Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 69

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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2022, our Board of Directors approved compensation for each of the non-employee directors of the Company, which would be effective
upon the consummation of the IPO. Such compensation is structured as follows: an annual retainer of $50,000 cash plus an additional $10,000
for each Board committee upon which the Director serves, each paid quarterly in arrears. Payment for this approved compensation commenced
upon successful completion of the Company’s IPO in April 2023, and for the three and six months ended April 30, 2025, we recognized
$102,508 and $161,675, respectively, in directors’ fees. For the three and six months ended April 30, 2024, we recognized $54,000
and $110,685, respectively, in directors’ fees.

Agreements
with Advisors

On
October 4, 2023 and December 29, 2023, we entered into placement agent agreements with Spartan Capital Securities, LLC (“Spartan”),
whereby Spartan has served as the exclusive placement agent in connection with the closing of private placements. The agreements provide
the agent with i) a cash fee 7.5% of the aggregate proceeds raised in the sale and ii) warrants to purchase a number of common shares
equal to 5% of the number of common shares initially issuable upon conversion of each note tranche; warrants to purchase 4,167 and 2,750
common shares with exercise prices of $26.40 and $11.00 for the first and second tranches, respectively, were issued to Spartan as of
January 31, 2024. Such warrants may be exercised beginning 6 months after issuance until four and one-half years thereafter.

33

Critical
Accounting Policies and Estimates

Basis
of Presentation

We
prepare our condensed consolidated financial statements in conformity with GAAP, which requires management to make certain estimates
and assumptions and apply judgments. We base our estimates and judgments on historical experience, current trends and other factors that
management believes to be important at the time the condensed consolidated financial statements are prepared, and actual results could
differ from our estimates and such differences could be material. Due to the need to make estimates about the effect of matters that
are inherently uncertain, materially different amounts could be reported under different conditions or using different assumptions. On
a regular basis, we review our critical accounting policies and how they are applied in the preparation of our condensed consolidated