# EDGAR Filing Document

**Accession Number:** 0001440799
**File Stem:** 0001477932-23-001454
**Filing Date:** 2023-3
**Character Count:** 102250
**Document Hash:** 782616560ffca9a019abfe827daec40b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-23-001454.hdr.sgml**: 20230313

**ACCESSION NUMBER**: 0001477932-23-001454

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 53

**CONFORMED PERIOD OF REPORT**: 20230131

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MMEX Resources Corp
- **CENTRAL INDEX KEY:** 0001440799
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-ALLIED TO MOTION PICTURE PRODUCTION [7819]
- **IRS NUMBER:** 261749145
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-55831
- **FILM NUMBER:** 23726998

**BUSINESS ADDRESS:**
- **STREET 1:** 3600 DICKINSON
- **CITY:** FORT STOCKTON
- **STATE:** TX
- **ZIP:** 79735
- **BUSINESS PHONE:** 855-880-0400

**MAIL ADDRESS:**
- **STREET 1:** 3600 DICKINSON
- **CITY:** FORT STOCKTON
- **STATE:** TX
- **ZIP:** 79735

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MMEX Mining Corp
- **DATE OF NAME CHANGE:** 20110223

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Management Energy, Inc.
- **DATE OF NAME CHANGE:** 20090716

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MGMT ENERGY, INC.
- **DATE OF NAME CHANGE:** 20090303

?xml version="1.0" encoding="utf-8"?mmex_10q.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

---

| | |
|:---|:---|
| (Mark One) | (Mark One) |
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

---

**For the quarterly period ended January 31, 2023**

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________.

**Commission file number: 000-55831**

---

| |
|:---|
| **MMEX RESOURCES Corporation** |
| (Exact name of Issuer as specified in its charter) |

---

---

| | |
|:---|:---|
| **Nevada** | **26-1749145** |
| (State or other Jurisdiction of<br>Incorporation or Organization) | (I.R.S. Employer<br>Identification No.) |
| **3600 Dickinson**<br>**Fort Stockton, Texas 79735** | <br>**855-880-0400** |
| (Address of principal executive offices, including zip code) | (Issuer's telephone number, including area code) |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated Filer | ☐ | Smaller reporting company | ☒ |
| (Do not check if a smaller reporting company) | (Do not check if a smaller reporting company) | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

**Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:**

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

**Applicable only to corporate issuers:**

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of March 13, 2023, there were 229,185,791 shares of common stock, $0.001 par value, issued and outstanding.

**MMEX RESOURCES CORPORATION**

**TABLE OF CONTENTS**

**QUARTER ENDED JANUARY 31, 2023**

---

| | | |
|:---|:---|:---|
| [PART I – FINANCIAL INFORMATION](#P1) | [PART I – FINANCIAL INFORMATION](#P1) |  |
| [Item 1.](#P1I1) | [Condensed Consolidated Financial Statements](#P1I1) | 3 |
| [Item 2.](#P1I2) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#P1I2) | 22 |
| [Item 3.](#P1I3) | [Quantitative and Qualitative Disclosures About Market Risk](#P1I3) | 28 |
| [Item 4.](#P1I4) | [Controls and Procedures](#P1I4) | 28 |
| [PART II – OTHER INFORMATION](#P2) | [PART II – OTHER INFORMATION](#P2) |  |
| [Item 1.](#P2I1) | [Legal Proceedings](#P2I1) | 29 |
| [Item 1A.](#P2I1A) | [Risk Factors](#P2I1A) | 29 |
| [Item 2.](#P2I2) | [Unregistered Sales of Equity Securities and Use of Proceeds](#P2I2) | 29 |
| [Item 3.](#P2I3) | [Defaults Upon Senior Securities](#P2I3) | 31 |
| [Item 4.](#P2I4) | [Mine Safety Disclosures](#P2I4) | 31 |
| [Item 5.](#P2I5) | [Other Information](#P2I5) | 31 |
| [Item 6.](#P2I6) | [Exhibits](#P2I6) | 32 |

---

---

| |
|:---|
| 2 |
| *[**Table of Contents**](#TOC)* |

---

**PART I – FINANCIAL INFORMATION**

**ITEM 1. Financial Statements**

The accompanying condensed consolidated financial statements of MMEX Resources Corporation and subsidiaries (the "Company") are unaudited and have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions for Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, the condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial condition, results of operations, and cash flows of the Company for the interim periods presented.

