2024 Q1 Form 10-K Financial Statement

#000149315224004144 Filed on January 29, 2024

View on sec.gov

Income Statement

Concept 2024 Q1 2023 Q4 2023
Revenue $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.355M $1.243M $4.356M
YoY Change 721.1% 1296.8% 462.39%
% of Gross Profit
Research & Development $84.59K $26.69K $251.7K
YoY Change 778.06%
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses $1.440M $1.271M $4.611M
YoY Change 769.09% 1316.58% 472.02%
Operating Profit -$1.440M -$4.611M
YoY Change 769.1% 472.02%
Interest Expense $159.3K -$44.88K $791.8K
YoY Change -124.41% -92.71% -147.64%
% of Operating Profit
Other Income/Expense, Net -$261.9K -$3.900K -$1.934M
YoY Change -59.87% -58.73% 45.14%
Pretax Income -$1.702M -$1.320M -$6.544M
YoY Change 108.0% 84.55% 72.2%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$1.702M -$1.320M -$6.544M
YoY Change 108.0% 84.55% 72.2%
Net Earnings / Revenue
Basic Earnings Per Share -$0.05 -$0.28
Diluted Earnings Per Share -$0.05 -$0.04 -$0.28
COMMON SHARES
Basic Shares Outstanding 31.90M shares 23.08M shares
Diluted Shares Outstanding 31.60M shares 23.08M shares

Balance Sheet

Concept 2024 Q1 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $348.8K $1.562M $1.562M
YoY Change 209.92% 2020.73% 2020.73%
Cash & Equivalents $348.7K $1.562M
Short-Term Investments
Other Short-Term Assets $127.1K $133.4K $133.4K
YoY Change -93.51% -92.05% -92.05%
Inventory
Prepaid Expenses $127.1K $133.4K
Receivables
Other Receivables
Total Short-Term Assets $475.9K $1.695M $1.695M
YoY Change -77.04% -3.26% -3.26%
LONG-TERM ASSETS
Property, Plant & Equipment $10.86M $9.948M $9.948M
YoY Change 86.08% 70.45% 70.45%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00 $0.00
YoY Change -100.0% -100.0%
Total Long-Term Assets $10.86M $9.948M $9.948M
YoY Change 40.38% 28.59% 28.59%
TOTAL ASSETS
Total Short-Term Assets $475.9K $1.695M $1.695M
Total Long-Term Assets $10.86M $9.948M $9.948M
Total Assets $11.34M $11.64M $11.64M
YoY Change 15.57% 22.7% 22.7%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $561.7K $609.4K $609.4K
YoY Change -60.02% -47.65% -47.65%
Accrued Expenses
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0% -100.0% -100.0%
Long-Term Debt Due $1.271M $1.218M $1.218M
YoY Change
Total Short-Term Liabilities $1.927M $1.851M $1.851M
YoY Change -74.09% -72.41% -72.41%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $369.0K $48.31K $48.31K
YoY Change 562.73% -12.15% -12.15%
Total Long-Term Liabilities $369.0K $48.31K $48.31K
YoY Change 562.73% -12.13% -12.15%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.927M $1.851M $1.851M
Total Long-Term Liabilities $369.0K $48.31K $48.31K
Total Liabilities $2.296M $1.900M $1.900M
YoY Change -69.35% -71.92% -71.92%
SHAREHOLDERS EQUITY
Retained Earnings -$12.15M -$10.45M
YoY Change 167.7%
Common Stock $3.235K $3.105K
YoY Change 82.97%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.040M $9.743M $9.743M
YoY Change
Total Liabilities & Shareholders Equity $11.34M $11.64M $11.64M
YoY Change 15.57% 22.7% 22.7%

Cashflow Statement

Concept 2024 Q1 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$1.702M -$1.320M -$6.544M
YoY Change 108.0% 84.55% 72.2%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities -$774.4K -$1.494M -$4.037M
YoY Change 256.11% 197.62% 703.93%
INVESTING ACTIVITIES
Capital Expenditures $912.5K $112.5K $362.0K
YoY Change
Acquisitions
YoY Change
Other Investing Activities $389.7K -$273.3K -$1.828M
YoY Change
Cash From Investing Activities -$522.8K -$385.8K -$2.190M
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $738.7K
YoY Change 1120.12%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $84.02K 1.936M $7.715M
YoY Change -67.22% 289.64% 1452.56%
NET CHANGE
Cash From Operating Activities -$774.4K -1.494M -$4.037M
Cash From Investing Activities -$522.8K -385.8K -$2.190M
Cash From Financing Activities $84.02K 1.936M $7.715M
Net Change In Cash -$1.213M 55.90K $1.488M
YoY Change -3220.31% -1170.88% -28611.03%
FREE CASH FLOW
Cash From Operating Activities -$774.4K -$1.494M -$4.037M
Capital Expenditures $912.5K $112.5K $362.0K
Free Cash Flow -$1.687M -$1.607M -$4.399M
YoY Change

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372000 usd
CY2023 us-gaap Stock Issued During Period Value Conversion Of Units
StockIssuedDuringPeriodValueConversionOfUnits
5164875 usd
CY2023 TPET Stock Issued During Period Value Issuance Of Commitment Shares Related To The Spa
StockIssuedDuringPeriodValueIssuanceOfCommitmentSharesRelatedToTheSPA
1125000 usd
CY2023 TPET Stock Issued During Period Value Issuance Of Common Shares In Ipo Net Of Underwriting Discounts And Offering Costs
