Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --09-30 | |
Entity File Number | 000-41558 | |
Entity Registrant Name | Permex Petroleum Corporation | |
Entity Central Index Key | 0001922639 | |
Entity Tax Identification Number | 98-1384682 | |
Entity Incorporation, State or Country Code | A1 | |
Entity Address, Address Line One | 2911 Turtle Creek Blvd. | |
Entity Address, Address Line Two | Suite 925 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75219 | |
City Area Code | (469) | |
Local Phone Number | 804-1306 | |
Entity Current Reporting Status | Yes | |
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 | 1,932,604 |
Condensed Interim Consolidated
Condensed Interim Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 1,693,664 | $ 3,300,495 |
Trade and other receivables, net | 185,466 | 137,214 |
Prepaid expenses and deposits | 204,958 | 317,277 |
Total current assets | 2,084,088 | 3,754,986 |
Non-current assets | ||
Reclamation deposits | 145,000 | 145,000 |
Property and equipment, net of accumulated depreciation and depletion | 9,874,776 | 8,426,776 |
Right of use asset, net | 212,486 | 240,796 |
Total assets | 12,316,350 | 12,567,558 |
Current liabilities | ||
Trade and other payables | 2,699,225 | 1,561,344 |
Convertible debenture | 38,291 | |
Lease liability – current portion | 91,665 | 104,224 |
Total current liabilities | 2,790,890 | 1,703,859 |
Non-current liabilities | ||
Asset retirement obligations | 244,406 | 236,412 |
Lease liability, less current portion | 126,799 | 140,682 |
Warrant liability | 166 | 23,500 |
Total liabilities | 3,162,261 | 2,104,453 |
Equity | ||
Common stock, no par value per share; unlimited shares authorized, 1,932,604 shares* issued and outstanding as of December 31, 2022 and September 30, 2022 | 14,337,739 | 14,337,739 |
Additional paid-in capital | 4,513,369 | 4,513,194 |
Accumulated other comprehensive loss | (127,413) | (127,413) |
Deficit | (9,569,606) | (8,260,415) |
Total equity | 9,154,089 | 10,463,105 |
Total liabilities and equity | $ 12,316,350 | $ 12,567,558 |
Condensed Interim Consolidate_2
Condensed Interim Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | ||
Statement of Financial Position [Abstract] | ||||
Common stock, par value | $ 0 | $ 0 | ||
Common stock, shares authorized | Unlimited | Unlimited | ||
Common stock, shares issued | [1] | 1,932,604 | 1,932,604 | |
Common stock, shares outstanding | [1] | 1,932,604 | 1,932,604 | |
Stockholders equity reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | |
[1]The number of shares has been restated to reflect the 60:1 reverse stock split |
Condensed Interim Consolidate_3
Condensed Interim Consolidated Statements of Loss (Unaudited) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenues | |||
Oil and gas sales | $ 213,754 | $ 89,990 | |
Royalty income | 8,188 | 16,459 | |
Total revenues | 221,942 | 106,449 | |
Operating expenses | |||
Production | 292,679 | 81,879 | |
General and administrative | 1,215,106 | 809,606 | |
Depletion and depreciation | 40,196 | 32,011 | |
Accretion on asset retirement obligations | 7,994 | 8,253 | |
Foreign exchange gain (loss) | 3,310 | 4,970 | |
Total operating expenses | (1,559,285) | (936,719) | |
Loss from operations | (1,337,343) | (830,270) | |
Other income (expense) | |||
Other income | 6,000 | ||
Finance expense | (1,182) | (23,468) | |
Change in fair value of warrant liability | 23,334 | 102,550 | |
Total other income (expense) | 28,152 | 79,082 | |
Net loss and comprehensive loss | $ (1,309,191) | $ (751,188) | |
Basic and diluted loss per common share | $ (0.68) | $ (0.66) | |
Weighted average number of common shares outstanding* | [1] | 1,932,604 | 1,130,344 |
[1]The number of shares has been restated to reflect the 60:1 reverse stock split |
Condensed Interim Consolidate_4
Condensed Interim Consolidated Statements of Loss (Unaudited) (Parenthetical) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Equity [Abstract] | |||
Stockholders equity reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) | Total | Share Capital [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | |
Balance at Sep. 30, 2021 | $ 5,780,252 | $ 8,976,747 | $ 2,476,717 | $ (127,413) | $ (5,545,799) | |
Balance, shares at Sep. 30, 2021 | [1] | 1,103,010 | ||||
Share-based payments | 607,325 | 607,325 | ||||
Net loss | (751,188) | (751,188) | ||||
Balance at Dec. 31, 2021 | 5,991,833 | $ 9,307,648 | 3,108,585 | (127,413) | (6,296,987) | |
Balance, shares at Dec. 31, 2021 | [1] | 1,147,127 | ||||
Private placements | 369,751 | $ 369,751 | ||||
Private placements, shares | [1] | 44,117 | ||||
Share issuance costs | (14,307) | $ (38,850) | 24,543 | |||
