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10-K true 2023-09-30 --09-30 2023 false 001-41558 PERMEX PETROLEUM CORPORATION A1 98-1384682 1700 Post Oak Boulevard 2 Blvd Place Suite 600 Houston TX 77056 (469) 804-1306 No No Yes Yes Non-accelerated Filer true true true false false false 9856280 551503 None 688 We have audited the accompanying consolidated balance sheets of Permex Petroleum Corporation (the “Company”) as of September 30, 2023 and 2022, the related consolidated statements of operations and comprehensive loss, changes in stockholders’ equity and cash flows for each of the two years in the period ended September 30, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2023 and 2022, and the results of its operations and its cash flows for each of the two years in the period ended September 30, 2023, in conformity with accounting principles generally accepted in the United States of America. Marcum LLP Houston, Texas

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1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 under the laws of British Columbia, Canada and maintains its head office at 1700 Post Oak Boulevard, 2 Blvd Place Suite 600, Houston Texas, 77056. Its registered office is located at 10th floor, 595 Howe Street, Vancouver, British Columbia, Canada, V6C 2T5. The Company is primarily engaged in the acquisition, development and production of oil and gas properties in the United States. The Company’s oil and gas interests are located in Texas and New Mexico, USA. The Company is listed on the Canadian Securities Exchange (the “CSE”) under the symbol “OIL” and on the OTCQB under the symbol “OILCF”. On April 16, 2024, the Company received a cease trade order issued by the British Columbia Securities Commission (the “BCSC”) due to its failure to file the annual financial statements for fiscal 2023 and quarterly reports for fiscal 2024. The trading was halted on the CSE effective April 17, 2024. The Company is currently working to bring all required filings up to date. On October 26, 2022, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 60 ratio, which was effective November 2, 2022. The par value and authorized shares of common stock were not adjusted as a result of the reverse stock split. On September 12, 2023, the Company’s board of directors approved a reverse stock split of the Company’s issued and outstanding common stock at a 1 for 4 ratio, which was effective October 23, 2023. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock splits for all periods presented.

2017-04-24

2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated. Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $12,743,610, has a working capital deficiency of $3,142,916 as of September 30, 2023 and has not yet achieved profitable operations. The Company requires equity financings to fund its operation, which it has been unable to secure in sufficient amounts to date, and there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company also expects to raise additional funds through equity and debt financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Subsequent to September 30, 2023, the Company has raised $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfLongTermDebt_c20231001__20240726__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z28ZVB3aaDkj" title="Proceeds from issuance of long-term debt">1,365,000 through the issuance of convertible debentures. Management believes that this plan provides an opportunity for the Company to continue as a going concern subject to its continued ability to raise funds to maintain its operations and manage its working capital deficiency. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to, meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Significant Accounting Policies (cont’d…)</td></tr> </table> Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (ii) the costs of site restoration when determining decommissioning liabilities; (iii) the useful lives of assets for the purposes of depletion and depreciation; (iv) petroleum and natural gas reserves; and (v) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. <p id="xdx_842_eus-gaap--TradeAndOtherAccountsReceivableUnbilledReceivablesPolicy_zTiWbIo8Tup8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and the majority of the receivables have payment terms of 30 days or less. The Company’s oil and gas revenues are mainly derived from three significant customers. As a result, the Company’s trade receivables are exposed to a concentration of credit risk. The Company routinely assesses the financial strength of its customers. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2023 and 2022. <p id="xdx_84F_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_zHbtimuI3qta" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related estimated future asset retirement costs are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Significant Accounting Policies (cont’d…)</td></tr> </table> Property and equipment (cont’d…) Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate property and equipment consist primarily of leasehold improvements, vehicle, and office furniture and equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives ranging from three to five years. For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized. <p id="xdx_84B_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_z1eCf1lMXPH3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of the Financial Account Standards Board Accounting Standards Codification (“ASC”) regarding long-lived assets. It requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of September 30, 2023 and September 30, 2022, no impairment charge has been recorded. Asset retirement obligations The Company recognizes asset retirement obligations (“ARO”) associated with tangible assets such as well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The ARO are measured at the present value of management’s best estimate of the future remediation expenditures at the reporting date. The initial measurement of an ARO is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumption used to estimate a recorded ARO change, a revision is recorded to both the ARO and the asset retirement cost. The ARO is accreted to its then present value each period, and the asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table> <p id="xdx_843_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z843KBVjH2R3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The carrying values of cash and cash equivalents, trade receivable, other current receivables, due from/to related parties, trade payable, other current payables, accrued expenses, convertible debenture and lease liability included in the accompanying consolidated balance sheets approximated fair value at September 30, 2023 and 2022. The financial statements as of and for the years ended September 30, 2023 and 2022, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future. Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. The diluted EPS reflects all dilutive potential common share equivalents, in the weighted average number of common shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2023 and 2022. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table> Leases At inception of a contract, the Company assesses whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is subsequently measured at amortized cost using the effective interest rate method. <p id="xdx_847_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zkpc1U8DcDgk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Share capital The Company records proceeds from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction from the proceeds. Common shares issued for consideration other than cash are valued based on their fair value at the date that the shares are issued. Share purchase warrants The fair value of warrants is determined using the Black-Scholes option pricing model. Proceeds from the issuance of private placement units are allocated between the private placement warrants and common shares on a relative fair value basis. Share purchase warrants with exercise prices denominated in a currency other than its functional currency are classified as a liability. Proceeds from the issuance of private placement units are first allocated to the warrant liability based on their fair value and the residual is allocated to common shares issued while for equity warrants, proceeds are allocated to common stock and additional paid in capital on a relative fair value basis. The changes in fair value of the warrant liability are recorded in the statement of loss and comprehensive loss. Warrants issued for oil and gas interests and warrants issued as finder’s fees are share-based payments and are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model. <p id="xdx_84D_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zQTcIfSoGYWl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Share-based payments The Company issues stock options and other share-based compensation to directors, employees and other service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded vesting approach. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. The Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table> <p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zSPKsMuCQcul" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Revenue In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfer to the customer. For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product is loaded into customer operated transports. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from certain crude oil and natural gas wells and is recognized upon the operators of the properties producing revenue from subject oil and gas wells. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received are $nil and $1,395 for years ended September 30, 2023 and 2022, respectively. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs. <p id="xdx_843_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zhMJDfffy4D4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Foreign Currency These consolidated financial statements are presented in United States dollars (“U.S. dollar”). The functional currency of the Company and the subsidiary of the Company is the U.S. dollar. The Company changed its functional currency from Canadian dollars (“CAD”) to the U.S. dollars as at October 1, 2021. The change in functional currency from Canadian dollars to U.S. dollars is accounted for prospectively from October 1, 2021. Management determined that the Company’s functional currency had changed based on the assessment related to significant changes of the Company’s economic facts and circumstances. These significant changes included the fact that the Company’s equity financings and the primary economic environment are now in the U.S. as well as the expectation of the majority of the Company’s expenses will be denominated in U.S. dollars. Moreover, the Company’s place of business and management are now located in the United States. Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td> </tr> </table> Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority. <p id="xdx_84A_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zNzis4oYgLTj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Recently Adopted Accounting Pronouncements On October 1, 2022, the Company adopted Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments, as issued by the FASB. This standard established the current expected credit loss model, a new impairment model for certain financial instruments, based on expected rather than incurred losses. Adoption of this standard is on a modified retrospective basis and had no impact on the Company’s financial position, results of operations, cash flows or net loss per common share. New accounting standards In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic740) Improvements to Income Tax Disclosures, which becomes effective for fiscal years beginning after December 15, 2024. The standard requires companies to disclose specific categories in the income tax rate reconciliation table and the amount of income taxes paid per major jurisdiction. The Company does not expect the standard to have a material effect on its consolidated financial statements and has begun evaluating disclosure presentation alternatives.

Basis of presentation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).

Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary, Permex Petroleum US Corporation. All intercompany balances and transactions have been eliminated.

Going concern of operations These consolidated financial statements have been prepared on a going concern basis which assumes that the Company will continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Company has incurred losses since inception in the amount of $12,743,610, has a working capital deficiency of $3,142,916 as of September 30, 2023 and has not yet achieved profitable operations. The Company requires equity financings to fund its operation, which it has been unable to secure in sufficient amounts to date, and there can be no assurances that it will be able to do so in the future. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued. The Company also expects to raise additional funds through equity and debt financings. There are no written agreements in place for such funding or issuance of securities and there can be no assurance that such will be available in the future. Subsequent to September 30, 2023, the Company has raised $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfLongTermDebt_c20231001__20240726__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z28ZVB3aaDkj" title="Proceeds from issuance of long-term debt">1,365,000 through the issuance of convertible debentures. Management believes that this plan provides an opportunity for the Company to continue as a going concern subject to its continued ability to raise funds to maintain its operations and manage its working capital deficiency. In view of these matters, continuation as a going concern is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to, meet its financial requirements, raise additional capital, and the success of its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should the Company not continue as a going concern. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Significant Accounting Policies (cont’d…)</td></tr> </table>

12743610

3142916

1365000

Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Management evaluates these estimates and judgments on an ongoing basis and bases its estimates on experience, current and expected future conditions, third-party evaluations and various other assumptions that management believes are reasonable under the circumstances. Significant estimates have been used by management in conjunction with the following: (i) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (ii) the costs of site restoration when determining decommissioning liabilities; (iii) the useful lives of assets for the purposes of depletion and depreciation; (iv) petroleum and natural gas reserves; and (v) share-based payments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from those estimates.

Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value.

<p id="xdx_842_eus-gaap--TradeAndOtherAccountsReceivableUnbilledReceivablesPolicy_zTiWbIo8Tup8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Trade and other receivables Trade and other receivables are stated at net realizable value. The majority of customers are not extended credit and the majority of the receivables have payment terms of 30 days or less. The Company’s oil and gas revenues are mainly derived from three significant customers. As a result, the Company’s trade receivables are exposed to a concentration of credit risk. The Company routinely assesses the financial strength of its customers. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections, and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. Given the nature and balances of the Company’s receivables the Company has no material loss allowance as at September 30, 2023 and 2022.

<p id="xdx_84F_eus-gaap--PropertyPlantAndEquipmentPolicyTextBlock_zHbtimuI3qta" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Property and equipment The Company follows the successful efforts method of accounting for its oil and gas properties. All costs for development wells along with related acquisition costs, the costs of drilling development wells, and related estimated future asset retirement costs are capitalized. Exploration costs, such as exploratory geological and geophysical costs, and costs associated with non-productive exploratory wells, delay rentals and exploration overhead are expensed. Costs of drilling exploratory wells are capitalized pending determination of whether the wells found proved reserves. Costs of wells that are assigned proved reserves remain capitalized. Costs also are capitalized for exploratory wells that have found crude oil and natural gas reserves even if the reserves cannot be classified as proved when the drilling is completed, provided the exploratory well has found a sufficient quantity of reserves to justify its completion as a producing well and the Company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The Company groups its oil and gas properties with a common geological structure or stratigraphic condition (“common operating field”) for purposes of computing depletion expenses, assessing proved property impairments and accounting for asset dispositions. Capitalized costs of proved oil and gas properties are depleted by individual field using a unit-of-production method based on proved and probable developed reserves. Proved reserves are estimated using reserve engineer reports and represent the estimated quantities of crude oil, natural gas and natural gas liquids, which geological, geophysical and engineering data demonstrate with a specified degree of certainty to be recoverable in future years from known reservoirs and which are considered commercially producible. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Significant Accounting Policies (cont’d…)</td></tr> </table> Property and equipment (cont’d…) Proved oil and natural gas properties are assessed for possible impairment by comparing their carrying values with their associated undiscounted future net cash flows. Events that can trigger assessments for possible impairments include write-downs of proved reserves based on field performance, significant decreases in the market value of an asset (including changes to the commodity price forecast or carbon costs), significant change in the extent or manner of use of or a physical change in an asset, and a more-likely-than-not expectation that a long-lived asset or asset group will be sold or otherwise disposed of significantly sooner than the end of its previously estimated useful life. Impaired assets are written down to their estimated fair values, generally their discounted, future net cash flows. For proved oil and natural gas properties, the Company performs impairment reviews on a field basis, annually or as appropriate. Other corporate property and equipment consist primarily of leasehold improvements, vehicle, and office furniture and equipment and are stated at cost less accumulated depreciation. The capitalized costs are generally depreciated on a straight line basis over their estimated useful lives ranging from three to five years. For property dispositions, measurement is at fair value, unless the transaction lacks commercial substance or fair value cannot be reliably measured. Where the exchange is measured at fair value, a gain or loss is recognized in net income. Gains or losses are recorded for sales or dispositions of oil and gas properties which constitute an entire common operating field or which result in a significant alteration of the common operating field’s depletion rate. These gains and losses are classified as asset dispositions in the accompanying consolidated statements of loss and comprehensive loss. Partial common operating field sales or dispositions deemed not to significantly alter the depletion rates are generally accounted for as adjustments to capitalized costs with no gain or loss recognized.

P5Y

<p id="xdx_84B_eus-gaap--ImpairmentOrDisposalOfLongLivedAssetsPolicyTextBlock_z1eCf1lMXPH3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Impairment of long-lived assets The Company assesses long-lived assets for impairment in accordance with the provisions of the Financial Account Standards Board Accounting Standards Codification (“ASC”) regarding long-lived assets. It requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. As of September 30, 2023 and September 30, 2022, no impairment charge has been recorded.

Asset retirement obligations The Company recognizes asset retirement obligations (“ARO”) associated with tangible assets such as well sites when there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The ARO are measured at the present value of management’s best estimate of the future remediation expenditures at the reporting date. The initial measurement of an ARO is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. When the assumption used to estimate a recorded ARO change, a revision is recorded to both the ARO and the asset retirement cost. The ARO is accreted to its then present value each period, and the asset retirement cost is depreciated using a systematic and rational method similar to that used for the associated property and equipment. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table>

<p id="xdx_843_eus-gaap--FairValueMeasurementPolicyPolicyTextBlock_z843KBVjH2R3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Fair value measurement Fair value accounting is applied for all assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company follows the established framework for measuring fair value and expands disclosures about fair value measurements. The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. The carrying values of cash and cash equivalents, trade receivable, other current receivables, due from/to related parties, trade payable, other current payables, accrued expenses, convertible debenture and lease liability included in the accompanying consolidated balance sheets approximated fair value at September 30, 2023 and 2022. The financial statements as of and for the years ended September 30, 2023 and 2022, do not include any recurring or nonrecurring fair value measurements relating to assets or liabilities. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Professional standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company has not elected to measure any existing financial instruments at fair value. However, it may elect to measure newly acquired financial instruments at fair value in the future.

Earnings (loss) per share Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding in the period. The diluted EPS reflects all dilutive potential common share equivalents, in the weighted average number of common shares outstanding during the period, if dilutive. All of the outstanding convertible securities, stock options and warrants were anti-dilutive for the years ended September 30, 2023 and 2022. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table>

Leases At inception of a contract, the Company assesses whether a contract is or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date. The lease obligation is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Variable lease payments that do not depend on an index or rate are not included in the measurement of the lease liability. The lease liability is subsequently measured at amortized cost using the effective interest rate method.

