Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 73

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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Under
the most recent amendment signed in April 2025, we had until May 10, 2025 to pay an additional $1,775,000 to exercise its option for
the remaining 17.75% interest. The option expired unexercised after the reporting period, and we forfeited our right to acquire the additional
interest. We retain our existing 2.25% interest.

Proved
Property Leases

Saskatchewan,
Canada

In
April 2025, we acquired oil and gas lease rights for four proved properties located in Saskatchewan, Canada (see Note 5). The leases
total 320 net acres and are all held by production.

Board
of Directors Compensation

On
July 11, 2022, our Board of Directors approved a compensation plan for non-employee directors, effective upon the consummation of our
initial public offering (IPO). Under this plan, each non-employee director is entitled to an annual cash retainer of $50,000, plus an
additional $10,000 per Board committee served, with all payments made quarterly in arrears. Compensation payments commenced following
the successful completion of the IPO in April 2023.

For
the three and nine months ended July 31, 2025, we recognized director compensation expense of $80,007 and $241,682, respectively. For
the corresponding periods in 2024, we recognized $55,000 and $165,000, respectively.

Agreements
with Advisors

On
October 4, 2023 and December 29, 2023, we entered into placement agent agreements with Spartan Capital Securities, LLC (“Spartan”),
whereby Spartan has served as the exclusive placement agent in connection with the closing of private placements. The agreements provide
the agent with i) a cash fee 7.5% of the aggregate proceeds raised in the sale and ii) warrants to purchase a number of common shares
equal to 5% of the number of common shares initially issuable upon conversion of each note tranche; warrants to purchase 4,167 and 2,750
common shares with exercise prices of $26.40 and $11.00 for the first and second tranches, respectively, were issued to Spartan as of
January 31, 2024. Such warrants may be exercised beginning 6 months after issuance until four and one-half years thereafter.

34

Critical
Accounting Policies and Estimates

B