Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2022 | Aug. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 333-265883 | |
Entity Registrant Name | Permex Petroleum Corporation | |
Entity Central Index Key | 0001922639 | |
Entity Tax Identification Number | 98-1384682 | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Address, Address Line One | 100 Crescent Court | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | (214) | |
Local Phone Number | 459-2782 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 115,956,026 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets (Unaudited) | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) |
Current assets | ||
Cash | $ 5,366,789 | $ 25,806 |
Trade and other receivables | 186,740 | 12,984 |
Prepaid expenses and deposits | 878,119 | 46,151 |
Total current assets | 6,431,648 | 84,941 |
Non-current assets | ||
Reclamation deposits | 145,052 | 144,847 |
Property and equipment | 7,838,520 | 7,846,145 |
Right of use asset | 37,369 | 72,539 |
Total assets | 14,452,589 | 8,148,472 |
Current liabilities | ||
Trade and other payables | 1,123,635 | 402,979 |
Amounts due to related party | 8,687 | 16,628 |
Convertible debentures | 77,600 | 78,500 |
Lease liability – current portion | 39,493 | 51,963 |
Total current liabilities | 1,249,415 | 550,070 |
Non-current liabilities | ||
Decommissioning obligations | 1,645,171 | 1,627,465 |
Lease liability | 3,313 | 26,986 |
Loan payable | 31,400 | |
Total liabilities | 2,897,899 | 2,235,921 |
Equity | ||
Common shares no par value per share; unlimited shares authorized, 115,956,026 and 66,180,364 shares issued and outstanding as of June 30, 2022 and September 30, 2021, respectively | 14,381,071 | 8,976,747 |
Share subscription proceeds | 30,456 | 30,456 |
Reserves | 4,585,598 | 2,352,649 |
Accumulated other comprehensive loss | (394,654) | (128,532) |
Deficit | (7,047,781) | (5,318,769) |
Total equity | 11,554,690 | 5,912,551 |
Total liabilities and equity | $ 14,452,589 | $ 8,148,472 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | Unlimited | Unlimited |
Common stock, shares issued | 115,956,026 | 66,180,364 |
Common stock, shares outstanding | 115,956,026 | 66,180,364 |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss (Unaudited) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | |
Revenue | ||||
Total revenue | $ 276,722 | $ 34,298 | $ 625,057 | $ 37,392 |
Expenses | ||||
Producing | 135,467 | 11,179 | 332,346 | 21,392 |
Accounting and audit | 77,673 | 16,783 | 143,153 | 46,730 |
Accretion on decommissioning obligations | 8,238 | 2,987 | 24,714 | 8,792 |
Consulting | 47,436 | 3,571 | 64,209 | 17,474 |
Depletion and depreciation | 73,093 | 12,717 | 161,988 | 21,955 |
Filing and transfer agent | 19,484 | 8,925 | 59,309 | 43,285 |
Interest | 2,597 | 1,348 | 6,285 | 11,116 |
Investor relations | 54,860 | 43,685 | 96,593 | 46,091 |
Legal fees | 179,190 | 2,666 | 203,016 | 3,336 |
Management fees | 67,216 | 37,362 | 176,989 | 112,478 |
Marketing and promotion | 469,096 | 4,148 | 517,914 | 24,802 |
Office and general | 75,456 | 16,122 | 105,679 | 26,780 |
Rent | 21,389 | 14,655 | 54,907 | 34,791 |
Salaries | 7,500 | 7,500 | ||
Share-based payments | 185 | 486 | 604,861 | 2,401 |
Travel | 39,371 | 1,227 | 44,289 | 2,099 |
Total operating expenses | (1,278,251) | (177,861) | (2,603,752) | (423,522) |
Operating loss | (1,001,529) | (143,563) | (1,978,695) | (386,130) |
Foreign exchange gain (loss) | 222,539 | (14,195) | 214,404 | (41,347) |
Forfeiture of reclamation deposit | 318 | (50,165) | ||
Forgiveness of loan payable | 7,900 | 7,900 | ||
Other income | 9,787 | 2,515 | 27,379 | 7,643 |
Settlement of trade payables | 1,965 | 9,683 | ||
Non-operating income (expense) | 240,226 | (9,397) | 249,683 | (74,186) |
Net loss | (761,303) | (152,960) | (1,729,012) | (460,316) |
Other comprehensive income | ||||
Foreign currency translation adjustment | (375,809) | 49,419 | (266,122) | 245,969 |
Comprehensive loss | $ (1,137,112) | $ (103,541) | $ (1,995,134) | $ (214,347) |
Basic and diluted loss per common share | $ / shares | $ 0 | $ 0 | $ (0.02) | $ (0.01) |
Oil and Gas [Member] | ||||
Revenue | ||||
Total revenue | $ 258,757 | $ 34,298 | $ 577,244 | $ 37,392 |
Royalty [Member] | ||||
Revenue | ||||
Total revenue | $ 17,965 | $ 47,813 |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Equity (Unaudited) - USD ($) | Total | Share Capital [Member] | Reserves [Member] | Share Subscription Proceeds [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] |
Beginning balance at Sep. 30, 2020 | $ 3,308,609 | $ 6,453,039 | $ 1,192,123 | $ 30,456 | $ (270,235) | $ (4,096,774) |
Beginning balance, shares at Sep. 30, 2020 | 40,024,114 | |||||
Share-based payments | 2,401 | 2,401 | ||||
Net loss | (460,316) | (460,316) | ||||
Other comprehensive income | 245,969 | 245,969 | ||||
Shares issued for services | 54,958 | $ 54,958 | ||||
Shares issued for services, shares | 1,156,250 | |||||
Ending balance at Jun. 30, 2021 | 3,151,621 | $ 6,507,997 | 1,194,524 | 30,456 | (24,266) | (4,557,090) |
Ending balance, shares at Jun. 30, 2021 | 41,180,364 | |||||
Beginning balance at Sep. 30, 2020 | 3,308,609 | $ 6,453,039 | 1,192,123 | 30,456 | (270,235) | (4,096,774) |
