Company: TPET
Filing Date: 2025-06-10
Form Type: 10-Q
Source: 0001641172-25-014516
Chunk: 97

Company: Trio Petroleum Corp.
Filing Date: 2025-06-10
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 Ranch Purchase Agreement with Trio LLC for purchase of a 21.918315% working interest
in the McCool Ranch Oil Field located in Monterey County near the Company’s flagship South Salinas Project (see Note 5); the Assets
were situated in what is known as the “Hangman Hollow Area” of the McCool Ranch Oil Field. The Company initially recorded
a payment of $100,000 upon execution of the McCool Ranch Purchase Agreement, at which time Trio LLC began refurbishment operations with
respect to the San Ardo WD-1 to determine if it was capable of reasonably serving the produced water needs for the assets. Following
successful refurbishment, the Company committed to an additional $400,000 payment under the agreement.

On May 27, 2025, the Company made the decision to abandon the McCool Ranch
Oil Field leases. Because the conditions leading to this decision existed as of April 30, 2025, this event qualifies as a recognized subsequent
event under ASC 855-10-25-1 and has been reflected in the financial statements for the period ended April 30, 2025. Accordingly, all capitalized
costs related to the acquisition, refurbishment, and production restart—including costs for support equipment and facilities—totaling
$500,614 have been written off and expensed in the statement of operations for the period ended April 30, 2025.

Restricted
Stock Units (“RSUs”) issued to Directors

On
June 19, 2024, the Company agreed to award 50,000 restricted stock units to a newly appointed director under the Plan; as there were
only 22,750 shares remaining for issuance under the Plan at that time, 22,500 RSUs were awarded immediately with a fair value of $6.00
per share for a grant date value of $134,550, with the remainder issued in the following quarter at a fair value of $3.32 per share for
a grant date value of $91,300. For the three and six months ended April 30, 2025, the Company recognized stock-based compensation for
these awards in the amount of $39,488 and $75,760, respectively, within stock-based compensation expenses on the income statement, with
$119,432 of unrecognized expense as of the period ended April 30, 2025.

On
October 21, 2024, the Company agreed to award 12,500 restricted stock units to a