Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 115

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 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, McCool Ranch 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
to, among other reasons, our limited ability to raise adequate capital on acceptable terms. We have historically relied upon the issuance
of equity and promissory notes that are convertible into shares of our common stock to fund our operations and have devoted significant
efforts to reduce that exposure. We anticipate that we will need to issue equity to fund our operations for the foreseeable future. If
we are unable to achieve operational profitability or are not successful in securing other forms of financing, we will have to evaluate
alternative actions to reduce our operating expenses and conserve cash.

The
accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal
course of business. Accordingly, the financial statements do not include any adjustments relating to the recoverability of assets and
classification of liabilities that might be necessary should we be unable to continue as a going concern. The financial statements included
in this report also include a going concern footnote (see Note 3).

Optioned
Assets - McCool Ranch Oil Field 

In
October 2023, we entered into an agreement (“McCool Ranch Purchase Agreement”) with Trio LLC for the purchase of a 21.918315%
working interest in the McCool Ranch Oil Field located in Monterey County near our flagship South Salinas Project; we initially recorded
a payment of $100,000 upon the execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations
with respect to the San Ardo WD-1 water disposal