Beginning balance, shares at Sep. 30, 2020 | 40,024,114 | |||||
Ending balance at Sep. 30, 2021 | 5,912,551 | $ 8,976,747 | 2,352,649 | 30,456 | (128,532) | (5,318,769) |
Ending balance, shares at Sep. 30, 2021 | 66,180,364 | |||||
Beginning balance at Mar. 31, 2021 | 3,219,826 | $ 6,473,147 | 1,194,038 | 30,456 | (73,685) | (4,404,130) |
Beginning balance, shares at Mar. 31, 2021 | 40,680,364 | |||||
Share-based payments | 486 | 486 | ||||
Net loss | (152,960) | (152,960) | ||||
Other comprehensive income | 49,419 | 49,419 | ||||
Shares issued for services | 34,850 | $ 34,850 | ||||
Shares issued for services, shares | 500,000 | |||||
Ending balance at Jun. 30, 2021 | 3,151,621 | $ 6,507,997 | 1,194,524 | 30,456 | (24,266) | (4,557,090) |
Ending balance, shares at Jun. 30, 2021 | 41,180,364 | |||||
Beginning balance at Sep. 30, 2021 | 5,912,551 | $ 8,976,747 | 2,352,649 | 30,456 | (128,532) | (5,318,769) |
Beginning balance, shares at Sep. 30, 2021 | 66,180,364 | |||||
Share issuance costs | (1,079,928) | $ (1,962,900) | 882,972 | |||
Share-based payments | 604,861 | 604,861 | ||||
Net loss | (1,729,012) | (1,729,012) | ||||
Other comprehensive income | (266,122) | (266,122) | ||||
Private placements | 8,112,340 | $ 7,367,224 | 745,116 | |||
Private placements, shares | 49,775,662 | |||||
Ending balance at Jun. 30, 2022 | 11,554,690 | $ 14,381,071 | 4,585,598 | 30,456 | (394,654) | (7,047,781) |
Ending balance, shares at Jun. 30, 2022 | 115,956,026 | |||||
Beginning balance at Mar. 31, 2022 | 12,709,919 | $ 14,399,373 | 4,585,413 | 3,456 | (18,845) | (6,286,478) |
Beginning balance, shares at Mar. 31, 2022 | 115,956,026 | |||||
Share issuance costs | (18,302) | $ (18,302) | ||||
Share-based payments | 185 | 185 | ||||
Net loss | (761,303) | (761,303) | ||||
Other comprehensive income | (375,809) | (375,809) | ||||
Shares issued for services | ||||||
Shares issued for services, shares | ||||||
Private placements | ||||||
Private placements, shares | ||||||
Ending balance at Jun. 30, 2022 | $ 11,554,690 | $ 14,381,071 | $ 4,585,598 | $ 30,456 | $ (394,654) | $ (7,047,781) |
Ending balance, shares at Jun. 30, 2022 | 115,956,026 |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net loss | $ (761,303) | $ (152,960) | $ (1,729,012) | $ (460,316) | |
Adjustments to reconcile net loss to net cash from operating activities: | |||||
Accretion on decommissioning obligations | 8,238 | 2,987 | 24,714 | 8,792 | |
Depletion and depreciation | 161,988 | 21,955 | |||
Foreign exchange loss (gain) | (214,133) | 109,103 | |||
Forfeiture of reclamation bond | 50,165 | ||||
Forgiveness of loan payable | (7,900) | (7,900) | |||
Interest | 2,597 | 1,348 | 6,285 | 11,116 | $ 11,116 |
Settlement of trade payables | (1,965) | (9,683) | |||
Share-based payments | 185 | 486 | 604,861 | 2,401 | |
Shares issued for services | 54,958 | ||||
Trade and other receivables | (174,362) | 35,414 | |||
Prepaid expenses and deposits | (833,922) | (21,336) | |||
Trade and other payables | 711,083 | (293,869) | |||
Amounts due to related parties | (10,618) | (164,560) | |||
Right of use asset and lease liability | 40,731 | 32,669 | |||
Net cash used in operating activities | (1,420,285) | (623,192) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Capital expenditures on property and equipment | (202,136) | (283,298) | |||
Proceeds from sale of oil and gas interests | 1,123,244 | ||||
Net cash provided by (used in) investing activities | (202,136) | 839,946 | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from issuance of share capital | 8,112,340 | ||||
Share issuance costs | (1,079,928) | ||||
Convertible debenture repayment | (79,000) | (79,000) | |||
Loan repayment | (23,700) | ||||
Loan from related party | (3,647) | (6,329) | |||
Lease payments | (41,661) | (30,193) | |||
Net cash provided by (used in) financing activities | 6,963,404 | (115,522) | |||
Change in cash during the period | 5,340,983 | 101,232 | |||
Cash, beginning of the period | 25,806 | 5,517 | 5,517 | ||
Cash, end of the period | $ 5,366,789 | $ 106,749 | 5,366,789 | 106,749 | 25,806 |
Supplemental disclosures of non-cash investing and financing activities: | |||||
Trade and other payables related to property and equipment | 93,960 | 69,262 | |||
Share purchase warrants issued in connection with private placement | 1,628,088 | ||||
Supplemental cash flow disclosures: | |||||
Interest paid | $ 18,960 | $ 13,090 | $ 13,090 |
BACKGROUND
