income (Loss) per share Basic $ 0.05 $ 0.05 Diluted $ (0.02) $ (0.02) Year Ended March 31, 2015 As Previously Adjustments As Restated Condensed Consolidated Statement of Cash Flows Net Income (Loss) 2 $ 28,929,674 $ (23,709,070) 1 $ 5,220,604 Change in Fair Value of derivative Liabilities (44,049,943) 23,709,070 1 (20,340,874) Net cash used in operating activities (15,103,233) (15,103,233) Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) 23,709,070 1 23,709,070 Effects on financials for the year ended March 31, 2014 As of March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Balance Sheet Derivative Liabilities-Preferred Shares $ 60,981,570 $ (60,981,570) 1 $ Convertible Preferred Shares 60,981,570 1 60,981,570 Additional paid-in capital 143,555,091 (77,804,310) 1 65,750,781 Accumulated Deficit (255,006,646) 77,804,310 1 177,202,336 Year Ended March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Statement of Operations Change in fair value of derivatives $ (90,704,173) $ 55,314,374 1 $ (35,389,799) Net Income (Loss) 2 (96,575,271) 55,314,374 1 (41,260,897) Change in maximum redemption value of convertible preferred mezzanine equity (55,314,374) 1 (55,314,374) Net Income (Loss) attributable to common shareholders 2 (96,575,271) (96,575,271) Net Income (Loss) per share Basic $ (0.21) $ (0.21) Diluted $ (0.21) $ (0.21) Year Ended March 31, 2014 As Previously Adjustments As Restated Condensed Consolidated Statement of Cash Flows Net Income (Loss) 2 $ (96,575,271) $ 55,314,374 1 $ (41,260,897) Change in Fair Value of derivative Liabilities 90,704,173 (55,314,374) 1 35,389,799 Net cash used in operating activities (4,216,875) (4,216,875) Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) (55,314,374) 1 (55,314,374) 1 Adjustments relate solely to correction of errors in accounting for convertible preferred shares. 2 For annual periods prior to the fiscal year ended March 31, 2016, as previously reported Net Income (Loss) and Net Income (Loss) Attributable to Common Shareholders, were the same and, accordingly, both amounts were reported on a single line item identified as Net Income (Loss) Attributable to Common Shareholders |
SEGMENT RESULTS (Tables)
SEGMENT RESULTS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following represents selected information for the Company’s reportable segments for the fiscal years ended March 31, 2016, 2015 and 2014: Years Ended March 31, 2016 2015 2014 Revenues from External Customers ANDA $ 9,164,999 $ 5,015,246 $ 4,601,376 NDA 3,333,333 Total revenues from external customers $ 12,498,332 $ 5,015,246 $ 4,601,376 Adjusted income from continuing operations before income tax ANDA 4,940,515 1,650,128 1,272,172 NDA (9,305,998) (14,939,115) (3,933,203) |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The table below provides reconciliations of the Company’s segment adjusted income from continuing operations before income tax to our consolidated (loss) income from continuing operations before income taxes, which is determined in accordance with U.S. GAAP, for the fiscal years ended March 31, 2016, 2015 and 2014: Years Ended March 31, 2016 2015 2014 Total segment adjusted (loss) from continuing operations before income tax $ (4,365,483) $ (13,288,987) $ (2,661,031) Corporate unallocated costs (1,772,241) (1,319,939) (1,351,921) Interest revenue 9,802 7 Interest expense (290,468) (287,231) (859,328) Depreciation and amortization expense (665,647) (616,994) (500,906) Significant noncash items other than depreciation and amortization expense (1,513,433) (1,281,052) (749,935) Change in value of derivatives 7,394,006 20,340,874 (35,430,386) Gain on sale of investment 1,670,678 Total income (loss) from continuing operations before income tax $ (1,203,464) $ 5,217,356 $ 41,553,507 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are recorded at the lower of cost or market on a first-in-first-out basis. Inventories at March 31, 2016 and 2015 consist of the 2016 (Audited) 2015 Finished Goods $ 225,699 $ 122,773 Work-in-Process 222,784 58,770 Raw Materials 2,845,246 2,850,459 $ 3,293,729 $ 3,032,002 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment at March 31, 2016 and 2015 consists of the following: 2016 2015 Laboratory, manufacturing, and warehouse equipment $ 8,255,286 $ 7,593,017 Office equipment and Software 234,634 209,551 Furniture and fixtures 49,804 49,804 Transportation equipment 66,855 66,855 Land, building and improvements 6,230,543 4,556,692 14,837,122 12,475,919 Less: Accumulated depreciation (6,726,401) (6,074,117 $ 8,110,721 $ 6,401,802 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | As of March 31, 2016 and 2015, the following costs were recorded as intangible assets on the Company’s balance sheet: 2016 2015 Intangible assets at beginning of fiscal year Patent application costs $ 334,457 $ 302,602 ANDA acquisitions 6,047,317 6,047,317 Less: Accumulated Amortization Net Intangible Assets at beginning of fiscal year $ 6,381,774 $ 6,349,919 Intangible asset costs capitalized during the fiscal year Patent application costs $ 30,025 $ 31,855 ANDA acquisition costs Total cost of intangible assets capitalized $ 30,025 $ 31,855 Intangible assets at end of fiscal year Patent application costs $ 364,482 $ 334,457 ANDA acquisition costs 6,047,317 6,047,317 Less: Accumulated Amortization Net Intangible Assets $ 6,411,799 $ 6,381,774 |
NJEDA BONDS (Tables)
NJEDA BONDS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Bond Issuance [Table Text Block] | On August 31, 2005, the Company successfully completed a refinancing of a prior 1999 bond issue through the issuance of new tax-exempt bonds (the “Bonds”) via the issuance of the following: Description Principal Interest Maturity Series A Note $ 3,660,000 6.50 % September 1, 2030 Series B Note 495,000 9.0 % September 1, 2012 |
Bond Issue Costs And Amortization [Table Text Block] | Bond issue costs were paid from the bond proceeds and are being amortized over the life of the bonds. These costs and amortization activity are summarized as follows: Description Balances Amortization Balances Bond Issue Costs $ 354,453 $ 354,453 Accumulated Amortization (135,874) (14,178) (150,052) Unamortized Balance $ 218,579 $ 204,401 |
Schedule of Securities Financing Transactions [Table Text Block] | Bond financing consisting of the following, as of March 31, 2016 2015 Refinanced NJEDA Bonds $ 2,065,000 $ 2,275,000 Current portion (220,000) (210,000) Long term portion, net of current maturities $ 1,845,000 $ 2,065,000 |
Schedule of Maturities of NJEDA Bonds [Table Text Block] | Maturities of Bonds for the next five years are as follows: YEAR ENDING MARCH 31, AMOUNT 2017 $ 220,000 2018 85,000 2019 90,000 2020 95,000 2021 105,000 Thereafter 1,470,000 $ 2,065,000 |
LOANS PAYABLE AND LONG TERM D47
LOANS PAYABLE AND LONG TERM DEBT (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Schedule Of Loans Payable And Long Term Debt [Table Text Block] | Loans payable and long term debt consisted of the following: March 31, 2016 March 31, 2015 Current Long- Current Long- Equipment and Insurance financing loans payable $ 342,945 $ 520,827 $ 265,165 $ 560,338 Deferred Rent-135 Ludlow Ave Lease (see note 9) 19,528 42,524 Lease termination costs 135 Ludlow Ave lease (see note 9) 27,896 26,275 TOTAL $ 342,945 $ 568,251 $ 265,165 $ 629,137 |
Secured Debt [Member] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Loan principal payments for the next five years are as follows: YEAR ENDING MARCH 31, AMOUNT 2017 $ 342,945 2018 199,164 2019 174,229 2020 129,476 2021 17,958 Thereafter $ 863,772 |
LEASES OF RENTAL PROPERTIES (Ta
LEASES OF RENTAL PROPERTIES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Leases, Operating [Abstract] | |
Operating Leases of Lessee Disclosure [Table Text Block] | The following leases for rental properties were operative during the year ended March 31, 2016: 135 Ludlow Ave (see notes 10 and 11) Effective Date July 1, 2010 (3) Termination Date December 31, 2016 Lease term 6 years with 2 tenant renewal options for 5 years each Rent expense for the 2016 Fiscal Year $ 180,854 Rent expense for the 2015 Fiscal Year $ 153,430 Minimum 5 Year Lease Payments (1) Fiscal year ended March 31, 2017 (2) 155,169 Fiscal year ended March 31, 2018 (2) Fiscal year ended March 31, 2019 (2) Fiscal year ended March 31, 2020 (2) Fiscal year ended March 31, 2021 (2) $ 155,169 (1) Minimum lease payments are exclusive of additional expenses related to certain expenses incurred in the operation and maintenance of the premises, including, without limitation, real estate taxes and common area charges which may be due under the terms and conditions of the lease. (2) Minimum lease payments calculated for the initial term of the lease only, with such initial term expiring on December 31, 2016. (3) Inclusive of a modification of lease agreement dated July 29, 2014 |