StockIssuedDuringPeriodValueIssuanceOfCommonSharesInIPONetOfUnderwritingDiscountsAndOfferingCosts
3342626 usd
CY2023 us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
4000 usd
CY2023 us-gaap Stock Issued During Period Value Other
StockIssuedDuringPeriodValueOther
1812635 usd
CY2023 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
366659 usd
CY2023 us-gaap Stock And Warrants Issued During Period Value Preferred Stock And Warrants
StockAndWarrantsIssuedDuringPeriodValuePreferredStockAndWarrants
332630 usd
CY2023 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
1044261 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
-6544426 usd
CY2023Q4 us-gaap Stockholders Equity
StockholdersEquity
9743384 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
4050510 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
4050510 usd
CY2022 TPET Stock Issued During Period Value Founders Of Shares
StockIssuedDuringPeriodValueFoundersOfShares
543 usd
CY2022 TPET Stock Issued During Period Value Issuance Of Security Interest Shares To Investors
StockIssuedDuringPeriodValueIssuanceOfSecurityInterestSharesToInvestors
1322933 usd
CY2022 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
60000 usd
CY2022 TPET Adjustments To Additional Paid In Capital Issuance Of Warrants In Connection With Investor Financing
AdjustmentsToAdditionalPaidInCapitalIssuanceOfWarrantsInConnectionWithInvestorFinancing
994091 usd
CY2022 TPET Adjustments To Additional Paid In Capital Interest Imputed On Note Payable For Acquisition Of Unproved Oil And Gas Properties
AdjustmentsToAdditionalPaidInCapitalInterestImputedOnNotePayableForAcquisitionOfUnprovedOilAndGasProperties
89237 usd
CY2022 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
6202 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-3800392 usd
CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
2723124 usd
CY2022Q4 us-gaap Stockholders Equity
StockholdersEquity
2723124 usd
CY2023 us-gaap Net Income Loss
NetIncomeLoss
-6544426 usd
CY2022 us-gaap Net Income Loss
NetIncomeLoss
-3800392 usd
CY2023 TPET Franchise Tax Fee And Income
FranchiseTaxFeeAndIncome
-9450 usd
CY2022 TPET Franchise Tax Fee And Income
FranchiseTaxFeeAndIncome
9450 usd
CY2023 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
25000 usd
CY2023 us-gaap Accretion Expense
AccretionExpense
2778 usd
CY2022 us-gaap Accretion Expense
AccretionExpense
2778 usd
CY2023 TPET Conversion Of Spa
ConversionOfSPA
1125000 usd
CY2023 TPET Debt Discount
DebtDiscount
-140000 usd
CY2023 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
473240 usd
CY2022 us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
1218951 usd
CY2022 TPET Writeoff Of Spa Receivable
WriteoffOfSPAReceivable
80000 usd
CY2022 TPET Imputed Interest
ImputedInterest
89237 usd
CY2023 us-gaap Share Based Compensation
ShareBasedCompensation
1044261 usd
CY2022 us-gaap Share Based Compensation
ShareBasedCompensation
6202 usd
CY2022 TPET Penalty Fees
PenaltyFees
1322933 usd
CY2023 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
123417 usd
CY2022 us-gaap Increase Decrease In Prepaid Expense
IncreaseDecreaseInPrepaidExpense
13846 usd
CY2023 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
110180 usd
CY2022 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
582543 usd
CY2023 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-4036834 usd
CY2022 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-502144 usd
CY2023 us-gaap Payments To Explore And Develop Oil And Gas Properties
PaymentsToExploreAndDevelopOilAndGasProperties
362022 usd
CY2023 us-gaap Payments To Acquire Machinery And Equipment
PaymentsToAcquireMachineryAndEquipment
3749488 usd
CY2023 us-gaap Proceeds From Sale Of Productive Assets
ProceedsFromSaleOfProductiveAssets
1900000 usd
CY2023 us-gaap Proceeds From Collection Of Longterm Loans To Related Parties
ProceedsFromCollectionOfLongtermLoansToRelatedParties
21651 usd
CY2023 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-2189859 usd
CY2023 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
738659 usd
CY2022 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
60543 usd
CY2022 us-gaap Proceeds From Notes Payable
ProceedsFromNotesPayable
4820000 usd
CY2023 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
1472512 usd
CY2022 us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
2920000 usd
CY2023 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
6000000 usd
CY2023 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
350320 usd
CY2022 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
575438 usd
CY2023 us-gaap Proceeds From Warrant Exercises
ProceedsFromWarrantExercises
1812635 usd
CY2023 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