<p id="xdx_847_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_zkpc1U8DcDgk" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Share capital The Company records proceeds from the issuance of its common shares as equity. Incremental costs directly attributable to the issue of new common shares are shown in equity as a deduction from the proceeds. Common shares issued for consideration other than cash are valued based on their fair value at the date that the shares are issued.

Share purchase warrants The fair value of warrants is determined using the Black-Scholes option pricing model. Proceeds from the issuance of private placement units are allocated between the private placement warrants and common shares on a relative fair value basis. Share purchase warrants with exercise prices denominated in a currency other than its functional currency are classified as a liability. Proceeds from the issuance of private placement units are first allocated to the warrant liability based on their fair value and the residual is allocated to common shares issued while for equity warrants, proceeds are allocated to common stock and additional paid in capital on a relative fair value basis. The changes in fair value of the warrant liability are recorded in the statement of loss and comprehensive loss. Warrants issued for oil and gas interests and warrants issued as finder’s fees are share-based payments and are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model.

<p id="xdx_84D_eus-gaap--CompensationRelatedCostsPolicyTextBlock_zQTcIfSoGYWl" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Share-based payments The Company issues stock options and other share-based compensation to directors, employees and other service providers. Equity awards including stock options and share purchase warrants are measured at grant date at the fair value of the instruments issued and amortized over the vesting periods using a graded vesting approach. The number of options expected to vest is reviewed and adjusted at the end of each reporting period such that the amount ultimately recognized as an expense is based on the number of options that eventually vest. The Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures. The fair value of the equity awards is determined using the Black-Scholes option pricing model. Measurement inputs include share price on measurement date, exercise price of the instrument, expected volatility (based on weighted average historic volatility), weighted average expected life of the instruments (based on historical experience), expected dividends, and the risk-free interest rate (based on government bonds). PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td></tr> </table>

<p id="xdx_846_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zSPKsMuCQcul" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Revenue In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when the performance obligation is satisfied, which typically occurs at the point in time when control of the product transfer to the customer. For natural gas, this is generally at the time product enters the pipeline. For crude oil, this is generally at the time the product is loaded into customer operated transports. Revenue is measured net of discounts, customs duties, royalties and withholding tax. Royalty income represents net revenue interests from certain crude oil and natural gas wells and is recognized upon the operators of the properties producing revenue from subject oil and gas wells. The Company records revenue in the month production is delivered to the purchaser. However, production statements for oil and gas sales may not be received until the following month end after the products are purchased, and as a result, the Company is required to estimate the amount of revenue to be received. The Company records the differences between its estimates and the actual amounts received for revenue in the month that payment is received from the customer. Identified differences between the Company’s revenue estimates and actual revenue received are $nil and $1,395 for years ended September 30, 2023 and 2022, respectively. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to sales volumes and prices for those good sold are estimated and recorded. The Company does not have any contract assets or liabilities, or capitalized contract costs.

1395

<p id="xdx_843_eus-gaap--ForeignCurrencyTransactionsAndTranslationsPolicyTextBlock_zhMJDfffy4D4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Foreign Currency These consolidated financial statements are presented in United States dollars (“U.S. dollar”). The functional currency of the Company and the subsidiary of the Company is the U.S. dollar. The Company changed its functional currency from Canadian dollars (“CAD”) to the U.S. dollars as at October 1, 2021. The change in functional currency from Canadian dollars to U.S. dollars is accounted for prospectively from October 1, 2021. Management determined that the Company’s functional currency had changed based on the assessment related to significant changes of the Company’s economic facts and circumstances. These significant changes included the fact that the Company’s equity financings and the primary economic environment are now in the U.S. as well as the expectation of the majority of the Company’s expenses will be denominated in U.S. dollars. Moreover, the Company’s place of business and management are now located in the United States. Foreign currency transactions are translated into the functional currency using exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-monetary assets and liabilities are translated using the historical rate on the date of the transaction. Non-monetary assets and liabilities that are stated at fair value are translated using the historical rate on the date that the fair value was determined. All gains and losses on translation of these foreign currency transactions are charged to profit or loss. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">2.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SIGNIFICANT ACCOUNTING POLICIES (cont’d…)</td> </tr> </table>

Income taxes Current taxes receivable or payable are estimated on taxable income or loss for the current year at the statutory tax rates enacted or substantively enacted at the reporting date. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax assets and liabilities are measured at the tax rates that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax assets also result from unused loss carry forwards, resource related pools and other deductions. At the end of each reporting year the Company reassesses unrecognized deferred tax assets. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to offset current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority.

<p id="xdx_84A_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zNzis4oYgLTj" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Recently Adopted Accounting Pronouncements On October 1, 2022, the Company adopted Accounting Standards Update (ASU) No. 2016-13, Measurement of Credit Losses on Financial Instruments, as issued by the FASB. This standard established the current expected credit loss model, a new impairment model for certain financial instruments, based on expected rather than incurred losses. Adoption of this standard is on a modified retrospective basis and had no impact on the Company’s financial position, results of operations, cash flows or net loss per common share.

New accounting standards In December 2023, the FASB issued ASU 2023 - 09, Income Taxes (Topic740) Improvements to Income Tax Disclosures, which becomes effective for fiscal years beginning after December 15, 2024. The standard requires companies to disclose specific categories in the income tax rate reconciliation table and the amount of income taxes paid per major jurisdiction. The Company does not expect the standard to have a material effect on its consolidated financial statements and has begun evaluating disclosure presentation alternatives.

3. REVENUE Revenue from contracts with customers is presented in “Oil and gas sales” on the Consolidated Statement of Operations. As of September 30, 2023 and 2022, receivables from contracts with customers, included in trade and other receivables, were $<span id="xdx_905_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20221001__20230930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zkEmzzWkQFR1" title="Revenue">48,165 and $<span id="xdx_905_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_c20211001__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zAmD3nLvXGrc" title="Revenue">56,639, respectively. <p id="xdx_891_eus-gaap--RevenueFromExternalCustomersByGeographicAreasTableTextBlock_zk4tGHqeqiM4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">The following table presents our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B7_srt--StatementGeographicalAxis_stpr--TX_zTHN3tKKFFA8" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_stpr--NM_zEWeQppuxkS8" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zPP59kjhnkke" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_434_c20221001__20230930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zZlgHPSmv9s4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">501,920</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">154,700</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">656,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_437_c20221001__20230930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zVk9CSBaXar9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,003</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,003</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20221001__20230930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAX5voYEMZuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">510,923</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">154,700</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">665,623</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B7_srt--StatementGeographicalAxis_stpr--TX_zzPl28zxU6a6" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_stpr--NM_zsFH4dsMtgsh" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zXX9QZ7OARH9" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_43F_c20211001__20220930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_z8XIZettRZ4e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">621,275</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">140,236</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">761,511</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43C_c20211001__20220930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zVs201IysgV7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20211001__20220930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zGWDZbxcp6I1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">675,155</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,236</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

48165

56639

<p id="xdx_891_eus-gaap--RevenueFromExternalCustomersByGeographicAreasTableTextBlock_zk4tGHqeqiM4" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">The following table presents our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B7_srt--StatementGeographicalAxis_stpr--TX_zTHN3tKKFFA8" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_stpr--NM_zEWeQppuxkS8" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zPP59kjhnkke" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_434_c20221001__20230930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zZlgHPSmv9s4" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">501,920</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">154,700</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">656,620</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_437_c20221001__20230930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zVk9CSBaXar9" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,003</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">9,003</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20221001__20230930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zAX5voYEMZuf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">510,923</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">154,700</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">665,623</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: justify">Year ended September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4B7_srt--StatementGeographicalAxis_stpr--TX_zzPl28zxU6a6" style="border-bottom: Black 1.5pt solid; text-align: right">Texas</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BE_srt--StatementGeographicalAxis_stpr--NM_zsFH4dsMtgsh" style="border-bottom: Black 1.5pt solid; text-align: right">New Mexico</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_4BA_zXX9QZ7OARH9" style="border-bottom: Black 1.5pt solid; text-align: right">Total</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_43F_c20211001__20220930__srt--ProductOrServiceAxis__srt--CrudeOilMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_z8XIZettRZ4e" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 46%; text-align: justify">Crude oil</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">621,275</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">140,236</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">761,511</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_43C_c20211001__20220930__srt--ProductOrServiceAxis__custom--NaturalGasMember_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zVs201IysgV7" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Natural gas</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">53,880</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_438_c20211001__20220930_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_zGWDZbxcp6I1" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Revenue from contracts with customers</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">675,155</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">140,236</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">815,391</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

501920

154700

656620

9003

510923

154700

665623

621275

140236

761511

53880

675155

140236

815391

4. CONCENTRATION OF CREDIT RISK The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash equivalents and trade receivables. The Company’s cash balances sometimes exceed the United States’ Federal Deposit Insurance Corporation insurance limits. The Company mitigates this risk by placing its cash and cash equivalents with high credit quality financial institutions and attempts to limit the amount of credit exposure with any one institution. To date, the Company has not recognized any losses caused by uninsured balances. The majority of the Company’s receivable balance is concentrated in trade receivables, with a balance of $<span id="xdx_904_eus-gaap--AccountsReceivableNetCurrent_iI_c20230930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zvX7Cv9g1eel" title="Trade receivables">73,021 as of September 30, 2023 (September 30, 2022 - $<span id="xdx_908_eus-gaap--AccountsReceivableNetCurrent_iI_c20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--CustomerMember_zDqeB8a6gGu5" title="Trade receivables">91,928). For the years ended September 30, 2023 and 2022, we had three significant customers that accounted for approximately <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20221001__20230930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomerMember_z2BQhAehLIB1" title="Concentration risk percentage">99% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20211001__20220930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--ThreeCustomerMember_z79GvmLTW8Wg" title="Concentration risk percentage">83%, respectively, of our total oil, and natural gas revenues. Two customers represented $<span id="xdx_904_eus-gaap--RevenueFromContractWithCustomerExcludingAssessedTax_c20221001__20230930__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zFioZTDpTOG3" title="Revenue">42,704 (<span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20221001__20230930__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--MajorCustomersAxis__custom--TwoCustomerMember_zb9v7tVPcjFf" title="Concentration risk percentage">59%) of the trade receivable balance. The Company routinely assesses the financial strength of its customers. The non-trade receivable balance consists of GST recoverable of $5,420. GST recoverable is due from the Canadian Government. It is in management’s opinion that the Company is not exposed to significant credit risk. To date, the Company has not recognized any credit losses on its receivables.

73021

91928

0.99

0.83

42704

0.59

5420

5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230930_zarhy8tgflWh" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_ze4IdpwfNLM5" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_z7daABXA7OL9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">10,501,244</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_zm5tFPXygCpi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_zZxEIfB3Sxx" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(289,456</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_zU683DZEGIVj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,211,788</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zsYNWdTeyMPf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">205,315</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zlRFdKzJXMlg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(55,684</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zWUM8j6gdVT3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">149,631</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zHbZuPhvayd7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,361,419</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Depletion and depreciation expense was $154,834 and $105,503 for the years ended September 30, 2023 and 2022, respectively. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20230930_zarhy8tgflWh" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_ze4IdpwfNLM5" style="border-bottom: Black 1.5pt solid; text-align: right">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--OilAndGasPropertyFullCostMethodGross_iI_maOAGPFzkEd_z7daABXA7OL9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Oil and natural gas properties, at cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">10,501,244</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">8,029,234</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--ConstructionInProgressGross_iI_maOAGPFzkEd_zm5tFPXygCpi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Construction in progress</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">460,306</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--OilAndGasPropertyFullCostMethodDepletion_iNI_di_msOAGPFzkEd_zZxEIfB3Sxx" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depletion</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(289,456</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(184,658</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--OilAndGasPropertyFullCostMethodNet_iTI_mtOAGPFzkEd_maPPAENzIKW_zU683DZEGIVj" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Oil and natural gas properties, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">10,211,788</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">8,304,882</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOther_iI_maPPAEOzS2v_zsYNWdTeyMPf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Other property and equipment, at cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">205,315</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">127,542</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--PropertyPlantAndEquipmentOtherAccumulatedDepreciation_iNI_di_msPPAEOzS2v_zlRFdKzJXMlg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Less: accumulated depreciation</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(55,684</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(5,648</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--PropertyPlantAndEquipmentOtherNet_iTI_mtPPAEOzS2v_maPPAENzIKW_zWUM8j6gdVT3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Other property and equipment, net</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">149,631</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">121,894</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--PropertyPlantAndEquipmentNet_iTI_mtPPAENzIKW_zHbZuPhvayd7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Property and equipment, net</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10,361,419</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">8,426,776</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

10501244

8029234

460306

289456

184658

10211788

8304882

205315

127542

55684

5648

149631

121894

10361419

8426776

154834

105503

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: SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230930_zRB9AHbVGock" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220930_zpXcpgXOMo9h" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zCOobQPaalej" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">146,912</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiability_iS_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zl63pYGTDUE" style="text-align: right" title="Beginning balance">244,906</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zswAcze04IJj" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--AdditionOperatingLeasePayments_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zrmaF44Umip3" style="text-align: right" title="Addition">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z3bsCtNZhkb8" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Liability accretion</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--AccretionExpense_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_ziQzEzpHD4Jb" style="text-align: right" title="Liability accretion">24,221</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AccretionExpense_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z6NSqP924mDj" style="text-align: right" title="Liability accretion">9,042</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Lease payments</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeasePayments_iN_di_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zJcgLY1Lyrij" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(110,602</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zR0o7AgCuHha" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(63,453</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iE_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z0U1kMbOHjZ8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">158,525</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zb9ByqHzDmz2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zgXvKTynsk97" style="text-align: right" title="Current lease liabilities">77,069</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zfHYctnPoo04" style="text-align: right" title="Current lease liabilities">104,224</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zMnM96GVpvX8" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">81,456</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkXJdzbDTh8i" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zuZxWLo6sz61" title="Weighted-average remaining lease term (in years)">2.17</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zTkMRd4NCxuk" title="Weighted-average remaining lease term (in years)">2.87</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zpLtMssRN1U" title="Weighted-average discount rate">12</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zHkZtSyZGG1b" title="Weighted-average discount rate">12</td><td style="text-align: left">%</td></tr> </table> The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20221001__20230930_zgZzTtSUh1f2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20211001__20220930_zEGz6upq8DZ5" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseCost_maLCzNVK_zWprWEVBFKe5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">118,105</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">61,153</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--VariableLeaseCost_maLCzNVK_zImPSZn1VL2k" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,216</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--SubleaseIncome_iN_di_msLCzNVK_zABPfBy2nALk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(25,390</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,633</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--PaymentsForRent_iN_di_msLCzNVK_zrBEj3xJhk7l" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzNVK_zbZOnXUpu5de" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">157,960</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> As of September 30, 2023, the Company has one office lease agreement for its office premises for terms ending in November 2025. The maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%; margin-left: 0.5in"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" id="xdx_49F_20230930_z3A2pGMTIEZ8" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Year</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzLB2_zd8zPcFjpgc6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">82,190</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzLB2_zVR7AZhoKeLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">84,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzLB2_zkEc9PqMEEPi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzLB2_zMArhZ7lCJ69" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">181,034</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zNyonegrPsD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(22,509</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiability_iI_zcQTWnFPHhi2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">158,525</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

