Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 81

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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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 foreign currency translation adjustments as described above. During the three and six months ended April 30, 2025, the Company
recorded $34,846 and $34,846, respectively, in other comprehensive income, and no other comprehensive income or loss as
a result of foreign currency translation adjustments during the three and six months ended April 30, 2024.

Foreign
currency gains and losses resulting from transactions denominated in foreign currencies, including intercompany transactions, are included
in results of operations. The Company recognized no foreign currency transaction gains or losses for the three and six months ended April
30, 2025 and 2024. Such amounts are classified within general and administrative expenses in the accompanying condensed consolidated
statements of operations and comprehensive income (loss).

Cash
and cash equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had no cash equivalents as of April 30, 2025 and October 31, 2024.

Prepaid
Expenses

Prepaid
expenses consist primarily of prepaid services which will be expensed as the services are provided within twelve months. As of April
30, 2025 and October 31, 2024, the balances of the prepaids account were $250,051 and $279,274, respectively.

Loan Receivables

Loan receivables are