Company: TPET
Filing Date: 2025-01-17
Form Type: 10-K
Source: 0001493152-25-002760
Chunk: 2558

Company: Trio Petroleum Corp.
Filing Date: 2025-01-17
Form: 10-K
Item: Item 12
Chunk 2558
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, respectively, within stock-based compensation expenses on
the income statement, with $195,199 of unrecognized expense as of the period ended October 31, 2024.

On
October 21, 2024, the Company agreed to award 12,500 restricted stock units to a newly appointed director under the Plan; the RSUs vest
at a rate of 100% upon the six month anniversary of the commencement date and were recorded at a fair value of $3.13 per share for a
grant date value of $39,125. Additionally, on October 21, 2024, the Company agreed to award an aggregate of 37,500 restricted stock units
to current directors under the Plan; the RSUs vest at a rate of 100% upon the three month anniversary of the commencement date and were
recorded at a fair value of $3.13 per share for an aggregate grant date value of $117,375. For the years ended October 31, 2024 and 2023,
the Company recognized stock-based compensation for these awards in the amount of $14,908 and $0, respectively, within stock-based compensation
expenses on the income statement, with $141,592 of unrecognized expense as of the period ended October 31, 2024.

Restricted
Shares issued to Executives and Employees

In
February 2022, the Company entered into employment agreements with Frank Ingriselli (former Chief Executive Officer) and Greg Overholtzer
(Chief Financial Officer or “CFO”) which, among other things, provided for the grant of restricted shares in the amounts
of 50,000 and 5,000, respectively, pursuant to the Plan. Per the terms of the employee agreements, subject to continued employment, the
restricted shares vest over a two-year period, under which 25% will vest upon the earlier of three months after the IPO or six months
after the grant date. After this date, the remainder vest in equal tranches every six months until fully vested. As the Plan was not
adopted until October 17, 2022, these shares will be recorded as of that date at a fair value of $5.88 per share; such value was calculated
via a third-party valuation performed using income and market methods, as well as a discounted cash flow method, with the terminal value
using a market multiples method, adjusted for a lack of marketability. As of October 31, 2022