Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 128

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 128
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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. Stock-based compensation expense decreased by approximately $0.4 million for the
three months ended April 30, 2025 due to the amortization of approximately 30,000 more options in the prior three month period than in
the current 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 three months
ended April 30, 2025, accretion expenses remained consistent with that of the prior year period.

Other
expenses, net

For
the three months ended April 30, 2025, other expenses, net decreased by approximately $1.4 million when compared to the prior year period.
This decline was primarily driven by (i) an approximate $1.0 million reduction in non-cash interest expense resulting from lower debt
levels in the current period (non-cash interest expense is recognized as debt discounts on financings are amortized), as well as (ii)
an approximate $1.1 million loss on a note conversion recorded in the prior period, which stemmed from principal payments made via conversion
shares under the October 2023 Securities Purchase Agreement. These reductions were partially offset by a $0.6 million loss incurred in
the current period due to the abandonment of oil and gas properties.

29

Six
Months Ended April 30, 2025 compared to the Six Months Ended April 30, 2024 (unaudited)

Our
financial results for the six months ended April 30, 2025 and 2024 are summarized as follows:

    For the Six Months Ended
                                                                                April 30,  

    2025  
    2024  
    Change  
    % Change 
  
    Revenues, net 
    $34,090  
    $72,923  
    $(38,833) 
     (53.3)%
  
    Cost of goods sold 
     9,262  
     -  
     9,262  
     100.0%
  
    Gross profit 
     24