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Njeda Bonds
 9 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
NJEDA BONDS

NOTE 5. NJEDA BONDS

 

During August 2005, the Company refinanced a bond issue occurring in 1999 through the issuance of Series A and B Notes tax-exempt bonds (the “NJEDA Bonds” and/or “Bonds”). During July 2014, the Company retired all outstanding Series B Notes, at par, along with all accrued interest due and owed.

 

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

 

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

 

   December 31,
2018		   March 31,
2018		 
Gross bonds payable        
NJEDA Bonds - Series A Notes  $

1,670,000

   $1,760,000 
Less: Current portion of bonds payable (prior to deduction of bond offering costs)   

(95,000)

    (90,000)
Long-term portion of bonds payable (prior to deduction of bond offering costs)  $

1,575,000

   $1,670,000 
           
Bond offering costs  $354,453   $354,453 
Less: Accumulated amortization   (189,045)   (178,409)
Bond offering costs, net  $165,408   $176,044 
           
Current portion of bonds payable - net of bond offering costs          
Current portions of bonds payable   95,000   $90,000 
Less: Bonds offering costs to be amortized in the next 12 months   (14,178)   (14,178)
Current portion of bonds payable, net of bond offering costs  $80,822   $75,822 
           
Long term portion of bonds payable - net of bond offering costs          
Long term portion of bonds payable   1,575,000   $1,670,000 
Less: Bond offering costs to be amortized subsequent to the next 12 months   (151,231)   (161,866)
Long term portion of bonds payable, net of bond offering costs  $1,423,769   $1,508,134 

 

Amortization expense was $3,544 and $3,544 for the three months and $10,636 and $10,633 for the nine months ended December 31, 2018 and 2017, respectively.