Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 102

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 2
Chunk 102
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. Compensation payments commenced following
the successful completion of the IPO in April 2023.

For
the three and nine months ended July 31, 2025, we recognized director compensation expense of $80,007 and $241,682, respectively. For
the corresponding periods in 2024, we recognized $55,000 and $165,000, respectively.

Agreements
with Advisors

On
October 4, 2023 and December 29, 2023, we entered into placement agent agreements with Spartan Capital Securities, LLC (“Spartan”),
whereby Spartan has served as the exclusive placement agent in connection with the closing of private placements. The agreements provide
the agent with i) a cash fee 7.5% of the aggregate proceeds raised in the sale and ii) warrants to purchase a number of common shares
equal to 5% of the number of common shares initially issuable upon conversion of each note tranche; warrants to purchase 4,167 and 2,750
common shares with exercise prices of $26.40 and $11.00 for the first and second tranches, respectively, were issued to Spartan as of
January 31, 2024. Such warrants may be exercised beginning 6 months after issuance until four and one-half years thereafter.

34

Critical
Accounting Policies and Estimates

Basis
of Presentation

We
prepare our condensed consolidated financial statements in conformity with GAAP, which requires management to make certain estimates
and assumptions and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that
management believes to be important at the time the condensed consolidated financial statements are prepared, and actual results could
differ from our estimates and such differences could be material. Due to the need to make estimates about the effect of matters that
are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On
a regular basis, we review our critical accounting policies and how they are applied in the preparation of our condensed consolidated
financial statements, as well as the sufficiency of the disclosures pertaining to our accounting policies in the footnotes accompanying
our condensed consolidated financial statements. Described below are the most significant policies we apply in preparing our condensed
consolidated financial statements, some of which are subject to alternative treatments under GAAP. We also describe the most significant
estimates and assumptions we make in applying these policies. See “Note 2 - Summary of Significant Accounting Policies” to