Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 14

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 foreign currency translation adjustments as described above. During the three and six months ended April 30, 2025, the Company
recorded $34,846 and $34,846, respectively, in other comprehensive income, and no other comprehensive income or loss as
a result of foreign currency translation adjustments during the three and six months ended April 30, 2024.

Foreign
currency gains and losses resulting from transactions denominated in foreign currencies, including intercompany transactions, are included
in results of operations. The Company recognized no foreign currency transaction gains or losses for the three and six months ended April
30, 2025 and 2024. Such 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 cash equivalents as of April 30, 2025 and October 31, 2024.

Prepaid
Expenses

Prepaid
expenses consist primarily of prepaid services which will be expensed as the services are provided within twelve months. As of April
30, 2025 and October 31, 2024, the balances of the prepaids account were $250,051 and $279,274, respectively.

Loan Receivables

Loan receivables are recorded at their outstanding
principal balance, net of any allowance for credit losses. The Company evaluates the collectability of loan receivables based on historical
experience, current economic conditions, and the creditworthiness of borrowers. The Company maintains an allowance for credit losses to
cover estimated losses; the allowance is determined based on historical loss experience, current economic conditions and specific borrower
risk assessments. Adjustments to the allowance are recorded through provision for credit losses in the statement of operations. Interest
income on loan receivables is recognized using the effective interest method. Loans are placed on nonaccrual status when collection of
principal or interest is uncertain. Loan receivables are reviewed periodically for impairment. If a loan is deemed uncollectible, the
Company records a charge-off against the allowance for credit losses.

Debt
Issuance Costs

Costs
incurred in connection with the issuance of the Company’s debt have been recorded as a direct reduction against the debt and amortized
over the life of the associated debt as a component of interest expense. As of April 30,