LEASES

3 Months Ended

Dec. 31, 2023

Leases

LEASES

6. LEASES

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

	December 31, 2023			September 30, 2023
Right-of-use assets	$	129,961		$	146,912
Lease liabilities
Balance, beginning of the year	$	158,525		$	244,906
Addition		-			-
Liability accretion		4,602			24,221
Lease payments		(20,247	)		(110,602	)
Balance, end of the year	$	142,880		$	158,525
Current lease liabilities	$	77,648		$	77,069
Long-term lease liabilities	$	65,232		$	81,456
Weighted-average remaining lease term (in years)		1.92			2.17
Weighted-average discount rate		12	%		12	%

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

	Three months ended December 31, 2023		Three months ended December 31, 2022
Operating lease cost	$	21,554	$	35,398
Variable lease expense		14,947		7,175
Sublease income		-		(10,004	)
Net lease cost	$	36,501	$	32,569

As of December 31, 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:

Year
2024	$	61,943
2025		84,664
2026		14,180
Total lease payments		160,787
Less: imputed interest		(17,907	)
Total lease liabilities	$	142,880

PERMEX PETROLEUM CORPORATION

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED DECEMBER 31, 2023

(UNAUDITED)