Company: TPET
Filing Date: 2025-02-28
Form Type: S-1/A
Source: 0001493152-25-008715
Chunk: 86

Company: Trio Petroleum Corp.
Filing Date: 2025-02-28
Form: S-1/A
Chunk 86
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 31, 2024; such had not yet been granted during the same period in the prior year.

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 year
ended October 31, 2024, accretion expenses remained consistent with that of the prior year period.

Other expenses, net

For the year ended October 31, 2024, other expenses, net increased by approximately $1.5 million when compared to the prior year period. The increase is attributable to an increase in non-cash interest expense of $1.3 million, which is recognized as debt discounts on financings are amortized; there were less financings in the prior period.

| 46 |

Liquidity and Capital Resources

Working Capital/(Deficiency)

Our working capital deficit as of October 31, 2024, in comparison to our working capital deficit as of October 31, 2023, can be summarized as follows:

|                      |     |   |    October 
   31, 2024 |   |     |   |   October 
  31, 2023 |   |
|:---------------------|:----|:--|-----------:|:--|:----|:--|----------:|:--|
| Current              
 assets               |     | $ |    565,219 |   |     | $ | 1,695,341 |   |
| Current              
 liabilities          |     |   |  2,590,699 |   |     |   | 1,851,386 |   |
| Working              
 capital (deficiency) |     | $ | (2,025,480 | ) |     | $ |  (156,045 | ) |

Current assets decreased because of i) a decrease to the cash account of approximately $1.3 million due to increased payroll expenses and additional cash outlays for capital expenditures for the oil and gas properties, offset by an increase in prepaid assets of approximately $0.2 million. Current liabilities increased because of i) an increase in accounts payable of approximately $0.5 million, as well as an increase in notes payable – related parties of approximately $0.3 million.

Cash Flows

Our cash flows for the