Company: TPET
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001493152-25-005014
Chunk: 81

Company: Trio Petroleum Corp.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 81
---
 $150,000, increased filing fees of $325,000, increased consulting fees of $100,000 and increased salary expenses of approximately $550,000.

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. Stock-based compensation expense increased by approximately $0.5 million for the year ended October 31, 2024 due to the amortization of 260,000 options issued in the year ended October 31, 2024; such had not yet been granted during the same period in the prior year.

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 year
ended October 31, 2024, accretion expenses remained consistent with that of the prior year period.

Other expenses, net

For the year ended October 31, 2024, other expenses, net increased by approximately $1.5 million when compared to the prior year period. The increase is attributable to an increase in non-cash interest expense of $1.3 million, which is recognized as debt discounts on financings are amortized; there were less financings in the prior period.

| 46 |

Liquidity and Capital Resources

Working Capital/(Deficiency)

Our working capital deficit as of October 31, 2024, in comparison to our working capital deficit as of October 31, 2023, can be summarized as follows:

|                      |     |   |    October 
   31, 2024 |   |     |   |   October 
  31, 2023 |   |
|:---------------------|:----|:--|-----------:|:--|:----|:--|----------:|:--|
| Current              
 assets               |     | $ |    565,219 |   |     | $ | 1,695,341 |   |
| Current              
 liabilities          |     |   |  2,590,699 |   |     |   | 1,851,386 |   |
| Working              
 capital (deficiency) |     | $ | (2,025,480 | ) |     | $ |