Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 44

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 44
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, following testing to determine current fair value of oil and gas properties
and the Company’s subsequent review of the capitalized value of its oil and gas properties. Outside of the impairment charge, operating
expenses totaled $394,015. The expenses during the period ended June 30, 2025 included: $162,000 accrued compensation, $42,713 in lease
operating expenses (including taxes and royalties), interest of $17,262, accounting and audit fees of $48,381; other professional, legal
and consulting fees of non-cash items in stock issued for services of $143,100; and other general and administrative expenses necessary
for our operations.

The expenses during the period
ended June 30, 2024 by comparison included: compensation of $20,250 in cash and $141,750 accrued compensation, lease operating expenses
(including taxes and royalties) of $92,024, interest of $16,647, and legal accounting and other professional fees of $113,643.

Net cash from investing activities

In the years ended June 30, 2025 and 2024, cash expended
on investing activities was $nil.

Net cash from financing 

In the year ended June 30, 2025 net cash used in financing
activities was $24,000 with the entire amount from the Repayment of Convertible Note. For the year ended June 30, 2024, financing activities
used cash of $16,000, which consisted of repayments on the Convertible Note.

Liquidity and Capital Resources 

Current Financial Condition

As of June 30, 2025, we had total assets of $133,322,
comprised primarily of cash of $11,488 and oil and gas properties of $121,834. As of June 30, 2025, we had total liabilities of $753,927,
primarily comprised of convertible debt and related interest payable of $195,091, deferred and accrued compensation of $438,750, and trade
credit facilities of $78,258.

The Convertible debt maintained by the company had
a 10% annual interest rate, was initially set up with repayments of $3,500 per month commencing as of May 2022 and any open balance is
convertible at the Lender’s discretion into shares of the Company’s common stock at $0.03 per share with warrant coverage
at the same price on the basis of one warrant per every three shares