BACKGROUND | 9 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND | 1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 th |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2022 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s amended Form S-1 for the fiscal year ended September 30, 2021 filed with the Securities and Exchange Commission (“SEC”) on August 8, 2022. There have been no material changes in the Company’s significant accounting policies from those that were disclosed in the fiscal 2021 financial statements, except as noted below. Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary. All intercompany balances and transactions have been eliminated. 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) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) 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. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 2. Significant Accounting Policies Foreign Currency These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. These consolidated financial statements are presented in United States dollars (“USD,” “US” or “$”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is USD. Recently adopted accounting pronouncement None. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | 3. CONCENTRATION OF CREDIT RISK 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. During the nine months ended June 30, 2022, the Company generated 54 100 107,738 71 2,927 26 |
NON-CURRENT ASSETS
NON-CURRENT ASSETS | 9 Months Ended |
Jun. 30, 2022 | |
Non-current Assets | |
NON-CURRENT ASSETS | 4. NON-CURRENT ASSETS The Company is engaged in the exploration for, and the development of, petroleum and natural gas projects in the United States. The Company holds 100 71.9 81.75 Reclamation bonds As of June 30, 2022, the Company held reclamation bonds of $ 145,052 144,847 50,165 Acquisition During the year ended September 30, 2021, the Company, through its wholly owned subsidiary, Permex Petroleum US Corporation 100 81.75 25,000,000 12,500,000 25,000,000 2,468,750 1,180,718 1.51 10 131.82 0 0.16 0.20 October 1, 2031 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 4. NON-CURRENT ASSETS Property and equipment Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, September 30, Oil and natural gas properties, at cost $ 8,044,184 $ 7,954,807 Vehicle, at cost 63,918 - Less: accumulated depletion and depreciation (269,582 ) (108,662 ) Property and equipment, net $ 7,838,520 $ 7,846,145 Depletion and depreciation expense was $ 161,988 21,955 |
DECOMMISSIONING OBLIGATIONS
DECOMMISSIONING OBLIGATIONS | 9 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
DECOMMISSIONING OBLIGATIONS | 5. DECOMMISSIONING OBLIGATIONS The total future decommissioning obligations are based on the Company’s net ownership in wells and facilities, estimated costs to reclaim and abandon the wells and facilities, and the estimated timing of the costs to be incurred in future periods. The total undiscounted amount of estimated cash flows required to settle the Company’s obligations is approximately $ 2,245,388 2,836,777 2.0 2.0 2.02 1.93 Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS June 30, September 30, Decommissioning obligations, beginning of the year $ 1,627,465 $ 792,814 Obligations acquired - 784,418 Obligations derecognized - (140,704 ) Change in estimates - 234,331 Change in discount rate - (81,236 ) Accretion expense 24,714 11,722 Foreign exchange movement (7,008 ) 26,120 Decommissioning obligation $ 1,645,171 $ 1,627,465 During the year ended September 30, 2021, the Company derecognized $ 140,704 127,510 13,194 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 6. DEBT Convertible debentures The Company issued a total of $ 157,000 200,000 maturity date of September 30, 2021 and February 20, 2022 12 0.12 0.15 three years 0.16 0.20 77,600 100,000 78,500 4,241 15,176 During the nine months ended June 30, 2022 and 2021, the Company recorded interest of $ 6,285 11,116 79,000 100,000 13,090 18,960 13,090 Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $ 32,000 40,000 The CEBA program was established to provide interest-free loans of up to CAD$ 60,000 The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by December 31, 2023 convert to two-year term 5 23,700 30,000 7,900 10,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Lease Liability The Company has entered into office lease agreements for its office premises for terms ending in 2023. As of June 30, 2022, the Company’s lease had a weighted-average remaining term of 0.93 SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 13,785 2023 31,643 Total lease payments $ 45,428 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 7. COMMITMENTS AND CONTINGENCIES The components of lease expense for the nine month periods ended June 30 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2022 2021 Fixed lease expense $ 41,661 $ 30,194 Variable lease expense 13,246 4,597 Total $ 54,907 $ 34,791 The following is a continuity schedule of the lease liability: SCHEDULE OF LEASE LIABILITY June 30, September 30, Balance, beginning of the year $ 78,949 $ 53,128 Addition - 57,357 Interest expense 5,714 9,812 Lease payments (41,661 ) (43,932 ) Foreign exchange movement (196 ) 2,584 Balance, end of the year $ 42,806 $ 78,949 Current liability $ 39,493 $ 51,963 Long-term liability $ 3,313 $ 26,986 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 8. RELATED PARTY TRANSACTIONS During the year ended September 30, 2020, the Company issued a total of $ 157,000 200,000 79,000 100,000 13,090 77,600 100,000 78,500 4,241 15,176 During the nine months ended June 30, 2022, the Company incurred management fees of $ 176,989 112,478 On May 1, 2022, the Company amended the employment with the CEO of the Company for an annual base salary of $ 250,000 The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary. On May 1, 2022, the Company entered into an employment with the CFO of the Company for an annual base salary of $ 50,000 The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) |
