Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 373

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 12
Chunk 373
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750 and $276,750 as accrued liabilities
– related party, respectively.

    F-13 
    OKMIN RESOURCES INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTSJune 30, 2025 

12.        CONVERTIBLE LOAN

In November 2021, the Company entered into a convertible
loan agreement with an accredited investor (the “Investor”) pursuant to which the Company raised $231,000 in financing. The
note has a 10% annual interest rate, with repayments set initially at of a minimum of $3,500 per month commencing as of May 2022 and any
open balance is convertible at the Investor’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 loan. As of June 30, 2025, the
loan had an outstanding balance of $131,135 and unpaid interest was $63,956 payable on the convertible loan with repayments revised in
accordance with the lender at a minimum of $2,000 monthly. The principal amount of the loan is secured by a lien on the Vitt Lease. In
the related security agreement, the Company has 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.

On January 3, 2023, the convertible loan agreement
was amended to limit the Investor’s ability to convert the loan to only that portion of the outstanding loan amount that would result
in the Investor being the beneficial owner of not more than 9.99% of the Company’s class of common stock. In the quarter ended September
30, 2023, the Company, in agreement with the Investor, temporarily suspended monthly repayments. The loan continued to accrue interest
during this period. 

The Company has determined that the loan is accounted
for as a liability and not equity as repayment is being made in cash pursuant to the repayment schedule, and no conversion of any of the
principal or interest into common shares has been made. Management assessed there is no embedded derivative and therefore no need for
the bifurcation of proceeds at initial recognition.

13.        SUBSEQUENT EVENTS

a)In August 2025, the Company agreed to exchange its