Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 80

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 Trio Petroleum, Corp. include the accounts of TPET and our wholly owned Canadian subsidiary
Trio Canada. All significant intercompany profits, losses, transactions and balances have been eliminated in consolidation in the condensed
consolidated financial statements.

Basis
of Presentation

The
accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”). Amounts presented in the balance sheet as of October 31, 2024 are derived
from our audited financial statements as of that date. The unaudited condensed consolidated financial statements as of and for the three
and six month periods ended April 30, 2025 and 2024 have been prepared in accordance U.S. GAAP and the interim reporting rules of the
Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements and notes
thereto contained in the Company’s annual report on Form 10-K/A filed with the SEC on February 27, 2025. In the opinion of management,
all adjustments, consisting of normal recurring adjustments (unless otherwise indicated), necessary for a fair presentation of the financial
position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim
periods are not necessarily indicative of the results to be expected for the full year.

Use
of Estimates

The
preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, equity-based transactions and disclosure of contingent assets and liabilities
at the date of the condensed consolidated financial statements, and the revenue and expenses during the reporting period.

Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Some of the more significant estimates required
to be made by management include estimates of oil and natural gas reserves (when and if assigned) and related present value estimates
of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, bad debt expense, ARO
and the valuation of equity-based transactions. Accordingly, actual results could differ significantly from those estimates.

Foreign
Currency Translation

The