Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 1563

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 7
Chunk 1563
---
 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 and October 30, 2024, the Company made cash payments in the amounts of $118,440 and $29,610, respectively, and as
of October 31, 2024 and 2023, the balance of the promissory note, net of discounts, was $67,514 and $0, respectively, with non-cash interest
expense related to discounts recognized in the amounts of $51,064 and $0 for the years ended October 31, 2024 and 2023, respectively.

Note
Payable – Related Party

On
March 26, 2024, the Company borrowed $125,000 from its Chief Executive Officer, Michael L. Peterson, in connection with which the Company
delivered to Mr. Peterson an Unsecured Subordinated Promissory Note in the principal amount of $125,000. The Note is payable on or before
September 26, 2024, upon which date the principal balance and interest accruable at a rate of 10% per annum is due and payable to Mr.
Peterson by the Company. The Company may prepay the Peterson Note at any time prior to the Peterson Note Maturity Date, in whole or in
part, without