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: SCHEDULE OF RIGHT OF USE OPERATING LEASES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230930_zRB9AHbVGock" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20220930_zpXcpgXOMo9h" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_401_eus-gaap--OperatingLeaseRightOfUseAsset_iI_hus-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_maAz2XJ_zCOobQPaalej" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left; padding-bottom: 2.5pt">Right-of-use assets</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">146,912</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">240,796</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Lease liabilities</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Balance, beginning of the year</td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--OperatingLeaseLiability_iS_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zl63pYGTDUE" style="text-align: right" title="Beginning balance">244,906</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--OperatingLeaseLiability_iS_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zswAcze04IJj" style="text-align: right" title="Beginning balance">78,949</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Addition</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_ecustom--AdditionOperatingLeasePayments_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zrmaF44Umip3" style="text-align: right" title="Addition">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--AdditionOperatingLeasePayments_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z3bsCtNZhkb8" style="text-align: right" title="Addition">220,368</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Liability accretion</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--AccretionExpense_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_ziQzEzpHD4Jb" style="text-align: right" title="Liability accretion">24,221</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--AccretionExpense_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z6NSqP924mDj" style="text-align: right" title="Liability accretion">9,042</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Lease payments</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--OperatingLeasePayments_iN_di_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zJcgLY1Lyrij" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(110,602</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--OperatingLeasePayments_iN_di_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zR0o7AgCuHha" style="border-bottom: Black 1.5pt solid; text-align: right" title="Lease payments">(63,453</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Balance, end of the year</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--OperatingLeaseLiability_iE_c20221001__20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_z0U1kMbOHjZ8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">158,525</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--OperatingLeaseLiability_iE_c20211001__20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zb9ByqHzDmz2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Ending balance">244,906</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current lease liabilities</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zgXvKTynsk97" style="text-align: right" title="Current lease liabilities">77,069</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--OperatingLeaseLiabilityCurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zfHYctnPoo04" style="text-align: right" title="Current lease liabilities">104,224</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Long-term lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zMnM96GVpvX8" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">81,456</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98B_eus-gaap--OperatingLeaseLiabilityNoncurrent_iI_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zkXJdzbDTh8i" style="border-bottom: Black 2.5pt double; text-align: right" title="Long-term lease liabilities">140,682</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Weighted-average remaining lease term (in years)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_908_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zuZxWLo6sz61" title="Weighted-average remaining lease term (in years)">2.17</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zTkMRd4NCxuk" title="Weighted-average remaining lease term (in years)">2.87</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Weighted-average discount rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_907_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20230930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zpLtMssRN1U" title="Weighted-average discount rate">12</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90D_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20220930__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--OfficePremisesMember_zHkZtSyZGG1b" title="Weighted-average discount rate">12</td><td style="text-align: left">%</td></tr> </table>

146912

240796

244906

78949

220368

24221

9042

110602

63453

158525

244906

77069

104224

81456

140682

P2Y2M1D

P2Y10M13D

0.12

The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20221001__20230930_zgZzTtSUh1f2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20211001__20220930_zEGz6upq8DZ5" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_40E_eus-gaap--OperatingLeaseCost_maLCzNVK_zWprWEVBFKe5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Operating lease cost</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">118,105</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">61,153</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--VariableLeaseCost_maLCzNVK_zImPSZn1VL2k" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Variable lease expense</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">65,245</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">36,216</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_eus-gaap--SubleaseIncome_iN_di_msLCzNVK_zABPfBy2nALk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Sublease income</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(25,390</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(36,633</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--PaymentsForRent_iN_di_msLCzNVK_zrBEj3xJhk7l" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Rent subsidy</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,644</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--LeaseCost_iT_mtLCzNVK_zbZOnXUpu5de" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Net lease cost</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">157,960</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,092</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

118105

61153

65245

36216

25390

36633

1644

157960

59092

As of September 30, 2023, the Company has one office lease agreement for its office premises for terms ending in November 2025. The maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 50%; margin-left: 0.5in"> <tr style="display: none; vertical-align: bottom"> <td style="text-align: left"> </td><td> </td> <td colspan="2" id="xdx_49F_20230930_z3A2pGMTIEZ8" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="border-bottom: Black 1.5pt solid; text-align: left">Year</td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths_iI_maLOLLPzLB2_zd8zPcFjpgc6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 80%; text-align: left">2024</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">82,190</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearTwo_iI_maLOLLPzLB2_zVR7AZhoKeLi" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">2025</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">84,664</td><td style="text-align: left"> </td></tr> <tr id="xdx_40F_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDueYearThree_iI_maLOLLPzLB2_zkEc9PqMEEPi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">2026</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">14,180</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--LesseeOperatingLeaseLiabilityPaymentsDue_iTI_mtLOLLPzLB2_zMArhZ7lCJ69" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Total lease payments</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">181,034</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--LesseeOperatingLeaseLiabilityUndiscountedExcessAmount_iNI_di_zNyonegrPsD2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Less: imputed interest</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(22,509</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--OperatingLeaseLiability_iI_zcQTWnFPHhi2" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total lease liabilities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">158,525</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

82190

84664

14180

181034

22509

158525

7. ASSET RETIREMENT OBLIGATIONS Asset retirement obligations reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties. Changes to the asset retirement obligations are as follows: SCHEDULE OF ASSETS RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Asset retirement obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AssetRetirementObligation_iS_c20221001__20230930_zjcpkotzcirf" style="width: 14%; text-align: right" title="Asset retirement obligations, beginning of the year">236,412</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zK7NrQEcwv5h" style="width: 14%; text-align: right" title="Asset retirement obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Obligations derecognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--AssetRetirementObligationsDerecognized_iN_di_c20221001__20230930_zdMzev6TW6Dl" style="text-align: right" title="Obligations derecognized">(287</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--AssetRetirementObligationsDerecognized_iN_di_c20211001__20220930_z8aLHpQhYey4" style="text-align: right" title="Obligations derecognized">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20221001__20230930_zTyq9PSqWkCd" style="text-align: right" title="Revisions of estimates">(7,934</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zTu84d3JYk9d" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Accretion expense</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AssetRetirementObligationAccretionExpense_c20221001__20230930_zcekAVQbZoy7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">31,976</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zTIvKelFN8Ea" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">55,030</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iE_c20221001__20230930_z4JTMipvHQt2" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">260,167</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_zcgYmXQs4578" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> During the year ended September 30, 2023, the Company had revision of estimates totaling $7,934 (2022 - $371,212) primarily due to changes in future cost estimates and retirement dates for its oil and gas assets. During the year ended September 30, 2023, the Company incurred plugging and abandonment costs of $66,354 and recognized a loss of $66,067 on the settlement. Reclamation deposits As of September 30, 2023, the Company held reclamation deposits of $145,000 (September 30, 2022 - $145,000), which are expected to be released after all reclamation work has been completed with regard to its oil and natural gas interests.

SCHEDULE OF ASSETS RETIREMENT OBLIGATIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Asset retirement obligations, beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_eus-gaap--AssetRetirementObligation_iS_c20221001__20230930_zjcpkotzcirf" style="width: 14%; text-align: right" title="Asset retirement obligations, beginning of the year">236,412</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iS_c20211001__20220930_zK7NrQEcwv5h" style="width: 14%; text-align: right" title="Asset retirement obligations, beginning of the year">552,594</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Obligations derecognized</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_ecustom--AssetRetirementObligationsDerecognized_iN_di_c20221001__20230930_zdMzev6TW6Dl" style="text-align: right" title="Obligations derecognized">(287</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_ecustom--AssetRetirementObligationsDerecognized_iN_di_c20211001__20220930_z8aLHpQhYey4" style="text-align: right" title="Obligations derecognized">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Revisions of estimates</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20221001__20230930_zTyq9PSqWkCd" style="text-align: right" title="Revisions of estimates">(7,934</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AssetRetirementObligationRevisionOfEstimate_c20211001__20220930_zTu84d3JYk9d" style="text-align: right" title="Revisions of estimates">(371,212</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Accretion expense</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_eus-gaap--AssetRetirementObligationAccretionExpense_c20221001__20230930_zcekAVQbZoy7" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">31,976</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_eus-gaap--AssetRetirementObligationAccretionExpense_c20211001__20220930_zTIvKelFN8Ea" style="border-bottom: Black 1.5pt solid; text-align: right" title="Accretion expense">55,030</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_984_eus-gaap--AssetRetirementObligation_iE_c20221001__20230930_z4JTMipvHQt2" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">260,167</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98C_eus-gaap--AssetRetirementObligation_iE_c20211001__20220930_zcgYmXQs4578" style="border-bottom: Black 2.5pt double; text-align: right" title="Asset retirement obligations, ending of the year">236,412</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

236412

552594

287

-7934

-371212

31976

55030

260167

236412

-7934

-371212

66354

66067

145000 145000

8. DEBT Convertible debenture – Related party As of September 30, 2022, the Company had a debenture loan of $<span id="xdx_908_eus-gaap--ConvertibleDebt_iI_c20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zsGR0rGDsXmg" title="Debenture loan">73,000 (CAD$<span id="xdx_90C_eus-gaap--ConvertibleDebt_iI_uCAD_c20220930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zGudAsNR53nd" title="Debenture loan">100,000) from the CEO of the Company outstanding. The debenture loan was secured by an interest in all of the Company’s right, title, and interest in all of its oil and gas assets, bore interest at a rate of 12% per annum and had a maturity date of <span id="xdx_903_eus-gaap--DebtInstrumentMaturityDateDescription_c20211001__20220930__us-gaap--DebtInstrumentAxis__us-gaap--ConvertibleDebtMember_zfYpWdMc8LXb" title="Debt instrument, maturity date, description">December 20, 2022. The debenture was convertible at the holder’s option into units of the Company at $26.28 (CAD$36.00) per unit. Each unit would be comprised of one common share of the Company and one share purchase warrant; each warrant entitled the holder to acquire one additional common share for a period of three years at an exercise price of $35.04 (CAD$48.00). During the year ended September 30, 2022, the Company repaid $34,709 of the loan (CAD$47,546). During the year ended September 30, 2023, the Company repaid the remaining principal loan amount of $38,291 (CAD$52,454). During the years ended September 30, 2023 and 2022, the Company recorded interest of $1,182 and $9,360, respectively. Loan payable On April 28, 2023, the Company issued a promissory note with a principal amount of $209,497 to a supplier to settle an outstanding trade payable. The promissory note is unsecured and bears interest at 6% per annum, payable on September 30. 2023. At September 30, 2023, the Company has an outstanding unpaid principal amount of $125,936. In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $<span id="xdx_903_eus-gaap--ProceedsFromLoans_c20200501__20200531__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_zOAhWqBBlb0b" title="Proceeds from loans">28,640 (CAD$<span id="xdx_902_eus-gaap--ProceedsFromLoans_uCAD_c20200501__20200531__us-gaap--UnderlyingAssetClassAxis__us-gaap--LoansPayableMember__us-gaap--TypeOfArrangementAxis__custom--CEBAMember_zjoMnqsLyUg4" title="Proceeds from loans">40,000) from the Canadian Government. The CEBA program was established to provide interest-free loans of up to CAD$60,000 to small businesses to help them cover operating costs during the COVID-19 pandemic. The loan was unsecured and non-interest bearing with a repayment deadline of December 31, 2023. During the year ended September 30, 2022, the Company repaid the loan balance of $23,600 (CAD$30,000) and recognized a gain of $7,800 (CAD$10,000) on the forgiven amount. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

73000

100000

0.12

December 20, 2022

26.28

36.00

P3Y

35.04

48.00

34709

47546

38291

52454

1182

9360

209497

0.06

125936

28640

40000

60000

23600

30000

7800 10000

9. RELATED PARTY TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify">(a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The convertible debenture loan from the CEO of the Company mentioned in Note 8 was repaid during the year ended September 30, 2023.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">(b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company has an employment agreement with Mehran Ehsan, the former CEO of the Company, for an annual base salary of $<span id="xdx_90D_eus-gaap--OfficersCompensation_c20221001__20230930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zGafbKBHzEq2" title="Annual base salary">250,000, with no specified term. <span id="xdx_905_eus-gaap--RelatedPartyTransactionDescriptionOfTransaction_c20221001__20230930__srt--TitleOfIndividualAxis__srt--ChiefExecutiveOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zCpfPfYZQmC1" title="Related party transaction description">Mr. Ehsan is also eligible on an annual basis for a cash bonus of up to 100% of annual salary, subject to the discretion of the board of directors. During the years ended September 30, 2023 and 2022, the Company incurred management salary of $250,000 and $220,834, respectively, for Mr. Ehsan, with no bonuses incurred in either year. Further, the terms of this employment agreement provide that if Mr. Ehsan’s employment with the Company is terminated without “cause” (as defined in the agreement) than Mr. Ehsan is entitled to a severance payment equal to three years of base salary and a bonus equal to 20% of his annual base salary. Mr. Ehsan resigned as President and CEO of the Company on April 29, 2024. On May 15, 2024, the Company amended the employment agreement to change his role to Vice President of Business Development. All other terms and conditions of the employment agreement remain the same. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">c)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On May 1, 2022, the Company entered into an employment agreement with the CFO of the Company for an annual base salary of $<span id="xdx_903_eus-gaap--OfficersCompensation_c20220501__20220501__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_z91zQCrZRnNe" title="Annual base salary">50,000, with no specified term. <span id="xdx_907_eus-gaap--RelatedPartyTransactionDescriptionOfTransaction_c20220501__20220501__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zUXiVR3JW6kk" title="Description of officer annual bonus">The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary, subject to the discretion of the board of directors. The employment agreement may be terminated with a termination payment equal to two months of base salary. During the years ended September 30, 2023 and 2022, the Company incurred salaries of $<span id="xdx_906_eus-gaap--SalariesWagesAndOfficersCompensation_c20221001__20230930__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zLZGnlQ7oJv5" title="Annual base salary">50,004 and $<span id="xdx_90B_eus-gaap--SalariesWagesAndOfficersCompensation_c20211001__20220930__srt--TitleOfIndividualAxis__srt--ChiefFinancialOfficerMember__us-gaap--TypeOfArrangementAxis__custom--EmployeeAgreementMember_zvmcUP5NcAQf" title="Annual base salary">20,835, respectively to the CFO of the Company, with no bonuses incurred in either year. The Company considers this a related party transaction, as it relates to key management personnel and entities over which it has control or significant influence.</td></tr> </table>

250000

Mr. Ehsan is also eligible on an annual basis for a cash bonus of up to 100% of annual salary, subject to the discretion of the board of directors.

250000

220834

50000

The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary, subject to the discretion of the board of directors. The employment agreement may be terminated with a termination payment equal to two months of base salary.