Schedule of Rent Expense [Table Text Block] | Rent expense related to the operating lease at 135 Ludlow was recorded using the straight line method and summarized as follows: Summary of Rent Expense 135 Ludlow Avenue Fiscal Year Ended March 31, 2016 Fiscal Year Ended March 31, 2015 Rent Expense $ 180,854 $ 153,430 Actual lease payments 203,850 114,321 Increase (Decrease) in deferred rent liability (22,996 ) 39,109 Adjustments to deferred rent liability (15,409 ) Balance of deferred rent liability 19,528 42,524 |
MEZZANINE EQUITY - CONVERTIBL49
MEZZANINE EQUITY - CONVERTIBLE PREFERRED SHARES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Preferred Stock Activity [Table Text Block] | Changes in carrying value are also subtracted from net income (loss), (in a manner similar to the treatment of dividends paid on preferred stock), in arriving at net income (loss) available to common stockholders used in the calculation of earnings per share. CONVERTIBLE PREFERRED MEZZANINE EQUITY March 31, March 31, Shares authorized 500 500 Shares outstanding 100 100 Par value $ 0.01 $ 0.01 Stated value $ 100,000 $ 100,000 Conversion Price $ 0.07 $ 0.07 Common shares to be issued upon redemption 142,857,143 142,857,143 Closing price on valuation date $ 0.31 $ 0.2450 Carrying value of convertible preferred mezzanine equity $ 44,285,714 $ 35,000,000 INCREASE / (DECREASE) IN VALUE OF CONVERTIBLE PREFERRED MEZZANINE EQUITY FISCAL YEAR ENDED March 31, March 31, Series I Preferred 9,285,715 (23,709,069) |
DERIVATIVE LIABILITIES - WARR50
DERIVATIVE LIABILITIES - WARRANTS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Liabilities Warrants Disclosure [Abstract] | |
Schedule Of Warrants Activity [Table Text Block] | A summary of warrant activity for the fiscal years indicated below is as follows: Fiscal Year 2016 Fiscal Year 2015 Warrant Weighted Warrant Weighted Balance at beginning of year 89,870,034 $ 0.06 102,143,091 $ 0.06 Warrant exercises, forfeited or expired 48,283,968 $ 0.06 12,273,057 $ 0.07 Ending Balance 41,586,066 $ 0.06 89,870,034 $ 0.06 |
Schedule Of Warrants Valuation Assumptions [Table Text Block] | The portion of derivative liabilities related to outstanding warrants was valued using the Black-Scholes option valuation model, a level 3 fair value hierarchy using the following assumptions: March 31 March 31 March 31 2016 2015 2014 Risk-Free interest rate 0.18% - 0.73% 0.05% - 0.89% 0.05% - 1.32% Expected volatility 52% - 81% 93% - 113% 111% - 207% Expected life (in years) 0.2 2.1 1.2 3.1 0.3 - 4.1 Expected dividend yield 0% 0% 0% Number of warrants 41,586,066 89,870,034 102,143,093 Fair value Warrant Derivative Liability $10,368,567 $17,762,573 $38,103,446 Change in warrant derivative liability for the twelve months ended $7,394,006 $(18,447,573) $32,997,869 |
Schedule Of Warrants Measurement With Unobservable Inputs Reconciliation Recurring Basis [Table Text Block] | The following table summarizes, as of March 31, 2016, 2015 and 2014, the warrant activity subject to Level 3 inputs which are measured on a recurring basis: Fair value measurements of warrants using significant unobservable inputs (Level 3) March 31 March 31 March 31 2016 2015 2014 Balance at Beginning of Fiscal Year $ 17,762,573 $ 38,103,446 $ 7,862,848 Warrants Exercised (14,788,012) (2,578,300) (2,757,271) Change in fair value of warrant liability 7,394,006 (18,447,573) 32,997,869 Balance at End of Fiscal Year $ 10,368,567 $ 17,762,573 $ 38,103,446 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | During Fiscal Years 2016, 2015 and 2014 the Company issued a total of 80,386,651 70,918,271 and 185,748,471 Fiscal Year Fiscal Year Fiscal Year Description 2016 2015 2014 Common shares sold pursuant to the Lincoln Park Capital Purchase Agreements, with net proceeds of such shares totaling $6,199,643, $13,236,624 and $10,000,000 in Fiscal 2016, Fiscal 2015, and Fiscal 2014, respectively. 23,945,346 47,172,240 65,143,216 Common shares issued as commitment shares pursuant to the Lincoln Park Capital Purchase Agreements 298,923 2,566,861 5,858,230 Common Shares issued in lieu of cash payment in payment of preferred share derivative interest expenses totaling zero, zero and $68,089 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively --- --- 878,543 Common Shares issued pursuant to the conversion of Series B, Series C, Series E and Series I Convertible Preferred Share derivatives, with such derivative liabilities totaling zero, $2,272,500, and 9,825,066 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively, at the time of their conversion. --- 6,060,000 91,796,043 Common Shares issued in payment of Director’s fees totaling $100,071, $110,000 and $110,000 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 408,892 321,611 1,210,583 Common shares issued in payment of employee salaries totaling $1,039,000, $849,737 and $368,233 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. 4,236,555 2,518,668 3,439,467 Common shares issued in payment of consulting expenses totaling $24,000, $23,999 and $18,836 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 97,467 70,169 210,018 Common shares issued pursuant to warrants exercised 48,283,968 11,985,388 16,904,038 Common shares issued pursuant to options exercised 112,500 223,334 308,333 Milestone shares issued pursuant to EPIC Strategic Alliance Agreement totaling $840,000, zero and zero for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively 3,000,000 --- --- Total Common Shares issued during Fiscal 2016, Fiscal 2015 and Fiscal 2014 80,383,651 70,918,271 185,748,471 Common Shares issued at March 31, 711,544,352 631,160,701 560,242,430 |
PER SHARE INFORMATION (Tables)
PER SHARE INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic EPS is calculated as follows: Fiscal Year Fiscal Year Fiscal Year Numerator Net Income (Loss) attributable to common shareholders $ (9,968,727) $ 28,929,674 $ (96,575,271) Denominator Weighted average shares of common stock outstanding 673,905,485 591,214,959 463,021,991 Net Earnings (Loss) per Share Basic $ (0.01) $ 0.05 $ (0.21) Potentially dilutive securities excluded from the calculation of diluted loss per share for Fiscal 2016 and 2014 Stock Options 581,020 n/a 174,359 Convertible Preferred Mezzanine Equity 142,857,143 n/a 148,917,143 Warrants 22,926,029 n/a 15,782,718 Diluted Earnings (Loss) per share (for Fiscal 2015) is calculated as follows: Fiscal Year Net Income attributable to common shareholders $ 28,929,674 Adjustments to Net Income Reversal of Change in Value of Warrant Derivatives (18,447,573) Reversal of Change in Value of Convertible Preferred Share Mezzanine Equity (25,602,370) Net loss attributable to common shareholders on a diluted basis $ (15,120,269) Denominator Weighted average shares of common stock outstanding 591,214,959 Dilutive effects of convertible preferred mezzanine equity and warrants Convertible preferred mezzanine equity 142,857,143 Warrants 22,926,029 Stock Options 581,020 Weighted average shares outstanding - diluted 757,579,152 Fully Diluted Earnings (Loss) per Share $ (0.02) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table presents a summary of the assumptions used to estimate fair values of the stock options granted during Fiscal 2016, Fiscal 2015 and Fiscal 2014: Fiscal Fiscal Fiscal Exercise prices $0.23 - $0.42 $0.27 - $0.46 $ 0.07 Options Granted (shares) 360,000 2,590,000 3,000,000 Risk-free interest rate 2.1% - 2.2 % 2.2% - 2.8 % 2.5 % Expected volatility 119% - 120 % 120% - 121 % 130 % Expected dividend yield 0.0 % 0.0 % 0.0 % Forfeiture rate 2.7 % 0.0 % 0.0 % Expected term (in years) 10 10 10 Fair value of options granted $ 129,913 $ 769,421 $ 202,497 Non-cash compensation through issuance of stock options $ 333,363 $ 260,045 $ 82,947 |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Fiscal Year 2016 Fiscal Year 2015 Fiscal Year 2014 Options Weighted Options Weighted Options Weighted Outstanding at beginning of year 7,642,167 $ 0.48 5,435,667 $ 0.54 3,939,000 $ 1.18 Options Granted 360,000 $ 0.38 2,590,000 $ 0.31 3,000,000 $ 0.07 Options Exercised 112,500 $ 0.21 223,334 $ 0.12 308,333 $ 0.08 Options Expired/Forfeited 280,000 $ 0.60 160,166 $ 0.18 1,195,000 $ 1.60 Outstanding at end of year 7,609,667 $ 0.48 7,642,167 $ 0.48 5,435,667 $ 0.54 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Range Options Weighted Weighted Options Weighted $ 0.01 0.25 3,766,667 6.9 $ 0.08 2,766,668 $ 0.09 $ 0.26 0.50 2,650,000 8.5 $ 0.32 783,333 $ 1.08 $ 0.51 1.00 $ 1.01 2.00 96,000 1.8 1.08 96,000 $ 2.01 3.00 1,097,000 0.7 $ 2.16 847,000 $ 2.18 $ 0.01 3.00 7,609,667 6.5 $ 0.48 4,493,001 $ 0.54 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the credit for income taxes are as follows: Year Ended March 31, 2016 2015 2014 Federal: Current $ $ $ Deferred State Current (4,048) $ (3,248) $ (3,099) Deferred Sale of New Jersey Net Operating Losses 524,500 295,710 Net Credit for Income Taxes $ 520,452 $ (3,248) $ 292,611 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The Major components of deferred tax assets and liabilities at March 31, 2016 and 2015 are as follows (amounts in thousands of dollars): March 31, 2016 2015 2014 Federal Net Operating Loss Carry forward $ 27,033 $ 24,547 $ 19,813 Valuation Allowance (27,033) (24,547) (19,813) $ $ $ State Net Operating Loss Carryforwards $ 2,722 $ 2,602 $ 1,318 Valuation Allowance (2,722) (2,602) (1,318) $ $ $ |
