Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 68

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 include corporate facility costs including rent, utilities, depreciation, amortization
and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting
services.

31

General
and administrative expenses decreased by approximately $1.6 million for the nine months ended July 31, 2025, compared to the prior-year
period. This reduction was primarily driven by lower salary expenses (approximately $575,000), advertising and marketing fees ($340,000),
filing fees ($125,000), professional fees ($160,000), and legal fees ($380,000).

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. For the nine months ended July 31, 2025, stock-based compensation expense decreased
by approximately $0.4 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 nine-month period.

Accretion
expense

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 nine months
ended July 31, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the nine months ended July 31, 2025, other expenses, net decreased by approximately $1.2 million when compared to the prior year period.
This decline was primarily driven by (i) an approximate $1.3 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 $0.6 million decrease in the 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)

A
comparison of our working capital deficiency is presented below