Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1179

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 5
Chunk 1179
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 October 31, 2024 by approximately $1.4 million as compared to the prior period due
to increases in legal fees of $210,000, increased insurance expenses of $150,000, increased filing fees of $325,000, increased consulting
fees of $100,000 and increased salary expenses of approximately $550,000.

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 $0.5 million for the
year ended October 31, 2024 due to the amortization of 260,000 options issued in the current year 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 year ended
October 31, 2024, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the year ended October 31, 2024, other expenses, net increased by approximately $1.5 million when compared to the prior year period.
The increase is attributable to an increase in non-cash interest expense of $1.3 million, which is recognized as debt discounts on
financings are amortized; there were less financings in the prior period.

Liquidity
and Capital Resources

Working
Capital/(Deficiency)

Our
working capital deficit as of October 31, 2024, in comparison to our working capital deficit as of October 31, 2023, can be summarized
as follows:

    October
    31, 2024  
    October
    31, 2023 
  
    Current assets 
    $565,219  
    $1,695,341 
  
    Current liabilities 
     2,590,699  
     1,851,386 
  
    Working capital (deficiency) 
    $(2,025,480) 
    $(156,045)

39

Current
assets decreased because of i) a decrease to the cash account of approximately $1.3 million due to