Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 132

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 14
Chunk 132
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, respectively, within stock-based compensation expenses on the income statement, with $29,580 of unrecognized expense as
of the period ended October 31, 2024.

Note
Payable – Related Party

On
March 26, 2024, the Company borrowed $125,000
from its former 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 (the “Peterson Note Maturity Date”), 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.

On
September 26, 2024 and October 28, 2024, the Company entered into the first and second amendments, respectively, to the Peterson Note;
each amendment extended the maturity dates to October 28, 2024 and November 30, 2024, respectively, and added a $5,000 extension fee
(per amendment) to the principal of the note. As of October 31, 2024, the Peterson Note has a principal balance of $135,000.

NOTE
8 – COMMITMENTS AND CONTINGENCIES

From
time to time, the Company is subject to various claims that arise in the ordinary course of business. Management believes that any liability
of the Company that may arise out of or with respect to these matters will not materially adversely affect the financial position, results
of operations, or cash flows of