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Commitments and Contingencies

12 Months Ended

Sep. 30, 2023

Commitments and Contingencies [Abstract]

8. COMMITMENTS AND CONTINGENCIES

Operating Lease

Effective July 1, 2019, we entered into a 76-month lease for office space in Cranford, NJ. We pay our proportionate share of real estate taxes and operating expenses in excess of the base year expenses. These costs are variable lease payments and are not included in the determination of the lease’s right-of-use asset or lease liability.

We identified and assessed the following significant assumptions in recognizing its right-of-use assets and corresponding lease liabilities:

●

As the 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, 2023			Year Ended September 30, 2022
Operating lease cost	$	238,824		$	238,822
Variable lease cost		4,771			772
Total lease cost	$	243,595		$	239,594

Other information
Weighted-average remaining lease term - operating leases		2.1 Years			3.1 Years
Weighted-average discount rate - operating leases		8.0	%		8.0	%

Maturities of lease liabilities due under the Company’s non-cancellable leases are as follows:

Year Ending September 30,
2024	$	249,024
2025		253,883
2026		21,460
Total lease payments		524,367
Less: interest		(43,122	)
Present value of lease liabilities	$	481,245

Leases	Classification	September 30, 2023		September 30, 2022
Assets
Lease asset	Operating	$	454,426	$	646,074
Total lease assets		$	454,426	$	646,074

Liabilities
Current	Operating	$	218,380	$	196,989
Non-current	Operating		262,865		481,245
Total lease liabilities		$	481,245	$	678,234

Interest expense on the lease liability was $47,176 and $62,068 for the years ended September 30, 2023 and 2022, respectively.

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.