Company: OKMN
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001079973-25-000885
Chunk: 10

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 1
Chunk 10
---
holders. The numerator for diluted earnings per share is net income available to common stockholders.

9. INCOME TAXES

Net operating loss carry forwards of approximately
$2,062,403at March 31, 2025 are available to offset future taxable income.

10. RELATED PARTY TRANSACTIONS

As of November 1, 2021, the Company agreed to compensate
its Chief Executive Officer, President, and Chief Financial Officer Jonathan Herzog, at a rate of $13,500 per month, consisting of $6,750
in cash compensation and $6,750 to be accrued and deferred until management determines that the Company is in a position to make such
payments. Such accrued amounts may be paid in cash or may be satisfied through the issuance of common stock or preferred stock in lieu
of cash payments. The Company and Mr. Herzog have not entered into a formal written employment agreement in relation to Mr. Herzog’s
compensation and employment terms. Mr. Herzog has accrued the entire monthly compensation since October 2023 and as of March 31, 2025,
the Company has a total amount accrued of $398,250as accrued liabilities - related party.

11. CONVERTIBLE LOAN

In November 2021, the Company entered into a convertible
loan agreement with an accredited investor (the “ Investor”) pursuant to which the Company raised $231,000in financing. The
note has a10% annual interest rate, with repayments set initially at of a minimum of $3,500per month commencing as of May 2022 and any
open balance is convertible at the Investor’s discretion into shares of the Company’s common stock at $0.03per share with
warrant coverage at the same price on the basis of one warrant per every three shares issued under the loan. As of March 31, 2025, the
Company had an outstanding balance of $137,135and accrued interest of $60,577payable on the convertible loan with repayments revised
in accordance with the lender at a minimum of $2,000 monthly. The principal amount of the loan is secured by a lien on the Vitt Lease.
In the related security agreement, the Company has agreed to remit the first $125,000in net revenue received from its interest in the
Pushmataha Gas Field toward the payment and performance of the note.

On January 3, 2023, the convertible loan agreement
was amended to limit the Investor