Balance at Sep. 30, 2021 | 5,780,252 | $ 8,976,747 | 2,476,717 | (127,413) | (5,545,799) | |
Balance, shares at Sep. 30, 2021 | [1] | 1,103,010 | ||||
Balance at Sep. 30, 2022 | 10,463,105 | $ 14,337,739 | 4,513,194 | (127,413) | (8,260,415) | |
Balance, shares at Sep. 30, 2022 | [1] | 1,932,604 | ||||
Share-based payments | 175 | 175 | ||||
Net loss | (1,309,191) | (1,309,191) | ||||
Balance at Dec. 31, 2022 | $ 9,154,089 | $ 14,337,739 | $ 4,513,369 | $ (127,413) | $ (9,569,606) | |
Balance, shares at Dec. 31, 2022 | [1] | 1,932,604 | ||||
[1]The number of shares has been restated to reflect the 60:1 reverse stock split |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) (Parenthetical) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Equity [Abstract] | |||
Stockholders equity reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split |
Condensed Interim Consolidate_5
Condensed Interim Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net loss | $ (1,309,191) | $ (751,188) | |
Adjustments to reconcile net loss to net cash from operating activities: | |||
Accretion on asset retirement obligations | 7,994 | 8,253 | |
Depletion and depreciation | 40,196 | 32,011 | |
Foreign exchange loss (gain) | 474 | ||
Finance expense | 11,073 | ||
Change in fair value of warrant liability | (23,334) | (102,550) | |
Share-based payments | 175 | 607,325 | |
Changes in operating assets and liabilities: | |||
Trade and other receivables | (48,252) | (118,432) | |
Prepaid expenses and deposits | 112,319 | (2,994) | |
Trade and other payables | 514,733 | (13,583) | |
Right of use asset and lease liability | 1,868 | 318 | |
Net cash used in operating activities | (703,492) | (329,293) | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Capital expenditures on property and equipment | (865,048) | (8,777) | |
Net cash provided by (used in) investing activities | (865,048) | (8,777) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from issuance of private placement units | 571,760 | ||
Share issuance costs | (22,978) | ||
Convertible debenture repayment | (38,291) | ||
Loan from related party | 3,095 | ||
Net cash provided by (used in) financing activities | (38,291) | 551,877 | |
Change in cash and cash equivalents during the period | (1,606,831) | 213,807 | |
Cash and cash equivalents, beginning of the period | 3,300,495 | 25,806 | $ 25,806 |
Cash and cash equivalents, end of the period | 1,693,664 | 239,613 | $ 3,300,495 |
Supplemental disclosures of non-cash investing and financing activities: | |||
Share purchase warrants issued in connection with private placements | 226,552 | ||
Trade and other payables related to property and equipment | 1,270,400 | 109,888 | |
Supplemental cash flow disclosures: | |||
Interest paid | $ 1,182 |
BACKGROUND
BACKGROUND | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND | 1. BACKGROUND Permex Petroleum Corporation (the “Company”) was incorporated on April 24, 2017 th 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 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US 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, 2023 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 footnotes for the fiscal year ended September 30, 2022. 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 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) 2. Significant Accounting Policies 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 $ 9,569,606 Management plans to fund operations of the Company with its current working capital and through increasing production from its oil and gas leases. The Company also expects to raise additional funds through equity 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. Management believes that this plan provides an opportunity for the Company to continue as a going concern. 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. 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. New accounting standards There are not currently any new or pending accounting standards that are expected to have a significant impact on the Company’s consolidated financial statements. PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) |
REVENUE
