Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 78

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 These inputs require significant
judgments and estimates by the Company’s management at the time of the valuation.

The
fair value of additions to the asset retirement obligation liabilities is measured using valuation techniques consistent with the income
approach, which converts future cash flows to a single discounted amount. Significant inputs to the valuation include: (i) estimated
plug and abandonment cost per well for all oil and natural gas wells and for all disposal wells; (ii) estimated remaining life per well;
(iii) future inflation factors; and (iv) the Company’s average credit-adjusted risk-free rate. These assumptions represent Level
3 inputs.

If
the carrying amount of its proved oil and natural gas properties, which are assessed for impairment under ASC 360 – Property,
Plant and Equipment, exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil
and natural gas properties to fair value. The fair value of its oil and natural gas properties is determined using valuation techniques
consistent with the income and market approach. The factors used to determine fair value are subject to management’s judgment and
expertise and include, but are not limited to, recent sales prices of comparable properties, the present value of future cash flows,
net of estimated operating and development costs using estimates of proved reserves, future commodity pricing, future production estimates,
anticipated capital expenditures, and various discount rates commensurate with the risk and current market conditions associated with
the expected cash flow projected. These assumptions represent Level 3 inputs.

Net
Loss Per Share

Basic
and diluted net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the
reporting period. Diluted earnings per share is computed similar to basic loss per share, except the weighted average number of common
shares outstanding are increased to include additional shares from the assumed exercise of share options, warrants and convertible notes,
if dilutive.

The
following common share equivalents are excluded from the calculation of weighted average common shares outstanding, because their inclusion
would have been anti-dilutive:

 SCHEDULE
OF WEIGHTED AVERAGE COMMON SHARES OUTSTANDING ANTI-DILUTIVE

    As of January 31,  
    As of January 31, 

    2025  
    2024 
  
    Warrants 
     17,358(1) 
     19,343(2)
  
    Total potentially dilutive securities 
     17,358  
     19,343