XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.25.1

Commitments and Contingencies | 6 Months Ended
--- | ---
Mar. 31, 2025
Commitments and Contingencies [Abstract] |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES Operating Lease Effective July 1, 2019, Citius Pharma entered into a 76-month lease for office space in Cranford, NJ. On February 28, 2025, we extended the lease until February 28, 2030. A right-of-use asset of $786,697 was recognized as a non-cash asset addition on the lease amendment date. 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. The Company 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.
| ● | 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, 2025 |  |  | Six Months Ended March 31, 2024 |
Operating lease cost |  | $ | 119,412 |  |  | $ | 119,411 |
Variable lease cost |  |  | 8,631 |  |  |  | 2,468 |
Total lease cost |  | $ | 128,043 |  |  | $ | 121,879 |
Other information |  |  |  |  |  |  |  |
Weighted-average remaining lease term - operating leases |  |  | 4.9 Years |  |  |  | 1.6 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, 2025 |
2025 (excluding the 6 months ended March 31, 2025) |  | $ | 106,493 |
2026 |  |  | 192,740 |
2027 |  |  | 232,827 |
2028 |  |  | 237,686 |
2029 |  |  | 242,545 |
2030 |  |  | 102,849 |
Total lease payments |  |  | 1,115,140 |
Less: interest |  |  | (183,345 | )
Present value of lease liabilities |  | $ | 931,795 |
Leases |  | Classification |  | March 31, 2025 |  |  | September 30, 2024 |
Assets |  |  |  |  |  |  |  |
Lease asset |  | Operating |  | $ | 922,099 |  |  | $ | 246,247 |
Total lease assets |  |  |  | $ | 922,099 |  |  | $ | 246,247 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current |  | Operating |  | $ | 145,098 |  |  | $ | 241,547 |
Non-current |  | Operating |  |  | 786,697 |  |  |  | 21,318 |
Total lease liabilities |  |  |  | $ | 931,795 |  |  | $ | 262,865 |
Interest expense on the lease liability was $8,567 and $17,490 for the six months ended March 31, 2025 and 2024, respectively. Commercial Manufacturing Contracts The Company has entered into an agreement with a contract manufacturing organization for the manufacture and supply of drug substance. The agreement runs through calendar 2026, with an automatic renewal for a subsequent four-year term. Under this agreement, the Company is obligated to purchase minimum annual quantities of batches at a set price per batch, subject to annual increases. Additionally, the Company is required to pay an annual service fee of $250,000. The agreement also includes provisions for potential price increases based on increases in the manufacturer’s operating expenses or industry indices, as well as significant termination fees and obligations. As of March 31, 2025, the total minimum purchase commitment under this agreement was approximately $17.3 million consisting of payments of $11.9 million and $5.4 million for calendar years 2025 and 2026, respectively. As of March 31, 2025, the Company also has commercial supply agreements with two other vendors for the completion and packaging of finished drug products. Minimum purchase commitments under these two agreements amount to approximately $4.5 million consisting of purchase commitment obligations of $2.9 million in calendar year 2025 and $1.6 million in 2026.

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 405 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/405-30/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 440 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482648/440-10-50-4 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 450 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/450/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 954 -SubTopic 440 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478522/954-440-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 440 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482648/440-10-50-4 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 440 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/440/tableOfContent + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration