Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 158

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 158
---
150% of all amounts due and payable under the March 2024 Investor Note with interest at a default rate of 22% per
annum. In addition, upon an Event of Default, the March 2024 Investor has the right to convert all or any outstanding amount of the March
Investor Note into shares of the Company’s common stock at a conversion price equal to the greater of (i) 75% of the Market Price
(as such term is defined in the March 2024 Investor Note) or (ii) the conversion floor price, which is $1.42340 (the “Floor Price”);
provided, however, that the Floor Price shall not apply after October 5, 2024, and thereafter, the conversion price will be 75% of the
Market Price. Issuance of shares of common stock to the March 2024 Investor is subject to certain beneficial ownership limitations and
not more than 19.99% of the shares of common stock outstanding on March 29, 2024 may be issued upon conversion of the March 2024 Investor
Note. The conversion price is also subject to certain adjustments or other terms in the event of (i) mergers, consolidations or recapitalization
events or (ii) certain distributions made to holders of shares of common stock.

On
September 30, 2024, October 30, 2024 and November 30, 2024, the Company made cash payments in the amounts of $118,440, $29,610 and $88,830,
respectively, in full satisfaction of the principal balance of the note. As of July 31, 2025, the balance of the promissory note was
zero, with total non-cash interest expense related to discounts recognized in the amounts of zero and $21,315 for the three and nine
months ended July 31, 2025, respectively, and total non-cash interest expense related to discounts recognized in the amounts of $21,550
and $29,514 for the three and nine months ended July 31, 2024, respectively, with $72,380 in noncash interest expense related to discounts
recognized over the life of the note.

Note
Payable – Related Party

On
March 26, 2024, the Company borrowed $125,000
from its former Chief Executive Officer, Michael L. Peterson, in connection with which the Company delivered to Mr. Peterson an