Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 11

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 11
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 sufficient quantities to recover exploration,
drilling or completion costs or to be economically viable. Even if sufficient amounts of oil or natural gas exist, we may damage
the potentially productive hydrocarbon-bearing formation or experience mechanical difficulties while drilling or completing the well,
resulting in a reduction in production and reserves from the well or abandonment of the well.

7 

The Company has no
proven oil and gas reserves, and future wells we drill may not yield oil or natural gas in commercial quantities or at all.

None of the Company’s properties have been evaluated
for oil and gas reserves, and the Company has no proven reserves. There is no guarantee the Company’s properties contain sufficient
recoverable oil and natural gas to be produced profitably, which may result in a loss of some or all of our investment in such projects.
If we do not drill productive and profitable wells in the future, it will have a material adverse impact on the Company’s business
operations and financial condition.

The Company has limited capital and will need
to raise additional capital in the future.

We do not currently have the capital necessary to
fund both our continuing operations and our planned growth.  We will require additional capital to continue to grow our business
through the operation, maintenance and further development of our existing ventures and through the acquisition of additional properties.
We estimate that the Company will need to raise additional capital to fulfil its business plan including reworking and enhancing existing
projects, acquiring further oil and gas interests, or to acquire mineral exploration properties. Obtaining additional financing would
be subject to a number of factors, including the market prices for acquiring resource properties, investor acceptance of the Company’s
interests, and investor sentiment. These factors may make the timing, amount, terms or conditions of additional financing unavailable
to the Company. The most likely source of future funds presently available to the Company is through sale of equity capital. Any sale
of share capital will result in dilution to existing stockholders. The terms of securities we issue in future capital transactions may
be more favorable to our new investors, and may include preferences, superior voting rights and the issuance of other derivative securities,
and issuances of incentive awards under equity employee incentive plans, which may have a further dilutive effect.

If we do not succeed in raising additional capital,
our resources may not be sufficient to fund our planned operations and will have a significant negative effect on our operations and financial
condition.

Oil and natural gas prices are volatile and
declines in the prices of such commodities