Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 104

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1A
Chunk 104
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 weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely
basis. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course
of performing their assigned functions, to prevent or detect misstatements on a timely basis.

If the Company fails to maintain an effective
system of internal controls, it may not be able to accurately report its financial results or detect fraud. Consequently, investors could
lose confidence in the Company’s financial reporting and this may decrease the trading price of its stock.

The Company must maintain effective internal controls
to provide reliable financial reports and detect fraud. The Company has been assessing its internal controls to identify areas that need
improvement. It is in the process of implementing changes to internal controls but has not yet completed implementing these changes. Failure
to implement these changes to the Company’s internal controls or any others that it identifies as necessary to maintain an effective
system of internal controls could harm its operating results and cause investors to lose confidence in the Company’s reported financial
information. Any such loss of confidence would have a negative effect on the trading price of the Company’s stock.

 Insurance
may be insufficient to cover future liabilities.

Our business is currently focused on oil and natural
gas exploration and development, and we also have potential exposure to general liability and property damage associated with the ownership
of other corporate assets. We depend on the operators of our oil and gas properties for insurance for those oil and natural gas operations.
We may be liable for claims in excess of any coverage and for any deductibles required. If uncovered liabilities are substantial, any
payment could adversely impact the Company’s liquidity, which could result in the reduction or cessation of operations. Moreover,
some liabilities are not insurable at a reasonable cost or at all.

We are dependent upon information technology
systems, which are subject to disruption, damage, failure and risks associated with implementation and integration.

We are dependent upon information technology systems
in the conduct of our operations. Our information technology systems are subject to disruption, damage or failure from a variety of sources,
including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design. Cybersecurity
incidents, in particular, are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to