Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 123

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 123
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CCS project. We believe it is feasible to develop the major oil and gas resources of the South Salinas Project and to concurrently establish
a substantial CCS project and potentially a CO2 storage hub and/or Direct Air Capture (DAC) hub.

Going
Concern Considerations

We
have only begun to generate revenues in the prior fiscal year and have incurred significant losses since inception. As of April 30,
2025, we have an accumulated deficit of $23,252,956 and a working capital deficit of $531,983, and for the three and six months
ended April 30, 2025, net losses of $1,563,752 and $3,179,277, respectively, and cash used in operating activities of $1,660,469. To
date, we have been funding operations through proceeds from the issuance of common stock, financing through certain investors, the
consummation of our initial public offering (“IPO”) in April 2023, and convertible note financing under two tranches in
October 2023 and December 2023, pursuant to which the Company raised total gross proceeds of $2,371,500. Additionally, in 2024 the
Company received funds in the amount of $125,000 from an unsecured promissory note from its former CEO, gross proceeds of $543,500
from promissory notes with investors, gross proceeds of $1,440,000 from convertible debt financing with investors and net proceeds
of approximately $4,650,000 in connection with an “at-the-market” agreement entered into in September 2024. In April
2025, the Company received gross proceeds in the amount of $606,000 from a convertible debt financing provided by one investor.

There
is substantial doubt regarding our ability to continue as a going concern as a result of our accumulated deficit. Our current source of revenue
is insufficient to cover our operating costs and we are dependent on private equity and external financing to sustain operations.

The
accompanying condensed consolidated financial statements have been prepared assuming we will continue as a going concern. As we have
only begun to generate revenues, we need to raise a significant amount of capital to pay for our development, exploration, drilling and
operating costs. While we raised capital in April 2023 in our IPO, in October 2023, December 2023, April 2024, June 2024 and April
2025 with convertible debt financing, in March 2024