Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1677

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 7A
Chunk 1677
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 principal payments towards the first tranche in the amounts
of $125,000, $125,000, and $125,000, respectively, which it converted into shares at 103% for conversion amounts of $128,750, $128,750
and $128,750, respectively. Conversion shares were issued numbering 18,393, 18,393 and 18,393, respectively, at fair values per share
of $6.80, $6.20 and $5.80, respectively, for total amounts of $125,072, $114,036 and $105,575, with cash payments of $36,698, $35,837
and $49,935 made to the investor for the difference between the monthly conversion price and the floor price listed in the most recent
amendment to the agreement. Additionally, losses in the amounts of $36,770, $24,873 and $30,510, respectively, were recognized for the
difference between the value of the shares issued and the principal payment amounts.

On
December 29, 2023, the Company entered into an amendment to the Second Tranche Note of the October 2023 SPA, which reduced the conversion
price of note and exercise price of warrant from $24.00 to $10.00; the Company accounted for the amendment as a 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%.