Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 362

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 12
Chunk 362
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value of financial assets and liabilities using the fair value hierarchy in accordance with ASC 820, “Fair Value Measurements
and Disclosures”. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data.
The hierarchy requires the use of observable market data when available.

ASC 820 requires
that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:

Level 1—Quoted market
prices for identical assets or liabilities in active markets or observable inputs.

Level 2—Significant
other observable inputs that observable market data can corroborate; and

Level 3—Significant
unobservable inputs that observable market data cannot corroborate.

Financial instruments consist principally of cash
and cash equivalents, accounts receivable, prepaid expenses, oil and gas properties, accounts payable, accrued liabilities, note payable,
and interest payable. The recorded values of all financial instruments approximate their current fair values because of their nature and
respective relatively short maturity dates or durations.

Fair value estimates are made at a specific point
in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions
could significantly affect the estimates.

    F-8 
    OKMIN RESOURCES INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2025 
    
Revenue recognition

The Company is not the operator of any of its oil
and gas properties. Sales of all oil and gas produced are the responsibility of the property operator. The operator recognizes revenue
when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred, title has
transferred, and collectability is reasonably assured in accordance with ASC 606. The Company only recognizes oil and gas revenues when
the operator has provided the Company with confirmation of the completed sale and the amount of the revenue attributable to the Company’s
working interest has been determined.

Stock-based compensation

The Company accounts for stock-based compensation
in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”). Stock-based compensation is recognized
as compensation expense in the financial statements based on the fair value which is measured on the grant date for stock-settled awards.
That expense is recognized over the period during which a grantee is required to provide services in exchange for the award. Stock-based
comp