Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 119

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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Revenues,
net

Revenues,
net increased for the three months ended January 31, 2025 by approximately $0.1 million as compared to the prior period, which had no
revenue; we sold and shipped approximately 180 barrels of oil produced from the HH-1 and the 35X wells.

27

Exploration
expenses

Under
the successful efforts method of accounting for crude oil and natural gas properties, exploration expenses consist primarily of exploratory,
geological and geophysical costs, delay rentals and exploratory overhead, and are expensed as incurred. Exploration expenses decreased
by approximately $0.1 million as compared to the prior year period due to a decrease in exploratory, geological, and geophysical costs
incurred during the period.

General
and administrative expenses

General
and administrative expenses consist primarily of personnel expenses, including salaries, benefits and stock-based compensation expense
for employees and consultants in executive, finance and accounting, legal, operations support, information technology and human resource
functions. General and administrative expenses also include corporate facility costs including rent, utilities, depreciation, amortization
and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting
services.

General
and administrative expenses decreased for the three months ended January 31, 2025 by approximately $0.3 million as compared to the prior
period due to decreases in salary expenses and legal fees of approximately $175,000 and $80,000, respectively.

Stock-based
compensation expense

We
record stock-based compensation expenses for costs associated with options and restricted shares granted in connection with the Plan,
as well as for shares issued as payment for services. Stock-based compensation expense increased by approximately $0.1 million for the
year ended January 31, 2025 due to the amortization of 260,000 options issued in the current twelve month period; such had not yet been
granted during the same period in the prior year.

Accretion
expenses

We
have an Asset Retirement Obligation (“ARO”) recorded that is associated with its oil and natural gas properties in the SSP;
the fair value of the ARO was recorded as a liability and is accreted over time until the date the ARO is to be paid. For the three months
ended January 31, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the three months ended January 31