CONVERSIONS OF PREFERRED STOC56
CONVERSIONS OF PREFERRED STOCK MEZZANINE EQUITY TO COMMON STOCK (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Conversions Of Preferred Stock Derivatives To Common Stock Abstract [Abstract] | |
Schedule of Conversions of Stock [Table Text Block] | Conversions of Series I Mezzanine Equity to Common Stock during Fiscal 2016 and Fiscal 2015 are summarized as follows: Fiscal 2016 Fiscal 2015 Series I Preferred Derivatives Number of Derivative Shares Converted 4.242 Number of Common Shares issued pursuant to conversion 6,060,000 Value of Preferred Derivative shares at time of conversion (represents decrease in derivative liability resulting from conversions) 2,272,500 Change in value of preferred share derivative liability recorded at time of conversion (303,000) Par value of Common Shares issued 6,060 Additional paid in capital recorded as a result of the conversions 2,266,440 |
QUARTERLY FINANCIAL INFORMATI57
QUARTERLY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | The Company’s consolidated results of operations are shown below: (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2016 Total revenues $ 5,195 $ 2,194 $ 2,947 $ 2,163 Costs of revenues 1,036 836 1,415 1,197 Gross Profit 4,159 1,358 1,532 966 Operating Expenses 3,588 4,071 5,299 3,373 Income (Loss) from Operations 571 (2,713) (3,767) (2,407) Other income (expense) 7,408 (9,520) 2,086 7,139 Income tax (credit) expense (520) Net Income 8,499 (12,233) (1,681) 4,732 Change in carrying value of convertible preferred mezzanine equity 14,142 (24,786) (5,071) 6,429 Net income attributable to common shareholders 22,641 (37,019) (6,753) 11,161 Earnings per share basic $ 0.03 $ (0.05) $ (0.01) $ 0.02 Earnings per share - Diluted $ 0.00 $ (0.05) $ (0.01) $ (0.00) (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2015 Total revenues 1,234 1,363 1,256 1,162 Costs of revenues 904 700 682 729 Gross Profit 331 663 575 433 Operating Expenses 5,788 3,221 4,636 4,864 Income (Loss) from Operations (5,457) (2,557) (4,061) (4,431) Other income (expense) (898) 9,974 10,310 2,338 Income tax (credit) expense (3) Net Income (6,350) 7,417 6,248 (2,094) Change in carrying value of convertible preferred mezzanine equity (2,715) 13,600 15,132 (2,308) Net income attributable to common shareholders (9,065) 21,017 21,380 (4,402) Earnings (Loss) per share basic $ (0.01) $ 0.03 $ 0.04 $ (0.01) Earnings (Loss) per share - diluted $ (0.01) $ (0.01) $ (0.01) $ (0.01) (In thousands, except per share data) Fourth Third Second First Fiscal year ended March 31, 2014 Total revenues 1,028 1,693 1,159 722 Costs of revenues 1,046 995 617 579 Gross Profit (18) 699 542 143 Operating Expenses 2,365 1,936 1,229 1,118 Income (Loss) from Operations (2,384) (1,237) (687) (976) Other income (expense) (31,652) 175 (6,887) 2,095 Income tax (credit) expense (295) 2 Net Income (33,741) (1,061) (7,576) 1,119 Change in carrying value of convertible preferred mezzanine equity (53,056) 1 (2,061) (197) Net income attributable to common shareholders (86,798) (1,062) (9,638) 922 Earnings (Loss) per share basic $ (0.16) $ (0.00) $ (0.02) $ 0.00 Earnings (Loss) per share - diluted $ (0.16) $ (0.00) $ (0.02) $ (0.00) |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Cash, Uninsured Amount | $ 11,500,000 | ||
Allocated Share-based Compensation Expense | $ 333,362 | $ 260,045 | $ 82,947 |
Property, Plant and Equipment, Depreciation Methods | straight-line method | ||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years |
RESTATEMENT OF PRIOR FINANCIA59
RESTATEMENT OF PRIOR FINANCIAL INFORMATION (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Convertible preferred shares | $ 44,285,715 | $ 35,000,000 | ||
Additional paid-in capital | 109,137,805 | 106,926,328 | ||
Accumulated Deficit | $ (142,664,747) | (141,981,735) | ||
Scenario, Previously Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Derivative Liabilities | 52,762,573 | $ 60,981,570 | ||
Convertible preferred shares | 0 | 0 | ||
Additional paid-in capital | 1,610,221,568 | 143,555,091 | ||
Accumulated Deficit | (196,076,975) | (255,006,646) | ||
Restatement Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Derivative Liabilities | [1] | (35,000,000) | (60,981,570) | |
Convertible preferred shares | [1] | 35,000,000 | 60,981,570 | |
Additional paid-in capital | [1] | (54,095,240) | (77,804,310) | |
Accumulated Deficit | [1] | 54,095,240 | 77,804,310 | |
As Restated [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Derivative Liabilities | 17,762,573 | 0 | ||
Convertible preferred shares | 35,000,000 | 60,981,570 | ||
Additional paid-in capital | 106,926,328 | 65,750,781 | ||
Accumulated Deficit | $ (141,981,735) | $ 177,202,336 | ||
[1] | Adjustments relate solely to correction of errors in accounting for convertible preferred shares. |
RESTATEMENT OF PRIOR FINANCIA60
RESTATEMENT OF PRIOR FINANCIAL INFORMATION (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Change in Fair Value of derivative Liabilities | $ 7,394,006 | $ 20,340,874 | $ (35,389,799) | |||||||||||||
Net Income (Loss) | $ 22,641,000 | $ (37,019,000) | $ (6,753,000) | $ 11,161,000 | $ (9,065,000) | $ 21,017,000 | $ 21,380,000 | $ (4,402,000) | $ (86,798,000) | $ (1,062,000) | $ (9,638,000) | $ 922,000 | (683,012) | 5,220,605 | (41,260,897) | |
Change in carrying value of convertible preferred mezzanine equity | $ 14,142,000 | $ (24,786,000) | $ (5,071,000) | $ 6,429,000 | $ (2,715,000) | $ 13,600,000 | $ 15,132,000 | $ (2,308,000) | $ (53,056,000) | $ 1,000 | $ (2,061,000) | $ (197,000) | (9,285,715) | 23,709,069 | (55,314,374) | |
Net Income (Loss) attributable to common shareholders | $ (9,968,727) | $ 28,929,674 | $ (96,575,271) | |||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic | $ 0.03 | $ (0.05) | $ (0.01) | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.04 | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ 0.05 | $ (0.21) | |
Diluted | $ 0 | $ (0.05) | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ (0.02) | $ (0.21) | |
Scenario, Previously Reported [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Change in Fair Value of derivative Liabilities | $ 44,049,943 | $ (90,704,173) | ||||||||||||||
Net Income (Loss) | [1] | 28,929,674 | (96,575,271) | |||||||||||||
Change in carrying value of convertible preferred mezzanine equity | 0 | 0 | ||||||||||||||
Net Income (Loss) attributable to common shareholders | [1] | $ 28,929,674 | $ (96,575,271) | |||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic | $ 0.05 | $ (0.21) | ||||||||||||||
Diluted | $ (0.02) | $ (0.21) | ||||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Change in Fair Value of derivative Liabilities | [2] | $ (23,709,070) | $ 55,314,374 | |||||||||||||
Net Income (Loss) | [1],[2] | (23,709,070) | 55,314,374 | |||||||||||||
Change in carrying value of convertible preferred mezzanine equity | [2] | 23,709,070 | (55,314,374) | |||||||||||||
Net Income (Loss) attributable to common shareholders | [1] | $ 0 | $ 0 | |||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic | $ 0 | $ 0 | ||||||||||||||
Diluted | $ 0 | $ 0 | ||||||||||||||
As Restated [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Change in Fair Value of derivative Liabilities | $ 20,340,874 | $ (35,389,798) | ||||||||||||||
Net Income (Loss) | [1] | 5,220,604 | (41,260,897) | |||||||||||||
Change in carrying value of convertible preferred mezzanine equity | 23,707,070 | (55,314,374) | ||||||||||||||
Net Income (Loss) attributable to common shareholders | [1] | $ 28,929,674 | $ (96,575,271) | |||||||||||||
Net Income (Loss) Per Share | ||||||||||||||||
Basic | $ 0.05 | $ (0.21) | ||||||||||||||
Diluted | $ (0.02) | $ (0.21) | ||||||||||||||
[1] | For annual periods prior to the fiscal year ended March 31, 2016, as previously reported Net Income (Loss) and Net Income (Loss) Attributable to Common Shareholders, were the same and, accordingly, both amounts were reported on a single line item identified as Net Income (Loss) Attributable to Common Shareholders | |||||||||||||||
[2] | Adjustments relate solely to correction of errors in accounting for convertible preferred shares. |
RESTATEMENT OF PRIOR FINANCIA61
RESTATEMENT OF PRIOR FINANCIAL INFORMATION (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Net Income (Loss) | $ 22,641,000 | $ (37,019,000) | $ (6,753,000) | $ 11,161,000 | $ (9,065,000) | $ 21,017,000 | $ 21,380,000 | $ (4,402,000) | $ (86,798,000) | $ (1,062,000) | $ (9,638,000) | $ 922,000 | $ (683,012) | $ 5,220,605 | $ (41,260,897) | |
Change in Fair Value of derivative Liabilities | (7,394,006) | (20,340,874) | 35,389,799 | |||||||||||||
