Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 131

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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 for services. For the six months ended April 30, 2025, stock-based compensation expense decreased
by approximately $0.3 million compared to the prior period. This decrease was primarily due to the final vesting of certain restricted
shares in the previous quarter, which resulted in a lower expense allocation for the current six-month period.

Accretion
expenses

We
have an Asset Retirement Obligation (“ARO”) recorded that is associated with its oil and natural gas properties in 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 six months
ended April 30, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the six months ended April 30, 2025, other expenses, net decreased by approximately $1.3 million when compared to the prior year period.
This decline was primarily driven by (i) an approximate $0.8 million reduction in non-cash interest expense resulting from lower debt
levels in the current period (non-cash interest expense is recognized as debt discounts on financings are amortized), as well as (ii)
an approximate $1.1 million loss on a note conversion recorded in the prior period, which stemmed from principal payments made via conversion
shares under the October 2023 Securities Purchase Agreement. These reductions were partially offset by a $0.6 million loss incurred in
the current period due to the abandonment of oil and gas properties.

Liquidity
and Capital Resources

Working
Capital/(Deficiency)

Our
working capital deficiency as of April 30, 2025, in comparison to our working capital deficiency as of October 31, 2024, can be summarized
as follows:

    April 30, 2025  
    October 31, 2024 
  
    Current assets 
    $1,738,678  
    $565,219 
  
    Current liabilities 
     2,270,661  
     2,590,699 
  
    Working capital (deficiency) 
    $(531,983) 
    $(2,025,480)

Current
assets increased because of i) an increase to the cash account of approximately $3.4 million due to cash proceeds from the sale of shares
related to the ATM agreement. Current liabilities decreased because of (i) a decrease in prom