REVENUE | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 3. REVENUE Revenue from contracts with customers is presented in “Oil and gas sales” on the Consolidated Statements of Loss. As of December 31, 2022 and September 30, 2022, receivable from contracts with customers, included in trade and other receivables, were $ 78,802 56,639 The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS 1 2 3 Three months ended December 31, 2022 Texas New Mexico Total Crude oil $ 173,961 $ 39,512 $ 213,473 Natural gas 281 - 281 Revenue from contracts with customers $ 174,242 $ 39,512 $ 213,754 Three months ended December 31, 2021 Texas New Mexico Total Crude oil $ 70,161 $ - $ 70,161 Natural gas 19,829 - 19,829 Revenue from contracts with customers $ 89,990 $ - $ 89,990 |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 3 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | 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 $ 140,497 91,928 78,451 56 44,969 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 5. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2022 September 30, 2022 Oil and natural gas properties, at cost $ 9,903,713 $ 8,029,234 Construction in progress - 460,306 Less: accumulated depletion (212,853 ) (184,658 ) Oil and natural gas properties, net 9,690,860 8,304,882 Other property and equipment, at cost 201,565 127,542 Less: accumulated depreciation (17,649 ) (5,648 ) Other property and equipment, net 183,916 121,894 Property and equipment, net $ 9,874,776 $ 8,426,776 Depletion and depreciation expense was $ 40,196 32,011 |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
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: SCHEDULE OF RIGHT OF USE OPERATING LEASES December 31, 2022 September 30, 2022 Right-of-use assets $ 212,486 $ 240,796 Lease liabilities Balance, beginning of the year $ 244,906 $ 78,949 Addition - 220,368 Liability accretion 7,088 9,042 Lease payments (33,530 ) (63,453 ) Balance, end of the year $ 218,464 $ 244,906 Current lease liabilities $ 91,665 $ 104,224 Long-term lease liabilities $ 126,799 $ 140,682 The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST Three months ended Three months ended Operating lease cost $ 35,398 $ 13,961 Variable lease expense 7,175 7,557 Sublease income (10,004 ) (4,868 ) Rent subsidy - (1,674 ) Net lease cost $ 32,569 $ 14,976 As of December 31, 2022, maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENT Year 2023 $ 77,294 2024 82,190 2025 84,664 2026 14,180 Total lease payments 258,328 Less: imputed interest (39,864 ) Total lease liabilities $ 218,464 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | 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 ASSET RETIREMENT OBLIGATIONS December 31, 2022 September 30, 2022 Asset retirement obligations, beginning of the year $ 236,412 $ 552,594 Revisions of estimates - (371,212 ) Accretion expense 7,994 55,030 Asset retirement obligations, ending of the year $ 244,406 $ 236,412 During the year ended September 30, 2022, the Company had revision of estimates totaling $ 371,212 Reclamation deposits As of December 31, 2022, the Company held reclamation deposits of $ 145,000 145,000 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | 8. DEBT Convertible debenture – Related party As of September 30, 2022, the Company had a debenture loan of $ 73,000 100,000 12 December 20, 2022 6.57 9.00 three years 8.76 12.00 During the year ended September 30, 2022, the Company repaid $ 34,709 47,546 38,291 52,454 During the three months ended December 31, 2022 and the year ended September 30, 2022, the Company recorded interest of $ 1,182 9,360 Loan payable In May 2020, the Company opened a Canada Emergency Business Account (“CEBA”) and received a loan of $ 28,640 40,000 60,000 23,600 30,000 7,800 10,000 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS i) The convertible debenture loan from the CEO of the Company mentioned in Note 8 was paid off during the three months ended December 31, 2022. ii) The Company has an employment agreement 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 iii) On May 1, 2022, the Company entered into an employment agreement 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. |
LOSS PER SHARE
LOSS PER SHARE | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | 10. LOSS PER SHARE The calculation of basic and diluted loss per share for the three month periods ended December 31, 2022 and 2021 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 Three months ended December 31, 2022 Three months ended December 31, 2021 Net loss $ (1,309,191 ) $ (751,188 ) Weighted average common shares outstanding 1,932,604 1,130,344 Basic and diluted loss per share $ (0.68 ) $ (0.66 ) As of December 31, 2022, 84,583 92,917 1,097,096 1,097,096 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) |
EQUITY
EQUITY | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