1013493 usd
CY2022 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
888190 usd
CY2023 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
2000000 usd
CY2023 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
7714969 usd
CY2022 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
496915 usd
CY2023 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
1488276 usd
CY2022 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
-5229 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
73648 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
78877 usd
CY2023Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1561924 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
73648 usd
CY2023 TPET Issuance Of Warrants Equity Classified
IssuanceOfWarrantsEquityClassified
332630 usd
CY2022 TPET Issuance Of Warrants Equity Classified
IssuanceOfWarrantsEquityClassified
1108974 usd
CY2023 us-gaap Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Shares Issued1
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationSharesIssued1
213 shares
CY2022 us-gaap Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Shares Issued1
NoncashOrPartNoncashAcquisitionNoncashFinancialOrEquityInstrumentConsiderationSharesIssued1
30 shares
CY2023 TPET Issuance Of Common Stock For Excercisable Warrants
IssuanceOfCommonStockForExcercisableWarrants
120 usd
CY2023 TPET Issuance Of Prefunded Warrants
IssuanceOfPrefundedWarrants
4000 usd
CY2023 us-gaap Nature Of Operations
NatureOfOperations
<p id="xdx_80F_eus-gaap--NatureOfOperations_zRWvcY8rHCAl" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1 – <span id="xdx_826_zYASJMkcrUvd">NATURE OF THE ORGANIZATION AND BUSINESS</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Company Organization</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Trio Petroleum Corp. (“Trio Petroleum” or the “Company”) is an oil and gas exploration and development company headquartered in Bakersfield, California, with operations in Monterey County, California. The Company was incorporated on July 19, 2021, under the laws of Delaware to acquire, fund and develop oil exploration and production assets in California; it has no revenue-generating operations as of the date of this filing. The Company was formed to acquire Trio Petroleum LLC’s (“Trio LLC”) approximate <span id="xdx_903_eus-gaap--BusinessCombinationStepAcquisitionEquityInterestInAcquireePercentage_iI_pid_dp_uPure_c20231031__dei--LegalEntityAxis__custom--TrioLLCMember__us-gaap--BusinessAcquisitionAxis__custom--SouthSalinasProjectMember_zc8sRnLCqXla" title="Business acquisition increase in percentage of working interest">82.75</span>% working interest, which was subsequently increased to an approximate <span id="xdx_90F_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_uPure_c20231031__dei--LegalEntityAxis__custom--TrioLLCMember__us-gaap--BusinessAcquisitionAxis__custom--SouthSalinasProjectMember_zFw7EPomKtp2" title="Business acquisition percentage of working interest">85.75</span>% working interest, in the large, approximately 9,300-acre South Salinas Project located in Monterey, California, and subsequently partner with certain members of Trio LLC’s management team to develop and operate those assets. (see Note 5 and Note 6).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Acquisition of South Salinas Project</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On September 14, 2021, the Company entered into a Purchase and Sale Agreement (“Trio LLC PSA”) with Trio LLC to acquire an <span id="xdx_909_eus-gaap--BusinessAcquisitionPercentageOfVotingInterestsAcquired_iI_dp_uPure_c20210914__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember__us-gaap--BusinessAcquisitionAxis__custom--SouthSalinasProjectMember_zEmbfgcV3rg9" title="Business acquisition percentage">82.75</span>% working interest in the South Salinas Project; the working interest included the purchased percentage of the South Salinas Project’s leases, wells and inventory in exchange for $<span id="xdx_90B_eus-gaap--PaymentsToAcquireBusinessesGross_c20210913__20210914__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zFLRzkQ9O903" title="Payments to acquire businesses net of cash acquired">300,000</span> cash, a non-interest-bearing note payable of $<span id="xdx_901_eus-gaap--AccountsPayableInterestBearingCurrentAndNoncurrent_iI_c20211217__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zw6dsMnyi6Ei" title="Non interest bearing notes payable">3,700,000</span> due to Trio LLC on December 17, 2021 (see Note 6 and Note 9) and <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211216__20211217__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zm1l4vHrrwV4" title="Number