Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 99

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 2
Chunk 99
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 balance as of July 31, 2024.

Cash
Flows from Financing Activities

For
the nine months ended July 31, 2025 and 2024, cash provided by (used in) financing activities totaled $3,250,351 and $(248,898),
respectively. Cash provided by financing activities during the nine months ended July 31, 2025 was primarily attributable to (i)
proceeds approximately $3.5 million from the issuance of shares of common stock in 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 used in financing activities during the nine months ended July
31, 2024 was primarily driven by payments of approximately $2.6 million related to the settlement of convertible debt and $0.2
million in debt issuance costs. These outflows were partially offset by proceeds from the issuance of new promissory notes,
convertible debt, and related party debt totaling approximately $1.8 million, $0.6 million, and $0.1 million,
respectively.

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. See Going Consideration Concerns above in