Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 24

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 24
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 include independent directors. It is possible that if we were to have independent directors
on our board, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested
directors and that policies had been implemented to define responsible conduct. For example, in the absence of audit, nominating and compensation
committees comprised of at least a majority of independent directors, decisions concerning matters such as compensation packages to our
senior officers and recommendations for director nominees may be made by directors who have an interest in the outcome of the matters
being decided. Prospective investors should bear in mind our current lack of both corporate governance measures and independent directors
in formulating their investment decisions.

14 

We have identified material weaknesses in our
internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective
during 2023, 2024 and 2025. We cannot assure you that additional material weaknesses or significant deficiencies do not exist or that
they will not occur in the future. If our internal control over financial reporting or our disclosure controls and procedures are not
effective, we may not be able to accurately report our financial results or prevent fraud, which may cause investors to lose confidence
in our reported financial information and may lead to a decline in our stock price.

Effective internal controls are necessary for us to
provide reliable financial reports and effectively prevent fraud. We maintain a system of internal control over financial reporting, which
is defined as a process designed by, or under the supervision of, our principal executive officer and principal financial officer, or
persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
GAAP. A “material 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 our financial statements will not be prevented or detected
on a timely basis. Based on the results of management’s assessment and evaluation of our internal controls, our principal executive
officer and principal financial officer concluded that our internal control over financial reporting was not effective as of June 30,
2025 due to the material weaknesses described below.

As of June 30, 2025, we have identified the following
material weaknesses:

    ·
    We had inadequate segregation of duties as a result of limited accounting staff and resources, which