EQUITY | 11. EQUITY Common stock The Company has authorized an unlimited no 1,932,604 There were no share issuance transactions during the three months ended December 31, 2022. During the year ended September 30, 2022, the Company: a) Completed a non-brokered private placement of 44,117 12.96 16.20 571,760 714,700 25.80 32.40 202,009 34,733 2,680 24,543 0.98 2 153.02 0 800 8,671 b) Completed a brokered private placement of 785,477 9.60 7,540,580 5 12.60 607,170 754,058 78,548 131,560 858,429 2.45 5 134.66 0 159,271 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 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) 11. EQUITY Share-based payments Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Balance, September 30, 2021 37,917 $ 19.51 Granted 55,000 10.51 Cancelled (8,334 ) 17.34 Balance, September 30, 2022 and December 31, 2022 84,583 $ 13.26 Exercisable at December 31, 2022 83,333 $ 13.61 The aggregate intrinsic value of options outstanding and exercisable as at December 31, 2022 was $ nil nil The options outstanding as of December 31, 2022 have exercise prices in the range of $ 2.22 22.20 7.46 During the three months ended December 31, 2022 and 2021, the Company recognized share-based payment expense of $ 175 607,325 SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE 2022 2021 Risk-free interest rate - 1.5 % Expected life of options - 10 Expected annualized volatility - 96.56 % Dividend rate - Nil Weighted average fair value of options granted - $ 10.17 As December 31, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Issuance Date Expiry Date 27,917 $ 22.20 December 4, 2017 December 4, 2027 5,000 $ 13.32 November 1, 2018 November 1, 2028 5,000 $ 2.22 March 16, 2020 March 16, 2030 51,666 $ 10.66 October 6, 2021 October 6, 2031 84,583 PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) 11. EQUITY Warrants Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Balance, September 30, 2021 208,333 $ 9.42 Granted 888,763 12.91 Balance, September 30, 2022 and December 31, 2022 1,097,096 $ 12.12 As December 31, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Issuance Date Expiry Date 24,739 $ 23.98 November 4, 2021 November 4, 2023 864,024 $ 12.60 March 29, 2022 March 29, 2027 208,333 $ 8.88 September 30, 2021 September 30, 2031 1,097,096 22,059 202,009 0.98 2 153.02 0 178,509 23,334 102,550 The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at December 31, 2022 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS December 31, 2022 September 30, 2022 Risk-free interest rate 4.06 % 3.79 % Warrant measurement input 4.06 % 3.79 % Expected life of options 0.75 1 Expected annualized volatility 110.97 % 135.59 % Dividend rate Nil Nil Weighted average fair value of options granted $ 0.01 $ 1.46 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US 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, 2023 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 footnotes for the fiscal year ended September 30, 2022. |
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, Permex Petroleum US Corporation PERMEX PETROLEUM CORPORATION NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED DECEMBER 31, 2022 (UNAUDITED) 2. Significant Accounting Policies |
Going concern of operations | 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 $ 9,569,606 Management plans to fund operations of the Company with its current working capital and through increasing production from its oil and gas leases. The Company also expects to raise additional funds through equity 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. Management believes that this plan provides an opportunity for the Company to continue as a going concern. 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. |
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. |
New accounting standards | New accounting standards There are not currently any new or pending accounting standards that are expected to have a significant impact on the Company’s consolidated financial statements. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS | The following table present our revenue from contracts with customers disaggregated by product type and geographic areas. SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS 1 2 3 Three months ended December 31, 2022 Texas New Mexico Total Crude oil $ 173,961 $ 39,512 $ 213,473 Natural gas 281 - 281 Revenue from contracts with customers $ 174,242 $ 39,512 $ 213,754 Three months ended December 31, 2021 Texas New Mexico Total Crude oil $ 70,161 $ - $ 70,161 Natural gas 19,829 - 19,829 Revenue from contracts with customers $ 89,990 $ - $ 89,990 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2022 September 30, 2022 Oil and natural gas properties, at cost $ 9,903,713 $ 8,029,234 Construction in progress - 460,306 Less: accumulated depletion (212,853 ) (184,658 ) Oil and natural gas properties, net 9,690,860 8,304,882 Other property and equipment, at cost 201,565 127,542 Less: accumulated depreciation (17,649 ) (5,648 ) Other property and equipment, net 183,916 121,894 Property and equipment, net $ 9,874,776 $ 8,426,776 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
