For fiscal 2021 third quarter, we had net sales of $112 million, adjusted gross margin of 27%, adjusted EBITDA of $17 million and adjusted net income of $1 million equal to $0.02 per diluted share.
Moreover, our cash position significantly improved to more than $80 million at the end of Q3 from $34 million at the end of the preceding quarter.
We used the proceeds from the refinancing on some cash to retire our outstanding Term B loan balance of approximately $540 million.
We estimate that the transaction will add approximately $50 million of free cash flow in the first year alone.
Similarly, I'd like to note that the part of this financing, the second-lien investors received warrants in Lannett, which have historic price of $6.88.
Most recently, we launched two products in Q3 including Levorphanol, IR tablets 3 mg a partnered product and Chlorpromazine, an internally developed product.
Thus far in Q4, we launched Venlafaxine ER tablets 75 mg and expect to launch a few more products in the next few months.
In addition, we have more than 18 products in development, another 11 pending with the FDA including partnered products, plus four additional products that are approved and pending launch.
So the FDA's feedback is very encouraging as they reviewed in detail our human pilot study where our insulin glargine met all the primary pharamakinetic and pharmadynamic safety endpoints and the FDA has indicated the same type of study with glargine produced at commercial scale to complete the new facility will be sufficient to file a 351(k) biosimilar application.
Moreover, the structure of the new debt substantially increased our free cash flow potential around $50 million in the first year alone that will allow us to further invest in growth opportunities.
For the 2021 third quarter, net sales were $112.4 million, compared with $144.4 million for the third quarter of last year.
Gross profit was $30.4 million or 27% of net sales, compared with $52.3 million or 36% of net sales for the prior year third quarter.
Research and development expenses declined to $6.0 million from $7.4 million.
SG&A expenses declined to $14.4 million from $17.7 million.
Interest expense decreased to $9.8 million from $12.7 million in last year's third quarter.
Net income was $1.0 million or $0.02 per diluted share, compared with $11.7 million or $0.27 per diluted share.
Adjusted EBITDA was $17.0 million, which was positively impacted by lower R&D expenses in the quarter due to timing.
At March 31, 2021, cash and cash equivalents totaled approximately $81 million, up significantly from $34 million at December 31.
For the last six plus years, we have made excellent progress paying down this debt reducing by more than half the original outstanding debt balance of approximately $1.3 billion.
The refinancing included two new debt instruments, specifically, $350 million of first lien senior secured notes and $190 million of second lien loans, which were used to retire the approximately $540 million outstanding balance of our Term B loan.
As part of the transaction, we also upsized our revolving credit facility to $45 million from $30 million.
The second lien facility is junior in priority to the new first lien senior secured notes and included 8.28 million warrants exercisable into the company's common equity at a strike price of $6.88.
With that context, the revised guidance items are as follows: adjusted interest expense of approximately $44 million, up from $41 million to $42 million.
And income tax in the range of $1 million of expense to $1 million of benefit.

Summary:
For fiscal 2021 third quarter, we had net sales of $112 million, adjusted gross margin of 27%, adjusted EBITDA of $17 million and adjusted net income of $1 million equal to $0.02 per diluted share.
For the 2021 third quarter, net sales were $112.4 million, compared with $144.4 million for the third quarter of last year.
Net income was $1.0 million or $0.02 per diluted share, compared with $11.7 million or $0.27 per diluted share.