Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 133

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, bad debt expense, ARO
and the valuation of equity-based transactions. Accordingly, actual results could differ significantly from those estimates.

Foreign
Currency Translation

The
Company’s reporting currency is the United States dollar. The functional currency of the Company’s Canadian subsidiary is
the Canadian Dollar (“CAD”) for balance sheet accounts (0.7218 and 0.7177 CAD to 1 US dollar, each as of July 31, 2025 and
October 31, 2024, respectively), while expense accounts are translated at the weighted average exchange rate for the period (0.7276 and
0.7302 CAD to 1 US dollar for each of the three months ended July 31, 2025 and 2024, respectively, and 0.7118 and 0.7358 CAD to 1 US
dollar each for the nine months ended July 31, 2025 and 2024, respectively). Equity accounts are translated at historical exchange rates.
The resulting translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive
income.

Comprehensive
income represents the change in equity from transactions and other events and circumstances from non-owner sources. It includes all changes
in equity during a period except those resulting from investments by and distributions to owners. As described above, this includes foreign
currency translation adjustments. For the three and nine months ended July 31, 2025, the Company recorded other comprehensive (loss)
income of $(4,326) and $30,520, respectively, related to foreign currency translation adjustments. No such amounts were recorded for
the three and nine months ended July 31, 2024.

Foreign
currency gains and losses arising from transactions denominated in currencies other than the Company’s functional currency, including
intercompany transactions, are recognized in the condensed consolidated statements of operations as incurred. For the three and nine
months ended July 31, 2025, the Company recognized foreign currency transaction losses of $8,819, with no such gains or losses recognized
during the comparable periods in 2024. These amounts are classified within general and administrative expenses in the accompanying condensed
consolidated statements of operations and comprehensive income (loss).

Cash
and cash equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had no