ELITE PHARMACEUTICALS INC /NV/ 10-K

ITEM 2. PROPERTIES We own a facility located at 165 Ludlow Avenue, Northvale, New Jersey (“165 Ludlow”) which contains approximately 15,000 square feet of floor space. This real property and the improvements thereon are encumbered by a mortgage in favor of the New Jersey Economic Development Authority (“NJEDA”) as security for a loan through tax-exempt bonds from the NJEDA to Elite. The mortgage contains certain customary provisions including, without limitation, the right of NJEDA to foreclose upon a default by Elite. The NJEDA has declared the payment of this bond to be in default (for more information on the NJEDA Bonds, see Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations; Liquidity and Capital Resources; NJEDA Bonds”). We are currently using the facility as a laboratory, manufacturing, storage, distribution, and office space. We own a facility located at 135-137 Ludlow Avenue, Northvale, New Jersey (“135 Ludlow”) which contains approximately 35,000 square feet of floor space. This real property and the improvements thereon are encumbered by a mortgage in favor of East West Bank. In October 2020, the Company entered into an operating lease for office space in Pompano Beach, Florida (the “Pompano Office Lease”). The Pompano Office Lease is for approximately 1,275 square feet of office space, with Elite taking occupancy on November 1, 2020. The Pompano Office includes a three month abatement from November 2020 through February 2021 and had an original term of three years, ending on October 31, 2023. The Pompano Office Lease was extended for one additional year to October 31, 2024. The Pompano Office Lease expired on October 31, 2024. In October 2024, the Company entered into an operating lease for office space in Pompano Beach, Florida, at a different location than the property related to the Pompano Office Lease (the “Pompano Office 2 Lease”). The Pompano Office 2 Lease is for approximately 1,270 square feet of office space, with the Company taking occupancy on October 1, 2024. The Pompano Office 2 Lease has a term of three years, ending on September 30, 2027. The Company has entered into a lease agreement for approximately 35,000 square feet of floor space in a building located at 144 Ludlow Avenue, Northvale, New Jersey (the “144 Ludlow Ave. Lease”). The 144 Ludlow Ave. Lease began on January 22, 2024, and has a term of five years. The 144 Ludlow Ave. Lease will expire on December 31, 2028. The lease terms also include a Company option to extend the term by two years. Properties used in our operation are considered suitable for the purposes for which they are used, at the time they are placed into service, and are believed adequate to meet our needs for the reasonably foreseeable future.