50004

20835

10. LOSS PER SHARE The calculation of basic and diluted loss per share for the years ended September 30, 2023 and 2022 was based on the net losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20221001__20230930_zTUE3e4VMngb" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20211001__20220930_zMuhQnBbMl5l" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zYAH3Rlherfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(4,483,195</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">508,813</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">385,756</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(8.81</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(7.04</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> For the year ended September 30, 2023, 20,313 stock options and 279,746 warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. For the year ended September 30, 2022, $73,000 (CAD$100,000) of convertible debentures convertible into 2,778 common shares, 21,146 stock options and 274,276 warrants were excluded from the diluted weighted average number of common shares calculation as their effect would have been anti-dilutive. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

The calculation of basic and diluted loss per share for the years ended September 30, 2023 and 2022 was based on the net losses attributable to common shareholders. The following table sets forth the computation of basic and diluted loss per share: SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20221001__20230930_zTUE3e4VMngb" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20211001__20220930_zMuhQnBbMl5l" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td><td> </td> <td colspan="2" style="text-align: justify"> </td><td> </td></tr> <tr id="xdx_403_eus-gaap--NetIncomeLossAvailableToCommonStockholdersBasic_zYAH3Rlherfl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Net loss</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(4,483,195</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Weighted average common shares outstanding</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">508,813</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">385,756</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Basic and diluted loss per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(8.81</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(7.04</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

-4483195

-2714616

508813

385756

-8.81

-7.04

20313

279746

73000

100000

2778

21146

274276

11. EQUITY Common stock The Company has authorized an unlimited number of common shares with no par value. At September 30, 2023 and September 30, 2022, the Company had 551,503 and 483,150 common shares issued and outstanding, respectively, after giving effect to the 60:1 reverse stock split effective November 2, 2022 and 4:1 reverse stock split effective October 23, 2023. All issued and outstanding common stock, options, and warrants to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock splits. During the year ended September 30, 2023, the Company announced a warrant exercise incentive program (the “Program”) whereby the Company amended the exercise prices of <span id="xdx_900_ecustom--NumberOfWarrantsForWhichExercisePriceAmended_c20221001__20230930__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_z3U9jj6l5NN7" title="Number of warrants for which exercise price amended">253,966 warrants (the “Eligible Warrants”) from $<span id="xdx_901_eus-gaap--WarrantExercisePriceIncrease_pid_c20221001__20230930__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember__srt--RangeAxis__srt--MaximumMember_zJ9510TWbh33" title="Warrant exercise price">50.40 per share to $<span id="xdx_902_eus-gaap--WarrantExercisePriceIncrease_pid_c20221001__20230930__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember__srt--RangeAxis__srt--MinimumMember_zvqUVk4Zhogl" title="Warrant exercise price">11.44 per share if the holders of the Eligible Warrants exercised the Eligible Warrants before June 30, 2023 (the “Program Period”). In addition to the repricing, the Company offered, to each warrant holder who exercised the Eligible Warrants during the Program Period, the issuance of one additional common share purchase warrant for each warrant exercised during the Program Period (each, an “Incentive Warrant”). Each Incentive Warrant entitles the warrant holder to purchase one common share of the Company for a period of <span id="xdx_90B_eus-gaap--WarrantsAndRightsOutstandingTerm_iI_dtY_c20230930__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zeH5wL66s9Ha" title="Warrant sterm">5 years from the date of issuance, at a price of $<span id="xdx_907_eus-gaap--SharePrice_iI_c20230930__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zuF3lWIwxcI5" title="Price per share">18.00 per Share. On June 30, 2023, the Company issued <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zPAbPE6PzYxj" title="Stock issued during period shares new issues">68,353 common shares at a price of $11.44 per share from the exercise of the Eligible Warrants pursuant to the Program for gross proceeds of $781,953 (net proceeds of $645,330). In connection with the Program, the Company issued <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20230630__20230630__us-gaap--TypeOfArrangementAxis__custom--WarrantExerciseIncentiveProgramMember_zzv03lWj2fSj" title="Stock issued during period shares new issues">68,353 Incentive Warrants. The Company also incurred $62,556 and issued 5,470 warrants as a finders’ fee to its investment bank. The finder’s warrants are on the same terms as the Incentive Warrants. The Incentive Warrants and finder’s warrants were valued at $449,005 and $35,919, respectively, using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zEVEnSlFpGo4">3.68%, an expected life of <span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zcZvC1dOM1Xl">5 years, annualized volatility of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_zzFnmCYZwLYc">128.81% and a dividend rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--FinderWarrantsMember_z884jtXtFom8">0%). The repricing of the Eligible Warrants is accounted for as a modification under ASC 815-40-35-14 through 18. The effect of the modification is $544,164, measured as the excess of the fair value of the repriced warrants over the fair value of the original warrants immediately before it was modified and the fair value of the incentive warrants issued as an additional inducement to exercise the warrants. The fair values were measured using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zCPR3aVOiIEi">4.21%, an expected life of <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zEio8uxwt5lj">3.75 years, annualized volatility of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zHuULllMIqGj">137.62% and a dividend rate of <span id="xdx_905_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20230630__20230630__us-gaap--StatementEquityComponentsAxis__custom--IncentiveWarrantsMember_zZWSzYcdkQ0b">0%). The Company recognized a deemed dividend of $543,234 for the fair value of the Incentive Warrants and the portion of inducement related to the equity-classified warrants. The effect of the repricing of the liability-classified warrants was $930 and was recorded in the statement of operations and comprehensive loss. The Company also incurred legal and other expenses of $74,066 in connection with the Program. During the year ended September 30, 2022, the Company: <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify">a)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Completed a non-brokered private placement of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z7pC4GJ1QM1j" title="Stock shares new issue">11,029 units at a price of $51.84 (CAD$<span id="xdx_908_eus-gaap--SaleOfStockPricePerShare_iI_uCADPShares_c20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zMI9tr3vdZMi" title="Sale of stock price per share">64.80) per unit for gross proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z1Rst579vZT3" title="Common stock, gross proceeds">571,760 (CAD$<span id="xdx_902_eus-gaap--ProceedsFromIssuanceOfCommonStock_uCAD_c20211104__20211104__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z5svOSDiyeDl" title="Common stock, gross proceeds">714,700) on November 4, 2021. Each unit is comprised of one common share and one half of one share purchase warrant; each whole warrant entitles the holder to acquire one additional common share for a period of 24 months at an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zMOYpM05YRUh" title="Exercise price">94.61 (CAD$<span id="xdx_902_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_uCADPShares_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z3eImzHmiURj" title="Exercise price">129.60). $<span id="xdx_90F_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zTfsAMox0gs5" title="Proceeds from allocated warrants">202,009 of the proceeds were allocated to the warrants and recorded as a warrant liability. The Company paid $34,733 and issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zyIHPBuQvQnl" title="Warrants issued">670 agent’s warrants as a finders’ fee. The finder’s warrants have the same terms as the warrants issued under the private placement. The finder’s warrants were valued at $<span id="xdx_907_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20211001__20220930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zRq2pzISdG6a" title="Warrants issued">24,543 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_z7PESKhGXrS1" title="Risk- free interest rate">0.98%, an expected life of <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zKRTcIB098U1" title="Expected life">2 years, annualized volatility of <span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zHxzZrSoDAR8" title="Annualized volatility">153.02% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--NonBrokeredPrivatePlacementMember_zbCp20BdRtbh" title="Dividend rate">0%). The Company also incurred filing and other expenses of $800 in connection with the private placement. $8,671 of issuance costs related to the warrants was recorded in the statement of loss.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">b)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Completed a brokered private placement of 196,369 units at a price of $38.40 per unit for gross proceeds of $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfCommonStock_c20220329__20220329__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_ztkN2dGIczha" title="Common stock, gross proceeds">7,540,580 on March 29, 2022. Each unit is comprised of one common share and one common share purchase warrant; each warrant entitles the holder to acquire one additional common share for a period of 5 years at an exercise price of $<span id="xdx_906_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zOOPo8LUr0Nj" title="Exercise price">50.40. $<span id="xdx_904_eus-gaap--ProceedsFromIssuanceOfWarrants_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zStZjbnvnuQa" title="Proceeds from allocated warrants">607,170 of the proceeds were allocated to the warrants. ThinkEquity LLC acted as sole placement agent for the private placement. In connection with the private placement, ThinkEquity received a cash commission of $754,058, 19,640 broker warrants and expense reimbursement of $131,560. The broker’s warrants have the same terms as the warrants issued under the private placement. The broker’s warrants were valued at $858,429 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zzY4tEVLxqBh" title="Risk-free interest rate">2.45%, an expected life of <span id="xdx_902_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zDuXtParbdw6" title="Expected life">5 years, annualized volatility of <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zgIxVdD5POEl" title="Annualized volatility">134.66% and a dividend rate of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20211001__20220930__us-gaap--SubsidiarySaleOfStockAxis__custom--BrokeredPrivatePlacementMember_zGPpeScboY3" title="Dividend rate">0%). The Company also incurred filing and other expenses of $159,271 in connection with the private placement.</td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">11.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">EQUITY (cont’d…)</td></tr> </table> Share-based payments Stock options The Company has a stock option plan (the “Plan”) in place under which it is authorized to grant options to executive officers and directors, employees and consultants. Pursuant to the Plan, the Company may issue aggregate stock options totaling up to 10% of the issued and outstanding common stock of the Company. Further, the Plan calls for the exercise price of each option to be equal to the market price of the Company’s stock as calculated on the date of grant. The options can be granted for a maximum term of 10 years and vest at the discretion of the Board of Directors at the time of grant. <p id="xdx_891_eus-gaap--ScheduleOfStockOptionsRollForwardTableTextBlock_zVLVsqGpn6B9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_zrQRuQLdAfq" style="width: 14%; text-align: right" title="Number of options, beginning balance">9,480</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zbVgWbIrTIql" style="width: 14%; text-align: right" title="Weighted average exercise price,beginning balance">78.05</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zkmK7OGE8h0c" style="text-align: right" title="Granted">13,749</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zaNsCeRS7JR4" style="text-align: right" title="Weighted average exercise price, granted">42.04</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20211001__20220930_zE8V6dzJz0El" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(2,083</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20211001__20220930_zLCzwYm33y6g" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">69.38</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">21,146</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20221001__20230930_zJ29dQCvxxq7" title="Weighted average exercise price, beginning balance">53.04</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_iN_di_c20221001__20230930_zVAqaQpNkaug" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">(833</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20221001__20230930_zUNJtOHUJWa8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">42.62</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20230930_zVismKGO2DJ2" title="Weighted average exercise price, ending balance">54.23</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230930_z779K2lBJFP" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20221001__20230930_z8yGs0jE9R4f" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">54.23</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The aggregate intrinsic value of options outstanding and exercisable as at September 30, 2023 was $<span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20230930_zuZOq5e8TwNh" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil (September 30, 2022 - $<span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue_iI_dxL_c20220930_zuXmaHuK1EBh" title="Aggregate intrinsic value of options outstanding and exercisable::XDX::-">nil). The options outstanding as of September 30, 2023 have exercise prices in the range of $9.00 to $90.00 and a weighted average remaining contractual life of <span id="xdx_90C_eus-gaap--SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2_dtY_c20221001__20230930_zaAbhltw6COl" title="Weighted average remaining contractual life">6.91 years. During the years ended September 30, 2023 and 2022, the Company recognized share-based payment expense of $318 and $546,335, respectively, for the portion of stock options that vested during the year. The following weighted average assumptions were used for the Black-Scholes valuation of stock options granted: <p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_ztJHIG36RUz2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"> SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1.50</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230930_zq9bWtcpWhk8" title="Expected annualized volatility">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930_zig4UOwaVsC5" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0pt; margin-bottom: 0pt"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">11.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">EQUITY (cont’d…)</td></tr> </table> Share-based payments (cont’d…) <p id="xdx_896_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zYgnqjjdhCc8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">As September 30, 2023, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zJJHVEoWQwI7" style="width: 20%; text-align: right" title="Number of options">5,730</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_z2ekAJSxOWuf" style="width: 20%; text-align: right" title="Exercise price">90.00</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zvZnMfm22jj" title="Issuance date">December 4, 2017</td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zt95gfxJ74T3" title="Expiry date">December 4, 2027</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zYMEdCbXGDc8" style="text-align: right" title="Number of options">1,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zL6Gx4OagIbd" style="text-align: right" title="Exercise price">54.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zUhPPTcC8Kq1" title="Issuance date">November 1, 2018</td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zMw9ZBSkrSFk" title="Expiry date">November 1, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zhPy3BI16y66" style="text-align: right" title="Number of options">1,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zzsxM55o6EU" style="text-align: right" title="Exercise price">9.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zC3kEUcr7rd1" title="Issuance date">March 16, 2020</td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zd77A7yr69Cd" title="Expiry date">March 16, 2030</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zM5jCoOycxl5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">12,083</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zibTVWD8Qnfa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise Price">43.20</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z4kaHYOIDChi" title="Issuance date">October 6, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z6qfjQEb77l2" title="Expiry date">October 6, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930_ziaXUsPvk4v4" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> Warrants Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_zwX4q7xvIS1a" style="width: 14%; text-align: right" title="Number of warrants, beginning balance">52,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zuO8kolGPb4a" style="width: 14%; text-align: right" title="Weighted Average Exercise Price, beginning balance">37.68</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20211001__20220930_z8wwVsFTLpR6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">222,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_zhXY5Cnf4T3k" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">52.60</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20221001__20230930_zpeFzJiYmGwl" style="text-align: right" title="Number of warrants, beginning balance">274,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20221001__20230930_zERVW5BOueL2" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">48.48</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20221001__20230930_zKL5uS9BxfI9" style="text-align: right" title="Exercised">(68,353</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedWeightedAverageGrantDateFairValue_c20221001__20230930_zXZIctzRzrMd" style="text-align: right" title="Weighted average exercise price, exercised">11.44</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20221001__20230930_zn1bOTSSk4Bi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">73,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20221001__20230930_z2AeYLQfs04c" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">18.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20221001__20230930_zjg5H2dMkG07" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">279,746</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20221001__20230930_zkqxNMbU5BR2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">39.79</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The aggregate intrinsic value of warrants outstanding as at September 30, 2023 was $<span id="xdx_900_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding_iI_dxL_c20230930_z255UBK32W0c" title="Aggregate intrinsic value of warrants outstanding::XDX::-">nil (September 30, 2022 - $<span id="xdx_90B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardEquityInstrumentsOtherThanOptionsAggregateIntrinsicValueOutstanding_iI_dxL_c20220930_zuJap3wXVnM3" title="Aggregate intrinsic value of warrants outstanding::XDX::-">nil) As September 30, 2023, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zUnVzxitJdZf" style="width: 20%; text-align: right" title="Number of warrants">4,393</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zpkDaWOILfYf" style="width: 20%; text-align: right" title="Exercise price">97.20</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_z6MdC7Karv7b" title="Issuance date">November 4, 2021</td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zgpFKUJDPFCb" title="Expiry date">November 4, 2023</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zNaaTTmzC3u8" style="text-align: right" title="Number of warrants">149,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zthvtQo1CVL3" style="text-align: right" title="Exercise price">50.40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zdaburiOgOje" title="Issuance date">March 29, 2022</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zR3ZxWafzCId" title="Expiry date">March 29, 2027</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zQnO4QFC9Tjg" style="text-align: right" title="Number of warrants">73,823</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zaoJJSQnzRV6" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_901_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_z79q1mjacsTf" title="Issuance date">June 30, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zoGedKfxvIFi" title="Expiry date">June 30, 2028</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zxwa9R5cIhIf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">52,083</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zmjOXGnS9lOe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price">36.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zeiJ0VSygPcf" title="Issuance date">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zKT8kci7Izx" title="Expiry date">September 30, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930_zc173jqrNKF" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">279,746</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table> <span id="xdx_907_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iI_c20220930__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_ztMy01Dmpu2d" title="Number of shares issued with private placement">5,515 warrants issued with private placement units during fiscal 2022 have an exercise price denominated in CAD. These warrants were initially valued at $202,009 using the Black-Scholes option pricing model (assuming a risk-free interest rate of <span id="xdx_90B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20221001__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zyQB4ZgkEg3f" title="Risk free interest rate">0.98%, an expected life of <span id="xdx_908_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dtY_c20221001__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zPGrPF4Nx84c" title="Expected life">2 years, annualized volatility of <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4PwqKv8BMP7" title="Volatility rate">153.02% and a dividend rate of <span id="xdx_90D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20221001__20230930__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z1pmDGwdrShb" title="Dividend rate">0%) and recorded as a warrant liability. The fair value of these warrants were remeasured at each reporting period and a gain on fair value of $178,509 was recorded during the year ended September 30, 2022. During the year ended September 30, 2023, a gain on fair value of $23,500 was recorded. <p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_z5uJiOpLutLj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at September 30, 2023 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230930_zKirHG6bsfB9" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zO7HJ41wDed2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDdpV9ooyO9l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">4.87</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.17 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1 Year</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zPN9EyLWWjC9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39.02</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20230930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zAmtO4vy4tUh" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20220930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z46otCYXujYd" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--WeightedAverageFairValueOfOptionsGranted_iI_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_z67Ne0Z98v9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022

