Company: OKMN
Filing Date: 2025-05-16
Form Type: 10-Q
Source: 0001079973-25-000885
Chunk: 19

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-05-16
Form: 10-Q
Item: Part I, Item 2
Chunk 19
---
 As at March 31, 2025, we had total liabilities
of $716,431, primarily comprised of convertible debt and related interest payable of $197,712, accounts payable of $36,327, other liabilities
of $84,142, and accrued liabilities of $398,250 which is predominantly deferred compensation expense as the CEO is currently deferring
salary in an effort to conserve cash.

Our business plan calls for substantial capital resource
requirements and we have incurred significant losses since inception. The Company had a net loss of $353,785 for the nine months ended
March 31, 2025 and an accumulated deficit of $2,062,303 as of March 31, 2025. The Company had a working capital deficit of $675,745 as
at March 31, 2025 and for the remainder of the 2024 fiscal year, the Company anticipates cash needs of approximately $50,000. The Company
anticipates receiving limited revenue from oil and gas sales and intends to obtain the remaining capital through private sales of securities
or debt funding.

To date, we have funded our operations primarily through
the issuance of equity and/or convertible securities for cash. We depend upon debt and/or equity financing and revenues to fund our ongoing
operations and to execute our current business plan. In the current 2025 fiscal year, such capital requirements will be in excess of what
we have in available cash for planned ongoing activities.

We will be required to obtain alternative or additional
financing from financial institutions, investors or otherwise, in order to maintain and expand our existing operations. The failure by
us to obtain such financing would have a material adverse effect upon our business, financial condition and results of operations, and
adversely affect our ability to complete ongoing activities.

Critical Accounting Estimates

This management’s discussion and analysis of
financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U. S. GAAP.
Preparation of financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts
of assets, liabilities, revenues, costs and expenses, and the related disclosures of contingencies. Management bases its estimates on
various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates,
actual results may differ significantly due to changed conditions or assumptions. On a regular basis, management reviews the accounting
policies, assumptions, estimates and judgments to ensure that our financial