Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 40

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 in the amounts of $118,440, $29,610 and $88,830,
respectively, in full satisfaction of the principal balance of the note. As of July 31, 2025, the balance of the promissory note was
zero, with total non-cash interest expense related to discounts recognized in the amounts of zero and $21,315 for the three and nine
months ended July 31, 2025, respectively, and total non-cash interest expense related to discounts recognized in the amounts of $21,550
and $29,514 for the three and nine months ended July 31, 2024, respectively, with $72,380 in noncash interest expense related to discounts
recognized over the life of the note.

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, 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 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