Company: OKMN
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001553350-25-000149
Chunk: 9

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-11-25
Form: 10-Q
Item: Item 1
Chunk 9
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 be utilized.

3.     GOING CONCERN

The Company currently has limited operations. These
condensed 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 $73,430 for the three months ended September 30, 2025 (year ended June 30, 2025 -
$597,167) and an accumulated deficit of $2,379,115 as of September 30, 2025 (June 30, 2025 - $2,305,685). 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 $554,814
as at September 30, 2025 (as of June 30, 2025 – deficit of $742,439) and for the remainder of the 2026 fiscal year which started
in July 2025, we anticipate cash needs of approximately $270,000 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. Based on the Company’s cash
position as of September 30, 2025, additional financing will be required to meet its budgeted expenditures for fiscal 2026. Management
intends to raise such additional funding through debt financing or private sales of the Company’s securities, but no assurance can
be given that such financing will be available on acceptable terms or at all. Any new work on our properties will require additional capital.

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 take additional measures
to conserve and manage our liquidity and capital resources, any of which would have a material adverse effect on our financial position,
results of operations, and our ability to continue as a going concern. The condensed consolidated financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as a going concern.

The accompanying condensed consolidated financial
statements do not include any adjustments