Net cash used in operating activities | (2,765,421) | (15,103,233) | (4,216,876) | |||||||||||||
Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) | $ (9,285,715) | 23,709,069 | 55,314,374 | $ (9,285,715) | 23,709,069 | 55,314,374 | ||||||||||
Scenario, Previously Reported [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Net Income (Loss) | [1] | 28,929,674 | (96,575,271) | |||||||||||||
Change in Fair Value of derivative Liabilities | (44,049,943) | 90,704,173 | ||||||||||||||
Net cash used in operating activities | (15,103,233) | (4,216,875) | ||||||||||||||
Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) | 0 | 0 | 0 | 0 | ||||||||||||
Restatement Adjustment [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Net Income (Loss) | [1],[2] | (23,709,070) | 55,314,374 | |||||||||||||
Change in Fair Value of derivative Liabilities | [2] | 23,709,070 | (55,314,374) | |||||||||||||
Net cash used in operating activities | 0 | 0 | ||||||||||||||
Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) | [2] | 23,709,070 | (55,314,374) | 23,709,070 | (55,314,374) | |||||||||||
As Restated [Member] | ||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||||||
Net Income (Loss) | [1] | 5,220,604 | (41,260,897) | |||||||||||||
Change in Fair Value of derivative Liabilities | (20,340,874) | 35,389,798 | ||||||||||||||
Net cash used in operating activities | (15,103,233) | (4,216,875) | ||||||||||||||
Change in maximum redemption value of convertible preferred mezzanine equity (non-cash financing transaction) | $ 23,709,070 | $ (55,314,374) | $ 23,709,070 | $ (55,314,374) | ||||||||||||
[1] | For annual periods prior to the fiscal year ended March 31, 2016, as previously reported Net Income (Loss) and Net Income (Loss) Attributable to Common Shareholders, were the same and, accordingly, both amounts were reported on a single line item identified as Net Income (Loss) Attributable to Common Shareholders | |||||||||||||||
[2] | Adjustments relate solely to correction of errors in accounting for convertible preferred shares. |
SEGMENT RESULTS (Details)
SEGMENT RESULTS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Total revenues | $ 5,195,000 | $ 2,194,000 | $ 2,947,000 | $ 2,163,000 | $ 1,234,000 | $ 1,363,000 | $ 1,256,000 | $ 1,162,000 | $ 1,028,000 | $ 1,693,000 | $ 1,159,000 | $ 722,000 | $ 12,498,332 | $ 5,015,246 | $ 4,601,376 |
Adjusted income from continuing operations before income tax | (1,203,464) | 5,217,356 | (41,553,508) | ||||||||||||
Generic products ANDA [Member] | |||||||||||||||
Total revenues | 9,164,999 | 5,015,246 | 4,601,376 | ||||||||||||
Adjusted income from continuing operations before income tax | 4,940,515 | 1,650,128 | 1,272,172 | ||||||||||||
Branded products NDA [Member] | |||||||||||||||
Total revenues | 3,333,333 | 0 | 0 | ||||||||||||
Adjusted income from continuing operations before income tax | $ (9,305,998) | $ (14,939,115) | $ (3,933,203) |
SEGMENT RESULTS (Details 1)
SEGMENT RESULTS (Details 1) - USD ($) | Jun. 10, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Total income (loss) from continuing operations before income tax | $ (1,203,464) | $ 5,217,356 | $ (41,553,508) | |
Corporate unallocated costs | (1,772,241) | (1,319,939) | (1,351,921) | |
Interest revenue | 9,802 | 7 | 0 | |
Interest expense | (280,670) | (287,231) | (859,328) | |
Depreciation and amortization expense | (665,647) | (616,995) | (500,906) | |
Significant noncash items other than depreciation and amortization expense | (1,513,433) | (1,281,052) | (749,935) | |
Change in value of derivatives | 7,394,006 | 20,340,874 | (35,430,386) | |
Gain on sale of investment | $ 1,670,685 | 0 | 1,670,685 | 0 |
Business Segment [Member] | ||||
Total income (loss) from continuing operations before income tax | $ (4,365,483) | $ (13,288,987) | $ (2,661,031) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Inventory [Line Items] | ||
Finished Goods | $ 225,699 | $ 122,773 |
Work-in-Process | 222,784 | 58,770 |
Raw Materials | 2,845,246 | 2,850,459 |
Total Inventory | $ 3,293,729 | $ 3,032,002 |
PROPERTY AND EQUIPMENTS (Detail
PROPERTY AND EQUIPMENTS (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 14,837,122 | $ 12,475,919 |
Less: Accumulated depreciation and amortization | (6,726,401) | (6,074,117) |
Property and equipment, net | 8,110,721 | 6,401,802 |
Laboratory Manufacturing and Warehouse Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 8,255,286 | 7,593,017 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 234,634 | 209,551 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 49,804 | 49,804 |
Transportation Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 66,855 | 66,855 |
Land, Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,230,543 | $ 4,556,692 |
PROPERTY AND EQUIPMENTS (Deta66
PROPERTY AND EQUIPMENTS (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Depreciation | $ 652,284 | $ 566,028 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Net Intangible Assets at beginning of fiscal year | $ 6,381,774 | $ 6,349,919 | |
Finite-lived Intangible Assets Acquired | 30,025 | 31,855 | |
Less: Accumulated Amortization | 0 | 0 | |
Intangible assets at end of fiscal year | 6,411,799 | 6,381,774 | $ 6,349,919 |
Patent Application Cost [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Intangible Assets at beginning of fiscal year | 334,457 | 302,602 | |
Finite-lived Intangible Assets Acquired | 30,025 | 31,855 | |
Less: Accumulated Amortization | 0 | 0 | |
Intangible assets at end of fiscal year | 364,482 | 334,457 | 302,602 |
Anda Acquisition Cost [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net Intangible Assets at beginning of fiscal year | 6,047,317 | 6,047,317 | |
Finite-lived Intangible Assets Acquired | 0 | 0 | 5,600,000 |
Intangible assets at end of fiscal year | $ 6,047,317 | $ 6,047,317 | $ 6,047,317 |
INTANGIBLE ASSETS (Details Text
INTANGIBLE ASSETS (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | ||
Finite-lived Intangible Assets Acquired | $ 30,025 | $ 31,855 | |
Patent Applications [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | 30,025 | 31,855 | |
ANDA Acquisition Cost [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 0 | $ 0 | $ 5,600,000 |
INVESTMENT IN NOVEL LABORATOR69
INVESTMENT IN NOVEL LABORATORIES INC.(Details Textual) - USD ($) | Jun. 10, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2006 |
Investment In Novel Laboratories Inc [Line Items] | |||||
Proceeds from Divestiture of Interest in Joint Venture | $ 5,000,000 | ||||
Cost Method Investments | 3,329,322 | ||||
Gain on Sale of Investments | $ 1,670,685 | $ 0 | $ 1,670,685 | $ 0 | |
Novel Laboratories Inc [Member] | |||||
Investment In Novel Laboratories Inc [Line Items] | |||||
Noncontrolling Interest, Ownership Shares Held by Parent | 9,800 | 9,800 |
NJEDA BONDS (Details)
NJEDA BONDS (Details) | 1 Months Ended |
Aug. 31, 2005USD ($) | |
Series A Note [Member] | |
Debt Instrument [Line Items] | |
Principal Amount On Issue Date | $ 3,660,000 |
Interest Rate | 6.50% |
Maturity | Sep. 1, 2030 |
Series B Note [Member] | |
Debt Instrument [Line Items] | |
Principal Amount On Issue Date | $ 495,000 |
Interest Rate | 9.00% |
Maturity | Sep. 1, 2012 |
NJEDA BONDS (Details 1)
NJEDA BONDS (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Njeda Bonds [Line Items] | ||
Bond Issue Costs | $ 354,453 | $ 354,453 |
Accumulated Amortization | (150,052) | (135,874) |
Unamortized Balance | 204,401 | $ 218,579 |
Bond [Member] | ||
Njeda Bonds [Line Items] | ||
Amortization Expense Current YTD | $ (14,178) |
NJEDA BONDS (Details 2)
NJEDA BONDS (Details 2) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Current portion | $ (220,000) | $ (210,000) |
Long term portion, net of current maturities | 1,845,000 | 2,065,000 |
Njeda Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Refinanced NJEDA Bonds | 2,065,000 | 2,275,000 |
Current portion | (220,000) | (210,000) |
Long term portion, net of current maturities | $ 1,845,000 | $ 2,065,000 |
NJEDA BONDS (Details 3)
NJEDA BONDS (Details 3) - Njeda Bonds [Member] | Mar. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 220,000 |
2,018 | 85,000 |
2,019 | 90,000 |
2,020 | 95,000 |
2,021 | 105,000 |
Thereafter | 1,470,000 |
Long-term portion, net of current maturities | $ 2,065,000 |
NJEDA BONDS (Details Textual)
NJEDA BONDS (Details Textual) | Mar. 31, 2016USD ($) |
Series A Note [Member] | |
Debt Service Reserve Fund | $ 366,000 |
LOANS PAYABLE AND LONG TERM D75
LOANS PAYABLE AND LONG TERM DEBT (Details) - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Equipment and Insurance financing loans payable, Current | $ 342,945 | $ 265,165 |
Lease termination costs - 135 Ludlow Ave lease (see note 9), Current | 0 | 0 |
TOTAL, Current | 342,945 | 265,165 |
Equipment and Insurance financing loans payable, Long -Term | 520,827 | 560,338 |
Deferred Rent-135 Ludlow Ave Lease (see note 9), Long - Term | 19,528 | 42,524 |
