Company: OKMN
Filing Date: 2025-09-29
Form Type: 10-K
Source: 0001079973-25-001512
Chunk: 28

Company: OKMIN RESOURCES, INC.
Filing Date: 2025-09-29
Form: 10-K
Item: Item 1
Chunk 28
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 stock”
rules which adversely affect the liquidity of our Common Stock.

The SEC has adopted regulations which generally define
“penny stock” to be an equity security that has a market price of less than $5.00 per share, subject to specific exemptions.
The market price of our Common Stock is less than $5.00 per share and therefore we are considered a “penny stock” according
to SEC rules. This designation requires any broker-dealer selling these securities to disclose certain information concerning the transaction,
obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities. These
rules limit the ability of broker-dealers to solicit purchases of our Common Stock and therefore reduce the liquidity of the public market
for our shares should one develop.

Financial Industry Regulatory Authority (“FINRA”)
sales practice requirements may also limit a stockholder’s ability to buy and sell our Common Stock, which could depress the price
of our Common Stock.

FINRA has adopted rules that require a broker-dealer
to have reasonable grounds for believing that the investment is suitable for that customer before recommending an investment to a customer.
Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts
to obtain information about the customer’s financial status, tax status, investment objectives, and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least
some customers. Thus, the FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our Common
Stock, which may limit your ability to buy and sell our shares of Common Stock, have an adverse effect on the market for our shares of
Common Stock, and thereby depress our price per share of Common Stock.

16 

Shareholders may experience dilution of their
ownership interests because of the future issuance of additional common shares.

In the future, we may issue additional authorized
but previously unissued equity securities, resulting in the dilution of the ownership interests of our shareholders. We may also issue
additional shares of our securities that are convertible into or exercisable for common shares, as the case may be, in connection with
hiring or retaining employees, future acquisitions, future sales of its securities for capital raising purposes, or for other business
purposes. The future issuance of any such additional shares may create downward pressure on the value of our securities. There can be
no assurance that we will