of shares issued">4,900,000</span> shares of the Company’s $<span id="xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20211217__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zCtNzjpoIGy3" title="Common stock price per share">0.0001</span> par value common stock (see Note 5 and Note 10). At the time of the acquisition, this share issuance constituted <span id="xdx_90D_ecustom--BusinessAcquisitionOfOutstandingSharesPercentage_iI_dp_uPure_c20210914__dei--LegalEntityAxis__custom--TrioLLCMember_z2JKf0v6k7X4" title="Business acquisition percentage.">45</span>% of the total number of issued shares of the Company. The Company accounted for the purchase as an asset acquisition, as prescribed in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 – <i>Business Combinations</i>. The assets and associated asset retirement obligations (“ARO”) were recorded based on relative fair value at the estimated fair value of the consideration paid (see Note 5). In April 2023, the Company purchased an additional <span id="xdx_90D_ecustom--PurchaseOfAdditionalInterestPercentage_iI_dp_uPure_c20230430__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zycJoLh0oSX3" title="Working interest percentage">3</span>% working interest in the South Salinas Project; see Note 5 for further information. As of October 31, 2023 and 2022, there were no proved reserves attributable to the approximate <span id="xdx_900_eus-gaap--AreaOfLand_iI_usqft_c20231031__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zz9ppefwIzpi" title="Acres of property"><span id="xdx_909_eus-gaap--AreaOfLand_iI_usqft_c20221031__us-gaap--TypeOfArrangementAxis__custom--PurchaseAndSaleAgreementMember__dei--LegalEntityAxis__custom--TrioLLCMember_zOGxnzcFh5n6" title="Acres of property">9,300</span></span> acres of the property.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0.5in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Initial Public Offering</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company’s Registration Statement (Amendment No. 9) on Form S-1/A was filed with the SEC on March 24, 2023; its Initial Public Offering was declared effective on April 17, 2023 and closed on April 20, 2023 (collectively, the “Offering” or “IPO”). The Company sold <span id="xdx_905_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20230420__20230420__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_ziH1DWHqUpAj" title="Number of shares sold">2,000,000</span> shares of its common stock for total gross proceeds of $<span id="xdx_90E_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20230420__20230420__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zOjCdQdjeECa" title="Gross proceeds from sale of shares">6,000,000</span>, which is described more fully in Note 4.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Emerging Growth Company</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is an “emerging growth company,” as defined in Section 2(a)(19) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023 us-gaap Use Of Estimates
UseOfEstimates
<p id="xdx_842_eus-gaap--UseOfEstimates_zVhWripfbpeb" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_86D_zHpyOYpWzRPl">Use of Estimates</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transaction and disclosure of contingent assets and liabilities at the date of the financial statements, and the revenue and expenses during the reporting period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Some of the more significant estimates required to be made by management include estimates of oil and natural gas reserves (when and if assigned) and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, accounts receivable, bad debt expense, ARO and the valuation of equity-based transactions. Accordingly, actual results could differ significantly from those estimates.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
CY2023Q4 us-gaap Cash Equivalents At Carrying Value
CashEquivalentsAtCarryingValue
0 usd
CY2022Q4 us-gaap Cash Equivalents At Carrying Value
CashEquivalentsAtCarryingValue
0 usd
CY2023Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
133417 usd
CY2022Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
35000 usd
CY2022Q4 us-gaap Deferred Offering Costs
DeferredOfferingCosts
1643881 usd
CY2023Q4 us-gaap Deferred Finance Costs Gross
DeferredFinanceCostsGross
350320 usd
CY2022Q4 us-gaap Deferred Finance Costs Gross
DeferredFinanceCostsGross
575438 usd
CY2023Q4 us-gaap Other Indefinite Lived Intangible Assets
OtherIndefiniteLivedIntangibleAssets
0 usd
CY2022Q4 us-gaap Other Indefinite Lived Intangible Assets
OtherIndefiniteLivedIntangibleAssets
