Company: TPET
Filing Date: 2025-02-27
Form Type: 10-K/A
Source: 0001493152-25-008556
Chunk: 34

Company: Trio Petroleum Corp.
Filing Date: 2025-02-27
Form: 10-K/A
Chunk 34
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 value were a share price of $ 11.00, an exercise price of $ 24.00, an expected term of 5years, annualized volatility of 137.10%, a dividend rate of zeropercent and a discount rate of 4.72%.

On December 18, 2023, December 29, 2023 and January 12, 2024, the Company made principal payments towards the first tranche in the amounts of $ 125,000, $ 125,000, and $ 125,000, respectively, which it converted into shares at 103% for conversion amounts of $ 128,750, $ 128,750and $ 128,750, respectively. Conversion shares were issued numbering 18,393, 18,393and 18,393, respectively, at fair values per share of $ 6.80, $ 6.20and $ 5.80, respectively, for total amounts of $ 125,072, $ 114,036and $ 105,575, with cash payments of $ 36,698, $ 35,837and $ 49,935made to the investor for the difference between the monthly conversion price and the floor price listed in the most recent amendment to the agreement. Additionally, losses in the amounts of $ 36,770, $ 24,873and $ 30,510, respectively, were recognized for the difference between the value of the shares issued and the principal payment amounts.

On December 29, 2023, the Company entered into an amendment to the Second Tranche Note of the October 2023 SPA, which reduced the conversion price of note and exercise price of warrant from $ 24.00to $ 10.00; the Company accounted for the amendment as a warrant modification, whereby the effect of the modification is measured as the difference in its relative fair value immediately before the modification and after the modification, and any increase to the relative fair value is recognized as an equity issuance cost.

To assess for the change in relative fair value, the Company performed a Black Scholes Option Model calculation to quantify the fair value of the common warrants under their original terms as of the modification date using the following assumptions: a share price of $ 6.20, an exercise price of $ 24.00, an expected term of 5.0years, volatility of 137.1%, a dividend rate of 0% and a discount rate of 3.