Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 300

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 7A
Chunk 300
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 conditions are not satisfied
and the award is forfeited.

Income taxes

Income taxes
are accounted for under the asset and liability method in accordance with ASC 740, “Income Taxes”. Deferred tax assets and
liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities, their respective tax bases and operating loss, and tax credit carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected
to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in
income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized using a valuation
allowance. A valuation allowance is applied when in management’s view, it is more likely than not that such deferred tax asset will
be unable to be utilized.

3.       GOING
CONCERN

The Company currently has limited operations. These
consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement
of liabilities and commitments in the normal course of business.

As reflected in the accompanying consolidated financial
statements, the Company had a net loss of $597,167 for the year ended June 30, 2025 (year ended June 30, 2024 - $873,214) and an accumulated
deficit of $2,305,685 as of June 30, 2025 (2024 - $1,708,518). These factors, among others, raise doubt about the Company’s ability
to continue as a going concern.

The Company had a working capital deficit of $742,439
as at June 30, 2025 (as of June 30, 2024 – working capital deficit of $460,878) and management believes that the Company will require
additional working capital for the 2026 fiscal year. For the 2026 fiscal year which started in July, we anticipate cash needs of approximately
$270,000 for general corporate overhead and for operations on our existing lease properties. This amount does not include funding for
any potential workovers, re-entries, stimulation treatments and recompletions of existing non or low producing wells. Any new work on
our properties will require additional capital. The Company anticipates receiving