Lease termination costs - 135 Ludlow Ave lease (see note 9), Long- Term | 27,896 | 26,275 |
TOTAL, Long-Term | $ 568,251 | $ 629,138 |
LOANS PAYABLE AND LONG TERM D76
LOANS PAYABLE AND LONG TERM DEBT (Details 1) - Secured Debt [Member] | Mar. 31, 2016USD ($) |
2,017 | $ 342,945 |
2,018 | 199,164 |
2,019 | 174,229 |
2,020 | 129,476 |
2,021 | 17,958 |
Thereafter | 0 |
Total Principal Payments | $ 863,772 |
LOANS PAYABLE AND LONG TERM D77
LOANS PAYABLE AND LONG TERM DEBT (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 442,399 | $ 909,477 |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 6.80% | |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 12.20% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 60 months | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 9 months |
RELATED PARTY LINES OF CREDIT78
RELATED PARTY LINES OF CREDIT AND NOTES PAYABLE (Details Textual) | Feb. 07, 2014USD ($)shares | Oct. 15, 2013USD ($) | Aug. 01, 2013USD ($)$ / shares | May 23, 2016USD ($) | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) |
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.07 | ||||||
Debt Instrument, Convertible, Number of Equity Instruments | 14,286 | ||||||
Debt Conversion, Original Debt, Amount | $ 1,000 | ||||||
Debt Instrument, Face Amount | $ 442,399 | $ 909,477 | |||||
Mikah Note Payable [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.07 | ||||||
Debt Instrument, Convertible, Number of Equity Instruments | 1 | ||||||
Line of Credit Facility, Expiration Date | Aug. 31, 2016 | ||||||
Debt Instrument, Face Amount | $ 10,000,000 | ||||||
Debt Instrument Convertible Original Debt Amount | $ 1,000 | ||||||
Mikah Note Payable [Member] | Common Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Instrument, Convertible, Number of Equity Instruments | 14,286 | ||||||
Mikah Note Payable [Member] | Preferred Stock [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Debt Conversion, Original Debt, Amount | $ 10,000,000 | ||||||
Debt Instrument Convertible Original Debt Amount | $ 100,000 | ||||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 100 | ||||||
Hakim Credit Line [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | ||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2016 | ||||||
Line of Credit Facility, Interest Rate at Period End | 10.00% | ||||||
Debt Instrument, Face Amount | $ 718,309 | 583,071 | |||||
Interest Payable, Current | 70,784 | 18,105 | $ 9,810 | ||||
Interest Expense, Related Party | 9,134 | ||||||
Interest Expense, Debt | $ 52,678 | $ 63,947 | 16,674 | ||||
Long-term Line of Credit | $ 528,750 | ||||||
Hakim Credit Line [Member] | Subsequent Event [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Interest Expense, Debt | $ 9,134 |
LEASES OF RENTAL PROPERTIES (De
LEASES OF RENTAL PROPERTIES (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Leases Of Rental Properties [Line Items] | |||
Effective Date | [1] | Jul. 1, 2010 | |
Termination Date | Dec. 31, 2016 | ||
Lease term | 6 years with 2 tenant renewal options for 5 years each | ||
Rent Expense | $ 180,854 | $ 153,430 | |
Minimum 5 Year Lease Payments | |||
Fiscal year ended March 31, 2017 | [2],[3] | 155,169 | |
Fiscal year ended March 31, 2018 | [2],[3] | 0 | |
Fiscal year ended March 31, 2019 | [2],[3] | 0 | |
Fiscal year ended March 31, 2020 | [2],[3] | 0 | |
Fiscal year ended March 31, 2021 | [2],[3] | 0 | |
Operating Leases, Future Minimum Payments Due | [2] | $ 359,019 | |
[1] | Inclusive of a modification of lease agreement dated July 29, 2014 | ||
[2] | Minimum lease payments are exclusive of additional expenses related to certain expenses incurred in the operation and maintenance of the premises, including, without limitation, real estate taxes and common area charges which may be due under the terms and conditions of the lease. | ||
[3] | Minimum lease payments calculated for the initial term of the lease only, with such initial term expiring on December 31, 2016. |
LEASES OF RENTAL PROPERTIES (80
LEASES OF RENTAL PROPERTIES (Details 1) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Leases Of Rental Properties [Line Items] | |||
Rent Expense | $ 180,854 | $ 153,430 | |
Actual lease payments | 203,850 | 114,321 | |
Increase (Decrease) in deferred rent liability | (22,996) | 23,703 | $ (49,439) |
Adjustments to deferred rent liability | 0 | (15,409) | |
Balance of deferred rent liability | $ 19,528 | $ 42,524 |
LEASE OF 135 LUDLOW AVENUE (Det
LEASE OF 135 LUDLOW AVENUE (Details Textual) - a | 12 Months Ended | ||
Mar. 31, 2016 | Jul. 29, 2014 | Jul. 01, 2010 | |
Operating Leases Rental Properties [Line Items] | |||
Lease Expiration Date | Dec. 31, 2016 | ||
Lease Renewal Term | 5 years | ||
Property Subject to Operating Lease [Member] | Warehouse [Member] | |||
Operating Leases Rental Properties [Line Items] | |||
Area of Land | 15,000 | ||
July 2014 Modification Agreement [Member] | Leasehold Improvements [Member] | Warehouse [Member] | |||
Operating Leases Rental Properties [Line Items] | |||
Area of Land | 20,000 | ||
July 2014 Modification Agreement [Member] | Property Subject to Operating Lease [Member] | Warehouse [Member] | |||
Operating Leases Rental Properties [Line Items] | |||
Area of Land | 35,000 |
LEASE TERMINATION COSTS - 13582
LEASE TERMINATION COSTS - 135 LUDLOW AVENUE (Details Textual) | Mar. 31, 2016USD ($) |
Lease Termination Costs [Line Items] | |
Lease Termination Cost Payable | $ 50,000 |
DEFERRED REVENUES (Details Text
DEFERRED REVENUES (Details Textual) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Deferred Revenue Arrangement [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Method | straight-line method | |
Deferred Revenue | $ 4,292,220 | |
Deferred Revenue, Current | 1,013,333 | $ 13,333 |
Deferred Revenue, Noncurrent | $ 3,278,887 | $ 125,557 |
Licensing Agreements [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Method | straight line basis | |
TAGI licensing agreement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Advance Rent | $ 200,000 | |
Licensing Agreement Terms | fifteen year | |
Epic Collaborative Agreement [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Advance Rent | $ 5,000,000 | |
Licensing Agreement Terms | five year |
MEZZANINE EQUITY - CONVERTIBL84
MEZZANINE EQUITY - CONVERTIBLE PREFERRED SHARES (Details) - Series I Convertible Preferred Stock [Member] - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 | Feb. 06, 2014 |
Shares authorized | 500 | 500 | 500 |
Shares outstanding | 100 | 100 | 100 |
Par value | $ 0.01 | $ 0.01 | $ 0.01 |
Stated value | $ 100,000 | $ 100,000 | $ 100,000 |
Conversion Price | $ 0.07 | $ 0.07 | $ 0.07 |
Common shares to be issued upon redemption | 142,857,143 | 142,857,143 | |
Closing price on valuation date | $ 0.31 | $ 0.245 | |
Carrying value of convertible preferred mezzanine equity | $ 44,285,714 | $ 35,000,000 |
MEZZANINE EQUITY - CONVERTIBL85
MEZZANINE EQUITY - CONVERTIBLE PREFERRED SHARES (Details 1) - USD ($) | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Series I Convertible Preferred Stock [Member] | ||
INCREASE / (DECREASE) IN VALUE OF CONVERTIBLE PREFERRED MEZZANINE EQUITY | $ 9,285,715 | $ (23,709,069) |
MEZZANINE EQUITY - CONVERTIBL86
MEZZANINE EQUITY - CONVERTIBLE PREFERRED SHARES (Details Textual) - Series I Convertible Preferred Stock [Member] - USD ($) | Mar. 31, 2016 | Mar. 31, 2015 | Feb. 06, 2014 |
Preferred Stock, Shares Authorized | 500 | 500 | 500 |
Preferred Stock, Shares Issued | 100 | ||
Preferred Stock, Shares Outstanding | 100 | 100 | 100 |
Convertible Preferred Stock Par Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Convertible Preferred Stock Stated Value | $ 100,000 | $ 100,000 | $ 100,000 |
Preferred Stock Conversion Price Per Share | $ 0.07 | $ 0.07 | $ 0.07 |
DERIVATIVE LIABILITIES - WARR87
DERIVATIVE LIABILITIES - WARRANTS (Details) - $ / shares | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Class of Warrant or Right [Line Items] | ||
Balance at beginning of year | 89,870,034 | 102,143,091 |
Warrant exercises, forfeited or expired | 48,283,968 | 12,273,057 |
Ending Balance | 41,586,066 | 89,870,034 |
Balance at beginning of year | $ 0.06 | $ 0.06 |
Warrant exercises, forfeited or expired | 0.06 | 0.07 |
Ending Balance | $ 0.06 | $ 0.06 |
DERIVATIVE LIABILITIES - WARR88
DERIVATIVE LIABILITIES - WARRANTS (Details 1) - USD ($) | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Class of Warrant or Right [Line Items] | ||||
Number of warrants | 41,586,066 | 89,870,034 | 102,143,091 | |
Fair value - Warrant Derivative Liability | $ 10,368,567 | $ 17,762,573 | $ 38,103,446 | $ 7,862,848 |
Change in warrant derivative liability for the twelve months ended | $ 7,394,006 | $ 20,340,874 | $ (35,389,799) | |
Warrant [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Number of warrants | 41,586,066 | 89,870,034 | 102,143,093 | |
Fair value - Warrant Derivative Liability | $ 10,368,567 | $ 17,762,573 | $ 38,103,446 | |
