Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 40

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 event of (i) mergers, consolidations or recapitalization
events or (ii) certain distributions made to holders of shares of common stock.

On
September 30, 2024, October 30, 2024 and November 30, 2024, the Company made cash payments in the amounts of $118,440, $29,610 and $88,830,
respectively, in full satisfaction of the principal balance of the note. As of April 30, 2025, the balance of the promissory note was
zero, with total non-cash interest expense related to discounts recognized in the amounts of zero and $21,315 for the three and six months
ended April 30, 2025, respectively, and total non-cash interest expense related to discounts recognized in the amounts of $7,964 and
$7,964 for the three and six months ended April 30, 2024, respectively, with $72,380 in noncash interest expense related to discounts
recognized over the life of the note.

Note
Payable – Related Party

On
March 26, 2024, the Company borrowed $125,000 from its Chief Executive Officer, Michael L. Peterson, in connection with which the Company
delivered to Mr. Peterson an Unsecured Subordinated Promissory Note in the principal amount of $125,000. The Note is payable on or before
September 26, 2024, upon which date the principal balance and interest accruable at a rate of 10% per annum is due and payable to Mr.
Peterson by the Company. The Company may prepay the Peterson Note at any time prior to the Peterson Note Maturity Date, in whole or in
part, without premium or penalty. The Company is also required to prepay the Peterson Note, in full, prior to the Peterson Note Maturity
Date from the proceeds of any equity or debt financing received by the Company of at least $1,000,000. As additional consideration for
the Peterson Loan, the Company accelerated the vesting of 50,000 shares of restricted stock awarded to Mr. Peterson under the Company’s
2022 Equity Incentive Plan. The Peterson Note also provides for acceleration of payment of the outstanding principal balance and all
accrued and unpaid interest in the case of an Event of Default (as such term is defined in the Peterson Note), where there is either
a payment default or a bankruptcy event.