Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 13

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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all adjustments, consisting of normal recurring adjustments (unless otherwise indicated), necessary for a fair presentation of the financial
position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim
periods are not necessarily indicative of the results to be expected for the full year.

Use
of Estimates

The
preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets, liabilities, equity-based transactions and disclosure of contingent assets and liabilities
at the date of the condensed consolidated financial statements, and the revenue and expenses during the reporting period.

Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Some of the more significant estimates required
to be made by management include estimates of oil and natural gas reserves (when and if assigned) and related present value estimates
of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, bad debt expense, ARO
and the valuation of equity-based transactions. Accordingly, actual results could differ significantly from those estimates.

Foreign
Currency Translation

The
Company’s reporting currency is the United States dollar. The functional currency of the Company’s Canadian subsidiary
is the Canadian Dollar (“CAD”) for balance sheet accounts (0.7247 and 0.7177 CAD to 1 US dollar, each as of April 30, 2025 and October 31, 2024, respectively), while expense accounts are translated at the weighted
average exchange rate for the period (0.7043 and 0.7370 CAD
to 1 US dollar for each of the three months ended April 30, 2025 and 2024, respectively, and 0.7039 and 0.7386 CAD
to 1 US dollar each for the six months ended April 30, 2025 and 2024, respectively). Equity accounts are translated at historical
exchange rates. The resulting translation adjustments are recognized in stockholders’ equity as a component of accumulated
other comprehensive income.

Comprehensive
income is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and
includes