Company: TPET
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001493152-25-013189
Chunk: 15

Company: Trio Petroleum Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 three and nine months ended July 31, 2025, the Company recorded other comprehensive (loss)
income of $(4,326) and $30,520, respectively, related to foreign currency translation adjustments. No such amounts were recorded for
the three and nine months ended July 31, 2024.

Foreign
currency gains and losses arising from transactions denominated in currencies other than the Company’s functional currency, including
intercompany transactions, are recognized in the condensed consolidated statements of operations as incurred. For the three and nine
months ended July 31, 2025, the Company recognized foreign currency transaction losses of $8,819, with no such gains or losses recognized
during the comparable periods in 2024. These amounts are classified within general and administrative expenses in the accompanying condensed
consolidated statements of operations and comprehensive income (loss).

Cash
and cash equivalents

The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had no cash equivalents as of July 31, 2025 and October 31, 2024.

Prepaid
Expenses

Prepaid
expenses consist primarily of payments made in advance for goods or services to be received in future periods. These include prepaid
insurance, software subscriptions, and lease-related costs. Prepaid expenses are recorded as current assets and amortized on a straight-line
basis over the period of benefit.

During
the quarter ended July 31, 2025, the Company entered into a short-term surface lease agreement for access to land in Saskatchewan, Canada,
related to oil and gas development activities, including a well site and access road. In accordance with ASC 842 - Leases and
the Company’s lease accounting policy, the full lease payment of $15,535 CAD was made on May 1, 2025 and recorded as a Prepaid
Lease Expense. The lease term is 12 months, and the expense is recognized ratably over the lease period. As of July 31, 2025, $3,884
CAD has been recognized in Operating Expenses, with the remaining $11,651.26 CAD classified as a current asset.

As
of July 31, 2025 and October 31, 2024, the balances of the prepaids account were $196,400 and $279,274, respectively.

Loan
Receivables

Loan
receivables are recorded at their outstanding principal balance, net