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Commitments and Contingencies | 12 Months Ended
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Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Operating Lease LMB leased office space from Akrimax (see Note 7) in Cranford, New Jersey at a monthly rental rate of $2,167 pursuant to an agreement which expired on April 30, 2019. Rent expense for the year ended September 30, 2019 was $56,063. Effective July 1, 2019, Citius entered into a 76-month lease for office space in Cranford, NJ. Rent expense under this agreement for the year ended September 30, 2019 was $57,349. Citius will also pay its proportionate share of real estate taxes and operating expenses in excess of the base year expenses. These costs are considered to be variable lease payments and are not included in the determination of the lease's right-of-use asset or lease liability. The Company identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities:
| ● | As the Company's current Cranford lease does not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments. The Company has estimated its incremental borrowing rate based on the remaining lease term as of the adoption date.
| ● | Since the Company elected to account for each lease component and its associated non-lease components as a single combined component, all contract consideration was allocated to the combined lease component.
| ● | The expected lease terms include noncancelable lease periods.
The elements of lease expense are as follows:
Lease cost |  | Year Ended September 30, 2020 |
Operating lease cost |  | $ | 228,828 |
Variable lease cost |  |  | — |
Total lease cost |  | $ | 228,828 |
Other information |  |  |  |
Weighted-average remaining lease term - operating leases |  |  | 5.1 Years |
Weighted-average discount rate - operating leases |  |  | 8.0 |
Maturities of lease liabilities due under the Company's non-cancellable leases are as follows:
Year Ending September 30, |  |  |
2021 |  | $ | 234,447 |
2022 |  |  | 239,306 |
2023 |  |  | 244,165 |
2024 |  |  | 249,024 |
2025 |  |  | 253,883 |
Thereafter |  |  | 21,460 |
Total lease payments |  |  | 1,242,285 |
Less: interest |  |  | (227,815 | )
Present value of lease liabilities |  | $ | 1,014,470 |
Leases |  | Classification |  | September 30, 2020 |
Assets |  |  |  |  |  |
Lease asset |  | Operating |  | $ | 986,204 |
Total lease assets |  |  |  | $ | 986,204 |
Liabilities |  |  |  |  |  |
Current |  | Operating |  | $ | 158,999 |
Non-current |  | Operating |  |  | 855,471 |
Total lease liabilities |  |  |  | $ | 1,014,470 |
Interest expense on the lease liability was $87,303 for the year ended September 30, 2020. Legal Proceedings The Company is not involved in any litigation that it believes could have a material adverse effect on its financial position or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company's executive officers, threatened against or affecting the Company or its officers or directors in their capacities as such.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 + Details
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