LEASES

9 Months Ended

12 Months Ended

Jun. 30, 2023

Sep. 30, 2022

Leases [Abstract]

LEASES

6. LEASES

All of the Company’s right-of-use assets are operating leases related to its office premises. Details of the Company’s right-of-use assets and lease liabilities are as follows:

	June 30, 2023			September 30, 2022
Right-of-use assets	$	166,960		$	240,796
Lease liabilities
Balance, beginning of the year	$	244,906		$	78,949
Addition		-			220,368
Liability accretion		19,111			9,042
Lease payments		(87,128	)		(63,453	)
Balance, end of the year	$	176,889		$	244,906
Current lease liabilities	$	79,866		$	104,224
Long-term lease liabilities	$	97,023		$	140,682

The following table presents the Company’s total lease cost.

	Three Months Ended June 30, 2023			Three Months Ended June 30, 2022			Nine Months Ended June 30, 2023			Nine Months Ended June 30, 2022
Operating lease cost	$	27,704		$	12,956		$	92,947		$	40,730
Variable lease expense		22,516			13,397			48,513			30,823
Sublease income		(12,367	)		(10,752	)		(32,762	)		(26,350	)
Rent subsidy		-			-			-			(1,674	)
Net lease cost	$	37,853		$	15,601		$	108,698		$	43,529

As of June 30, 2023, maturities of the Company’s operating lease liabilities are as follows:

Year
2023 remaining	$	23,709
2024		82,190
2025		84,664
2026		14,180
Total lease payments		204,743
Less: imputed interest		(27,854	)
Total lease liabilities	$	176,889

PERMEX PETROLEUM CORPORATION

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE AND NINE MONTHS ENDED JUNE 30, 2023

(UNAUDITED)

7. LEASES

All of the Company’s right-of-use assets are operating leases related to its office premises. Details of the Company’s right-of-use assets and lease liabilities are as follows:

	2022			2021
Right-of-use assets	$	240,796		$	72,539
Lease liabilities
Balance, beginning of the year	$	78,949		$	53,128
Addition		220,368			57,357
Interest expense		9,042			9,812
Lease payments		(63,453	)		(43,932	)
Foreign exchange movement		-			2,584
Balance, end of the year	$	244,906		$	78,949
Current lease liabilities	$	104,224		$	51,963
Long-term lease liabilities	$	140,682		$	26,986

The following table presents the Company’s total lease cost.

	2022			2021
Amortization of right-of-use assets	$	52,111		$	37,129
Interest on lease liabilities		9,042			9,812
Variable lease expense		36,216			16,564
Sublease income		(36,633	)		(10,191	)
Rent subsidy		(1,644	)		(9,169	)
Net lease cost	$	59,092		$	44,145

As of September 30, 2022, maturities of the Company’s operating lease liabilities are as follows:

Year
2023	$	110,593
2024		82,190
2025		84,664
2026		14,180
Total lease payments		291,627
Less: imputed interest		(46,721	)
Total lease liabilities	$	244,906

PERMEX PETROLEUM CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2022 AND 2021