EQUITY
EQUITY | 9 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | 9. EQUITY Common shares The Company has authorized an unlimited no 115,956,026 66,180,364 During the nine months ended June 30, 2022, the Company: a) Completed a non-brokered private placement of 2,647,037 0.22 0.27 571,760 714,700 0.43 0.54 137,946 34,733 160,800 24,543 0.98 2 153.02 0 800 b) Completed a brokered private placement of 47,128,625 0.16 7,540,580 5 0.21 607,170 754,058 4,712,862 131,560 858,429 2.45 5 134.66 0 140,475 During the year ended September 30, 2021, the Company: a) Issued 1,156,250 54,313 b) Issued 25,000,000 2,468,750 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 9. EQUITY 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 10 Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Price Balance, September 30, 2020 2,340,189 $ 0.31 Cancelled (65,189 ) 0.40 Balance, September 30, 2021 2,275,000 $ 0.33 Granted 3,300,000 0.19 Balance, June 30, 2022 5,575,000 $ 0.24 Exercisable at June 30, 2022 5,500,000 $ 0.25 Weighted average fair value of options granted $ 0.19 (2021 - $ nil The aggregate intrinsic value of options outstanding and exercisable as at June 30, 2022 was $ nil nil The options outstanding as of June 30, 2022 equaled 5,575,000 0.04 0.39 7.88 0.19 no During the nine months ended June 30, 2022 and 2021, the Company recognized share-based payment expense of $ 604,861 2,401 SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2022 2021 Risk-free interest rate 1.50 % - Expected life of options 10 - Expected annualized volatility 131 % - Dividend rate Nil - PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 9. EQUITY Share-based payments As at June 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 1,675,000 $ 0.39 December 4, 2027 300,000 $ 0.23 November 1, 2028 300,000 $ 0.04 March 16, 2030 3,300,000 $ 0.19 October 6, 2031 5,575,000 Warrants Warrants are measured at fair value on the date of the grant as determined using the Black-Scholes option pricing model. Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Price Balance, September 30, 2020 4,805,206 $ 0.21 Granted 12,500,000 0.16 Warrants expired (4,805,206 ) 0.22 Balance, September 30, 2021 12,500,000 $ 0.16 Granted 53,325,806 0.21 Balance, June 30, 2022 65,825,806 $ 0.21 As at June 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Expiry Date 1,484,318 $ 0.42 November 4, 2023 51,841,488 $ 0.20 March 29, 2027 12,500,000 $ 0.16 October 1, 2031 65,825,806 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) |
LOSS PER SHARE
LOSS PER SHARE | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 10. LOSS PER SHARE The calculation of basic and diluted loss per share for the nine month periods ended June 30, 2022 and 2021 was based on the 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 2022 2021 Net loss $ (1,729,012 ) $ (460,316 ) Weighted average common shares outstanding 84,704,029 40,588,217 Basic and diluted loss per share $ (0.02 ) $ (0.01 ) As of June 30, 2022, $ 77,600 100,000 666,667 5,575,000 2,340,189 65,825,806 4,805,206 |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTED INFORMATION | 11. SEGMENTED 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. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed interim consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of the Company’s financial position and of the results of operations and cash flows for the periods presented. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending September 30, 2022 or for any other interim period or for any other future fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s amended Form S-1 for the fiscal year ended September 30, 2021 filed with the Securities and Exchange Commission (“SEC”) on August 8, 2022. There have been no material changes in the Company’s significant accounting policies from those that were disclosed in the fiscal 2021 financial statements, except as noted below. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the assets, liabilities, revenue and expenses of the Company’s wholly-owned subsidiary. All intercompany balances and transactions have been eliminated. |
Use of Estimates | 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) amounts subject to allowances and returns; (ii) the fair value of assets when determining the existence of impairment factors and the amount of impairment, if any; (iii) the costs of site restoration when determining decommissioning liabilities; (iv) income taxes receivable or payable; (v) the useful lives of assets for the purposes of depreciation; (vi) petroleum and natural gas reserves; and (vii) 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. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED JUNE 30, 2022 (UNAUDITED) 2. Significant Accounting Policies |
Foreign Currency | Foreign Currency These consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Permex Petroleum US Corporation. These consolidated financial statements are presented in United States dollars (“USD,” “US” or “$”). The functional currency of the Company is the Canadian dollar (“CAD”). The functional currency for the subsidiary of the Company is USD. |