SCHEDULE OF RIGHT OF USE OPERATING 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 December 31, 2022 September 30, 2022 Right-of-use assets $ 212,486 $ 240,796 Lease liabilities Balance, beginning of the year $ 244,906 $ 78,949 Addition - 220,368 Liability accretion 7,088 9,042 Lease payments (33,530 ) (63,453 ) Balance, end of the year $ 218,464 $ 244,906 Current lease liabilities $ 91,665 $ 104,224 Long-term lease liabilities $ 126,799 $ 140,682 |
SCHEDULE OF LEASE COST | The following table presents the Company’s total lease cost. SCHEDULE OF LEASE COST Three months ended Three months ended Operating lease cost $ 35,398 $ 13,961 Variable lease expense 7,175 7,557 Sublease income (10,004 ) (4,868 ) Rent subsidy - (1,674 ) Net lease cost $ 32,569 $ 14,976 |
SCHEDULE OF FUTURE LEASE PAYMENT | As of December 31, 2022, maturities of the Company’s operating lease liabilities are as follows: SCHEDULE OF FUTURE LEASE PAYMENT Year 2023 $ 77,294 2024 82,190 2025 84,664 2026 14,180 Total lease payments 258,328 Less: imputed interest (39,864 ) Total lease liabilities $ 218,464 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
SCHEDULE OF ASSET RETIREMENT OBLIGATIONS | SCHEDULE OF ASSET RETIREMENT OBLIGATIONS December 31, 2022 September 30, 2022 Asset retirement obligations, beginning of the year $ 236,412 $ 552,594 Revisions of estimates - (371,212 ) Accretion expense 7,994 55,030 Asset retirement obligations, ending of the year $ 244,406 $ 236,412 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE | The calculation of basic and diluted loss per share for the three month periods ended December 31, 2022 and 2021 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 Three months ended December 31, 2022 Three months ended December 31, 2021 Net loss $ (1,309,191 ) $ (751,188 ) Weighted average common shares outstanding 1,932,604 1,130,344 Basic and diluted loss per share $ (0.68 ) $ (0.66 ) |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
SCHEDULE OF STOCK OPTION TRANSACTIONS | Stock option transactions are summarized as follows: SCHEDULE OF STOCK OPTION TRANSACTIONS Number Weighted Average Balance, September 30, 2021 37,917 $ 19.51 Granted 55,000 10.51 Cancelled (8,334 ) 17.34 Balance, September 30, 2022 and December 31, 2022 84,583 $ 13.26 Exercisable at December 31, 2022 83,333 $ 13.61 |
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 - 1.5 % Expected life of options - 10 Expected annualized volatility - 96.56 % Dividend rate - Nil Weighted average fair value of options granted - $ 10.17 |
SCHEDULE OF STOCK OPTIONS OUTSTANDING | As December 31, 2022, the following stock options were outstanding: SCHEDULE OF STOCK OPTIONS OUTSTANDING Number Exercise Price Issuance Date Expiry Date 27,917 $ 22.20 December 4, 2017 December 4, 2027 5,000 $ 13.32 November 1, 2018 November 1, 2028 5,000 $ 2.22 March 16, 2020 March 16, 2030 51,666 $ 10.66 October 6, 2021 October 6, 2031 84,583 |
SCHEDULE OF WARRANTS TRANSACTIONS | Warrant transactions are summarized as follows: SCHEDULE OF WARRANTS TRANSACTIONS Number Weighted Balance, September 30, 2021 208,333 $ 9.42 Granted 888,763 12.91 Balance, September 30, 2022 and December 31, 2022 1,097,096 $ 12.12 |
SCHEDULE OF WARRANTS OUTSTANDING | As December 31, 2022, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Number Exercise Price Issuance Date Expiry Date 24,739 $ 23.98 November 4, 2021 November 4, 2023 864,024 $ 12.60 March 29, 2022 March 29, 2027 208,333 $ 8.88 September 30, 2021 September 30, 2031 1,097,096 |
SCHEDULE OF VALUATION OF WARRANTS | The following weighted average assumptions were used for the Black-Scholes valuation of warrants as at December 31, 2022 and September 30, 2022: SCHEDULE OF VALUATION OF WARRANTS December 31, 2022 September 30, 2022 Risk-free interest rate 4.06 % 3.79 % Warrant measurement input 4.06 % 3.79 % Expected life of options 0.75 1 Expected annualized volatility 110.97 % 135.59 % Dividend rate Nil Nil Weighted average fair value of options granted $ 0.01 $ 1.46 |
BACKGROUND (Details Narrative)
BACKGROUND (Details Narrative) | 3 Months Ended | 12 Months Ended | ||
Oct. 26, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Date of incorporation | Apr. 24, 2017 | |||
Stockholders equity reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | 60:1 reverse stock split | |
Board of Directors Chairman [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||||
Stockholders equity reverse stock split | 1 for 60 ratio |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Accounting Policies [Abstract] | ||
