Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 124

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 and August 2024 with promissory notes, September 2024 with an ATM agreement, we expect
to require additional funding in the future and there is no assurance that we will be able to raise additional needed capital or that
such capital will be available under favorable terms or at all. We are subject to all the substantial risks inherent in the development
of a new business enterprise within an extremely competitive industry. Due to the absence of a long-standing operating history and the
emerging nature of the markets in which we compete, we anticipate operating losses until we can successfully implement our business strategy,
which includes all associated revenue streams. We may never achieve profitable operations or generate significant revenues.

We
will require additional capital funding in order to drill additional planned wells at the South Salinas and Asphalt Ridge
assets and to pay for additional development costs and other payment obligations and operating costs until our planned revenue streams
are fully implemented and begin to offset our operating costs, if ever.

Since
our inception, we have funded our operations with the proceeds from equity and debt financing. We have experienced liquidity issues due
to, among other reasons, our limited ability to raise adequate capital on acceptable terms. We have historically relied upon the issuance
of equity and promissory notes that are convertible into shares of our common stock to fund our operations and have devoted significant
efforts to reduce that exposure. We anticipate that we will need to issue equity to fund our operations for the foreseeable future. If
we are unable to achieve operational profitability or are not successful in securing other forms of financing, we will have to evaluate
alternative actions to reduce our operating expenses and conserve cash.

27

The
accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities
in the normal course of business. Accordingly, the condensed consolidated financial statements do not include any adjustments relating
to the recoverability of assets and classification of liabilities that might be necessary should we be unable to continue as a going
concern. The condensed consolidated financial statements included in this report also include a going concern footnote (see Note 3).

Factors and Trends Affecting Our Business and
Results of Operations

We are mindful of global economic trends and their
potential influence on commodity prices. Recent fluctuations in global oil prices, political considerations and tariffs can impact cash
flow and ultimately profitability. Mitigating factors include our relatively low lift costs and