551503

483150

60:1

4:1

253966

50.40

11.44

P5Y

18.00

68353

11.44

781953

645330

68353

62556

5470 449005 35919

0.0368

P5Y

1.2881

544164

0.0421

P3Y9M

1.3762

543234

930

74066

11029

51.84

64.80

571760

714700

94.61

129.60

202009

34733

670

24543

0.0098

P2Y

1.5302

800

8671

196369

38.40

7540580

P5Y

50.40

607170

754058

19640

131560

858429

0.0245

P5Y

1.3466

159271

0.10

P10Y

<p id="xdx_891_eus-gaap--ScheduleOfStockOptionsRollForwardTableTextBlock_zVLVsqGpn6B9" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_c20211001__20220930_zrQRuQLdAfq" style="width: 14%; text-align: right" title="Number of options, beginning balance">9,480</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20211001__20220930_zbVgWbIrTIql" style="width: 14%; text-align: right" title="Weighted average exercise price,beginning balance">78.05</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_c20211001__20220930_zkmK7OGE8h0c" style="text-align: right" title="Granted">13,749</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_c20211001__20220930_zaNsCeRS7JR4" style="text-align: right" title="Weighted average exercise price, granted">42.04</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod_iN_di_c20211001__20220930_zE8V6dzJz0El" style="border-bottom: Black 1.5pt solid; text-align: right" title="Cancelled">(2,083</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20211001__20220930_zLCzwYm33y6g" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">69.38</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2022</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">21,146</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_c20221001__20230930_zJ29dQCvxxq7" title="Weighted average exercise price, beginning balance">53.04</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Cancelled</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_iN_di_c20221001__20230930_zVAqaQpNkaug" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">(833</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice_c20221001__20230930_zUNJtOHUJWa8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, cancelled">42.62</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right"><span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_c20221001__20230930_zVismKGO2DJ2" title="Weighted average exercise price, ending balance">54.23</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iI_c20230930_z779K2lBJFP" style="border-bottom: Black 2.5pt double; text-align: right" title="Exercisable">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_c20221001__20230930_z8yGs0jE9R4f" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted average exercise price, exercisable">54.23</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

9480

78.05

13749

42.04

2083

69.38

21146

53.04

833

42.62

20313

54.23

20313

54.23

9.00

90.00

P6Y10M28D

318

546335

<p id="xdx_89B_eus-gaap--ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock_ztJHIG36RUz2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify"> SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">1.50</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10 Years</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20221001__20230930_zq9bWtcpWhk8" title="Expected annualized volatility">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate_pid_dp_uPure_c20211001__20220930_zig4UOwaVsC5" title="Expected annualized volatility">96.56</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">Nil</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">10.17</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

0.0150

P10Y

0.9656

10.17

<p id="xdx_896_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_zYgnqjjdhCc8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0.5in; text-align: justify">As September 30, 2023, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Options</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zJJHVEoWQwI7" style="width: 20%; text-align: right" title="Number of options">5,730</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_z2ekAJSxOWuf" style="width: 20%; text-align: right" title="Exercise price">90.00</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_90B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zvZnMfm22jj" title="Issuance date">December 4, 2017</td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionOneMember_zt95gfxJ74T3" title="Expiry date">December 4, 2027</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zYMEdCbXGDc8" style="text-align: right" title="Number of options">1,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zL6Gx4OagIbd" style="text-align: right" title="Exercise price">54.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zUhPPTcC8Kq1" title="Issuance date">November 1, 2018</td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionTwoMember_zMw9ZBSkrSFk" title="Expiry date">November 1, 2028</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zhPy3BI16y66" style="text-align: right" title="Number of options">1,250</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zzsxM55o6EU" style="text-align: right" title="Exercise price">9.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zC3kEUcr7rd1" title="Issuance date">March 16, 2020</td><td> </td> <td style="text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionThreeMember_zd77A7yr69Cd" title="Expiry date">March 16, 2030</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zM5jCoOycxl5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of options">12,083</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iI_c20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_zibTVWD8Qnfa" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise Price">43.20</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_908_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z4kaHYOIDChi" title="Issuance date">October 6, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90C_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--DerivativeInstrumentRiskAxis__custom--StockOptionFourMember_z6qfjQEb77l2" title="Expiry date">October 6, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iI_c20230930_ziaXUsPvk4v4" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of options">20,313</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table>

5730

90.00

2017-12-04 2027-12-04

1250

54.00

2018-11-01 2028-11-01

1250

9.00

2020-03-16 2030-03-16

12083

43.20

2021-10-06 2031-10-06

20313

Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Weighted Average Exercise Price</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%">Balance, September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20211001__20220930_zwX4q7xvIS1a" style="width: 14%; text-align: right" title="Number of warrants, beginning balance">52,083</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20211001__20220930_zuO8kolGPb4a" style="width: 14%; text-align: right" title="Weighted Average Exercise Price, beginning balance">37.68</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20211001__20220930_z8wwVsFTLpR6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">222,193</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20211001__20220930_zhXY5Cnf4T3k" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">52.60</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Balance, September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iS_c20221001__20230930_zpeFzJiYmGwl" style="text-align: right" title="Number of warrants, beginning balance">274,276</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iS_c20221001__20230930_zERVW5BOueL2" style="text-align: right" title="Weighted Average Exercise Price, beginning balance">48.48</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised_iN_di_c20221001__20230930_zKL5uS9BxfI9" style="text-align: right" title="Exercised">(68,353</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercisedWeightedAverageGrantDateFairValue_c20221001__20230930_zXZIctzRzrMd" style="text-align: right" title="Weighted average exercise price, exercised">11.44</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Granted</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted_c20221001__20230930_zn1bOTSSk4Bi" style="border-bottom: Black 1.5pt solid; text-align: right" title="Granted">73,823</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGrantedWeightedAverageGrantDateFairValue_c20221001__20230930_z2AeYLQfs04c" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted average exercise price, granted">18.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber_iE_c20221001__20230930_zjg5H2dMkG07" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants, ending balance">279,746</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingWeightedAverageGrantDateFairValue_iE_c20221001__20230930_zkqxNMbU5BR2" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Exercise Price, ending balance">39.79</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

52083

37.68

222193

52.60

274276

48.48

68353

11.44

73823

18.00

279746

39.79

As September 30, 2023, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Number of Warrants</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Exercise Price</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Issuance Date</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: right">Expiry Date</td></tr> <tr style="vertical-align: bottom"> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td style="text-align: justify"> </td><td> </td> <td style="text-align: justify"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zUnVzxitJdZf" style="width: 20%; text-align: right" title="Number of warrants">4,393</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_982_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zpkDaWOILfYf" style="width: 20%; text-align: right" title="Exercise price">97.20</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_z6MdC7Karv7b" title="Issuance date">November 4, 2021</td><td style="width: 2%"> </td> <td style="width: 25%; text-align: right"><span id="xdx_90F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantOneMember_zgpFKUJDPFCb" title="Expiry date">November 4, 2023</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zNaaTTmzC3u8" style="text-align: right" title="Number of warrants">149,447</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zthvtQo1CVL3" style="text-align: right" title="Exercise price">50.40</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_909_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zdaburiOgOje" title="Issuance date">March 29, 2022</td><td> </td> <td style="text-align: right"><span id="xdx_905_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantTwoMember_zR3ZxWafzCId" title="Expiry date">March 29, 2027</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zQnO4QFC9Tjg" style="text-align: right" title="Number of warrants">73,823</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zaoJJSQnzRV6" style="text-align: right" title="Exercise price">18.00</td><td style="text-align: left"> </td><td> </td> <td style="text-align: right"><span id="xdx_901_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_z79q1mjacsTf" title="Issuance date">June 30, 2023</td><td> </td> <td style="text-align: right"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantThreeMember_zoGedKfxvIFi" title="Expiry date">June 30, 2028</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zxwa9R5cIhIf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Number of warrants">52,083</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_985_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zmjOXGnS9lOe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Exercise price">36.00</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_90A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageIssuanceDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zeiJ0VSygPcf" title="Issuance date">September 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="text-align: right; padding-bottom: 1.5pt"><span id="xdx_900_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardWarrantWeightedAverageExpirationDate_dd_c20221001__20230930__us-gaap--ClassOfWarrantOrRightAxis__custom--WarrantFourMember_zKT8kci7Izx" title="Expiry date">September 30, 2031</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20230930_zc173jqrNKF" style="border-bottom: Black 2.5pt double; text-align: right" title="Number of warrants">279,746</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right"> </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="text-align: right; padding-bottom: 2.5pt"> </td></tr> </table>

4393

97.20

2021-11-04 2023-11-04

149447

50.40

2022-03-29 2027-03-29

73823

18.00

2023-06-30 2028-06-30

52083

36.00

2021-09-30 2031-09-30

279746

5515

202009

0.0098

P2Y

1.5302

178509 23500

<p id="xdx_897_eus-gaap--DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock_z5uJiOpLutLj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0pt 0pt 0.5in; text-align: justify">The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at September 30, 2023 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20230930_zKirHG6bsfB9" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20220930_zO7HJ41wDed2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr id="xdx_402_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputRiskFreeInterestRateMember_zDdpV9ooyO9l" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Risk-free interest rate</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">4.87</td><td style="width: 1%; text-align: left">%</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 14%; text-align: right">3.79</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected life of options</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0.17 Year</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1 Year</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_uPure_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputPriceVolatilityMember_zPN9EyLWWjC9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected annualized volatility</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39.02</td><td style="text-align: left">%</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">135.59</td><td style="text-align: left">%</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Dividend rate</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_900_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20230930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_zAmtO4vy4tUh" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstandingMeasurementInput_iI_pid_dxL_uPure_c20220930__us-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputExpectedDividendRateMember_z46otCYXujYd" title="Dividend rate::XDX::-">Nil</td><td style="text-align: left"> </td></tr> <tr id="xdx_402_ecustom--WeightedAverageFairValueOfOptionsGranted_iI_hus-gaap--MeasurementInputTypeAxis__us-gaap--MeasurementInputSharePriceMember_z67Ne0Z98v9a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Weighted average fair value of options granted</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">0.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1.46</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4.87

3.79

P0Y2M1D

P1Y

39.02

135.59

0.00 1.46

12. INCOME TAXES SCHEDULE OF RECONCILIATION OF INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20221001__20230930_zW0AezpG2VP2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211001__20220930_zex7SWHWrHef" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLoss_zYiBuz7vVVTi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify; padding-bottom: 2.5pt">Loss before income taxes</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">(3,939,961</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--ExpectedIncomeTaxRecoveryAtStatutoryRates_zQGlM0Wqtkng" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected income tax recovery at statutory rates</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(591,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(407,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_zeQgOWkkWCGa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Provincial income tax recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(290,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(244,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_zQQnW0gV1Pif" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Effect of income taxes from US operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(100,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(42,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iN_di_zLYUFoBcY7jd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in statutory, foreign tax, foreign exchange rates and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(18,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_ecustom--PermanentDifferences_zcqcGjOYgz16" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_zT7g8wtNrBS" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Adjustment to prior years provision versus statutory tax returns</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(43,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_zp5hWTcbK58g" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,039,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">675,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredIncomeTaxExpenseBenefit_zhihdZsbzDA5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Components of the Company’s pre-tax loss and income taxes are as follows: SCHEDULE OF PRE TAX LOSS AND INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Loss for the year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: justify">Canada</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--NetIncomeLoss_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_ze952LkD5Bag" style="width: 14%; text-align: right" title="Loss for the year">(2,418,491</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zVTjk8FgCBs5" style="width: 14%; text-align: right" title="Loss for the year">(2,030,281</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--NetIncomeLoss_c20221001__20230930__srt--StatementGeographicalAxis__country--US_z4tw4pFmCcbf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(1,521,470</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--US_z3OOszLdmTzk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(684,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--NetIncomeLoss_c20221001__20230930_zsf17FugO0Fk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(3,939,961</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20211001__20220930_zTIrrarIQ6If" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(2,714,616</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_zoXKPQPlaIsi" style="text-align: right" title="Expected income tax (recovery)">(659,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_z6ehVd8whKt4" style="text-align: right" title="Expected income tax (recovery)">(549,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--US_zaB5t0wrGPD8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(319,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_z1NobNITE194" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(102,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930_zvt58b0yD3a9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(978,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930_zTQnYZvIeMW9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(651,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_zH2FvWsYeyia" style="text-align: right" title="Deferred income tax (recovery)">659,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zHkq7Q96pZF8" style="text-align: right" title="Deferred income tax (recovery)">548,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--US_zoqx871HPrA2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">319,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zxZ8whH3CC91" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">103,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930_zu9YqTSBSYAj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">978,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930_zwZSRjwSZCif" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">651,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20221001__20230930_zTX51Dj3cmEd" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20211001__20220930_zoLzCes8xpEj" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230930_zCnupa3JpM1k" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zO4IDlE60894" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_ecustom--DeferredTaxAssetsNonCapitalLossCarryforwards_iI_maDTAGziP2_zMYICD6NaOU6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Tax loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,313,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,342,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DeferredTaxLiabilitiesPropertyAndEquipment_iNI_di_msDTAGziP2_z7esLebGY5yh" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(74,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--FinancingFees_iI_maDTAGziP2_zTK02ylNXREi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Financing fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">191,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">216,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGziP2_maDTANz9dJ_za59GyLXGdte" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total gross deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,543,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,484,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANz9dJ_ziY1ntrl5Hed" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred tax assets valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,543,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,484,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANz9dJ_zHToUti0arH3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The significant components of the Company’s temporary differences include unamortized financing fees and tax loss carryforwards. The valuation allowance reduces the deferred tax assets to amounts that are, in management’s assessment, more likely than not to be realized. For the years ended September 30, 2023 and 2022, the Company had financing fees of $709,000 and $801,000, respectively, with expiration dates between 2044 and 2048. The Company also had tax loss carryforwards of approximately $9,386,000 in Canada and the United States. For the years ended September 30, 2023 and 2022, the Canada tax losses totaled $7,019,000 and $4,028,000, respectively, with expiration dates ranging from 2037 to 2043 and 2037 to 2042, respectively. The United States tax losses for the years ended September 30, 2023 and 2022 totaled $2,367,000 and $804,000, respectively, and had no expiration dates.