Retained earnings accumulated deficit | $ 9,569,606 | $ 8,260,415 |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATED BY PRODUCT TYPE AND GEOGRAPHIC AREAS (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | $ 213,754 | $ 89,990 |
TEXAS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 174,242 | 89,990 |
NEW MEXICO | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 39,512 | |
Crude Oil [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 213,473 | 70,161 |
Crude Oil [Member] | TEXAS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 173,961 | 70,161 |
Crude Oil [Member] | NEW MEXICO | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 39,512 | |
Natural Gas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 281 | 19,829 |
Natural Gas [Member] | TEXAS | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers | 281 | 19,829 |
Natural Gas [Member] | NEW MEXICO | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts with customers |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Revenue | $ 213,754 | $ 89,990 | |
Accounts Receivable [Member] | |||
Revenue | $ 78,802 | $ 56,639 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Concentration Risk [Line Items] | |||
Revenue | $ 213,754 | $ 89,990 | |
Non trade receivables current | 44,969 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Concentration Risk [Line Items] | |||
Trade receivables | 140,497 | $ 91,928 | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customer [Member] | |||
Concentration Risk [Line Items] | |||
Revenue | $ 78,451 | ||
Concentration risk percentage | 56% |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2022 | Sep. 30, 2022 |
Property, Plant and Equipment [Abstract] | ||
Oil and natural gas properties, at cost | $ 9,903,713 | $ 8,029,234 |
Construction in progress | 460,306 | |
Less: accumulated depletion | (212,853) | (184,658) |
Oil and natural gas properties, net | 9,690,860 | 8,304,882 |
Other property and equipment, at cost | 201,565 | 127,542 |
Less: accumulated depreciation | (17,649) | (5,648) |
Other property and equipment, net | 183,916 | 121,894 |
Property and equipment, net | $ 9,874,776 | $ 8,426,776 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depletion and depreciation | $ 40,196 | $ 32,011 |
SCHEDULE OF RIGHT OF USE OPERAT
SCHEDULE OF RIGHT OF USE OPERATING LEASES (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | $ 212,486 | $ 240,796 |
Ending balance | 218,464 | |
Current lease liabilities | 91,665 | 104,224 |
Long-term lease liabilities | 126,799 | 140,682 |
Office Premises [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use assets | 212,486 | 240,796 |
Beginning balance | 244,906 | 78,949 |
Addition | 220,368 | |
Liability accretion | 7,088 | 9,042 |
Lease payments | (33,530) | (63,453) |
Ending balance | 218,464 | 244,906 |
Current lease liabilities | 91,665 | 104,224 |
Long-term lease liabilities | $ 126,799 | $ 140,682 |
SCHEDULE OF LEASE COST (Details
SCHEDULE OF LEASE COST (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 35,398 | $ 13,961 |
Variable lease expense | 7,175 | 7,557 |
Sublease income | (10,004) | (4,868) |
Rent subsidy | (1,674) | |
Net lease cost | $ 32,569 | $ 14,976 |
SCHEDULE OF FUTURE LEASE PAYMEN
SCHEDULE OF FUTURE LEASE PAYMENT (Details) | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 77,294 |
2024 | 82,190 |
2025 | 84,664 |
2026 | 14,180 |
Total lease payments | 258,328 |
Less: imputed interest | (39,864) |
Total lease liabilities | $ 218,464 |
SCHEDULE OF ASSET RETIREMENT OB
SCHEDULE OF ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligations, beginning of the year | $ 236,412 | $ 552,594 |
Revisions of estimates | (371,212) | |
Accretion expense | 7,994 | 55,030 |
Asset retirement obligations, ending of the year | $ 244,406 | $ 236,412 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2022 | Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset Retirement Obligation, Revision of Estimate | $ 371,212 | |
Reclamation deposits | $ 145,000 | $ 145,000 |
DEBT (Details Narrative)
DEBT (Details Narrative) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
May 31, 2020 USD ($) | May 31, 2020 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2022 CAD ($) | Dec. 31, 2022 CAD ($) | Sep. 30, 2022 CAD ($) $ / shares | |
Short-Term Debt [Line Items] | ||||||||
Repayments of loan | $ 38,291 | |||||||
Principal loan amount | 38,291 | $ 52,454 | ||||||
Interest expenses | $ 1,182 | $ 9,360 | ||||||
Repayments of short term debt | 23,600 | $ 30,000 | ||||||
Forgiveness of loan payable | $ 7,800 | $ 10,000 | ||||||
Loans Payable [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Loans payable to bank, current | $ 60,000 | |||||||
Loans Payable [Member] | CEBA [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Proceeds from loans | $ 28,640 | $ 40,000 | ||||||