Recently adopted accounting pronouncement | Recently adopted accounting pronouncement None. |
NON-CURRENT ASSETS (Tables)
NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Non-current Assets | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT June 30, September 30, Oil and natural gas properties, at cost $ 8,044,184 $ 7,954,807 Vehicle, at cost 63,918 - Less: accumulated depletion and depreciation (269,582 ) (108,662 ) Property and equipment, net $ 7,838,520 $ 7,846,145 |
DECOMMISSIONING OBLIGATIONS (Ta
DECOMMISSIONING OBLIGATIONS (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
SCHEDULE OF DECOMMISSIONING OBLIGATIONS | Changes to the decommissioning obligations are as follows: SCHEDULE OF DECOMMISSIONING OBLIGATIONS June 30, September 30, Decommissioning obligations, beginning of the year $ 1,627,465 $ 792,814 Obligations acquired - 784,418 Obligations derecognized - (140,704 ) Change in estimates - 234,331 Change in discount rate - (81,236 ) Accretion expense 24,714 11,722 Foreign exchange movement (7,008 ) 26,120 Decommissioning obligation $ 1,645,171 $ 1,627,465 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS | SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS 2022 $ 13,785 2023 31,643 Total lease payments $ 45,428 |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The components of lease expense for the nine month periods ended June 30 were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2022 2021 Fixed lease expense $ 41,661 $ 30,194 Variable lease expense 13,246 4,597 Total $ 54,907 $ 34,791 |
SCHEDULE OF LEASE LIABILITY | The following is a continuity schedule of the lease liability: SCHEDULE OF LEASE LIABILITY June 30, September 30, Balance, beginning of the year $ 78,949 $ 53,128 Addition - 57,357 Interest expense 5,714 9,812 Lease payments (41,661 ) (43,932 ) Foreign exchange movement (196 ) 2,584 Balance, end of the year $ 42,806 $ 78,949 Current liability $ 39,493 $ 51,963 Long-term liability $ 3,313 $ 26,986 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Price Balance, September 30, 2020 2,340,189 $ 0.31 Cancelled (65,189 ) 0.40 Balance, September 30, 2021 2,275,000 $ 0.33 Granted 3,300,000 0.19 Balance, June 30, 2022 5,575,000 $ 0.24 Exercisable at June 30, 2022 5,500,000 $ 0.25 Weighted average fair value of options granted $ 0.19 (2021 - $ nil |
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE | SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2022 2021 Risk-free interest rate 1.50 % - Expected life of options 10 - Expected annualized volatility 131 % - Dividend rate Nil - |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | As at June 30, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Expiry Date 1,675,000 $ 0.39 December 4, 2027 300,000 $ 0.23 November 1, 2028 300,000 $ 0.04 March 16, 2030 3,300,000 $ 0.19 October 6, 2031 5,575,000 |
SCHEDULE OF WARRANTS TRANSACTIONS | Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Average Price Balance, September 30, 2020 4,805,206 $ 0.21 Granted 12,500,000 0.16 Warrants expired (4,805,206 ) 0.22 Balance, September 30, 2021 12,500,000 $ 0.16 Granted 53,325,806 0.21 Balance, June 30, 2022 65,825,806 $ 0.21 |
SCHEDULE OF WARRANTS OUTSTANDING | As at June 30, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Expiry Date 1,484,318 $ 0.42 November 4, 2023 51,841,488 $ 0.20 March 29, 2027 12,500,000 $ 0.16 October 1, 2031 65,825,806 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE | SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE 2022 2021 Net loss $ (1,729,012 ) $ (460,316 ) Weighted average common shares outstanding 84,704,029 40,588,217 Basic and diluted loss per share $ (0.02 ) $ (0.01 ) |
BACKGROUND (Details Narrative)
BACKGROUND (Details Narrative) | 9 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of incorporation | Apr. 24, 2017 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | |||||
Revenue | $ 276,722 | $ 34,298 | $ 625,057 | $ 37,392 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentration credit risk | 54% | 100% | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentration credit risk | 71% | 26% | |||
Accounts Receivable [Member] | One Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Revenue | $ 107,738 | $ 2,927 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2022 | Sep. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depletion and depreciation | $ (269,582) | $ (108,662) |
Property and equipment, net | 7,838,520 | 7,846,145 |
Oil and Gas Properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,044,184 | 7,954,807 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 63,918 |
NON-CURRENT ASSETS (Details Nar
NON-CURRENT ASSETS (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 $ / shares | |
Property, Plant and Equipment [Line Items] | ||||||
Percentage of working interests | 100% | 100% | ||||
Reclamation bonds | $ 145,052 | $ 145,052 | $ 144,847 | |||
Amount of reclamation deposit forfeited | $ 318 | $ (50,165) | $ 50,165 | |||