SCHEDULE OF RECONCILIATION OF INCOME TAX <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49D_20221001__20230930_zW0AezpG2VP2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20211001__20220930_zex7SWHWrHef" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_407_eus-gaap--NetIncomeLoss_zYiBuz7vVVTi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify; padding-bottom: 2.5pt">Loss before income taxes</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">(3,939,961</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">(2,714,616</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr id="xdx_406_ecustom--ExpectedIncomeTaxRecoveryAtStatutoryRates_zQGlM0Wqtkng" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Expected income tax recovery at statutory rates</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(591,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(407,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40C_eus-gaap--IncomeTaxExpenseBenefit_zeQgOWkkWCGa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Provincial income tax recovery</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(290,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(244,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_404_eus-gaap--IncomeTaxReconciliationStateAndLocalIncomeTaxes_zQQnW0gV1Pif" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Effect of income taxes from US operations</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(100,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(42,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_401_eus-gaap--IncomeTaxReconciliationForeignIncomeTaxRateDifferential_iN_di_zLYUFoBcY7jd" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Change in statutory, foreign tax, foreign exchange rates and other</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(18,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(32,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_405_ecustom--PermanentDifferences_zcqcGjOYgz16" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Permanent differences</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">3,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">103,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--IncomeTaxReconciliationPriorYearIncomeTaxes_zT7g8wtNrBS" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Adjustment to prior years provision versus statutory tax returns</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(43,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(53,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_407_eus-gaap--IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance_zp5hWTcbK58g" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt">Change in valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,039,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">675,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredIncomeTaxExpenseBenefit_zhihdZsbzDA5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-3939961

-2714616

-591000 -407000

-290000

-244000

-100000

-42000

18000

32000

3000 103000

-43000

-53000

1039000

675000

Components of the Company’s pre-tax loss and income taxes are as follows: SCHEDULE OF PRE TAX LOSS AND INCOME TAXES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Loss for the year</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 64%; text-align: justify">Canada</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--NetIncomeLoss_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_ze952LkD5Bag" style="width: 14%; text-align: right" title="Loss for the year">(2,418,491</td><td style="width: 1%; text-align: left">)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zVTjk8FgCBs5" style="width: 14%; text-align: right" title="Loss for the year">(2,030,281</td><td style="width: 1%; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_eus-gaap--NetIncomeLoss_c20221001__20230930__srt--StatementGeographicalAxis__country--US_z4tw4pFmCcbf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(1,521,470</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_eus-gaap--NetIncomeLoss_c20211001__20220930__srt--StatementGeographicalAxis__country--US_z3OOszLdmTzk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(684,335</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_984_eus-gaap--NetIncomeLoss_c20221001__20230930_zsf17FugO0Fk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(3,939,961</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_eus-gaap--NetIncomeLoss_c20211001__20220930_zTIrrarIQ6If" style="border-bottom: Black 1.5pt solid; text-align: right" title="Loss for the year">(2,714,616</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Expected income tax (recovery)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_989_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_zoXKPQPlaIsi" style="text-align: right" title="Expected income tax (recovery)">(659,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98A_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_z6ehVd8whKt4" style="text-align: right" title="Expected income tax (recovery)">(549,000</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--US_zaB5t0wrGPD8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(319,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_z1NobNITE194" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(102,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ExpectedIncomeTaxRecovery_c20221001__20230930_zvt58b0yD3a9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(978,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98C_ecustom--ExpectedIncomeTaxRecovery_c20211001__20220930_zTQnYZvIeMW9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Expected income tax (recovery)">(651,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify">Deferred income tax</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Canada</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--CA_zH2FvWsYeyia" style="text-align: right" title="Deferred income tax (recovery)">659,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_984_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--CA_zHkq7Q96pZF8" style="text-align: right" title="Deferred income tax (recovery)">548,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">US</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930__srt--StatementGeographicalAxis__country--US_zoqx871HPrA2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">319,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930__srt--StatementGeographicalAxis__country--US_zxZ8whH3CC91" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">103,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_980_ecustom--DeferredIncomeTaxRecovery_c20221001__20230930_zu9YqTSBSYAj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">978,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98E_ecustom--DeferredIncomeTaxRecovery_c20211001__20220930_zwZSRjwSZCif" style="border-bottom: Black 1.5pt solid; text-align: right" title="Deferred income tax (recovery)">651,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 2.5pt">Deferred income tax recovery</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_98E_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20221001__20230930_zTX51Dj3cmEd" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_983_eus-gaap--DeferredIncomeTaxExpenseBenefit_c20211001__20220930_zoLzCes8xpEj" style="border-bottom: Black 2.5pt double; text-align: right" title="Deferred income tax recovery">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

-2418491

-2030281

-1521470

-684335

-3939961

-2714616

-659000 -549000 -319000 -102000 -978000 -651000 659000 548000 319000 103000 978000 651000

The significant components of the Company’s deferred tax assets and liabilities are as follows: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 93%; margin-left: 0.5in"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20230930_zCnupa3JpM1k" style="border-bottom: Black 1.5pt solid; text-align: right">2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_497_20220930_zO4IDlE60894" style="border-bottom: Black 1.5pt solid; text-align: right">2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr id="xdx_40C_ecustom--DeferredTaxAssetsNonCapitalLossCarryforwards_iI_maDTAGziP2_zMYICD6NaOU6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: justify">Tax loss carryforwards</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">2,313,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">1,342,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_ecustom--DeferredTaxLiabilitiesPropertyAndEquipment_iNI_di_msDTAGziP2_z7esLebGY5yh" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Property and equipment</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">39,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(74,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_ecustom--FinancingFees_iI_maDTAGziP2_zTK02ylNXREi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Financing fees</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">191,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">216,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--DeferredTaxAssetsGross_iTI_mtDTAGziP2_maDTANz9dJ_za59GyLXGdte" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify">Total gross deferred tax assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,543,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,484,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--DeferredTaxAssetsValuationAllowance_iNI_di_msDTANz9dJ_ziY1ntrl5Hed" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: justify; padding-bottom: 1.5pt">Deferred tax assets valuation allowance</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(2,543,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(1,484,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--DeferredTaxAssetsNet_iTI_mtDTANz9dJ_zHToUti0arH3" style="vertical-align: bottom; background-color: White"> <td style="text-align: justify; padding-bottom: 2.5pt">Net deferred tax assets</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">-</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2313000 1342000 -39000 74000 191000 216000

2543000

1484000

2543000

1484000

709000

801000

with expiration dates between 2044 and 2048 9386000 7019000 4028000 with expiration dates ranging from 2037 to 2043 and 2037 to 2042 2367000 804000

13. SEGMENT INFORMATION Operating segments The Company operates in a single reportable segment – the acquisition, development and production of oil and gas properties in the United States. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div>

14. CONTINGENCIES The Company from time to time may be involved with disputes, claims and litigation related to the conduct of its business. The Company currently has $473,818 in claims from certain trade vendors for non-payment, of which $443,614 have been accrued as of September 30, 2023. The Company plans to continue engaging with these claimants faithfully and is working on potentially settlements for all outstanding claims.

473818

443614

15. SUBSEQUENT EVENTS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></td><td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(a)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On October 23, 2023, the Company effected a 1-for-4 reverse split of the Company’s outstanding common shares.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(b)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On November 2, 2023, the Company received a $45,000 loan from a former director of the Company. The loan is unsecured, non-interest bearing, and has no specific repayment terms.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(c)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On February 28, 2024, the Company announced a private placement of convertible debenture units of the Company (the “Units”) for gross proceeds of up to $20,000,000. Each Unit will consist of one convertible debenture (a “Debenture”) in the principal amount of $1,000 and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable for a period of five years from the date of issuance for one common share of the Company (a “Share”) at an exercise price of $4.08. On May 29, 2024, the Company amended the terms of the Units. Each Unit will now consist of one convertible debenture (a “Debenture”) in the principal amount of $1,000 and 294 common share purchase warrants (each a “Warrant”). Each Warrant will be exercisable for a period of five years from the date of issuance for one common share of the Company (a “Share”) at an exercise price of $4.08. The Debentures will mature (the “Maturity Date”) on the earlier of: (i) one-year from the date of issuance or (ii) three-months from the date of issuance if the Company does not enter into a securities exchange, unit purchase or merger agreement with a third party to the reasonable satisfaction of a majority of the holders of Debentures. The Debentures will bear simple interest at a rate of 10% per annum, payable on the Maturity Date or the date on which all or any portion of the Debenture is repaid, and have a conversion price of $3.40 per share. Interest will be paid in cash or Shares based on a conversion price of $3.40.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(d)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On April 16, 2024, the Company closed the first tranche of the private placement announced on February 28, 2024, consisting of <span id="xdx_90F_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240415__20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--FirstTrancheMember_zSVc5o94Zk9d" title="Number of common share">500 Units for gross proceeds of $<span id="xdx_906_eus-gaap--ProceedsFromConvertibleDebt_c20240415__20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--FirstTrancheMember_zkx1EUqMXFS3" title="Gross proceeds">500,000. As a result, the Company issued a Debenture with a principal amount of $<span id="xdx_908_eus-gaap--DebtInstrumentFaceAmount_iI_c20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--FirstTrancheMember_zIjTgNcdDc3h" title="Principal amount">500,000 and <span id="xdx_90C_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--FirstTrancheMember_z4EzGA9terPf" title="Number of warrants">147,000 Warrants.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(e)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On April 16, 2024, the Company received a cease trade order due to failing to file its annual financial statements for fiscal 2023 (the “FFCTO”) from the British Columbia Securities Commission (the “BCSC”) and the trading was halted from the CSE effective April 17, 2024.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(f)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On June 5, 2024, the Company was granted a partial revocation of the FFCTO by the BCSC to permit the Company to complete an additional private placement of convertible debenture units for gross proceeds of $865,000.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(g)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">On June 16, 2024, the Company closed the second tranche of the private placement of convertible debenture units announced on February 28, 2024, consisting of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20240415__20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--SecondTrancheMember_zMDA4BvwLcx" title="Number of common share">865 Units for gross proceeds of $<span id="xdx_90F_eus-gaap--ProceedsFromConvertibleDebt_c20240415__20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--SecondTrancheMember_zyfQxowGirLl" title="Gross proceeds">865,000. As a result, the Company issued a Debenture with a principal amount of $<span id="xdx_909_eus-gaap--DebtInstrumentFaceAmount_iI_c20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--SecondTrancheMember_z7iyq7WEfqqd" title="Principal amount">865,000 and <span id="xdx_908_eus-gaap--ClassOfWarrantOrRightOutstanding_iI_c20240416__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--DebtInstrumentAxis__custom--SecondTrancheMember_zm4n2udXb1e7" title="Number of warrants">254,310 Warrants.</td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif"> </td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"> </td></tr> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif"></td><td style="font: 10pt Times New Roman, Times, Serif">(h)</td><td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">The Company entered into an employment agreement with Bradley Taillon, the Company’s CEO, on April 29, 2024. Pursuant to this employment agreement, the Company employs Mr. Taillon to serve as CEO of the Company and to perform such duties and have such authority as may from time to time be assigned by the Company’s Board of Directors. As compensation for the performance of such duties, the Company paid Mr. Taillon a base salary of $<span id="xdx_904_eus-gaap--SalariesAndWages_c20240428__20240429__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--MrTaillonMember_znb6U9w7b2nf" title="Base salary">250,000, which shall be reviewed by the Company annually. <span id="xdx_908_ecustom--EmploymentAgreementDescription_c20240428__20240429__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__us-gaap--TypeOfArrangementAxis__custom--MrTaillonMember_znc4yonyZdTh" title="Employment agreement, description">The terms of this employment agreement as amended also provide that Mr. Taillon is eligible for an annual cash bonus of up to 100% of his annual salary. In addition to any annual bonus, Mr. Taillon received a one-time sign-on bonus of $50,000 and is eligible for additional performance bonuses ranging from $50,000 to $750,000 upon the closing of a qualified financing with proceeds to the Company of $1 million or greater. Further, the terms of this employment agreement provide that if Mr. Taillon’s employment with the Company is terminated without “cause” (as defined in the agreement) than Mr. Taillon is entitled to a severance payment equal to two years of base salary and a bonus equal to 50% of his annual base salary.</td></tr></table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div>

