Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 5

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 13
Chunk 5
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 (Chief Financial Officer or “CFO”) which, among other things, provided for the grant of restricted
shares in the amounts of 50,000 and 5,000, respectively, pursuant to the 2022 Equity Incentive Plan (“the Plan”). Per the
terms of the employee agreements, subject to continued employment, the restricted shares vest over a two-year period, under which 25%
will vest upon the earlier of three months after the IPO or six months after the grant date. After this date, the remainder vest in equal
tranches every six months until fully vested. As the Plan was not adopted until October 17, 2022 (see Note 7), these shares were recorded
as of that date at a fair value of $5.88 per share; such value was calculated via a third-party valuation performed using income and
market methods, as well as a discounted cash flow method, with the terminal value using a market multiples method, adjusted for a lack
of marketability (see Note 10). As of October 31, 2022, the Company recorded 55,000 restricted shares at a fair value of $323,400, and
for the years ended October 31, 2024 and 2023, the Company recognized stock-based compensation of $155,498 and $161,700, respectively,
within stock-based compensation expenses on the income statement, with no unrecognized expense as of October 31, 2024.

In
May 2023, the Company entered into six employee agreements which, among other things, provided for the grant of an aggregate of 35,000
restricted shares pursuant to the Plan. Per the terms of the employee agreements, subject to continued employment, the restricted shares
vest as follows: 25% of the shares will vest five months after the issuance date, after which the remainder vest in equal tranches every
six months until fully vested. The shares were recorded on the date of issuance at a fair value of $43.00 per share for an aggregate
fair value of $1,505,000, and for the years ended October 31, 2024 and 2023, the Company recognized stock-based compensation of $753,188
and $440,219, respectively, within stock-based compensation expenses on the income statement, with no unrecognized expense as of the
period ended October 31, 2024.

On
July 20, 2023, pursuant to the Ingriselli Employment