LEASES

3 Months Ended

12 Months Ended

Dec. 31, 2024

Sep. 30, 2024

Leases

LEASES

6. LEASES

The Company had an office lease agreement for its Dallas premises with a term ending in November 2025. During the year ended September 30, 2024, the Company entered into a settlement agreement to terminate this lease. The termination resulted in a loss of $38,825 recognized in the three months ended September 30, 2024, consisting of the settlement payment and the write-off of the remaining right-of-use asset and lease liability associated with the terminated lease.

During the year ended September 30, 2024, the Company paid $113,638 in lease payments and recognized $12,346 in accretion expense. For the three months ended December 31, 2023, the Company incurred $21,554 in operating lease expenses and $14,947 in variable lease expenses.

PERMEX PETROLEUM CORPORATION

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED DECEMBER 31, 2024

(UNAUDITED)

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:

	September 30, 2024			September 30, 2023
Right-of-use assets	$	-		$	146,912
Lease liabilities
Balance, beginning of the year	$	158,525		$	244,906
Addition		-			-
Liability accretion		12,346			24,221
Lease payments		(113,638	)		(110,602	)
Termination of lease		(57,233	)		-
Balance, end of the year	$	-		$	158,525
Current lease liabilities	$	-		$	77,069
Long-term lease liabilities	$	-		$	81,456
Weighted-average remaining lease term (in years)		-			2.17
Weighted-average discount rate		-	%		12	%

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

	2024		2023
Operating lease cost	$	63,200	$	118,105
Variable lease expense		51,062		65,245
Sublease income		-		(25,390	)
Net lease cost	$	114,262	$	157,960

The Company had one office lease agreement for its office premises for terms ending in November 2025. During the year ended September 30, 2024, the Company entered into a settlement agreement to terminate the office lease agreement. The termination resulted in a loss of $38,825, consisting of the settlement payment and the write-off of the remaining right-of-use asset and lease liability associated with the terminated lease.

PERMEX PETROLEUM CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED SEPTEMBER 30, 2024 AND 2023