Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 66

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 connection with an ATM agreement, (ii) proceeds from the issuance of convertible debt of approximately $0.6
million, offset by repayments of related party debt and promissory notes of approximately $0.2 million and $0.6 million, respectively.
Cash provided by financing activities during the six months ended April 30, 2024 was primarily attributable to approximately $0.6 million
in net proceeds from the issuance of convertible debt and approximately $1.0 million from the issuance of promissory notes and related
party notes, offset by payments for the convertible debt in the amount of approximately $2.6 million and debt issuance costs of $0.2
million.

Capital Resources

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. Unless we are able
to raise additional capital through equity and/or debt financing, we believe our existing cash and cash flow from operations will be sufficient
to meet our working capital and capital expenditure needs for not more than six months from the date of this report. Future capital requirements
will depend on many factors, including the time period in which we are able to ramp up the operation of wells and the acquisition of additional
properties. To the extent that existing capital and revenue growth are not sufficient to fund future activities, we will need to raise
capital through additional equity or debt financings. Additional funds may not be available on terms favorable to us or at all. Failure
to raise additional capital, if needed, could have a material adverse effect on our financial position, results of operations and cash
flows.

Contractual
Obligations and Commitments

Unproved
Property Leases

We
hold various leases related to the unproved properties of the South Salinas Project; two of the leases are held with the same lessor.
The first lease, which covers 8,417 acres, was amended on May 27, 2022 to provide for an extension of then-current force majeure status
for an additional, uncontested twelve months, during which we would be released from having to evidence to the lessor the existence of
force majeure conditions. As consideration for the granting of the lease