LEASES

9 Months Ended

Jun. 30, 2024

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:

	June 30, 2024			September 30, 2023
Right-of-use assets	$	96,058		$	146,912
Lease liabilities
Balance, beginning of the year	$	158,525		$	244,906
Addition		-			-
Liability accretion		12,346			24,221
Lease payments		(61,542	)		(110,602	)
Balance, end of the year	$	109,329		$	158,525
Current lease liabilities	$	78,791		$	77,069
Long-term lease liabilities	$	30,538		$	81,456
Weighted-average remaining lease term (in years)		1.42			2.17
Weighted-average discount rate		12	%		12	%

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

		Three Months Ended June 30, 2024		Three Months Ended June 30, 2023		Nine Months Ended June 30, 2024		Nine Months Ended June 30, 2023
Operating lease cost	$	20,573	$	27,704		$	63,200	$	92,947
Variable lease expense		15,469		22,516			45,905		48,513
Sublease income		-		(12,367	)		-		(32,762	)
Net lease cost	$	36,042	$	37,853		$	109,105	$	108,698

As of June 30, 2024, 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	$	20,648
2025		84,664
2026		14,180
Total lease payments		119,492
Less: imputed interest		(10,163	)
Total lease liabilities	$	109,329

PERMEX PETROLEUM CORPORATION

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE AND NINE MONTHS ENDED JUNE 30, 2024

(UNAUDITED)