Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 149

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 the Company’s flagship South Salinas Project (see Note 5); the Assets
were situated in what is known as the “Hangman Hollow Area” of the McCool Ranch Oil Field. The Company initially recorded
a payment of $100,000 upon execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations with
respect to the San Ardo WD-1 to determine if it was capable of reasonably serving the produced water needs for the assets. Following
successful refurbishment, the Company committed to an additional $400,000 payment under the agreement.

On
May 27, 2025, the Company made the decision to terminate the McCool Ranch Oil Field leases. Accordingly, all capitalized costs related
to the acquisition, refurbishment, and production restart—including costs for support equipment and facilities—totaling $500,614
have been written off and expensed in the statement of operations.

Restricted
Stock Units (“RSUs”) issued to Directors

On
June 19, 2024, the Company agreed to award 50,000 restricted stock units to a newly appointed director under the Plan; as there were
only 22,750 shares remaining for issuance under the Plan at that time, 22,500 RSUs were awarded immediately with a fair value of $6.00
per share for a grant date value of $134,550, with the remainder issued in the following quarter at a fair value of $3.32 per share for
a grant date value of $91,300. For the three and nine months ended July 31, 2025, the Company recognized stock-based compensation for
these awards in the amount of $40,819 and $116,587, respectively, within stock-based compensation expenses on the income statement, with
$78,613 of unrecognized expense as of the period ended July 31, 2025.

On
October 21, 2024, the Company agreed to award 12,500 restricted stock units to a newly appointed director under the Plan; the RSUs vest
at a rate of 100% upon the six-month anniversary of the commencement date and were recorded at a fair value of $3.13 per share for a
grant date value of $39,125. Additionally, on October 21, 2024, the Company agreed to award an aggregate of 37,500 restricted stock units
to current directors under the Plan; the RSUs vest at a rate of 100% upon