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Operating Lease
 6 Months Ended
Mar. 31, 2024
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  Six Months Ended
March 31,
2024		   Six Months Ended
March 31,
2023		 
Operating lease cost  $119,411   $119,412 
Variable lease cost   2,468    2,363 
Total lease cost  $121,879   $121,775 
           
Other information          
Weighted-average remaining lease term - operating leases   1.6 Years    2.6 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,  March 31,
2024		 
2024 (excluding the 6 months ended March 31, 2024)  $125,119 
2025   253,883 
2026   21,460 
Total lease payments   400,462 
Less: interest   (25,631)
Present value of lease liabilities  $374,831 

 

Leases  Classification  March 31,
2024		   September 30,
2023		 
Assets           
Lease asset  Operating  $352,505   $454,426 
Total lease assets     $352,505   $454,426 
              
Liabilities             
Current  Operating  $229,733   $218,380 
Non-current  Operating   145,098    262,865 
Total lease liabilities     $374,831   $481,245 

 

Interest expense on the lease liability was $17,490 and $25,543 for the six months ended March 31, 2024 and 2023, respectively.