Common stock, shares issued | shares | 115,956,026 | 115,956,026 | 66,180,364 | |||
Fair value of common stock | $ 14,381,071 | $ 14,381,071 | $ 8,976,747 | |||
Risk-free interest rate | 1.50% | |||||
Expected life (years) | 10 years | |||||
Volatility rate | 131% | |||||
Dividend rate | ||||||
Depletion and depreciation expenses | $ 73,093 | $ 12,717 | $ 161,988 | $ 21,955 | ||
Permex Petroleum US Corporation [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Net revenue interest rate | 81.75% | |||||
Name of acquired entity | Permex Petroleum US Corporation | |||||
Percentage of acquired working interest | 100% | |||||
Common stock, shares issued | shares | 25,000,000 | |||||
Number of shares purchase warrants as consideration | shares | 12,500,000 | |||||
Fair value of common stock | $ 2,468,750 | |||||
Risk-free interest rate | 1.51% | |||||
Expected life (years) | 10 years | |||||
Volatility rate | 131.82% | |||||
Dividend rate | 0% | |||||
Exercise price of warrants | (per share) | $ 0.16 | $ 0.20 | ||||
Date of warrants exercisable | Oct. 01, 2031 | |||||
Permex Petroleum US Corporation [Member] | Valuation Technique, Option Pricing Model [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Share purchase warrants | $ 1,180,718 | |||||
Oil and Gas Properties [Member] | TEXAS | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Net revenue interest rate | 71.90% | 71.90% | ||||
Oil and Gas Properties [Member] | NEW MEXICO | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Royalty interest rate | 81.75% | 81.75% |
SCHEDULE OF DECOMMISSIONING OBL
SCHEDULE OF DECOMMISSIONING OBLIGATIONS (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Decommissioning obligations, beginning of the year | $ 1,627,465 | $ 792,814 |
Obligations acquired | 784,418 | |
Obligations derecognized | (140,704) | |
Change in estimates | 234,331 | |
Change in discount rate | (81,236) | |
Accretion expense | 24,714 | 11,722 |
Foreign exchange movement | (7,008) | 26,120 |
Decommissioning obligation | $ 1,645,171 | $ 1,627,465 |
DECOMMISSIONING OBLIGATIONS (De
DECOMMISSIONING OBLIGATIONS (Details Narrative) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Total undiscounted amount of estimated cash flows | $ 2,245,388 | $ 2,836,777 |
Decommissioning obligations derecognized | 140,704 | |
Decommissioning provision | 127,510 | |
Gain on loss, sale of properties | $ 13,194 | |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Decommissioning obligations, risk-free rate | 2 | 2 |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Decommissioning obligations, risk-free rate | 2.02 | 1.93 |
DEBT (Details Narrative)
DEBT (Details Narrative) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
May 31, 2020 USD ($) | May 31, 2020 CAD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 CAD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CAD ($) | Jun. 30, 2022 CAD ($) $ / shares | Feb. 21, 2020 USD ($) | Feb. 21, 2020 CAD ($) | Oct. 17, 2019 USD ($) | Oct. 17, 2019 CAD ($) | |
Short-Term Debt [Line Items] | ||||||||||||||
Convertible debt | $ 77,600 | $ 77,600 | $ 78,500 | $ 100,000 | ||||||||||
Loans payable | 4,241 | 4,241 | 15,176 | |||||||||||
Interest | 2,597 | $ 1,348 | 6,285 | $ 11,116 | 11,116 | |||||||||
Convertible debenture repayment | 79,000 | 79,000 | $ 100,000 | |||||||||||
Accrued interest debentures | 18,960 | 13,090 | 13,090 | |||||||||||
Repaid loan balance | 23,700 | $ 30,000 | ||||||||||||
Forgiveness of loan payable | $ 7,900 | $ 7,900 | $ 10,000 | |||||||||||
Loans Payable [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Maturity date, description | December 31, 2023 convert to two-year term | December 31, 2023 convert to two-year term | ||||||||||||
Interest annual rate | 5% | |||||||||||||
Proceeds from loans | $ 32,000 | $ 40,000 | ||||||||||||
Interest-free loans | $ 60,000 | |||||||||||||
Debt instrument description | The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by December 31, 2023 convert to two-year term loans bearing interest at an annual rate of 5% starting January 1, 2024, with loans fully due by December 31, 2025. | The loan was unsecured and non-interest bearing with an original repayment deadline of December 31, 2022. In January 2022, the Canadian government extended the repayment deadline to December 31, 2023 in order for the loan to be considered for partial forgiveness of up to one-third of the balance. Any loans not repaid by December 31, 2023 convert to two-year term loans bearing interest at an annual rate of 5% starting January 1, 2024, with loans fully due by December 31, 2025. | ||||||||||||
Convertible Debt [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Maturity date, description | maturity date of September 30, 2021 and February 20, 2022 | maturity date of September 30, 2021 and February 20, 2022 | ||||||||||||
Interest annual rate | 12% | 12% | 12% | |||||||||||
Debt instrument convertible price | (per share) | $ 0.12 | $ 0.12 | $ 0.15 | |||||||||||
Debt instrument term | 3 years | 3 years | ||||||||||||
Exercise price | (per share) | $ 0.16 | $ 0.16 | $ 0.20 | |||||||||||
Convertible debt | $ 77,600 | $ 77,600 | 78,500 | $ 100,000 | ||||||||||