1-for-4 reverse split

45000

20000000

1000

P5Y

4.08

1000

294

P5Y

4.08

0.10

3.40

500

500000

147000

865000

865

865000

254310

250000

The terms of this employment agreement as amended also provide that Mr. Taillon is eligible for an annual cash bonus of up to 100% of his annual salary. In addition to any annual bonus, Mr. Taillon received a one-time sign-on bonus of $50,000 and is eligible for additional performance bonuses ranging from $50,000 to $750,000 upon the closing of a qualified financing with proceeds to the Company of $1 million or greater. Further, the terms of this employment agreement provide that if Mr. Taillon’s employment with the Company is terminated without “cause” (as defined in the agreement) than Mr. Taillon is entitled to a severance payment equal to two years of base salary and a bonus equal to 50% of his annual base salary. 16. SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) Supplemental unaudited information regarding Permex’s oil and gas activities is presented in this note. All of Permex’s reserves are located within the U.S. Costs Incurred in Oil and Gas Producing Activities SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49D_20221001__20230930_z5XQmXEKZgma" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_z50XKVklQD08" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_401_eus-gaap--AcquisitionCosts_maCCOUPz2vx_zoacHja6saq5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Acquisition of proved properties</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--AcquisitionCostsUnprovedProperties_maCCOUPz2vx_zKotm08RddYl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of unproved properties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DevelopmentCosts_maCCOUPz2vx_zzdkzORmGv8a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Development costs</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,019,639</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,676,668</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ExplorationCosts_maCCOUPz2vx_z8fMIb0tk4F1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Exploration costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization_iT_mtCCOUPz2vx_zkfbRrJQrnjc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total costs incurred</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,019,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,676,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Results of Operations from Oil and Gas Producing Activities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49E_20221001__20230930_zqPnhnpt6Xsi" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zxycxh3VvgK" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--ResultsOfOperationsRevenueOther_maROOEFzTM1_zwNOsDCakbCe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Oil and gas revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">688,827</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">815,391</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ProductionCosts_iN_di_msROOEFzTM1_z2UPtmhWhvc9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(879,471</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(829,194</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--ExplorationExpense_iN_di_msROOEFzTM1_z9h4VGfewvtl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exploration expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ResultsOfOperationsDepreciationDepletionAndAmortizationAndValuationProvisions_iN_di_msROOEFzTM1_zdjnD4EcHvm7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depletion, depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(104,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(99,855</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ImpairmentOfOilAndGasProperties_iN_di_msROOEFzTM1_z3PtodU8z5vl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Impairment of oil and gas properties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--ResultsOfOperationsExpensesFromOilAndGasProducingActivities_iT_mtROOEFzTM1_maROOOAzKXl_zvMB8UvpMywg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Result of oil and gas producing operations before income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(295,442</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(113,658</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--ResultsOfOperationsIncomeTaxExpense_iN_di_msROOOAzKXl_zCWGSvSyoVEi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Provision for income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ResultsOfOperationsOilAndGasProducingActivitiesNetIncomeExcludingCorporateOverheadAndInterestCosts_iT_mtROOOAzKXl_z2z6lv5vLyJ6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Results of oil and gas producing activities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(295,442</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(113,658</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">16.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Proved Reserves The Company’s proved oil and natural gas reserves have been estimated by the certified independent engineering firm, MKM Engineering. Proved reserves are the estimated quantities that geologic and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are the quantities expected to be recovered through existing wells with existing equipment and operating methods when the estimates were made. Due to the inherent uncertainties and the limited nature of reservoir data, such estimates are subject to change as additional information becomes available. The reserves actually recovered and the timing of production of these reserves may be substantially different from the original estimate. Revisions result primarily from new information obtained from development drilling and production history; acquisitions of oil and natural gas properties; and changes in economic factors. <p id="xdx_89C_esrt--ScheduleOfProvedDevelopedAndUndevelopedOilAndGasReserveQuantitiesTextBlock_zBJkHUflXna" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Oil (Barrels)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Natural Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">BOE (Barrels)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved developed and undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%">September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20211001__20220930_zg46Ujrfukvg" style="width: 14%; text-align: right" title="Beginning balance">6,199,420</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20211001__20220930_z5mTgQUon2s9" style="width: 14%; text-align: right" title="Beginning balance">3,018,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20211001__20220930_zYavej3Ojn75" style="width: 14%; text-align: right" title="Beginning balance, BOE (Barrels)">6,702,478</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20211001__20220930_zXaGglACXwo4" style="text-align: right" title="Revisions">48,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20211001__20220930_zEHRURejhlRf" style="text-align: right" title="Revisions">(5,613</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20211001__20220930_zHLzVcSEy6k8" style="text-align: right" title="Revisions, BOE (Barrels)">47,385</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20211001__20220930_zmrDNv74ydud" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20211001__20220930_zYAbJDa1TU3k" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20211001__20220930_zPGGJEEWOfg2" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20211001__20220930_zyTvco8yRKN6" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20211001__20220930_zTX3W8BKq7rf" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20211001__20220930_zfjzldDlVqC3" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20211001__20220930_zZFCZMUszDn6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(10,670</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20211001__20220930_zL2T1UDUFm2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,567</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20211001__20220930_zC66W5Q7roK6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,598</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20221001__20230930_zDqyAEBDXbdc" style="text-align: right" title="Beginning balance">6,237,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20221001__20230930_zwuQkWqqe4b9" style="text-align: right" title="Beginning balance">3,001,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20221001__20230930_zH8hKSyWdfu6" style="text-align: right" title="Beginning balance, BOE (Barrels)">6,737,265</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20221001__20230930_fKDMp_zeqaLw5A9Xk7" style="text-align: right" title="Revisions">(3,588,541</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20221001__20230930_fKDMp_z28K7iQPDm3e" style="text-align: right" title="Revisions">(951,270</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20221001__20230930_fKDMp_zvVAColAF0g8" style="text-align: right" title="Revisions, BOE (Barrels)">(3,747,086</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20221001__20230930_fKDQp_zJQmkIjweN95" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20221001__20230930_fKDQp_zncRCw3Kpwgb" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20221001__20230930_fKDQp_zVONq1yoJ7n4" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20221001__20230930_fKDUp_zBUhbsU8G1uf" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20221001__20230930_fKDUp_zXMEXg3rb4Xb" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20221001__20230930_fKDUp_zuIv0cYHqEPe" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20221001__20230930_zdw3OzqXdwnc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,729</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20221001__20230930_zSpXbw4f4SGd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(7,500</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20221001__20230930_zM2vge5Fu35e" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,979</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uBarrels_c20221001__20230930_zKJNjiSHS0wa" style="text-align: right" title="Ending balance">2,636,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uNaturalGas_c20221001__20230930_zWVswhzaTbyh" style="text-align: right" title="Ending balance">2,042,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iE_uBOE_c20221001__20230930_zphs21WTfeC2" style="text-align: right" title="Ending balance, BOE (Barrels)">2,977,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proved developed reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20210930_z5DhQ2jhsBwj" style="text-align: right" title="Proved developed reserves">587,450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20210930_z7hjHXKwsTi8" style="text-align: right" title="Proved developed reserves">411,910</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20210930_zijP32YbUwi2" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">656,102</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20220930_z3YZFIemp9Ta" style="text-align: right" title="Proved developed reserves">1,153,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20220930_zsEZYnssTWJ5" style="text-align: right" title="Proved developed reserves">864,770</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20220930_zeT5m79zZn4f" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,297,998</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20230930_z9jqdT9xU2Md" style="text-align: right" title="Proved developed reserves">1,027,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20230930_z3kPVy8YZJx4" style="text-align: right" title="Proved developed reserves">765,300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20230930_z8xoZpXXoZyd" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,154,650</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20210930_ztvM5k71zYzf" style="text-align: right" title="Proved undeveloped reserves">5,611,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20210930_zJ2GvMcm2bz2" style="text-align: right" title="Proved undeveloped reserves">2,606,440</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20210930_z5L2MbPl7YOj" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">6,046,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20220930_zKKPReE3TL88" style="text-align: right" title="Proved undeveloped reserves">5,083,200</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20220930_zQpM2qU8OLC9" style="text-align: right" title="Proved undeveloped reserves">2,136,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20220930_zBomxaxEvuR3" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">5,439,267</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20230930_zlVms7yFPI1i" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">1,609,700</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20230930_zxyxWBNjNba9" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">1,277,100</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20230930_zQz3zGbxker1" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">1,822,550</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">16.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves The following information is based on the Company’s best estimate of the required data for the Standardized Measure of Discounted Future Net Cash Flows as of September 30, 2023 and September 30, 2022 in accordance with ASC 932, “Extractive Activities – Oil and Gas” which requires the use of a 10% discount rate. This information is not the fair market value, nor does it represent the expected present value of future cash flows of the Company’s proved oil and gas reserves. Future cash inflows for the years ended September 30, 2023 and September 30, 2022 were estimated as specified by the SEC through calculation of an average price based on the 12-month unweighted arithmetic average of the first-day-of-the-month price for the period from October through September during each respective fiscal year. The resulting net cash flow are reduced to present value by applying a 10% discount factor. <p id="xdx_89C_esrt--StandardizedMeasureOfDiscountedFutureCashFlowsRelatingToProvedReservesDisclosureTextBlock_zDyhMaKy6Q6d" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"> SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230930_zyqeGmscMzf4" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220930_zfQZUbgr8sul" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesCashInflows_iI_maFNCFRzWs3_zr6jpLHYETgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Future cash inflows</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">211,828,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">589,481,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesProductionCosts_iNI_di_msFNCFRzWs3_zMMl7Z40rsS1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Future production costs(1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(40,061,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(91,630,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesDevelopmentCosts_iNI_di_msFNCFRzWs3_zGW0B5nqbdp5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(17,241,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesIncomeTaxExpense_iNI_di_msFNCFRzWs3_zHOzmRPvKhYa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Future income tax expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,262,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(113,873,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesNetCashFlows_iTI_mtFNCFRzWs3_maSMODFzWnU_zFXNgL6rtNLk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future net cash flows</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">115,264,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">312,278,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesTenPercentAnnualDiscountForEstimatedTimingOfCashFlows_iNI_di_msSMODFzWnU_z7hJFPtr4rl3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">10% annual discount for estimated timing of cash flows</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(60,184,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(167,549,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iTI_mtSMODFzWnU_zCDH0Zz7XAnl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the fiscal year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,080,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations.</td></tr> </table> <p id="xdx_899_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_zAX9hzQFfTd8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: right">Average Price</td><td> </td><td> </td> <td colspan="2" style="text-align: right">Natural</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Crude Oil (Bbl)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Year ended September 30, 2021 (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--AverageHydrocarbonPrices_iI_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zAzVixIYdbPa" style="width: 16%; text-align: right" title="Average Price">55.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--AverageHydrocarbonPrices_iI_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zGiNoniY39W8" style="width: 16%; text-align: right" title="Average Price">2.95</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Year ended September 30, 2022 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--AverageHydrocarbonPrices_iI_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_znxUBfdTT4wl" style="text-align: right" title="Average Price">91.72</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--AverageHydrocarbonPrices_iI_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zvs7bjequsea" style="text-align: right" title="Average Price">5.79</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Year ended September 30, 2023 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--AverageHydrocarbonPrices_iI_c20230930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zfPziCastTy8" style="text-align: right" title="Average Price">78.61</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--AverageHydrocarbonPrices_iI_c20230930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zj4lGW5D4r75" style="text-align: right" title="Average Price">2.23</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year.</td></tr> </table> Future production and development costs, which include dismantlement and restoration expense, are computed by estimating the expenditures to be incurred in developing and producing the Company’s proved crude oil and natural gas reserves at the end of the year, based on year-end costs, and assuming continuation of existing economic conditions. PERMEX PETROLEUM CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED SEPTEMBER 30, 2023 AND 2022 <div style="margin: 0pt auto; width: 100%"><div style="border-top: Black 1.5pt solid; font-size: 1pt"> </div></div> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in">16.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">SUPPLEMENTAL INFORMATION ON OIL AND GAS OPERATIONS (UNAUDITED) (cont’d…)</td></tr> </table> Sources of Changes in Discounted Future Net Cash Flows Principal changes in the aggregate standardized measure of discounted future net cash flows attributable to the Company’s proved crude oil and natural gas reserves, as required by ASC 932, at fiscal year-end are set forth in the table below. <p id="xdx_897_esrt--ScheduleOfChangesInStandardizedMeasureOfDiscountedFutureNetCashFlowsTableTextBlock_zuOHPwitMey3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"> SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20221001__20230930_zDgKHl6tx9Gh" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211001__20220930_zyK8zoa8eIAb" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iS_z8P92cFPilSb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Standardized measure of discounted future net cash flows at the beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">144,729,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,269,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_esrt--ExtensionsDiscoveriesAdditionsAndImprovedRecoveryLessRelatedCosts_zNHPZDzrDyHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Extensions, discoveries and improved recovery, less related costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--DecreaseDueToSalesOfMineralsInPlace_iN_di_zGoFfF1O4Zt9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--IncreaseDueToPurchasesOfMineralsInPlace_z7IhveMLDRc5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--PreviouslyEstimatedDevelopmentCostIncurred_iN_di_zhyT9Ysgehpc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Revisions of previous quantity estimates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(103,529,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,674,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_esrt--NetIncreaseDecreaseInSalesAndTransferPricesAndProductionCosts_zQbBcDXll7n1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net changes in prices and production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(52,170,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,333,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowOfProvedOilAndGasReservesOther_zQAiSoG0eJuj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Accretion of discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,862,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,077,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_esrt--SalesAndTransfersOfOilAndGasProducedNetOfProductionCosts_zGHGfXR5Bd84" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales of oil produced, net of production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">191,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_esrt--IncreaseDecreaseInEstimatedFutureDevelopmentCosts_iN_di_zb6aGyIOJyH5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,173,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--IncreaseDecreaseInTimingOfFutureProduction_zRL9yfadVACg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Changes in timing of future production</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,145,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,099,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_esrt--IncreaseDecreaseInFutureIncomeTaxExpenseEstimatesOnFutureCashFlowsRelatedToProvedOilAndGasReserves_iN_di_z4uGbriLF1z6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net changes in income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,969,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,387,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iE_z26BPBdtc3ib" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,080,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

SCHEDULE OF COST INCURRED IN PRODUCING ACTIVITIES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49D_20221001__20230930_z5XQmXEKZgma" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_z50XKVklQD08" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_401_eus-gaap--AcquisitionCosts_maCCOUPz2vx_zoacHja6saq5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Acquisition of proved properties</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_ecustom--AcquisitionCostsUnprovedProperties_maCCOUPz2vx_zKotm08RddYl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Acquisition of unproved properties</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_eus-gaap--DevelopmentCosts_maCCOUPz2vx_zzdkzORmGv8a" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Development costs</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">2,019,639</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 16%; text-align: right">1,676,668</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_eus-gaap--ExplorationCosts_maCCOUPz2vx_z8fMIb0tk4F1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Exploration costs</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_409_eus-gaap--CapitalizedCostsOfUnprovedPropertiesExcludedFromAmortization_iT_mtCCOUPz2vx_zkfbRrJQrnjc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Total costs incurred</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">2,019,639</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">1,676,668</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> Results of Operations from Oil and Gas Producing Activities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" id="xdx_49E_20221001__20230930_zqPnhnpt6Xsi" style="text-align: center">12 Months Ended</td><td> </td><td> </td> <td colspan="2" id="xdx_49F_20211001__20220930_zxycxh3VvgK" style="text-align: center">12 Months Ended</td><td> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--ResultsOfOperationsRevenueOther_maROOEFzTM1_zwNOsDCakbCe" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Oil and gas revenues</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">688,827</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">815,391</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40A_eus-gaap--ProductionCosts_iN_di_msROOEFzTM1_z2UPtmhWhvc9" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(879,471</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(829,194</td><td style="text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--ExplorationExpense_iN_di_msROOEFzTM1_z9h4VGfewvtl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Exploration expenses</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--ResultsOfOperationsDepreciationDepletionAndAmortizationAndValuationProvisions_iN_di_msROOEFzTM1_zdjnD4EcHvm7" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Depletion, depreciation and amortization</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(104,798</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(99,855</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_eus-gaap--ImpairmentOfOilAndGasProperties_iN_di_msROOEFzTM1_z3PtodU8z5vl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Impairment of oil and gas properties</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_ecustom--ResultsOfOperationsExpensesFromOilAndGasProducingActivities_iT_mtROOEFzTM1_maROOOAzKXl_zvMB8UvpMywg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Result of oil and gas producing operations before income taxes</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(295,442</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(113,658</td><td style="text-align: left">)</td></tr> <tr id="xdx_40B_eus-gaap--ResultsOfOperationsIncomeTaxExpense_iN_di_msROOOAzKXl_zCWGSvSyoVEi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Provision for income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">—</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_402_eus-gaap--ResultsOfOperationsOilAndGasProducingActivitiesNetIncomeExcludingCorporateOverheadAndInterestCosts_iT_mtROOOAzKXl_z2z6lv5vLyJ6" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Results of oil and gas producing activities</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(295,442</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(113,658</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> </table>