Change in warrant derivative liability for the twelve months ended | $ 7,394,006 | $ (18,447,573) | $ 32,997,869 | |
Warrant [Member] | Maximum [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Risk-Free interest rate | 0.73% | 0.89% | 1.32% | |
Expected volatility | 81.00% | 113.00% | 207.00% | |
Expected life (in years) | 2 years 1 month 6 days | 3 years 1 month 6 days | 4 years 1 month 6 days | |
Warrant [Member] | Minimum [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Risk-Free interest rate | 0.18% | 0.05% | 0.05% | |
Expected volatility | 52.00% | 93.00% | 111.00% | |
Expected life (in years) | 2 months 12 days | 1 year 2 months 12 days | 3 months 18 days |
DERIVATIVE LIABILITIES - WARR89
DERIVATIVE LIABILITIES - WARRANTS (Details 2) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Class of Warrant or Right [Line Items] | |||
Balance at Beginning of Fiscal Year | $ 17,762,573 | $ 38,103,446 | $ 7,862,848 |
Warrants Exercised | (14,788,012) | (2,578,300) | (2,757,271) |
Change in fair value of warrant liability | 7,394,006 | (18,447,573) | 32,997,869 |
Balance at End of Fiscal Year | $ 10,368,567 | $ 17,762,573 | $ 38,103,446 |
DERIVATIVE LIABILITIES - WARR90
DERIVATIVE LIABILITIES - WARRANTS (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Class of Warrant or Right [Line Items] | |||
Derivative Liability, Warrants Exercise Price | $ 0.0625 | $ 0.25 | |
Change In Fair Value Of Warrant Derivatives | $ 7,394,006 | $ 20,340,874 | $ (35,389,799) |
Warrant [Member] | |||
Class of Warrant or Right [Line Items] | |||
Change In Fair Value Of Warrant Derivatives | $ 7,394,006 | $ (18,447,573) | $ 32,997,869 |
Maximum [Member] | |||
Class of Warrant or Right [Line Items] | |||
Derivative Liability, Warrants Maturity Period | 7 years | ||
Minimum [Member] | |||
Class of Warrant or Right [Line Items] | |||
Derivative Liability, Warrants Maturity Period | 5 years |
COMMON STOCK (Details)
COMMON STOCK (Details) - shares | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Class of Stock [Line Items] | ||||
Common shares issued pursuant to options exercised | 112,500 | 223,334 | 308,333 | |
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common shares sold pursuant to the Lincoln Park Capital Purchase Agreements, with net proceeds of such shares totaling $6,199,643, $13,236,624 and $10,000,000 in Fiscal 2016, Fiscal 2015, and Fiscal 2014, respectively. | 23,945,346 | 47,172,240 | 65,143,216 | |
Common shares issued as commitment shares pursuant to the Lincoln Park Capital Purchase Agreements | 298,923 | 2,566,861 | 5,858,230 | |
Common Shares issued in lieu of cash payment in payment of preferred share derivative interest expenses totaling zero, zero and $68,089 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively | 0 | 0 | 878,543 | |
Common Shares issued pursuant to the conversion of Series B, Series C, Series E and Series I Convertible Preferred Share derivatives, with such derivative liabilities totaling zero, $2,272,500, and 9,825,066 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively, at the time of their conversion. | 0 | 6,060,000 | 91,796,043 | |
Common Shares issued in payment of Director’s fees totaling $100,071, $110,000 and $110,000 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively | 408,892 | 321,611 | 1,210,583 | |
Common shares issued in payment of employee salaries totaling $1,039,000, $849,737 and $368,233 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively. | 4,236,555 | 2,518,668 | 3,439,467 | |
Common shares issued in payment of consulting expenses totaling $24,000, $23,999 and $18,836 for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively | 97,467 | 70,169 | 210,018 | |
Issuance of Common Shares pursuant to the exercise of warrants (in shares) | 48,283,968 | 11,985,388 | 16,904,038 | |
Common shares issued pursuant to options exercised | 112,500 | 223,334 | 308,333 | |
Milestone shares issued pursuant to EPIC Strategic Alliance Agreement totaling $840,000, zero and zero for Fiscal 2016, Fiscal 2015 and Fiscal 2014, respectively | 3,000,000 | 0 | 0 | |
Total Common Shares issued during Fiscal 2016, Fiscal 2015 and Fiscal 2014 | 80,383,651 | 70,918,271 | 185,748,471 | |
Common Shares issued at March 31, | 711,544,352 | 631,160,701 | 560,242,430 | 374,493,959 |
COMMON STOCK (Details Textual)
COMMON STOCK (Details Textual) - USD ($) | Apr. 10, 2014 | Apr. 19, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Class of Stock [Line Items] | |||||
Stock Issued During Period Value Payment For Preferred Share Derivative Interest | $ 0 | $ 0 | $ 68,089 | ||
Conversion Of Series B Series C and Series E Preferred Shares Into Common Shares Value | 0 | 2,272,500 | 9,825,066 | ||
Stock Issued During Period Value Payment Of Directors Fees | 100,071 | 110,000 | 110,000 | ||
Stock Issued During Period Value Payment Of Employee Salaries | 1,039,000 | 849,737 | 368,233 | ||
Stock Issued During Period, Value, Issued for Services | 24,000 | 23,999 | 18,836 | ||
Stock Issued During Period, Value, New Issues | 6,199,643 | 13,236,624 | 10,000,000 | ||
Proceeds from Issuance of Common Stock | $ 6,199,643 | 13,236,624 | 10,000,000 | ||
Common Stock Traded Percent | 30.00% | ||||
Common Stock Weighted Average Price Percent | 97.00% | ||||
Milestone Issued For Epic Strategic Alliance Agreement Value | $ 840,000 | 0 | 0 | ||
Lincoln Park Capital Fund, LLC [Member] | |||||
Class of Stock [Line Items] | |||||
Obligation to Purchase Common Stock Value on Issue | $ 10,000,000 | ||||
Common Stock Shares Issued During Period | 40,000,000 | 1,928,641 | |||
Common Stock Additional Shares To Be Issued During Period | 1,928,641 | ||||
Maximum Common Stock Shares Directed to Purchase | 500,000 | ||||
Purchase of Common Stock Increasing Shares Per Purchase | 800,000 | ||||
Maximum Common Stock Value Directed to Purchase | $ 760,000 | ||||
Common Stock Floor Price Per Share | $ 0.10 | ||||
Maximum Percentage to Purchase Common Stock Shares | 9.99% | ||||
Stock Issued During Period, Shares, New Issues | 76,700,000 | ||||
Proceeds from Issuance or Sale of Equity, Total | $ 21,200,000 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period Value Payment For Preferred Share Derivative Interest | 879 | ||||
Conversion Of Series B Series C and Series E Preferred Shares Into Common Shares Value | 6,060 | ||||
Stock Issued During Period Value Payment Of Directors Fees | 409 | 322 | 1,211 | ||
Stock Issued During Period Value Payment Of Employee Salaries | 4,237 | 2,519 | 3,439 | ||
Stock Issued During Period, Value, Issued for Services | 97 | 70 | 210 | ||
Stock Issued During Period, Value, New Issues | $ 23,945 | $ 47,172 | $ 65,143 | ||
Stock Issued During Period, Shares, Period Increase (Decrease) | 80,383,651 | 70,918,271 | 185,748,471 | ||
Stock Issued During Period, Shares, New Issues | 23,945,346 | 47,172,240 | 65,143,216 | ||
Commitment Shares [Member] | Lincoln Park Capital Fund, LLC [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 1,000,000 |
PER SHARE INFORMATION (Details)
PER SHARE INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Numerator | |||||||||||||||
Net Income (Loss) attributable to common shareholders | $ (9,968,727) | $ 28,929,674 | $ (96,575,271) | ||||||||||||
Denominator | |||||||||||||||
Weighted-average shares of common stock outstanding - basic (in shares) | 673,905,485 | 591,214,959 | 463,021,991 | ||||||||||||
Net Earnings (Loss) per Share - Basic (in dollars per share) | $ 0.03 | $ (0.05) | $ (0.01) | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.04 | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ 0.05 | $ (0.21) |
Stock Option [Member] | |||||||||||||||
Potentially dilutive securities excluded from the calculation of diluted loss per share for Fiscal 2016 and 2014 | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 581,020 | 174,359 | |||||||||||||
Convertible Preferred Mezzanine [Member] | |||||||||||||||
Potentially dilutive securities excluded from the calculation of diluted loss per share for Fiscal 2016 and 2014 | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 142,857,143 | 148,917,143 | |||||||||||||
Warrant [Member] | |||||||||||||||
Potentially dilutive securities excluded from the calculation of diluted loss per share for Fiscal 2016 and 2014 | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 22,926,029 | 15,782,718 |
PER SHARE INFORMATION (Details
PER SHARE INFORMATION (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Numerator | |||||||||||||||
Net Income attributable to common shareholders | $ (9,968,727) | $ 28,929,674 | $ (96,575,271) | ||||||||||||
Adjustments to Net Income | |||||||||||||||
Reversal of Change in Value of Warrant Derivatives | (18,447,573) | ||||||||||||||
Reversal of Change in Value of Convertible Preferred Share Mezzanine Equity | (25,602,370) | ||||||||||||||
Net loss attributable to common shareholders on a diluted basis | $ (15,120,269) | ||||||||||||||
Denominator | |||||||||||||||