0 usd
CY2021Q4 us-gaap Asset Retirement Obligation
AssetRetirementObligation
45535 usd
CY2022 us-gaap Accretion Expense
AccretionExpense
2778 usd
CY2022Q4 us-gaap Asset Retirement Obligation
AssetRetirementObligation
48313 usd
CY2023 us-gaap Accretion Expense
AccretionExpense
2778 usd
CY2023Q4 us-gaap Asset Retirement Obligation
AssetRetirementObligation
51091 usd
CY2023Q4 us-gaap Asset Retirement Obligation Current
AssetRetirementObligationCurrent
2778 usd
CY2023Q4 us-gaap Asset Retirement Obligations Noncurrent
AssetRetirementObligationsNoncurrent
48313 usd
CY2023Q4 us-gaap Cash
Cash
1561924 usd
CY2023 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
396247 shares
CY2022 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
4486964 shares
CY2023 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
1766702 shares
CY2023 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<p id="xdx_84D_eus-gaap--PriorPeriodReclassificationAdjustmentDescription_zLfreJaD2K2" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i><span id="xdx_860_zu1hfQPSZQ2">Reclassification of Expenses</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain amounts in the prior periods presented have been reclassified to the current period financial statement presentation. This reclassification has no effect on previously reported net income.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i> </i></span></p>
CY2023Q4 TPET Working Capital
WorkingCapital
156045 usd
CY2023Q4 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
4940000 usd
CY2023Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-10446882 usd
CY2023Q2 us-gaap Proceeds From Issuance Initial Public Offering
ProceedsFromIssuanceInitialPublicOffering
4940000 usd
CY2023Q4 us-gaap Oil And Gas Property Full Cost Method Gross
OilAndGasPropertyFullCostMethodGross
9947742 usd
CY2022Q4 us-gaap Oil And Gas Property Full Cost Method Gross
OilAndGasPropertyFullCostMethodGross
5836232 usd
CY2023Q4 us-gaap Oil And Gas Property Full Cost Method Net
OilAndGasPropertyFullCostMethodNet
9947742 usd
CY2022Q4 us-gaap Oil And Gas Property Full Cost Method Net
OilAndGasPropertyFullCostMethodNet
5836232 usd
CY2023 us-gaap Exploration Costs
ExplorationCosts
251743 usd
CY2022 us-gaap Exploration Costs
ExplorationCosts
28669 usd
CY2023 us-gaap Interest Costs Capitalized Adjustment
InterestCostsCapitalizedAdjustment
4111510 usd
CY2023 us-gaap Acquisition Costs
AcquisitionCosts
262022 usd
CY2022Q4 TPET Non Refundable Payment
NonRefundablePayment
252512 usd
CY2023Q4 us-gaap Area Of Land
AreaOfLand
8417 acre
CY2022Q2 TPET Non Refundable Payment
NonRefundablePayment
252512 usd
CY2023 us-gaap Cost Depletion
CostDepletion
0 usd
CY2022Q4 TPET Option Fee
OptionFee
150000 usd
CY2023Q4 TPET Reserve Analysis Optioned Asset
ReserveAnalysisOptionedAsset
39000 usd
CY2023Q4 TPET Payment Of Execution
PaymentOfExecution
100000 usd
CY2023Q4 us-gaap Adjustments To Additional Paid In Capital Other
AdjustmentsToAdditionalPaidInCapitalOther
400000 usd
CY2023 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
100000 usd
CY2023 TPET Working Interest Percentage
WorkingInterestPercentage
0.8575 pure
CY2023Q4 TPET Payment Of Execution
PaymentOfExecution
100000 usd
CY2023Q4 us-gaap Adjustments To Additional Paid In Capital Other
AdjustmentsToAdditionalPaidInCapitalOther
400000 usd
CY2023 us-gaap Interest Costs Capitalized
InterestCostsCapitalized
100000 usd
CY2023Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
0.27
CY2023Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
1095000 usd
CY2022Q4 us-gaap Deferred Tax Assets Operating Loss Carryforwards
DeferredTaxAssetsOperatingLossCarryforwards
797000 usd
CY2023Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
1095000 usd
CY2022Q4 us-gaap Deferred Tax Assets Gross
DeferredTaxAssetsGross
797000 usd
CY2023Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1095000 usd
CY2022Q4 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
797000 usd
CY2023Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
1095000 usd
CY2022Q4 us-gaap Operating Loss Carryforwards
OperatingLossCarryforwards
797000 usd
CY2023 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
298000 usd
CY2022 us-gaap Valuation Allowance Deferred Tax Asset Change In Amount
ValuationAllowanceDeferredTaxAssetChangeInAmount
776000 usd
CY2023 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
0.21 pure
CY2023 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
-0.21 pure
CY2022 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
EffectiveIncomeTaxRateReconciliationChangeInDeferredTaxAssetsValuationAllowance
-0.21 pure
CY2023Q4 us-gaap Convertible Notes Payable Current
ConvertibleNotesPayableCurrent
