Company: OKMN
Filing Date: 2025-02-20
Form Type: 10-Q
Source: 0001079973-25-000298
Chunk: 22

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-02-20
Form: 10-Q
Item: Item 1
Chunk 22
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761 was recorded in the current period as a test of the current fair
value of the oil and gas properties was conducted and it was determined an impairment of the capitalized values was necessary. The Expenses
during the comparative three month period ended December 31, 2023 included: $23,402 in lease operating expenses, including taxes and royalties;
$60,750 in accrued compensation, $4,191 in interest expense, $17,500 in legal fees, $22,941 in other consulting and professional fees
and other general and administrative expenses necessary for our operations.

For the Six months ended
December 31, 2024, as compared to the Six months ended December 31, 2023

Revenue

We generated $11,303 in revenue from oil and gas sales
for the six months ended December 31, 2024, as compared to $45,465 in revenues in the six months ended December 31, 2023. The decrease
in revenue is attributable to lower natural gas prices and reduced operations pending additional funding to conduct additional reworks
required to increase production activities. These lower prices not only reduced the sales price we received for each MCF sold, but also
led to a decrease in our production volumes as operations on certain of our properties have been curtailed until prices improve. Current
revenue was also negatively affected by the continued suspension of gas sales at West Sheppard Pool due to the failure of equipment owned
by the gas pipeline company at its compressor station. During the current period, we received $895 in interest income from our cash balances
compared to interest income of $4,851 for the six months ended December 31, 2023.

General and Administrative
Expense

General and administrative
expenses increased to $252,258 for the six months ended December 31, 2024 as compared to $187,409 for the six months ended December 31,
2023. This increase is largely attributable to the Company recording a non-recurring and non-cash expense of $119,000 in connection with
stock issued to in lieu of cash payments to consultants and a director of the Company for services, and higher audit fees due to the requirement
to audit the prior two fiscal years as a result of our change of auditors.

Net Loss

The net loss for the six
months ended December 31, 2024 was $286,543 compared to a net loss of $203,687 for the six months ended December 31,