Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 2258

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 9C
Chunk 2258
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 warrant modification,
whereby the effect of the modification is measured as the difference in its relative fair value immediately before the modification and
after the modification, and any increase to the relative fair value is recognized as an equity issuance cost.

To
assess for the change in relative fair value, the Company performed a Black Scholes Option Model calculation to quantify the fair value
of the common warrants under their original terms as of the modification date using the following assumptions: a share price of $6.20,
an exercise price of $24.00, an expected term of 5.0 years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.84%.
The Company then performed a Black Scholes Option Model calculation to quantify the fair value of the common warrants with their new
modified terms as of the modification date using the following assumptions: a share price of $6.20, an exercise price of $10.00, an expected
term of 5.0 years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.84%. The aggregate difference of approximately
$0.1 million between the two calculated amounts was recorded as an equity issuance cost within equity during the period to account for
the change in relative fair value.

On
January 2, 2024, the second tranche of the October 2023 SPA was funded, and the Company recorded gross proceeds of approximately $550,000,
a 7% original issue discount of $38,500 and debt issuance costs of $90,978, for net proceeds of approximately $421,000. The Company also
issued warrants to purchase up to 22,279 shares of common stock with an aggregate relative fair value of $98,708; the factors used to
determine fair value were a share price of $6.40, an exercise price of $10.00, an expected term of 5 years, annualized volatility of
137.10%, a dividend rate of zero percent and a discount rate of 3.93%.

    F-19

On
February 1, 2024, February 16, 2024, March 22, 2024 and April 2, 2024, the Company made principal payments towards the first tranche
in the amounts of $625,000, $125,000, $125,000, and $750,000, respectively, which it