Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 5

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 5
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ES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024

1. 	ORGANIZATION AND NATURE OF OPERATIONS

Business description

Okmin Resources, Inc. (collectively with its subsidiaries,
“Okmin” or the “Company”) was incorporated in Nevada in December 2020 to engage in the business of the acquisition,
exploration and development of oil and gas properties, mineral rights, and other natural resource assets.

Okmin has been focused on the acquisition and development
of domestic oil and gas fields and investing in lower profile rework and recompletion opportunities with lower entry costs. The Company's
initial projects are located in Oklahoma and Kansas. 

The Company has two wholly owned subsidiaries that
conduct oil and gas activities: Okmin Operations, LLC, organized on May 25, 2021 in the State of Kansas, and Okmin Energy LLC, organized
on November 21, 2021 in the State of Oklahoma.

The Company has an interest in four separate projects:

    1)
    The Blackrock Joint Venture encompassing 15 oil and gas leases in Oklahoma;

    2)
    A 72.5% Net Revenue Interest in the Vitt oil lease located in Neosho County, Kansas;

    3)
    A 10% overriding royalty interest in West Sheppard Pool, a natural gas project in North East Oklahoma; and

    4)
    A 50% Joint Venture interest in Pushmataha, a natural gas project in Southeast Oklahoma.

The Company has not conducted any reserve evaluations
or calculations, and there are currently no proven reserves on any of the Company’s properties.

The Company’s activities are subject to significant
risks and uncertainties, including failing to secure additional funding to advance the Company’s current plan to rework and possibly
develop its existing projects and to identify and acquire new projects.

The Company’s fiscal year end is June 30.

2.        SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES

 Basis of Presentation

The Company maintains its accounts on the accrual
method of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Accounting principles followed and the methods of applying those principles, which materially affect the determination of financial position,
results of operations and cash flows are summarized below.

The financial statements are presented on a consolidated
basis and include all of the accounts of Okmin