Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 994

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 3
Chunk 994
---

     1,095,000 
  
    Valuation
    allowance 
     (1,699,000) 
     (1,095,000)
  
    Deferred
    tax asset, net 
    $-  
    $- 

As
of October 31, 2024 and 2023, the Company had approximately $1,699,000 and $1,095,000, respectively, in net operating loss carry-forwards
for federal and state income tax reporting (tax effected) purposes. As a result of the Tax Cuts Job Act 2017 (the “Act”),
certain future carryforwards do not expire. The Company has not performed a formal analysis but believes its ability to use such net
operating losses and tax credit carryforwards in the future is subject to annual limitations due to change of control provisions under
Sections 382 and 383 of the Internal Revenue Code, which will significantly impact its ability to realize these deferred tax assets.

    F-18

The
Company recorded a valuation allowance in the full amount of its net deferred tax assets since realization of such tax benefits has been
determined by the Company’s management to be less likely than not. The valuation allowance increased $604,000 and $298,000 during
the years ended October 31, 2024 and 2023, respectively.

A
reconciliation of the statutory federal income tax benefit to actual tax benefit is as follows:

 SCHEDULE OF EFFECTIVE FEDERAL INCOME TAX RATE RECONCILIATION

    As
    of October 31,  
    As
    of October 31, 

    2024  
    2023 
  
    Federal
    statutory blended income tax rates 
     (21)% 
     (21)%
  
    State
    statutory income tax rate, net of federal benefit 
     -% 
     -%
  
    Change
    in valuation allowance 
     21% 
     21%
  
    Effective
    tax rate 
     -% 
     -%

As
of the date of this filing, the Company has not filed its 2024 federal and state corporate income tax returns. The Company expects to
file these documents as soon as practicable.

The
Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will
recognize interest and penalties related to any uncertain tax