Weighted average shares of common stock outstanding | 673,905,485 | 591,214,959 | 463,021,991 | ||||||||||||
Dilutive effects of convertible preferred mezzanine equity and warrants | |||||||||||||||
Convertible preferred mezzanine equity | 142,857,143 | ||||||||||||||
Warrants | 22,926,029 | ||||||||||||||
Stock Options | 581,020 | ||||||||||||||
Weighted average shares outstanding - diluted | 673,905,485 | 757,579,152 | 463,021,991 | ||||||||||||
Fully Diluted Earnings (Loss) per Share | $ 0 | $ (0.05) | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ (0.02) | $ (0.21) |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices | $ 0.07 | ||
Options Granted (shares) | 360,000 | 2,590,000 | 3,000,000 |
Risk-free interest rate, Minimum | 2.10% | 2.20% | |
Risk-free interest rate, Maximum | 2.20% | 2.80% | |
Risk-free interest rate | 2.50% | ||
Expected volatility, Minimum | 119.00% | 120.00% | |
Expected volatility, Maximum | 120.00% | 121.00% | |
Expected volatility | 130.00% | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Forfeiture rate | 2.70% | 0.00% | 0.00% |
Expected term (in years) | 10 years | 10 years | 10 years |
Fair value of options granted | $ 129,913 | $ 769,421 | $ 202,497 |
Non-cash compensation through issuance of stock options | $ 333,362 | $ 260,045 | $ 82,947 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices | $ 0.23 | $ 0.27 | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise prices | $ 0.42 | $ 0.46 |
STOCK-BASED COMPENSATION (Det96
STOCK-BASED COMPENSATION (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Noninterest Expense Directors Fees | $ 100,071 | $ 110,000 | $ 110,000 | |
Officers' Compensation | $ 207,500 | $ 1,039,000 | $ 849,737 | $ 368,233 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 360,000 | 2,590,000 | 3,000,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.38 | $ 0.31 | $ 0.07 | |
Share based Compensation Arrangements By Share based Payment Award Options Grants In Period Grant Date Fair Value | $ 129,913 | $ 769,421 | $ 202,497 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 462,308 | $ 462,308 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.23 | $ 0.26 | ||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.415 | $ 0.46 | ||
Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period Shares Payment Of Directors Fees | 408,892 | 321,611 | 1,210,583 | |
Noninterest Expense Directors Fees | $ 15,000 | |||
Shares For Payment Of Directors Fees Outstanding | 46,125 | 46,125 | ||
Stock Issued During Period Shares Payment Of Employee Salaries | 638,407 | 4,236,555 | 2,518,668 | 3,439,467 |
STOCK OPTION PLANS (Details)
STOCK OPTION PLANS (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option, Outstanding at beginning of year | 7,642,167 | 5,435,667 | 3,939,000 |
Options, Granted | 360,000 | 2,590,000 | 3,000,000 |
Options, Exercised | 112,500 | 223,334 | 308,333 |
Options, Expired/Forfeited | 280,000 | 160,166 | 1,195,000 |
Option, Outstanding at end of year | 7,609,667 | 7,642,167 | 5,435,667 |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 0.48 | $ 0.54 | $ 1.18 |
Weighted Average Exercise Price, Options Granted | 0.38 | 0.31 | 0.07 |
Weighted Average Exercise Price, Options Exercised | 0.21 | 0.12 | 0.08 |
Weighted Average Exercise Price, Options Expired/Forfeited | 0.60 | 0.18 | 1.60 |
Weighted Average Exercise Price, Outstanding at end of year | $ 0.48 | $ 0.48 | $ 0.54 |
STOCK OPTION PLANS (Details 1)
STOCK OPTION PLANS (Details 1) | 12 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Stock Option Exercise Price Range One [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 3,766,667 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 0.08 |
Options Exercisable | shares | 2,766,668 |
Options Exercisable, Weighted Average Exercise Price | $ 0.09 |
Exercise Lower Range Limit | 0.01 |
Exercise Upper Range Limit | $ 0.25 |
Stock Option Exercise Price Range Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 2,650,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $ 0.32 |
Options Exercisable | shares | 783,333 |
Options Exercisable, Weighted Average Exercise Price | $ 1.08 |
Exercise Lower Range Limit | 0.26 |
Exercise Upper Range Limit | $ 0.50 |
Stock Option Exercise Price Range Three [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 0 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 0 years |
Options Outstanding, Weighted Average Exercise Price | $ 0 |
Options Exercisable | shares | 0 |
Exercise Lower Range Limit | $ 0.51 |
Exercise Upper Range Limit | $ 1 |
Stock Option Exercise Price Range Four [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 96,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 1 year 9 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.08 |
Options Exercisable | shares | 96,000 |
Exercise Lower Range Limit | $ 1.01 |
Exercise Upper Range Limit | $ 2 |
Stock Option Exercise Price Range Five [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 1,097,000 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.16 |
Options Exercisable | shares | 847,000 |
Options Exercisable, Weighted Average Exercise Price | $ 2.18 |
Exercise Lower Range Limit | 2.01 |
Exercise Upper Range Limit | $ 3 |
Stock Option Exercise Price Range Six [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 7,609,667 |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $ 0.48 |
Options Exercisable | shares | 4,493,001 |
Options Exercisable, Weighted Average Exercise Price | $ 0.54 |
Exercise Lower Range Limit | 0.01 |
Exercise Upper Range Limit | $ 3 |
STOCK OPTION PLANS (Details Tex
STOCK OPTION PLANS (Details Textual) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,595,066 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 904,409 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 642,981 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 22,173 | $ 31,513 | $ 101,962 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Federal: | |||
Current | $ 0 | $ 0 | $ 0 |
Deferred | 0 | 0 | 0 |
State | |||
Current | (4,048) | (3,248) | (3,099) |
Deferred | 0 | 0 | 0 |
Sale of New Jersey Net Operating Losses | 524,500 | 0 | 295,710 |
Net Credit for Income Taxes | $ 520,452 | $ (3,248) | $ 292,611 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Federal | |||
Net Operating Loss Carry forward | $ 27,033 | $ 24,547 | $ 19,813 |
Valuation Allowance | (27,033) | (24,547) | (19,813) |
Deferred Tax Assets, Net | 0 | 0 | 0 |
State and Local Jurisdiction [Member] | |||
Federal | |||
Net Operating Loss Carry forward | 2,722 | 2,602 | 1,318 |
Valuation Allowance | (2,722) | (2,602) | (1,318) |
Deferred Tax Assets, Net | $ 0 | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) | 12 Months Ended |
Mar. 31, 2016 | |
Valuation Allowance, Commentary | At March 31, 2016 and 2015, a 100% valuation allowance is provided |
CONCENTRATIONS (Details Textual
CONCENTRATIONS (Details Textual) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 28.00% | 24.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 27.00% | 11.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 37.00% | 55.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 88.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 30.00% | 26.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.00% | 17.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 54.00% | 46.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 11.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 83.00% | ||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 44.00% | 38.00% | |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 11.00% | |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Supplier Four [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Seven Suppliers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 80.00% | 80.00% | 80.00% |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | Two Out of Seven Suppliers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 52.00% |
COLLABORATIVE AGREEMENT WITH104
COLLABORATIVE AGREEMENT WITH EPIC PHARMA LLC (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | |
Epic Collaborative Agreement [Member] | |||
Revenue Recognition, Milestone Method [Line Items] | |||
Non Refundable Milestone Payments | $ 15 | ||
Revenue Recognition, Milestone Method, Description | On June 4, 2015, the Company entered into the 2015 Epic License Agreement, which provides for the exclusive right to market, sell and distribute, by Epic Pharma LLC (Epic) of SequestOx, an abuse deterrent opioid which employs the Companys proprietary pharmacological abuse-deterrent technology. Epic will be responsible for payment of product development and pharmacovigilance costs, sales and marketing of SequestOx, and Elite will be responsible for the manufacture of the product. Under the 2015 Epic License Agreement, Epic will pay Elite non-refundable payments totaling $15 million, with such amount representing the cost of an exclusive license to ELI-200, the cost of developing the product and certain filings and a royalty based on an amount equal to 50% of profits derived from net product sales as defined in the 2015 Epic License Agreement. The initial term of the exclusive right to product development sales and distribution is five years (Epic Exclusivity Period); the license is renewable upon mutual agreement at the end of the initial term. | ||
