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Operating Lease
 3 Months Ended
Dec. 31, 2022
Operating Lease [Abstract]  
OPERATING LEASE

5. OPERATING LEASE

 

Effective July 1, 2019, Citius entered into a 76-month lease for office space in Cranford, NJ. Citius pays its 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.

 

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

 

  ● As the Company’s lease does not provide an implicit rate, the Company estimated the incremental borrowing rate in calculating the present value of the lease payments 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  Three Months Ended
December 31,
2022		   Three Months Ended
December 31,
2021		 
Operating lease cost  $59,707   $59,705 
Variable lease cost   1,158    — 
Total lease cost  $60,865   $59,705 
           
Other information          
Weighted-average remaining lease term - operating leases   2.8 Years    3.8 Years 
Weighted-average discount rate - operating leases   8.0%   8.0%

 

Maturities of lease liabilities due under the Company’s non-cancellable leases as of December 31, 2022 is as follows: 

 

Year Ending September 30,  December 31,
2022		 
2023 (excluding the 3 months ended December 31, 2022)  $183,427 
2024   249,024 
2025   253,883 
2026   21,460 
Total lease payments   707,794 
Less: interest   (77,048)
Present value of lease liabilities  $630,746 

 

Leases  Classification   December 31,
2022		   September 30,
2022		 
Assets               
Lease asset   Operating   $599,617   $646,074 
Total lease assets       $599,617   $646,074 
                
Liabilities               
Current   Operating   $202,178   $196,989 
Non-current   Operating    428,568    481,245 
Total lease liabilities       $630,746   $678,234 

 

Interest expense on the lease liability was $13,250 and $16,826 for the three months ended December 31, 2022 and 2021, respectively.