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

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 25
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 may impact our ability to prevent or detect material errors in our consolidated financial statements.

    ·
    We had inadequate segregation of duties related to logical access to our accounting systems, which may affect our ability to prevent or detect material errors in the recorded transactions.

As a result, our management concluded that our disclosure
controls and procedures were not effective as of June 30, 2025 and 2024, such that the information relating
to us required to be disclosed in the reports we file with the SEC (a) is recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms and (b) is accumulated and communicated to our management to allow timely decisions
regarding required disclosures and such disclosure controls and procedures have not been deemed effective since approximately June 30,
2021.

A material weakness is a
deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility
that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely
basis. A control deficiency exists when 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.

If the Company fails to maintain an effective
system of internal controls, it may not be able to accurately report its financial results or detect fraud. Consequently, investors could
lose confidence in the Company’s financial reporting and this may decrease the trading price of its stock.

The Company must maintain effective internal controls
to provide reliable financial reports and detect fraud. The Company has been assessing its internal controls to identify areas that need
improvement. It is in the process of implementing changes to internal controls but has not yet completed implementing these changes. Failure
to implement these changes to the Company’s internal controls or any others that it identifies as necessary to maintain an effective
system of internal controls could harm its operating results and cause investors to lose confidence in the Company’s reported financial
information. Any such loss of confidence would have a negative effect on the trading price of the Company’s stock.

 Insurance
may be insufficient to cover future liabilities.

Our business is currently focused on oil and natural
gas exploration and development, and we also have potential exposure to general liability and property damage associated with the ownership
of other corporate assets. We depend on the operators of our oil and gas properties for insurance for those oil and natural gas operations.
We may