Operating results and cash flows for any interim period are not necessarily indicative of the results that may be expected for other interim periods or the full fiscal year. These condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended April 30, 2022 filed with the Securities and Exchange Commission ("SEC").

The Company amended its articles of incorporation to provide for a 1 for 10,000 reverse stock split of its common shares, which was effective as of July 1, 2021. The Company has given retroactive effect to the reverse stock split for all periods presented in this report on Form 10-Q.

---

| |
|:---|
| 3 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Condensed Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **January 31,** <br>**2023** | **April 30,** <br>**2022** |
| **Assets** | **(unaudited)** | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash | $7518 | $136867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 24833 | 47333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 32351 | 184200 |
| Property and equipment, net | 1086901 | 1114197 |
| Total assets | $1119252 | $1298397 |
| **Liabilities and Stockholders' Deficit** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $755176 | $639782 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 981353 | 851275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses – related parties | 271865 | 76770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note payable, currently in default | 211953 | 75001 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note payable | 784000 | 904452 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable, currently in default, net of discount of $0 and $0 at January 31, 2023 and April 30, 2022, respectively | 75000 | 75000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable, net of discount of $27,070 and $22,903 at January 31, 2023 and April 30, 2022, respectively | 761920 | 432097 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3841267 | 3054377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 3841267 | 3054377 |
| Commitments and contingencies |  |  |
| Stockholders' deficit: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock; $0.001 par value; 200,000,000 shares authorized, 48,890,638 and 21,204,682 shares issued and outstanding at January 31, 2023 and April 30, 2022, respectively | 48891 | 21205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock; $0.001 par value; 1,000,000 shares authorized: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,000 Series A preferred shares issued and outstanding at January 31, 2023 and April 30, 2022 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,481 and 1,500 Series B preferred shares issued and outstanding at January 31, 2023 and April 30, 2022, respectively | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | 69646837 | 66426364 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interest | 9871 | 9871 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | (72427616) | (68213423) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (2722015) | (1755980) |
| Total liabilities and stockholders' deficit | $1119252 | $1298397 |

---

See accompanying notes to condensed consolidated financial statements.

---

| |
|:---|
| 4 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Condensed Consolidated Statements of Operations** 

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** <br>**January 31,** | **Three Months Ended** <br>**January 31,** | **Nine Months Ended** <br>**January 31,** | **Nine Months Ended** <br>**January 31,** |
|  | **2023** | **2022** | **2023** | **2022** |
| Revenues | $- | $- | $- | $- |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 211084 | 274407 | 1379285 | 991407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Project costs | 20520 | 369950 | 96560 | 1379676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 9099 | 8888 | 27296 | 26852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 240703 | 653245 | 1503141 | 2397935 |
| Loss from operations | (240703) | (653245) | (1503141) | (2397935) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (67177) | (49566) | (193190) | (311821) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on derivative liabilities |  |  |  | 3010042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on extinguishment of liabilities | - | 96993 | 16540 | 233303 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (67177) | 47427 | (176650) | 2931524 |
| Income (loss) before income taxes | (307880) | (605818) | (1679791) | 533589 |
| Provision for income taxes | - | - | - | - |
| Net income (loss)  | (307880) | (605818) | (1679791) | 533589 |
| Deemed dividend | - | - | 2534402 | - |
| Net income (loss) attributable to the common shareholders | $(307880) | $(605818) | $(4214193) | $533589 |
| Net income (loss) per common share – basic | $(0.01) | $(0.03) | $(0.15) | $0.05 |
| Net income (loss) per common share – diluted | $(0.01) | $(0.03) | $(0.15) | $0.01 |
| Weighted average number of common shares outstanding - basic | 34392998 | 18244276 | 27819443 | 10486385 |
| Weighted average number of common shares outstanding - diluted | 34392998 | 18244276 | 27819443 | 51172508 |

---

See accompanying notes to condensed consolidated financial statements.

