Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 63

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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the successful efforts method of accounting for crude oil and natural gas properties, exploration expenses consist primarily of exploratory,
geological and geophysical costs, delay rentals and exploratory overhead, and are expensed as incurred. Exploration expenses decreased
by approximately $0.1 million as compared to the prior year period due to a decrease in exploratory, geological, and geophysical costs
incurred during the period.

General
and administrative expenses

General
and administrative expenses consist primarily of personnel expenses, including salaries, benefits and stock-based compensation expense
for employees and consultants in executive, finance and accounting, legal, operations support, information technology and human resource
functions. General and administrative expenses also include corporate facility costs including rent, utilities, depreciation, amortization
and maintenance, as well as legal fees related to intellectual property and corporate matters and fees for accounting and consulting
services.

30

General
and administrative expenses decreased for the six months ended April 30, 2025 by approximately $1.0 million as compared to the prior
period due to decreases in salary expenses, advertising and marketing fees, filing fees and legal fees of approximately $330,000, $235,000,
$160,000 and $200,000, respectively.

Stock-based
compensation expense

We
record stock-based compensation expenses for costs associated with options and restricted shares granted in connection with the Plan,
as well as for shares issued as payment for services. For the six months ended April 30, 2025, stock-based compensation expense decreased
by approximately $0.3 million compared to the prior period. This decrease was primarily due to the final vesting of certain restricted
shares in the previous quarter, which resulted in a lower expense allocation for the current six-month period.

Accretion
expenses

We
have an Asset Retirement Obligation (“ARO”) recorded that is associated with its oil and natural gas properties in the SSP;
the fair value of the ARO was recorded as a liability and is accreted over time until the date the ARO is to be paid. For the six months
ended April 30, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the six months ended April 30, 2025, other expenses, net decreased by approximately $1.3 million when compared to the prior year period.
This decline was primarily driven by (i) an approximate $0.8 million reduction in non-cash interest expense