Company: OKMN
Filing Date: 2025-11-25
Form Type: 10-Q
Source: 0001553350-25-000149
Chunk: 21

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-11-25
Form: 10-Q
Item: Item 1
Chunk 21
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. As of September 30, 2025, we had total liabilities of $593,437,
primarily comprised of deferred and accrued compensation of $479,250, accrued liabilities of $38,630, and other liabilities of $75,557.

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 issued under the note. The principal amount of the note was secured
by a lien on the Vitt lease. In the related security agreement, the Company agreed to remit the first $125,000 in net revenue received
from its interest in the Pushmataha Gas Field toward the payment and performance of the note. Beginning in November 2023, the Company
and the lender agreed to reduce the monthly repayment to $2,000. As of June 30, 2025, the Company had a remaining balance of $131,135
on the note and outstanding interest of $63,956. Subsequent to the end of the fiscal year, the lender agreed to convert the entire remaining
principal and interest due as of June 30th 2025 into common shares of the Company at a deemed price of $0.03 per share. On
September 19, 2025, the Company issued 6,503,024 common shares to the noteholder to settle the note in full.

The Company had a net loss of $73,430 for the three
months ended September 30, 2025 and an accumulated deficit of $2,379,115. As at September 30, 2025, we had a working capital deficit of
approximately $554,814. We are still an earlier stage company and to date we have only achieved limited revenues from operations and anticipate
that operating revenues will continue to be limited until the Company is in a position to commit substantial capital resources to its
operations.

For the 2026 fiscal year 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