---

| |
|:---|
| 5 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Condensed Consolidated Statement of Stockholders' Deficit**

**Three and Nine Months Ended January 31, 2022 (Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** | **Non-Controlling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| Balance, April 30, 2021 | 3251641 | $3252 | 1000 | $1 |  | $- | $62201528 | $9871 | $(67984693) | $(5770041) |
| Shares issued with prefunded warrants for cash | 170000 | 170 |  |  |  |  | 2999830 |  |  | 3000000 |
| Shares issued for conversion of convertible notes payable and accrued interest | 11814 | 11 |  |  |  |  | 42520 |  |  | 42531 |
| Shares issued for reverse stock split | 17754 | 18 |  |  |  |  | (18) |  |  |  |
| Shares issued for the exercise of prefunded warrants | 250000 | 250 |  |  |  |  | (250) |  |  |  |
| Offering costs |  |  |  |  |  |  | (349150) |  |  | (349150) |
| Net income | - | - | - | - | - | - | - | - | 2291291 | 2291291 |
| Balance, July 31, 2021 | 3701209 | 3701 | 1000 | 1 |  |  | 64894460 | 9871 | (65693402) | (785369) |
| Shares issued for conversion of convertible notes payable and accrued interest | 6421929 | 6422 |  |  |  |  | 105484 |  |  | 111906 |
| Shares issued for conversion of related party convertible notes payable and accrued interest | 6817224 | 6817 |  |  |  |  | 68172 |  |  | 74989 |
| Shares issued for the exercise of prefunded warrants | 880000 | 880 |  |  |  |  | (880) |  |  |  |
| Net (loss) | - | - | - | - | - | - | - | - | (1151884) | (1151884) |
| Balance, October 31, 2021 | 17820362 | 17820 | 1000 | 1 |  |  | 65067236 | 9871 | (66845286) | (1750358) |
| Shares issued with warrants for cash |  |  |  |  | 1500 | 2 | 1499998 |  |  | 1500000 |
| Shares issued for the exercise of prefunded warrants | 1275000 | 1275 |  |  |  |  | (1275) |  |  |  |
| Offering costs |  |  |  |  |  |  | (206649) |  |  | (206649) |
| Net (loss) | - | - | - | - | - | - | - | - | (605818) | (605818) |
| Balance, January 31, 2022 | 19095362 | $19095 | 1000 | $1 | 1500 | $2 | $66359310 | $9871 | $(67451104) | $(1062825) |

---

See accompanying notes to condensed consolidated financial statements.

---

| |
|:---|
| 6 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Condensed Consolidated Statement of Stockholders' Deficit**

**Three and Nine Months Ended January 31, 2023 (Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series B Preferred Stock** | **Series B Preferred Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** | **Non-Controlling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| Balance, April 30, 2022 | 21204682 | $21205 | 1000 | $1 | 1500 | $2 | $66426364 | $9871 | $(68213423) | $(1755980) |
| Shares issued for conversion of convertible notes payable and accrued interest | 710802 | 711 |  |  |  |  | 108966 |  |  | 109677 |
| Warrants issued as stock-based compensation |  |  |  |  |  |  | 495000 |  |  | 495000 |
| Shares issued for the exercise of warrants | 2494318 | 2494 |  |  |  |  | (2310) |  |  | 184 |
| Deemed dividend |  |  |  |  |  |  | 2534402 |  | (2534402) |  |
| Net (loss) | - | - | - | - | - | - | - | - | (863660) | (863660) |
| Balance, July 31, 2022 | 24409802 | 24410 | 1000 | 1 | 1500 | 2 | 69562422 | 9871 | (71611485) | (2014779) |
| Shares issued for the exercise of warrants | 3965345 | 3965 |  |  |  |  | (3965) |  |  |  |
| Shares issued for accrued liability – related party | 91414 | 91 |  |  |  |  | 915 |  |  | 1006 |
| Shares issued for debt discount | 100000 | 100 |  |  |  |  | 5280 |  |  | 5380 |
| Net (loss) | - | - | - | - | - | - | - | - | (508251) | (508251) |
| Balance, October 31, 2022 | 28566561 | 28566 | 1000 | 1 | 1500 | 2 | 69564652 | 9871 | (72119736) | (2516644) |
| Shares issued for conversion of convertible notes payable | 7021914 | 7022 |  |  |  |  | 66278 |  |  | 73300 |
| Shares issued for the exercise of warrants | 9728601 | 9729 |  |  |  |  | (9729) |  |  |  |
| Preferred stock converted into common stock | 2200000 | 2200 |  |  | (19) | (1) | (2199) |  |  |  |
| Shares issued for cash | 1373562 | 1374 |  |  |  |  | 39835 |  |  | 41209 |
| Offering costs |  |  |  |  |  |  | (12000) |  |  | (12000) |
| Net (loss) | - | - | - | - | - | - | - | - | (307880) | (307880) |
| Balance, January 31, 2023 | 48890638 | $48891 | 1000 | $1 | 1481 | $1 | $69646837 | $9871 | $(72427616) | $(2722015) |

