Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 14

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
 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 (0.7218 and 0.7177 CAD to 1 US dollar, each as of July 31, 2025 and
October 31, 2024, respectively), while expense accounts are translated at the weighted average exchange rate for the period (0.7276 and
0.7302 CAD to 1 US dollar for each of the three months ended July 31, 2025 and 2024, respectively, and 0.7118 and 0.7358 CAD to 1 US
dollar each for the nine months ended July 31, 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 represents the change in equity from transactions and other events and circumstances from non-owner sources. It includes all changes
in equity during a period except those resulting from investments by and distributions to owners. As described above, this includes foreign
currency translation adjustments. For the