Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 2315

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 10
Chunk 2315
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 other assets constitute related party transactions and, therefore, a special committee of our board of directors, comprised of Mr.
Pernice, Mr. Randall and Mr. Hunter (the “Lafayette Special Committee”) has been formed to evaluate and negotiate the terms
of any such future transactions. In addition, in accordance with our Related Person Transaction Policy, we will have any such future
transactions reviewed and approved by our Board’s Audit Committee. TPET will engage KLS Petroleum Consulting LLC (“KLSP”)
or other third-party experts, as deemed necessary by TPET’s management and/or by the Lafayette Special Committee, to conduct comprehensive
analyses and to provide valuations of such assets, which analyses will be delivered to the Company and evaluated by the Trio Special
Committee.

Restricted
Stock Units (“RSUs”) issued to Directors

On
July 11, 2022, the Company issued 3,000 shares of its $0.0001 par common stock to each of its five outside Directors with a fair value
of $5.80 per share for an aggregate grant date value of $88,200. The fair 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. The shares, or RSUs, vest in full upon the six-month anniversary of the IPO, subject to the directors’
continued service on the vesting date; upon issuance, the shares will be fully paid and non-assessable. Upon consummation of the IPO,
the vesting period for these shares began and for the years ended October 31, 2023 and 2022, the Company recognized stock-based compensation
in the amount of $88,200 and $0, respectively, within stock-based compensation expenses on the income statement, with unrecognized expense
of $0 as of the period ended October 31, 2023.

59

On
September 2, 2023, the Company issued an aggregate 21,250 shares of its $0.0001 par common stock to four outside directors with a fair
value of $12.80 per share for a grant date value of $273,275. The shares, or RSUs, vested in full upon the six-month anniversary of the
vesting commencement date (or August 28, 2023), subject to the directors’ continued service on the vesting date. For