Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 155

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 155
---
SO satisfying
the required conditions. In exchange, the Company acquired a 2% interest in the leases. These funds were designated for infrastructure
development, including road construction. As of July 31, 2025, the Company had paid a total of $225,000 to HSO and holds a 2.25% working
interest in the leases. These costs have been capitalized and are reflected in the oil and gas property balance as of July 31, 2025.

Under
the most recent amendment signed in April 2025, the Company had until May 10, 2025 to pay an additional $1,775,000 to exercise its option
for the remaining 17.75% interest. The option expired unexercised after the reporting period, and the Company forfeited its right to
acquire the additional interest. The Company retains its existing 2.25% interest.

Proved
Property Leases

Saskatchewan,
Canada

In
April 2025, the Company acquired oil and gas lease rights for four proved properties located in Saskatchewan, Canada (see Note 5). The
leases total 320 net acres and are all held by production.

Board
of Directors Compensation

On
July 11, 2022, the Company’s Board of Directors approved a compensation plan for non-employee directors, effective upon the consummation
of the Company’s initial public offering (IPO). Under this plan, each non-employee director is entitled to an annual cash retainer
of $50,000, plus an additional $10,000 per Board committee served, with all payments made quarterly in arrears. Compensation payments
commenced following the successful completion of the IPO in April 2023.

For
the three and nine months ended July 31, 2025, the Company recognized director compensation expense of $80,007 and $241,682, respectively.
For the corresponding periods in 2024, the Company recognized $55,000 and $165,000, respectively.

Agreements
with Advisors

On
July 28, 2022, the Company entered into a placement agent agreement with the Placement Agent with Spartan Capital Securities, LLC (“Spartan”),
whereby Spartan agreed to serve as the exclusive agent, advisor or underwriter in any offering of securities of the Company for a one-year
term. The agreement provided for a $25,000 non-refundable advance upon execution of the agreement and completion of a bridge