|9 Months Ended|
Jun. 30, 2020
7. OPERATING LEASE
LMB leased office space from Akrimax (see Note 6) in Cranford, New Jersey at a monthly rental rate of $2,167 pursuant to an agreement which expired on April 30, 2019. Rent expense for the nine months ended June 30, 2019 was $56,063.
Effective July 1, 2019, Citius entered into a 76-month lease for office space in Cranford, NJ.
Citius will also pay its proportionate share of real estate taxes and operating expenses in excess of the base year expenses. These costs are considered to be 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:
The elements of lease expense are as follows:
Maturities of lease liabilities due under the Company's non-cancellable leases as of June 30, 2020 is as follows:
Interest expense on the lease liability was $66,512 for the nine months ended June 30, 2020.
The entire disclosure for lessor's operating leases.
Reference 1: http://www.xbrl.org/2003/role/exampleRef