Convertible Debt [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Interest rate | 12% | 12% | ||||||
Debt instrument, maturity date, description | December 20, 2022 | December 20, 2022 | ||||||
Debt conversion price | (per share) | $ 6.57 | $ 9 | ||||||
Debt instrument term | 3 years | 3 years | ||||||
Exercise price | (per share) | $ 8.76 | $ 12 | ||||||
Repayments of loan | $ 34,709 | $ 47,546 | ||||||
Chief Executive Officer [Member] | Convertible Debt [Member] | ||||||||
Short-Term Debt [Line Items] | ||||||||
Debenture loan | $ 73,000 | $ 100,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - Employee Agreement [Member] - USD ($) | 3 Months Ended | |
May 01, 2022 | Dec. 31, 2022 | |
Chief Executive Officer [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Annual base salary | $ 250,000 | |
Description of officer annual bonus | 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 | |
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. The employment agreement may be terminated with a termination payment equal to two months of base salary. |
SCHEDULE OF BASIC AND DILUTED L
SCHEDULE OF BASIC AND DILUTED LOSS PER SHARE (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Earnings Per Share [Abstract] | |||
Net loss | $ (1,309,191) | $ (751,188) | |
Weighted average common shares outstanding | [1] | 1,932,604 | 1,130,344 |
Basic and diluted loss per share | $ (0.68) | $ (0.66) | |
[1]The number of shares has been restated to reflect the 60:1 reverse stock split |
LOSS PER SHARE (Details Narrati
LOSS PER SHARE (Details Narrative) - shares | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Earnings Per Share [Abstract] | |||
Number of options | 84,583 | 92,917 | |
Number of warrants | 1,097,096 | 208,333 | 1,097,096 |
SCHEDULE OF STOCK OPTION TRANSA
SCHEDULE OF STOCK OPTION TRANSACTIONS (Details) | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Equity [Abstract] | |
Number of options, beginning balance | shares | 37,917 |
Weighted average exercise price, beginning balance | $ / shares | $ 19.51 |
Granted | shares | 55,000 |
Weighted average exercise price, granted | $ / shares | $ 10.51 |
Cancelled | shares | (8,334) |
Weighted average exercise price, cancelled | $ / shares | $ 17.34 |
Number of options, ending balance | shares | 84,583 |
Weighted average exercise price, ending balance | $ / shares | $ 13.26 |
Exercisable | shares | 83,333 |
Weighted average exercise price, exercisable | $ / shares | $ 13.61 |
SCHEDULE OF WEIGHTED AVERAGE AS
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS USED IN THE FAIR VALUE (Details) - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Risk-free interest rate | 1.50% | |
Expected life of options | 10 years | |
Expected annualized volatility | 96.56% | |
Dividend rate | ||
Weighted average option granted | $ 10.17 |
SCHEDULE OF STOCK OPTIONS OUTST
SCHEDULE OF STOCK OPTIONS OUTSTANDING (Details) - $ / shares | 3 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Offsetting Assets [Line Items] | |||
Number of options | 84,583 | 37,917 | 84,583 |
Exercise Price | $ 13.26 | $ 19.51 | $ 13.26 |
Stock Option One [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 27,917 | ||
Exercise Price | $ 22.20 | ||
Issuance date | Dec. 04, 2017 | ||
Expiry date | Dec. 04, 2027 | ||
Stock Option Two [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 5,000 | ||
Exercise Price | $ 13.32 | ||
Issuance date | Nov. 01, 2018 | ||
Expiry date | Nov. 01, 2028 | ||
Stock Option Three [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 5,000 | ||
Exercise Price | $ 2.22 | ||
Issuance date | Mar. 16, 2020 | ||
Expiry date | Mar. 16, 2030 | ||
Stock Option Four [Member] | |||
Offsetting Assets [Line Items] | |||
Number of options | 51,666 | ||
Exercise Price | $ 10.66 | ||
Issuance date | Oct. 06, 2021 | ||
Expiry date | Oct. 06, 2031 |
SCHEDULE OF WARRANTS TRANSACTIO
SCHEDULE OF WARRANTS TRANSACTIONS (Details) | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Equity [Abstract] | |
Number of warrants, beginning balance | shares | 208,333 |
Weighted Average Exercise Price, beginning balance | $ / shares | $ 9.42 |
Granted | shares | 888,763 |
Weighted average exercise price, granted | $ / shares | $ 12.91 |
Number of warrants, ending balance | shares | 1,097,096 |
Weighted Average Exercise Price, ending balance | $ / shares | $ 12.12 |
SCHEDULE OF WARRANTS OUTSTANDIN
SCHEDULE OF WARRANTS OUTSTANDING (Details) | 3 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Class of Warrant or Right [Line Items] | |
Number of warrants | 1,097,096 |
Warrant One [Member] | |
Class of Warrant or Right [Line Items] | |
Number of warrants | 24,739 |