2019639

1676668

2019639

1676668

688827

815391

879471

829194

104798

99855

-295442 -113658

-295442

-113658

<p id="xdx_89C_esrt--ScheduleOfProvedDevelopedAndUndevelopedOilAndGasReserveQuantitiesTextBlock_zBJkHUflXna" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Our proved reserves are summarized in the table below: SCHEDULE OF PROVED RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Oil (Barrels)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">Natural Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">BOE (Barrels)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved developed and undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%">September 30, 2021</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20211001__20220930_zg46Ujrfukvg" style="width: 14%; text-align: right" title="Beginning balance">6,199,420</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_989_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20211001__20220930_z5mTgQUon2s9" style="width: 14%; text-align: right" title="Beginning balance">3,018,350</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20211001__20220930_zYavej3Ojn75" style="width: 14%; text-align: right" title="Beginning balance, BOE (Barrels)">6,702,478</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20211001__20220930_zXaGglACXwo4" style="text-align: right" title="Revisions">48,320</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20211001__20220930_zEHRURejhlRf" style="text-align: right" title="Revisions">(5,613</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20211001__20220930_zHLzVcSEy6k8" style="text-align: right" title="Revisions, BOE (Barrels)">47,385</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20211001__20220930_zmrDNv74ydud" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20211001__20220930_zYAbJDa1TU3k" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20211001__20220930_zPGGJEEWOfg2" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20211001__20220930_zyTvco8yRKN6" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20211001__20220930_zTX3W8BKq7rf" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20211001__20220930_zfjzldDlVqC3" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20211001__20220930_zZFCZMUszDn6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(10,670</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20211001__20220930_zL2T1UDUFm2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,567</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20211001__20220930_zC66W5Q7roK6" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,598</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uBarrels_c20221001__20230930_zDqyAEBDXbdc" style="text-align: right" title="Beginning balance">6,237,070</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesNet_iS_uNaturalGas_c20221001__20230930_zwuQkWqqe4b9" style="text-align: right" title="Beginning balance">3,001,170</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iS_uBOE_c20221001__20230930_zH8hKSyWdfu6" style="text-align: right" title="Beginning balance, BOE (Barrels)">6,737,265</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Revisions</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uBarrels_c20221001__20230930_fKDMp_zeqaLw5A9Xk7" style="text-align: right" title="Revisions">(3,588,541</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesRevisionsOfPreviousEstimatesIncreaseDecrease_uNaturalGas_c20221001__20230930_fKDMp_z28K7iQPDm3e" style="text-align: right" title="Revisions">(951,270</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergyPeriodIncreaseDecrease_uBOE_c20221001__20230930_fKDMp_zvVAColAF0g8" style="text-align: right" title="Revisions, BOE (Barrels)">(3,747,086</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Purchase of proved reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uBarrels_c20221001__20230930_fKDQp_zJQmkIjweN95" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_esrt--ProvedDevelopedAndUndevelopedReservesPurchasesOfMineralsInPlace_uNaturalGas_c20221001__20230930_fKDQp_zncRCw3Kpwgb" style="text-align: right" title="Purchase of proved reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_esrt--ProvedDevelopedAndUndevelopedReservePurchaseOfMineralInPlaceEnergy_uBOE_c20221001__20230930_fKDQp_zVONq1yoJ7n4" style="text-align: right" title="Purchase of proved reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sale reserves</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uBarrels_c20221001__20230930_fKDUp_zBUhbsU8G1uf" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedDevelopedAndUndevelopedReservesSalesOfMineralsInPlace_iN_di_uNaturalGas_c20221001__20230930_fKDUp_zXMEXg3rb4Xb" style="text-align: right" title="Sale reserves">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedDevelopedAndUndevelopedReservesSaleOfMineralInPlaceEnergy_iN_di_uBOE_c20221001__20230930_fKDUp_zuIv0cYHqEPe" style="text-align: right" title="Sale reserves, BOE (Barrels)">-</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Production</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uBarrels_c20221001__20230930_zdw3OzqXdwnc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(11,729</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedAndUndevelopedReservesProduction_iN_di_uNaturalGas_c20221001__20230930_zSpXbw4f4SGd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production">(7,500</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedAndUndevelopedReserveProductionEnergy_iN_di_uBOE_c20221001__20230930_zM2vge5Fu35e" style="border-bottom: Black 1.5pt solid; text-align: right" title="Production, BOE (Barrels)">(12,979</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uBarrels_c20221001__20230930_zKJNjiSHS0wa" style="text-align: right" title="Ending balance">2,636,800</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_esrt--ProvedDevelopedAndUndevelopedReservesNet_iE_uNaturalGas_c20221001__20230930_zWVswhzaTbyh" style="text-align: right" title="Ending balance">2,042,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedAndUndevelopedReserveNetEnergy_iE_uBOE_c20221001__20230930_zphs21WTfeC2" style="text-align: right" title="Ending balance, BOE (Barrels)">2,977,200</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Proved developed reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20210930_z5DhQ2jhsBwj" style="text-align: right" title="Proved developed reserves">587,450</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20210930_z7hjHXKwsTi8" style="text-align: right" title="Proved developed reserves">411,910</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20210930_zijP32YbUwi2" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">656,102</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20220930_z3YZFIemp9Ta" style="text-align: right" title="Proved developed reserves">1,153,870</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20220930_zsEZYnssTWJ5" style="text-align: right" title="Proved developed reserves">864,770</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20220930_zeT5m79zZn4f" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,297,998</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2023</td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedDevelopedReservesVolume_iI_uBarrels_c20230930_z9jqdT9xU2Md" style="text-align: right" title="Proved developed reserves">1,027,100</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_esrt--ProvedDevelopedReservesVolume_iI_uNaturalGas_c20230930_z3kPVy8YZJx4" style="text-align: right" title="Proved developed reserves">765,300</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedDevelopedReservesBOE1_iI_uBOE_c20230930_z8xoZpXXoZyd" style="text-align: right" title="Proved developed reserves, BOE (Barrels)">1,154,650</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Proved undeveloped reserves:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>September 30, 2021</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20210930_ztvM5k71zYzf" style="text-align: right" title="Proved undeveloped reserves">5,611,970</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20210930_zJ2GvMcm2bz2" style="text-align: right" title="Proved undeveloped reserves">2,606,440</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20210930_z5L2MbPl7YOj" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">6,046,377</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>September 30, 2022</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20220930_zKKPReE3TL88" style="text-align: right" title="Proved undeveloped reserves">5,083,200</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20220930_zQpM2qU8OLC9" style="text-align: right" title="Proved undeveloped reserves">2,136,400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_984_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20220930_zBomxaxEvuR3" style="text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">5,439,267</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">September 30, 2023</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98D_esrt--ProvedUndevelopedReserveVolume_iI_uBarrels_c20230930_zlVms7yFPI1i" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">1,609,700</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_esrt--ProvedUndevelopedReserveVolume_iI_uNaturalGas_c20230930_zxyxWBNjNba9" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves">1,277,100</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_esrt--ProvedUndevelopedReserveBOE1_iI_uBOE_c20230930_zQz3zGbxker1" style="border-bottom: Black 2.5pt double; text-align: right" title="Proved undeveloped reserves, BOE (Barrels)">1,822,550</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 6199420 3018350 6702478 48320 -5613 47385 10670 11567 12598 6237070 3001170 6737265 -3588541 -951270 -3747086 11729 7500 12979 2636800 2042400 2977200 587450 411910 656102 1153870 864770 1297998 1027100 765300 1154650 5611970 2606440 6046377 5083200 2136400 5439267 1609700 1277100 1822550 <p id="xdx_89C_esrt--StandardizedMeasureOfDiscountedFutureCashFlowsRelatingToProvedReservesDisclosureTextBlock_zDyhMaKy6Q6d" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"> SCHEDULE OF NET CASH FLOWS RELATING TO PROVED OIL AND GAS RESERVES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20230930_zyqeGmscMzf4" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_492_20220930_zfQZUbgr8sul" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40C_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesCashInflows_iI_maFNCFRzWs3_zr6jpLHYETgf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Future cash inflows</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">211,828,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">589,481,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40E_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesProductionCosts_iNI_di_msFNCFRzWs3_zMMl7Z40rsS1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Future production costs(1)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(40,061,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(91,630,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_402_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesDevelopmentCosts_iNI_di_msFNCFRzWs3_zGW0B5nqbdp5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(17,241,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(71,700,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_400_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesIncomeTaxExpense_iNI_di_msFNCFRzWs3_zHOzmRPvKhYa" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Future income tax expenses</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(39,262,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(113,873,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_404_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesNetCashFlows_iTI_mtFNCFRzWs3_maSMODFzWnU_zFXNgL6rtNLk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Future net cash flows</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">115,264,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">312,278,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--FutureNetCashFlowsRelatingToProvedOilAndGasReservesTenPercentAnnualDiscountForEstimatedTimingOfCashFlows_iNI_di_msSMODFzWnU_z7hJFPtr4rl3" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">10% annual discount for estimated timing of cash flows</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(60,184,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(167,549,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_403_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iTI_mtSMODFzWnU_zCDH0Zz7XAnl" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the fiscal year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,080,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations.</td></tr> </table> 211828000 589481000 40061000 91630000 17241000 71700000 39262000 113873000 115264000 312278000 60184000 167549000 55080000 144729000

<p id="xdx_899_eus-gaap--ScheduleOfWeightedAverageNumberOfSharesTableTextBlock_zAX9hzQFfTd8" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0; text-align: justify">Average hydrocarbon prices are set forth in the table below. SCHEDULE OF AVERAGE HYDROCARBON PRICES <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2" style="text-align: right">Average Price</td><td> </td><td> </td> <td colspan="2" style="text-align: right">Natural</td><td> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: right"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Crude Oil (Bbl)</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: right">Gas (Mcf)</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%">Year ended September 30, 2021 (1)</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--AverageHydrocarbonPrices_iI_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zAzVixIYdbPa" style="width: 16%; text-align: right" title="Average Price">55.98</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98E_ecustom--AverageHydrocarbonPrices_iI_c20210930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zGiNoniY39W8" style="width: 16%; text-align: right" title="Average Price">2.95</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Year ended September 30, 2022 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_ecustom--AverageHydrocarbonPrices_iI_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_znxUBfdTT4wl" style="text-align: right" title="Average Price">91.72</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--AverageHydrocarbonPrices_iI_c20220930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zvs7bjequsea" style="text-align: right" title="Average Price">5.79</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Year ended September 30, 2023 (1)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_985_ecustom--AverageHydrocarbonPrices_iI_c20230930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--OilReservesMember_fKDEp_zfPziCastTy8" style="text-align: right" title="Average Price">78.61</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_981_ecustom--AverageHydrocarbonPrices_iI_c20230930__srt--ReserveQuantitiesByTypeOfReserveAxis__srt--NaturalGasReservesMember_fKDEp_zj4lGW5D4r75" style="text-align: right" title="Average Price">2.23</td><td style="text-align: left"> </td></tr> </table> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.5in"> </td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in">(1)</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year.</td></tr> </table>

55.98 2.95 91.72 5.79 78.61 2.23 <p id="xdx_897_esrt--ScheduleOfChangesInStandardizedMeasureOfDiscountedFutureNetCashFlowsTableTextBlock_zuOHPwitMey3" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 0"> SCHEDULE OF CHANGES IN DISCOUNTED FUTURE NET CASH FLOWS <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="display: none; vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20221001__20230930_zDgKHl6tx9Gh" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20211001__20220930_zyK8zoa8eIAb" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="6" style="border-bottom: Black 1.5pt solid; text-align: center">12 Months Ended</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2023</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">September 30, 2022</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iS_z8P92cFPilSb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Standardized measure of discounted future net cash flows at the beginning of the year</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">144,729,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">73,269,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40C_esrt--ExtensionsDiscoveriesAdditionsAndImprovedRecoveryLessRelatedCosts_zNHPZDzrDyHh" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Extensions, discoveries and improved recovery, less related costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--DecreaseDueToSalesOfMineralsInPlace_iN_di_zGoFfF1O4Zt9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Sales of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_401_esrt--IncreaseDueToPurchasesOfMineralsInPlace_z7IhveMLDRc5" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Purchase of minerals in place</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">—</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_ecustom--PreviouslyEstimatedDevelopmentCostIncurred_iN_di_zhyT9Ysgehpc" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Revisions of previous quantity estimates</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(103,529,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,674,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_405_esrt--NetIncreaseDecreaseInSalesAndTransferPricesAndProductionCosts_zQbBcDXll7n1" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Net changes in prices and production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(52,170,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">88,333,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_404_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowOfProvedOilAndGasReservesOther_zQAiSoG0eJuj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Accretion of discount</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">19,862,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">10,077,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40D_esrt--SalesAndTransfersOfOilAndGasProducedNetOfProductionCosts_zGHGfXR5Bd84" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Sales of oil produced, net of production costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">191,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(49,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_408_esrt--IncreaseDecreaseInEstimatedFutureDevelopmentCosts_iN_di_zb6aGyIOJyH5" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Changes in future development costs</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">27,173,000</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">911,000</td><td style="text-align: left"> </td></tr> <tr id="xdx_40C_ecustom--IncreaseDecreaseInTimingOfFutureProduction_zRL9yfadVACg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Changes in timing of future production</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(16,145,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">(3,099,000</td><td style="text-align: left">)</td></tr> <tr id="xdx_403_esrt--IncreaseDecreaseInFutureIncomeTaxExpenseEstimatesOnFutureCashFlowsRelatedToProvedOilAndGasReserves_iN_di_z4uGbriLF1z6" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Net changes in income taxes</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">34,969,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(26,387,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_406_esrt--StandardizedMeasureOfDiscountedFutureNetCashFlowsRelatingToProvedOilAndGasReserves_iE_z26BPBdtc3ib" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Standardized measure of discounted future net cash flows at the end of the year</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,080,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">144,729,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 144729000 73269000 103529000 -1674000 -52170000 88333000 19862000 10077000 191000 -49000 -27173000 -911000 -16145000 -3099000 -34969000 26387000 55080000 144729000 The number of shares has been restated to reflect the 60:1 reverse stock split effective on November 2, 2022 and the 4:1 reverse stock split effective on October 23, 2023 (Note 1). All historical share and per share amounts reflected in this report have been adjusted to reflect the reverse stock splits. The number of shares has been restated to reflect the 60:1 reverse stock split effective on November 2, 2022 and the 4:1 reverse stock split effective on October 23, 2023 (Note 1). All historical share and per share amounts reflected in this report have been adjusted to reflect the reverse stock splits. The number of shares has been restated to reflect the 60:1 reverse stock split effective on November 2, 2022 and the 4:1 reverse stock split effective on October 23, 2023 (Note 1). All historical share and per share amounts reflected in this report have been adjusted to reflect the reverse stock splits. Production costs include crude oil and natural gas operations expense, production ad valorem taxes, transportation costs and G&A expense supporting the Company’s crude oil and natural gas operations. Average prices were based on 12-month unweighted arithmetic average of the first-day-of-the-month prices for the period from October through September during each respective fiscal year.