Proceeds from Divestiture of Interest in Consolidated Subsidiaries | $ 5 | ||
Epic License Agreement [Member] | |||
Revenue Recognition, Milestone Method [Line Items] | |||
Proceeds from License Fees Received | $ 7.5 | ||
Deferred Revenue, Additions | $ 2.5 |
RELATED PARTY TRANSACTION AG105
RELATED PARTY TRANSACTION AGREEMENTS WITH EPIC PHARMA LLC (Details Textual) $ in Thousands | 12 Months Ended |
Mar. 31, 2016USD ($) | |
Epic Pharma Llc [Member] | |
Milestone Payments | $ 2,500 |
To Be Receive Future License Fees | 7,500 |
Due to Related Parties | 1,800 |
Related Party Transaction, Amounts of Transaction | 1,000 |
Epic Generic Agreement [Member] | |
Related Party Transaction, Amounts of Transaction | 800 |
Epic [Member] | |
Milestone Payments | $ 10,000 |
TRANSACTIONS WITH RELATED PA106
TRANSACTIONS WITH RELATED PARTIES - NASRAT HAKIM AND MIKAH PHARMA LLC (Details Textual) | Feb. 07, 2014USD ($)shares | Aug. 27, 2010USD ($) | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) |
Related Party Transaction [Line Items] | |||||
Business Combination, Consideration Transferred | $ 10,000,000 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.07 | ||||
Debt Instrument, Convertible, Number of Equity Instruments | 14,286 | ||||
Debt Conversion, Original Debt, Amount | $ 1,000 | ||||
Payments To Acquire Intangible Assets | 30,025 | $ 31,853 | $ 58,178 | ||
Naltrexone Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments To Acquire Intangible Assets | $ 200,000 | ||||
Mikah Pharma Llc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Due to Related Parties | $ 200,000 | ||||
Series I Preferred Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt Conversion, Original Debt, Amount | $ 10,000,000 | ||||
Series I Preferred Stock [Member] | Mikah Pharma Llc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Debt Conversion, Description | 1 share of Series I Preferred Stock for each $100,000 of principal owed on the Mikah Note | ||||
Debt Conversion, Converted Instrument, Shares Issued | shares | 100 |
MANUFACTURING, LICENSE AND D107
MANUFACTURING, LICENSE AND DEVELOPMENT AGREEMENTS (Details Textual) - USD ($) $ in Thousands | Sep. 10, 2010 | Mar. 31, 2016 |
Revenue Recognition, Milestone Method, Milestone | The milestones, totaling $500k, consist of amounts due upon the first shipment of each identified product, as follows: Phentermine 37.5mg tablets ($145k), Phentermine 15 & 30mg capsules ($45k), Hydromorphone 8mg ($125k), Naltrexone 50mg ($95k) and the balance of $95k due in relation to the first shipment of generic products which still require marketing authorizations from the FDA, and to which there can be no assurances of such marketing authorizations being granted and accordingly there can be no assurances that the Company will earn and receive these milestone amounts. | |
Precision Dose License Agreement [Member] | ||
License and Maintenance Revenue | $ 200 |
CONVERSIONS OF PREFERRED STO108
CONVERSIONS OF PREFERRED STOCK MEZZANINE EQUITY TO COMMON STOCK (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Conversion of Stock [Line Items] | |||
Value of Preferred Derivative shares at time of conversion (represents decrease in derivative liability resulting from conversions) | $ 9,825,066 | ||
Par value of Common Shares issued | $ 0 | $ 2,272,500 | $ 9,825,066 |
Series I Preferred Derivatives [Member] | |||
Conversion of Stock [Line Items] | |||
Number of Derivative Shares Converted | 0 | 4,242 | |
Number of Common Shares issued pursuant to conversion | 0 | 6,060,000 | |
Value of Preferred Derivative shares at time of conversion (represents decrease in derivative liability resulting from conversions) | $ 0 | $ 2,272,500 | |
Change in value of preferred share derivative liability recorded at time of conversion | 0 | (303,000) | |
Par value of Common Shares issued | 0 | 6,060 | |
Additional paid in capital recorded as a result of the conversions | $ 0 | $ 2,266,440 |
RIGHTS PLAN (Details Textual)
RIGHTS PLAN (Details Textual) - $ / Right | 1 Months Ended | |
Nov. 15, 2013 | Mar. 31, 2016 | |
Rights Plan [Line Items] | ||
Dividend Distribution Rights Issue Redemption Price Per Right | 0.000001 | |
Series H Junior Participating Preferred Stock [Member] | ||
Rights Plan [Line Items] | ||
Dividend Distribution Common Stock Rights Description | dividend distribution of one right for each outstanding share of our common stock and one right for each share of Common Stock into which any of our outstanding Preferred Stock is convertible, to stockholders of record at the close of business on that date. | |
Dividend Distribution Rights Issue Description | Each Right entitles the registered holder to purchase from us one Unit consisting of one one-millionth (1/1,000,000) of a share of Series H Junior Participating preferred stock, par value $0.01 per share (the H Preferred Stock), at a purchase price of $2.10 per Unit | |
Dividend Distribution Minimum Percentage For Transfer Of Rights | 15.00% | |
Dividend Distribution Rights Issue Expiration Date | Nov. 15, 2013 |
QUARTERLY FINANCIAL INFORMAT110
QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Total revenues | $ 5,195,000 | $ 2,194,000 | $ 2,947,000 | $ 2,163,000 | $ 1,234,000 | $ 1,363,000 | $ 1,256,000 | $ 1,162,000 | $ 1,028,000 | $ 1,693,000 | $ 1,159,000 | $ 722,000 | $ 12,498,332 | $ 5,015,246 | $ 4,601,376 |
Costs of revenues | 1,036,000 | 836,000 | 1,415,000 | 1,197,000 | 904,000 | 700,000 | 682,000 | 729,000 | 1,046,000 | 995,000 | 617,000 | 579,000 | 4,484,162 | 3,013,592 | 3,236,106 |
Gross Profit | 4,159,000 | 1,358,000 | 1,532,000 | 966,000 | 331,000 | 663,000 | 575,000 | 433,000 | (18,000) | 699,000 | 542,000 | 143,000 | 8,014,170 | 2,001,654 | 1,365,270 |
Operating Expenses | 3,588,000 | 4,071,000 | 5,299,000 | 3,373,000 | 5,788,000 | 3,221,000 | 4,636,000 | 4,864,000 | 2,365,000 | 1,936,000 | 1,229,000 | 1,118,000 | 16,330,970 | 18,508,626 | 6,648,894 |
Income (Loss) from Operations | 571,000 | (2,713,000) | (3,767,000) | (2,407,000) | (5,457,000) | (2,557,000) | (4,061,000) | (4,431,000) | (2,384,000) | (1,237,000) | (687,000) | (976,000) | (8,316,800) | (16,506,972) | (5,283,624) |
Other income (expense) | 7,408,000 | (9,520,000) | 2,086,000 | 7,139,000 | (898,000) | 9,974,000 | 10,310,000 | 2,338,000 | (31,652,000) | 175,000 | (6,887,000) | 2,095,000 | 7,113,336 | 21,724,328 | (36,269,884) |
Income tax (credit) expense | (520,000) | 0 | 0 | 0 | (3,000) | 0 | 0 | 0 | (295,000) | 0 | 2,000 | 0 | (520,452) | (3,249) | (292,611) |
Net Income | 8,499,000 | (12,233,000) | (1,681,000) | 4,732,000 | (6,350,000) | 7,417,000 | 6,248,000 | (2,094,000) | (33,741,000) | (1,061,000) | (7,576,000) | 1,119,000 | |||
Change in carrying value of convertible preferred mezzanine equity | 14,142,000 | (24,786,000) | (5,071,000) | 6,429,000 | (2,715,000) | 13,600,000 | 15,132,000 | (2,308,000) | (53,056,000) | 1,000 | (2,061,000) | (197,000) | (9,285,715) | 23,709,069 | (55,314,374) |
Net income attributable to common shareholders | $ 22,641,000 | $ (37,019,000) | $ (6,753,000) | $ 11,161,000 | $ (9,065,000) | $ 21,017,000 | $ 21,380,000 | $ (4,402,000) | $ (86,798,000) | $ (1,062,000) | $ (9,638,000) | $ 922,000 | $ (683,012) | $ 5,220,605 | $ (41,260,897) |
Earnings per share - basic | $ 0.03 | $ (0.05) | $ (0.01) | $ 0.02 | $ (0.01) | $ 0.03 | $ 0.04 | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ 0.05 | $ (0.21) |
Earnings per share - diluted | $ 0 | $ (0.05) | $ (0.01) | $ 0 | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.16) | $ 0 | $ (0.02) | $ 0 | $ (0.01) | $ (0.02) | $ (0.21) |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) shares in Millions | 2 Months Ended | 12 Months Ended | ||
Jun. 07, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Subsequent Event [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ 6,199,643 | $ 13,236,624 | $ 10,000,000 | |
Hakim Credit Line [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt Instrument, Periodic Payment, Total | 798,227 | |||
Debt Instrument, Periodic Payment, Principal | 718,309 | |||
Debt Instrument, Periodic Payment, Interest | $ 79,918 | |||
Subsequent Event [Member] | LPC-40 Purchase Agreement [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ 1,700,000 | |||
Stock Issued During Period, Shares, Issued for Capital Purchase Agreement | 0.1 | |||
Stock Issued During Period, Shares, New Issues | 5.5 | |||
Subsequent Event [Member] | Exercise of Cash Warrants [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from Issuance of Common Stock | $ 600,000 | |||
Stock Issued During Period, Shares, New Issues | 9.3 |