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Operating Lease
 3 Months Ended
Dec. 31, 2023
Operating Lease [Abstract]  
OPERATING LEASE

6. OPERATING LEASE

 

Effective July 1, 2019, Citius Pharma entered into a 76-month lease for office space in Cranford, NJ. Citius Pharma 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,
2023		   Three Months Ended
December 31,
2022		 
Operating lease cost  $        59,705   $        59,707 
Variable lease cost   1,204    1,158 
Total lease cost  $60,909   $60,865 
Other information          
Weighted-average remaining lease term - operating leases   1.8 Years    2.8 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,  December 31,
2023		 
2024 (excluding the 3 months ended December 31, 2023)  $187,072 
2025   253,883 
2026   21,460 
Total lease payments   462,415 
Less: interest   (33,846)
Present value of lease liabilities  $428,569 

 

Leases  Classification  December 31,
2023		   September 30,
2023		 
Assets           
Lease asset  Operating  $403,996   $454,426 
Total lease assets     $403,996   $454,426 
              
Liabilities             
Current  Operating  $224,000   $218,380 
Non-current  Operating   204,569    262,865 
Total lease liabilities     $428,569   $481,245 

 

Interest expense on the lease liability was $9,275 and $13,250 for the three months ended December 31, 2023 and 2022, respectively.