Exercise price | $ / shares | $ 23.98 |
Issuance date | Nov. 04, 2021 |
Expiry date | Nov. 04, 2023 |
Warrant Two [Member] | |
Class of Warrant or Right [Line Items] | |
Number of warrants | 864,024 |
Exercise price | $ / shares | $ 12.60 |
Issuance date | Mar. 29, 2022 |
Expiry date | Mar. 29, 2027 |
Warrant Three [Member] | |
Class of Warrant or Right [Line Items] | |
Number of warrants | 208,333 |
Exercise price | $ / shares | $ 8.88 |
Issuance date | Sep. 30, 2021 |
Expiry date | Sep. 30, 2031 |
SCHEDULE OF VALUATION OF WARRAN
SCHEDULE OF VALUATION OF WARRANTS (Details) | Dec. 31, 2022 $ / shares | Sep. 30, 2022 $ / shares |
Measurement Input, Risk Free Interest Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant measurement input | 4.06 | 3.79 |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Expected life of options | 9 months | 1 year |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant measurement input | 110.97 | 135.59 |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant measurement input | 0 | |
Measurement Input, Share Price [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrant measurement input | 0.01 | 1.46 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 3 Months Ended | 12 Months Ended | |||||||
Mar. 29, 2022 USD ($) $ / shares shares | Nov. 04, 2021 USD ($) $ / shares shares | Nov. 04, 2021 CAD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2022 $ / shares | Nov. 04, 2021 $ / shares | ||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Common stock, shares authorized | Unlimited | Unlimited | |||||||
Common stock, par value | $ / shares | $ 0 | $ 0 | |||||||
Common stock, shares issued | shares | [1] | 1,932,604 | 1,932,604 | ||||||
Common stock, shares outstanding | shares | [1] | 1,932,604 | 1,932,604 | ||||||
Warrants issued | $ (14,307) | ||||||||
Risk free interest rate | 1.50% | ||||||||
Expected life | 10 years | ||||||||
Volatility rate | 96.56% | ||||||||
Dividend rate | |||||||||
Issuance costs | $ 22,978 | ||||||||
Percentage issued and outstanding for common stock | 10% | ||||||||
Vested term | 10 years | ||||||||
Aggregate intrinsic value of options outstanding and exercisable | |||||||||
Exercise price range, minimum | $ / shares | $ 2.22 | ||||||||
Exercise price range, maximum | $ / shares | $ 22.20 | ||||||||
Weighted average remaining contractual life | 7 years 5 months 15 days | ||||||||
Share-based payment expense | $ 175 | 607,325 | |||||||
Warrant liability | (23,334) | (102,550) | |||||||
Gain on fair value adjustment of warrants | $ 23,334 | $ 102,550 | 178,509 | ||||||
Think Equity LLC [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Other expenses | 131,560 | ||||||||
Cash commission | $ 754,058 | ||||||||
Broker warrants | shares | 78,548 | ||||||||
Broker warrants | $ 858,429 | ||||||||
Warrant [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Risk free interest rate | 0.98% | ||||||||
Expected life | 2 years | ||||||||
Volatility rate | 153.02% | ||||||||
Dividend rate | 0% | ||||||||
Non Brokered Private Placement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock shares new issue | shares | 44,117 | 44,117 | |||||||
Sale of stock price per share | (per share) | $ 12.96 | $ 16.20 | |||||||
Common stock, gross proceeds | $ 571,760 | $ 714,700 | |||||||
Exercise price | (per share) | $ 25.80 | $ 32.40 | |||||||
Proceeds from allocated warrants | $ 202,009 | ||||||||
Warrants and rights outstanding | $ 34,733 | ||||||||
Risk free interest rate | 0.98% | ||||||||
Expected life | 2 years | ||||||||
Volatility rate | 153.02% | ||||||||
Dividend rate | 0% | ||||||||
Other expenses | $ 800 | ||||||||
Issuance costs | $ 8,671 | ||||||||
Non Brokered Private Placement [Member] | Warrant [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock shares new issue | shares | 2,680 | ||||||||
Warrants issued | $ 24,543 | ||||||||
Brokered Private Placement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Stock shares new issue | shares | 785,477 | ||||||||
Sale of stock price per share | $ / shares | $ 9.60 | ||||||||
Common stock, gross proceeds | $ 7,540,580 | ||||||||
Exercise price | $ / shares | $ 12.60 | ||||||||
Proceeds from allocated warrants | $ 607,170 | ||||||||
Risk free interest rate | 2.45% | ||||||||
Expected life | 5 years | ||||||||
Volatility rate | 134.66% | ||||||||
Dividend rate | 0% | ||||||||
Other expenses | $ 159,271 | ||||||||
Warrants term | 5 years | ||||||||
Private Placement [Member] | |||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||
Number of shares issued with private placement | shares | 22,059 | ||||||||
Warrant liability | $ 202,009 | ||||||||
[1]The number of shares has been restated to reflect the 60:1 reverse stock split |