1217597 usd
CY2023Q4 us-gaap Notes Payable
NotesPayable
1217597 usd
CY2022Q4 us-gaap Notes Payable
NotesPayable
5428936 usd
CY2023Q4 TPET Number Of Shares Required To Reserve And Register
NumberOfSharesRequiredToReserveAndRegister
13161976 shares
CY2023Q4 TPET Percentage Of Common Shares Required To Reserve
PercentageOfCommonSharesRequiredToReserve
2 pure
CY2023Q4 TPET Percentage Of Shares Required To Reserve Upon Conversion Of Note
PercentageOfSharesRequiredToReserveUponConversionOfNote
2 pure
CY2023Q4 TPET Aggregate Authorized Shares
AggregateAuthorizedShares
500000000 shares
CY2023Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
490000000 shares
CY2023Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2023Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2023Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2023Q2 TPET Resale Amendment Agreement Description
ResaleAmendmentAgreementDescription
the Company issued a Form S-1/A, which registered for resale (i) up to 3,149,314 shares of common stock, par value $0.0001 per share which the selling stockholders may acquire upon the exercise of outstanding common warrants and (ii) up to 500,000 shares of common stock, which the selling stockholders may acquire upon the exercise of outstanding pre-funded warrants. Such warrants were issued to the selling stockholders in connection with securities purchase agreements entered into on January 28, 2022 and September 20, 2022. The Company recorded 699,848 shares of common stock that are not exercised but registered in accordance with their common warrant agreements and 500,000 shares of common stock that are not exercised but registered in accordance with their pre-funded warrant agreements upon the filing of this Form S-1/A
CY2023Q4 us-gaap Stock Issued During Period Shares Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures
1000000 shares
CY2023Q4 us-gaap Share Price
SharePrice
0.27
CY2023Q4 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
271000 usd
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Rights
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights
The restricted stock grant vests over a period of two years, with 25% of the shares of restricted stock vesting six months after the Peterson Employment Agreement Effective Date, and the remainder vesting in equal tranches on each of the 12-, 18-, and 24-month anniversary dates of the Peterson Employment Agreement
CY2023 us-gaap Employee Benefits And Share Based Compensation
EmployeeBenefitsAndShareBasedCompensation
3341 usd
CY2023Q4 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognized
267659 usd
CY2022Q1 us-gaap Warrants And Rights Outstanding Term
WarrantsAndRightsOutstandingTerm
P3Y
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Granted
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsGranted
4776046 shares
CY2023 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
1.04
CY2023 TPET Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm
P3Y1M6D
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Exercised
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExercised
2901298 shares
CY2023 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
1.03
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Expirations
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsExpirations
108047 shares
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Non Option Equity Instruments Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardNonOptionEquityInstrumentsOutstandingNumber
1766702 shares
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1.12
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P3Y10M24D
CY2023Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
211200 usd
CY2023Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
1766702 shares
CY2023Q4 TPET Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercisable Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisableExercisePrice
1.12
CY2023 TPET Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Exercisable Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingExercisableContractualTerm1
P3Y10M24D
CY2023Q4 TPET Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value Exercisable
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValueExercisable
211200 usd
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0436 pure
CY2023 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Fair Value Assumptions Expected Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1
P5Y
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.371 pure
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate
0 pure

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