Company: TPET
Filing Date: 2025-03-14
Form Type: 10-Q
Source: 0001493152-25-010362
Chunk: 99

Company: Trio Petroleum Corp.
Filing Date: 2025-03-14
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 respectively. Losses in the amounts of $14,203, $12,830
and $9,534, respectively, were recognized for the difference between the value of the shares issued and the principal payment amounts.
An additional 2,317 shares were issued on October 11, 2024 at a fair value of $3.38 for a total amount of $7,838; the share issuance
was made to satisfy a make-whole-share provision which the debtor is entitled to when the effective price of the shares becomes less
than the floor price.

On
December 2, 2024, December 20, 2024 and January 7, 2025, the Company made principal payments in the amounts of $88,888, $290,844 and
$192,492, respectively, in full satisfaction of the principal balance of the notes; the first and third payments were made in cash, with
losses resulting from make-whole payments per the terms of the agreement in the amounts of $2,668 and $69,310, respectively. The second
payment was converted into shares at 103% for a conversion amount of $299,569, with shares issued numbering 340,419 at a fair value per
share of $0.88, which resulted in a loss of $8,725. As of January 31, 2025, the balance of the June 2024 Notes was zero, with noncash
interest expense related to discounts recognized in the amounts of $249,805 and zero for the three months ended January 31, 2025 and
2024, respectively, and $381,501 in noncash interest expense related to discounts recognized over the life of the notes.

August
1, 2024 Financing

On
August 1, 2024, the Company entered into a Securities Purchase Agreement (the “August 1st SPA”) with an investor,
pursuant to which the Company raised gross proceeds of $134,000 and received net proceeds of $110,625; in connection with the financing,
the Company issued an unsecured promissory note to the investor in the principal amount of $152,000 and an original issue discount of
$18,000 or approximately 11.8%. Interest accrues on the note at a rate of 12% per annum and the maturity date of the note is May 30,
2025. The note provides for five payments of principal and accrued interest which are payable