Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 56

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 which the Company raised total gross proceeds of $2,371,500. Additionally, in 2024 the
Company received funds in the amount of $125,000 from an unsecured promissory note from its former CEO, gross proceeds of $543,500
from promissory notes with investors, gross proceeds of $1,440,000 from convertible debt financing with investors and net proceeds
of approximately $4,650,000 in connection with an “at-the-market” agreement entered into in September 2024. In April
2025, the Company received gross proceeds in the amount of $606,000 from a convertible debt financing provided by one investor.

There
is substantial doubt regarding our ability to continue as a going concern as a result of our accumulated deficit. Our current source of revenue
is insufficient to cover our operating costs and we are dependent on private equity and external financing to sustain operations.

The
accompanying condensed consolidated financial statements have been prepared assuming we will continue as a going concern. As we have
only begun to generate revenues, we need to raise a significant amount of capital to pay for our development, exploration, drilling and
operating costs. While we raised capital in April 2023 in our IPO, in October 2023, December 2023, April 2024, June 2024 and April
2025 with convertible debt financing, in March 2024 and August 2024 with promissory notes, September 2024 with an ATM agreement, we expect
to require additional funding in the future and there is no assurance that we will be able to raise additional needed capital or that
such capital will be available under favorable terms or at all. We are subject to all the substantial risks inherent in the development
of a new business enterprise within an extremely competitive industry. Due to the absence of a long-standing operating history and the
emerging nature of the markets in which we compete, we anticipate operating losses until we can successfully implement our business strategy,
which includes all associated revenue streams. We may never achieve profitable operations or generate significant revenues.

We
will require additional capital funding in order to drill additional planned wells at the South Salinas and Asphalt Ridge
assets and to pay for additional development costs and other payment obligations and operating costs until our planned revenue streams
are fully implemented and begin to offset our operating costs, if ever.

Since
our inception, we have funded our operations with the proceeds from equity and debt financing. We have experienced liquidity issues due