Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 9

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 9
---
 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 condensed consolidated
financial statements, the Company had a net loss of $286,543 for the six months ended December 31, 2024 (year ended June 30, 2024 - $873,214)
and an accumulated deficit of $1,995,061 as of December 31, 2024 (June 30, 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 $609,877
as at December 31, 2024 (as of June 30, 2024 – deficit of $460,878) and for the remainder of the 2025 fiscal year which started
in July 2024, we anticipate cash needs of approximately $150,000 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
limited revenue from oil and gas sales and intends to obtain the remaining capital through private sales of securities and/or debt financing.

The Company’s future success is dependent
upon its ability to achieve profitable operations, generate cash from operating activities and obtaining additional financing. If
such additional financing is not available on terms acceptable to us or at all, then we may need to curtail our operations and/or