Loans payable | $ 4,241 | $ 4,241 | $ 15,176 | |||||||||||
Director [Member] | Convertible Debt [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Convertible debt | $ 157,000 | $ 200,000 | $ 157,000 | $ 200,000 | ||||||||||
Chief Executive Officer [Member] | Convertible Debt [Member] | ||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||
Convertible debt | $ 157,000 | $ 200,000 | $ 157,000 | $ 200,000 |
SCHEDULE OF UNDISCOUNTED FUTURE
SCHEDULE OF UNDISCOUNTED FUTURE LEASE PAYMENTS (Details) | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 13,785 |
2023 | 31,643 |
Total lease payments | $ 45,428 |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Fixed lease expense | $ 41,661 | $ 30,194 | |||
Variable lease expense | 13,246 | 4,597 | |||
Total | $ 21,389 | $ 14,655 | $ 54,907 | $ 34,791 | $ 34,791 |
SCHEDULE OF LEASE LIABILITY (De
SCHEDULE OF LEASE LIABILITY (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 78,949 | $ 53,128 |
Addition | 57,357 | |
Interest expense | 5,714 | 9,812 |
Lease payments | (41,661) | (43,932) |
Foreign exchange movement | (196) | 2,584 |
Ending balance | 42,806 | 78,949 |
Current liability | 39,493 | 51,963 |
Long-term liability | $ 3,313 | $ 26,986 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) | Jun. 30, 2022 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term (in years) | 11 months 4 days |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
May 01, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 CAD ($) | Jun. 30, 2022 CAD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2020 CAD ($) | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||
Repayments of convertible debt | $ 79,000 | $ 79,000 | $ 100,000 | |||||||
Convertible debt | $ 77,600 | 77,600 | 78,500 | $ 100,000 | ||||||
Loans payable | 4,241 | 4,241 | 15,176 | |||||||
Management fees | 67,216 | $ 37,362 | 176,989 | 112,478 | ||||||
Annual base salary | $ 7,500 | 7,500 | ||||||||
Director [Member] | Convertible Debentures [Member] | ||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||
Convertible debt | $ 157,000 | $ 200,000 | ||||||||
Repayments of convertible debt | 79,000 | $ 100,000 | ||||||||
Interest payable | $ 13,090 | |||||||||
Chief Executive Officer [Member] | ||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||
Management fees | $ 176,989 | $ 112,478 | ||||||||
Annual base salary | $ 250,000 | |||||||||
Related party transaction, description | The CEO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to three years of base salary and a bonus equal to 20% of the annual base salary. | |||||||||
Chief Financial Officer [Member] | ||||||||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||||||||
Annual base salary | $ 50,000 | |||||||||
Related party transaction, description | The CFO is also eligible on an annual basis for a cash bonus of up to 100% of annual salary. The employment agreement may be terminated with a termination payment equal to two months of base salary. |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Equity [Abstract] | |||
Number of options, beginning balance | 2,275,000 | 2,340,189 | 2,340,189 |
Weighted average exercise price,beginning balance | $ 0.33 | $ 0.31 | $ 0.31 |
Cancelled | (65,189) | ||
Weighted average exercise price, cancelled | $ 0.40 | ||
Granted | 3,300,000 | 0 | |
Weighted average exercise price, granted | $ 0.19 | ||
Number of options, ending balance | 5,575,000 | 2,275,000 | |
Weighted average exercise price, ending balance | $ 0.24 | $ 0.33 | |
Exercisable | 5,500,000 | ||
Weighted average exercise price, exercisable | $ 0.25 | ||
Weighted average fair value of options granted | $ 0.19 |
SCHEDULE OF WEIGHTED AVERAGE AS
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Risk-free interest rate | 1.50% | |
Expected life of options | 10 years | |
Expected annualized volatility | 131% | |
Dividend rate |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) - $ / shares | 9 Months Ended | ||
Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Offsetting Assets [Line Items] | |||
Number of options | 5,575,000 | 2,275,000 | 2,340,189 |
Exercise Price | $ 0.24 | $ 0.33 | $ 0.31 |
Stock Option One [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 1,675,000 | ||
Exercise Price | $ 0.39 | ||
Expiry date | Dec. 04, 2027 | ||
Stock Option Two [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 300,000 | ||
Exercise Price | $ 0.23 | ||
Expiry date | Nov. 01, 2028 | ||
Stock Option Three [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 300,000 | ||
Exercise Price | $ 0.04 | ||
Expiry date | Mar. 16, 2030 | ||
Stock Option Four [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 3,300,000 | ||
Exercise Price | $ 0.19 | ||
Expiry date | Oct. 06, 2031 |
SCHEDULE OF WARRANTS TRANSACTIO
SCHEDULE OF WARRANTS TRANSACTIONS (Details) - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Number of warrants, beginning balance | 12,500,000 | 4,805,206 |
Weighted Average Exercise Price | $ 0.16 | $ 0.21 |
Granted | 53,325,806 | 12,500,000 |
Weighted average exercise price, granted | $ 0.21 | $ 0.16 |
Warrants expired | (4,805,206) | |
Weighted average exercise price, warrants expired | $ 0.22 | |
Number of warrants, ending balance | 65,825,806 | 12,500,000 |
