Company: TPET
Filing Date: 2025-01-30
Form Type: 10-K/A
Source: 0001493152-25-004268
Chunk: 35

Company: Trio Petroleum Corp.
Filing Date: 2025-01-30
Form: 10-K/A
Chunk 35
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 the fair value of the common warrants with their new modified terms as of the modification date using the following assumptions: a share price of $ 6.20, an exercise price of $ 10.00, an expected term of 5.0years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.84%. The aggregate difference of approximately $ 0.1million between the two calculated amounts was recorded as an equity issuance cost within equity during the period to account for the change in relative fair value.

On January 2, 2024, the second tranche of the October 2023 SPA was funded, and the Company recorded gross proceeds of approximately $ 550,000, a 7% original issue discount of $ 38,500and debt issuance costs of $ 90,978, for net proceeds of approximately $ 421,000. The Company also issued warrants to purchase up to 22,279shares of common stock with an aggregate relative fair value of $ 98,708; the factors used to determine fair value were a share price of $ 6.40, an exercise price of $ 10.00, an expected term of 5years, annualized volatility of 137.10%, a dividend rate of zeropercent and a discount rate of 3.93%.

| F-19 |

On February 1, 2024, February 16, 2024, March 22, 2024 and April 2, 2024, the Company made principal payments towards the first tranche in the amounts of $ 625,000, $ 125,000, $ 125,000, and $ 750,000, respectively, which it converted into shares at 103% for conversion amounts of $ 643,750, $ 128,750, $ 128,750and $ 772,500, respectively. Conversion shares were issued numbering 91,965, 42,917, 42,917and 257,500, respectively, at fair values per share of $ 4.80, $ 2.60, $ 2.00and $ 3.40, respectively, for total amounts of $ 441,428, $ 113,300, $ 84,117and $ 881,165, with a cash payment of $ 32,247made to the investor for the difference between the monthly conversion price and the floor price listed in the