Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 183

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1B
Chunk 183
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 the design or operation of a control does not
allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely
basis.

Material Weaknesses and Corrective Actions

The following material weaknesses in our internal
control over financial reporting continued to exist at June 30, 2025:

    ●
    We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”);

    ●
    We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our limited size and early-stage nature of operations, segregation of all conflicting duties may not always be possible and may not be economically feasible; however, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals;

    ●
    We lack an audit committee of our board of directors; and

    ●
    We have insufficient monitoring and review of controls over the financial reporting closing process, including the lack of individuals with current knowledge of U.S. GAAP.

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We believe that these material weaknesses primarily
relate, in part, to our lack of sufficient staff with appropriate training in U.S. GAAP and SEC rules and regulations with respect to
financial reporting functions, and the lack of robust accounting systems, as well as the lack of sufficient resources to hire such staff
and implement these accounting systems.

Subject to raising sufficient additional capital,
we plan to take a number of actions in the future to correct these material weaknesses including adding experienced accounting and financial
personnel and retaining third-party consultants to review our internal controls and recommend improvements. We will need to take additional
measures to fully mitigate these issues, and the measures we have taken, and expect to take, to improve our internal controls may not
be sufficient to (1) address the issues identified, (2) ensure that our internal controls are effective or (3) ensure that the identified
material weakness or other material weaknesses will not result in a material misstatement of our annual or interim financial statements.
In addition, other material weaknesses may be identified in the future. If we are unable to correct deficiencies in internal controls
in a timely manner, our ability to record, process, summarize and report financial information accurately and within the time