Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 206

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 15
Chunk 206
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 date value of $117,375. For the years ended October 31, 2024 and 2023,
the Company recognized stock-based compensation for these awards in the amount of $14,908 and $0, respectively, within stock-based compensation
expenses on the income statement, with $141,592 of unrecognized expense as of the period ended October 31, 2024.

Restricted
Shares issued to Executives and Employees

In
February 2022, the Company entered into employment agreements with Frank Ingriselli (former Chief Executive Officer) and Greg Overholtzer
(Chief Financial Officer or “CFO”) which, among other things, provided for the grant of restricted shares in the amounts
of 50,000 and 5,000, respectively, pursuant to the Plan. Per the terms of the employee agreements, subject to continued employment, the
restricted shares vest over a two-year period, under which 25% will vest upon the earlier of three months after the IPO or six months
after the grant date. After this date, the remainder vest in equal tranches every six months until fully vested. As the Plan was not
adopted until October 17, 2022, these shares will be recorded as of that date at a fair value of $5.88 per share; such value was calculated
via a third-party valuation performed using income and market methods, as well as a discounted cash flow method, with the terminal value
using a market multiples method, adjusted for a lack of marketability. As of October 31, 2022, the Company recorded 55,000 restricted
shares at a fair value of $323,400, and for the years ended October 31, 2024 and 2023, the Company recognized stock-based compensation
of $155,498 and $161,700, respectively, within stock-based compensation expenses on the income statement, with no unrecognized expense
as of October 31, 2024.

In
May 2023, the Company entered into six employee agreements which, among other things, provided for the grant of an aggregate of 35,000
restricted shares pursuant to the Plan. Per the terms of the employee agreements, subject to continued employment, the restricted shares
vest as follows: 25% of the shares vested five months after the issuance date, after which the remainder vest in equal tranches every
six months until fully vested. The shares were recorded on the date of issuance at a fair