Weighted Average Exercise Price | $ 0.21 | $ 0.16 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING (Details) | 9 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 65,825,806 |
Warrant One [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 1,484,318 |
Exercise price | $ / shares | $ 0.42 |
Expiry date | Nov. 04, 2023 |
Warrant Two [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 51,841,488 |
Exercise price | $ / shares | $ 0.20 |
Expiry date | Mar. 29, 2027 |
Warrant Three [Member] | |
Class of Warrant or Right [Line Items] | |
Number of options | $ 12,500,000 |
Exercise price | $ / shares | $ 0.16 |
Expiry date | Oct. 01, 2031 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 CAD ($) shares | Jun. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) $ / shares shares | Jun. 30, 2022 $ / shares | |
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock, shares authorized | Unlimited | Unlimited | Unlimited | ||||
Common stock, par value | $ / shares | $ 0 | $ 0 | $ 0 | ||||
Common stock, shares issued | shares | 115,956,026 | 115,956,026 | 66,180,364 | ||||
Common stock, shares outstanding | shares | 115,956,026 | 115,956,026 | 66,180,364 | ||||
Warrants and rights outstanding | $ 65,825,806 | $ 65,825,806 | |||||
Warrants issued | (18,302) | $ (1,079,928) | |||||
Risk-free interest rate | 1.50% | 1.50% | |||||
Expected life | 10 years | 10 years | |||||
Annualized volatility | 131% | 131% | |||||
Dividend rate | |||||||
Cash commission | $ 5,366,789 | $ 5,366,789 | $ 25,806 | ||||
Common stock, shares issued | shares | |||||||
Fair value of common stock | $ 34,850 | $ 54,958 | |||||
Percentage issued and outstanding for common stock | 10% | 10% | |||||
Vested | 10 years | 10 years | |||||
Aggregate intrinsic value of options outstanding and exercisable | |||||||
Options outstanding | shares | 5,575,000 | 2,340,189 | 5,575,000 | 2,340,189 | |||
Exercise price range | $ / shares | $ 0.04 | ||||||
Exercise price range | $ / shares | $ 0.39 | ||||||
Weighted average remaining contractual life | 7 years 10 months 17 days | 7 years 10 months 17 days | |||||
Weighted average fair value of options granted | $ / shares | $ 0.19 | ||||||
Options granted | shares | 3,300,000 | 3,300,000 | 0 | ||||
Share-based payment expense | $ 185 | $ 486 | $ 604,861 | $ 2,401 | |||
Service agreement [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 1,156,250 | ||||||
Fair value of common stock | $ 54,313 | ||||||
Property acquisition agreement [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 25,000,000 | ||||||
Fair value of common stock | $ 2,468,750 | ||||||
Think Equity LLC [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Other expenses | 131,560 | ||||||
Cash commission | $ 754,058 | $ 754,058 | |||||
Broker warrants | shares | 4,712,862 | 4,712,862 | |||||
Broker Warrants | $ 858,429 | ||||||
Non Brokered Private Placement [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock shares new issue | shares | 2,647,037 | 2,647,037 | |||||
Sale of stock price per share | (per share) | $ 0.22 | $ 0.22 | $ 0.27 | ||||
Common stock, gross proceeds | $ 571,760 | $ 714,700 | |||||
Exercise price | (per share) | $ 0.43 | $ 0.43 | $ 0.54 | ||||
Proceeds from allocated warrants | $ 137,946 | ||||||
Warrants and rights outstanding | $ 34,733 | $ 34,733 | |||||
Risk-free interest rate | 0.98% | 0.98% | |||||
Expected life | 2 years | 2 years | |||||
Annualized volatility | 153.02% | 153.02% | |||||
Dividend rate | 0% | 0% | |||||
Other expenses | $ 800 | ||||||
Non Brokered Private Placement [Member] | Warrant [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock shares new issue | shares | 160,800 | 160,800 | |||||
Warrants issued | $ 24,543 | ||||||
Brokered Private Placement [Member] | |||||||
Subsidiary, Sale of Stock [Line Items] | |||||||
Stock shares new issue | shares | 47,128,625 | 47,128,625 | |||||
Sale of stock price per share | $ / shares | $ 0.16 | $ 0.16 | |||||
Common stock, gross proceeds | $ 7,540,580 | ||||||
Exercise price | $ / shares | $ 0.21 | $ 0.21 | |||||
Proceeds from allocated warrants | $ 607,170 | ||||||
Risk-free interest rate | 2.45% | 2.45% | |||||
Expected life | 5 years | 5 years | |||||
Annualized volatility | 134.66% | 134.66% | |||||
Dividend rate | 0% | 0% | |||||
Other expenses | $ 140,475 | ||||||
Warrants term | 5 years | 5 years |
SCHEDULE OF BASIC AND DILUTED L
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (761,303) | $ (152,960) | $ (1,729,012) | $ (460,316) |
Weighted average common shares outstanding | 84,704,029 | 40,588,217 | ||
Basic and diluted loss per share | $ 0 | $ 0 | $ (0.02) | $ (0.01) |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) | 9 Months Ended | ||||
Jun. 30, 2022 USD ($) shares | Jun. 30, 2022 CAD ($) shares | Sep. 30, 2021 USD ($) shares | Jun. 30, 2021 shares | Sep. 30, 2020 shares | |
Earnings Per Share [Abstract] | |||||
Convertible debentures | $ 77,600 | $ 100,000 | $ 78,500 | ||
Convertible of common shares | 666,667 | ||||
Stock options outstanding | 5,575,000 | 5,575,000 | 2,340,189 | ||
Warrants outstanding | 65,825,806 | 65,825,806 | 12,500,000 | 4,805,206 | 4,805,206 |