OPERATING LEASE

12 Months Ended

Sep. 30, 2022

OPERATING LEASE

OPERATING LEASE

7.     OPERATING LEASE

The Company’s operating leases included on the balance sheet are as follows:

Operating lease right-of-use assets
Balance, September 30, 2020	$	55,162
Addition		362,588
Amortization		(109,464)
Balance, September 30, 2021	$	308,286
Amortization		(121,787)
Balance, September 30, 2022	$	186,499
Operating lease liabilities
Balance, September 30, 2020	$	59,094
Addition		362,588
Accretion		9,570
Lease payments		(100,282)
Balance, September 30, 2021	$	330,970
Accretion		13,305
Lease payments		(134,023)
Balance, September 30, 2022	$	210,252
Operating lease liabilities with expected life of less than one year	$	133,834
Operating lease liabilities with expected life greater than one year	$	76,418

The Company recognizes a right-of-use asset for the right to use the underlying asset for the lease term, and a lease liability, which represents the present value of the Company’s obligation to make payments over the lease term. The present value of the lease payments is calculated using an incremental borrowing rate as the Company’s leases do not provide an implicit interest rate. At September 30, 2022, the Company’s incremental borrowing rate was 5.0% and the remaining lease term for the South Francisco office was 20 months and Houston office was 10 months.

Accretion expense of $13,305 (2021 - $9,570) have been recorded in “financing costs” in the statement of operations and comprehensive loss.