Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 73

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 73
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 any of its oil
and gas properties. Sales of all oil and gas produced are the responsibility of the property operator. The operator recognizes revenue
when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred, title has
transferred, and collectability is reasonably assured in accordance with ASC 606. The Company only recognizes oil and gas revenues when
the operator has provided the Company with confirmation of the completed sale and the amount of the revenue attributable to the Company’s
working interest has been determined.

Stock-based compensation

The Company accounts for stock-based compensation
in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”). Stock-based compensation is recognized
as compensation expense in the financial statements based on the fair value which is measured on the grant date for stock-settled awards.
That expense is recognized over the period during which a grantee is required to provide services in exchange for the award. Stock-based
compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately
expected to vest during the period, or in the period of grant for awards that vest immediately without any future service condition. For
awards that vest over time, previously recognized compensation cost is reversed if the service or performance 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