Company: TPET
Filing Date: 2025-02-05
Form Type: S-1/A
Source: 0001493152-25-005014
Chunk: 166

Company: Trio Petroleum Corp.
Filing Date: 2025-02-05
Form: S-1/A
Chunk 166
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.S. holder upon the exercise of a Pre-Funded Warrant in exchange for the one common share underlying such Pre-Funded Warrant should not result in the recognition of gain or loss to such exercising Pre-Funded Warrant holder. However, under applicable Treasury Regulations, the exercise of such Pre-Funded Warrant may result in adjustments to the capital accounts of the members of our company and/or the allocation of gross taxable income to the Pre-Funded Warrant holder, attributable to the difference between the value of the common share underlying each exercised Pre-Funded Warrant on the date of exercise and such Pre-Funded Warrant’s exercise price. Any adjustments or allocations of gross income required by these regulations may result in adverse or unexpected tax consequences to the holder of the exercised Pre-Funded Warrant or the other holders of common shares. In general, a U.S. holder’s or non-U.S. holder’s initial tax basis in the common share received on the exercise of a Pre-Funded Warrant should be equal to the sum of (a) such U.S. holder’s or non-U.S. holder’s tax basis in such Pre-Funded Warrant plus (b) the exercise price paid by such U.S. holder or non-U.S. holder on the exercise of such Pre-Funded Warrant. On the basis that ownership of a Pre-Funded Warrant is treated as equivalent to the ownership of a common share (as discussed above under “ -Tax Characterization of Pre-Funded Warrants” ), the holding period for the common shares acquired upon exercise of the Pre-Funded Warrant should be unaffected by the exercise and should begin when the holder first acquired the Pre-Funded Warrant. In general, if a Pre-Funded Warrant is allowed to lapse unexercised, a U.S. holder or non-U.S. holder generally will recognize a capital loss equal to such holder’s tax basis in the Pre-Funded Warrant.

Tax Considerations for U.S. Holders

Tax Treatment of Company Income to U.S. Holders

Our company’s taxable income is expected to consist principally of interest income, capital gains and dividends from our C corporation subsidiaries. Interest income will be earned upon the funds loaned by our company (if any) to the operating subsidiaries and from temporary investments of our company and will be taxable to the holders at ordinary income rates. Long-term capital gains will be reported upon the sale of capital assets by our company held for more than one year, and short-term capital gains will be reported upon