Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 65

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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General
and administrative expenses decreased for the three months ended July 31, 2025 by approximately $0.7 million as compared to the prior
period due to (i) a decrease in consulting fees of approximately $200,000, (ii) decreased legal fees of approximately $180,000, (iii)
a decrease in professional fees of approximately $70,000 and (iv) decreased salaries and wages of approximately $245,000, respectively.

Stock-based
compensation expense

We
record stock-based compensation expenses for costs associated with options and restricted shares granted in connection with the Plan,
as well as for shares issued as payment for services. Stock-based compensation expense decreased by approximately $0.1 million for the
three months ended July 31, 2025 due to the amortization of approximately 22,500 more options in the prior three month period than in
the current period.

Accretion
expense

We
have an ARO recorded that is associated with its oil and natural gas properties in the South Salinas Project (the “SSP”);
the fair value of the ARO was recorded as a liability and is accreted over time until the date the ARO is to be paid. For the three months
ended July 31, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the three months ended July 31, 2025, other expenses, net increased slightly compared to the prior year period. The modest increase was
primarily attributable to (i) a loss of approximately $0.5 million recognized in connection with the issuance of common shares in lieu
of cash for principal payments on promissory notes, and (ii) a loss of approximately $0.1 million related to the abandonment of oil and
gas properties during the current period. These increases were partially offset by (iii) a reduction in non-cash interest expense of
approximately $0.5 million, driven by lower outstanding debt levels during the current period. Non-cash interest expense reflects the
amortization of debt discounts associated with prior financings.

30

Nine
Months Ended July 31, 2025 compared to the Nine Months Ended July 31, 2024 (unaudited)

Our
financial results for the nine months ended July 31, 2025 and 2024 are summarized as follows:

    For the Nine Months Ended July 31,  

    202