---

See accompanying notes to condensed consolidated financial statements.

---

| |
|:---|
| 7 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Condensed Consolidated Statements of Cash Flows** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** <br>**January 31,** | **Nine Months Ended** <br>**January 31,** |
|  | **&nbsp;&nbsp;&nbsp;&nbsp; 2023** | **2022** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)  | $(1679791) | $533589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 27296 | 26852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on derivative liabilities |  | (3010042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 37212 | 77822 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants issued as stock-based compensation | 495000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note recorded for loan penalties and financing costs | 16500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on extinguishment of liabilities<br>| (16540) | (233303) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in prepaid expenses and other current assets | 22500 | (21990) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 115394 | (190268) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 166479 | 62653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses – related party | 196101 | (191782) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (619849) | (2946469) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | - | (255504) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | - | (255504) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable |  | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 502500 | 78500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of notes payable |  | (200000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of convertible notes payable | (41209) | (255331) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of common stock and prefunded warrants | 41209 | 3000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of series B preferred stock and warrants |  | 1500000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Offering costs | (12000) | (555799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 490500 | 3767370 |
| Net increase (decrease) in cash | (129349) | 565397 |
| Cash at the beginning of the period | 136867 | 330449 |
| Cash at the end of the period | $7518 | $895846 |
| Supplemental disclosure: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $- | $131374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $- | $- |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued in conversion of debt | $189977 | $154437 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued in conversion of related party debt | $- | $74989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of warrants for an accrued liability | $184 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reverse split | $- | $18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of prefunded warrants | $- | $2405 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cashless exercise of warrants | $14343 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deemed dividend | $2534402 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for accrued liability – related party | $1006 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares issued for debt discount | $5380 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note payable classified to note payable, currently in default | $136952 | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock converted into common stock | $2200 | $- |

---

See accompanying notes to condensed consolidated financial statements.

---

| |
|:---|
| 8 |
| *[**Table of Contents**](#TOC)* |

---

**MMEX RESOURCES CORPORATION**

**Notes to Condensed Consolidated Financial Statements**

**Nine Months Ended January 31, 2023** 

**(Unaudited)**

**NOTE 1 – BACKGROUND, ORGANIZATION AND BASIS OF PRESENTATION**

MMEX Resources Corporation (the "Company" or "MMEX") was formed as a Nevada corporation in 2005. The current management team lead an acquisition of the Company (then named Management Energy, Inc.) through a reverse merger completed on September 23, 2010 and changed the Company's name to MMEX Mining Corporation on February 11, 2011 and to MMEX Resources Corporation on April 6, 2016.

The accompanying consolidated financial statements include the accounts of the following entities, all of which the Company maintains control through a majority ownership or through common ownership:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Entity** | **%** | **Form** <br> **of Entity** | **State of** <br> **Incorporation** | **Relationship** |
| MMEX Resources Corporation | - | Corporation | Nevada | Parent |
| Pecos Clean Fuels & Transport (formerly Pecos Refining & Transport, LLC | 100% | LLC | Texas | Subsidiary |
| MMEX Solar Resources, LLC | 100% | LLC | Texas | Subsidiary |
| Rolling Stock Marine, LLC | 100% | LLC | Texas | Subsidiary |
| Hydrogen Global, LLC | 100% | LLC | Texas | Subsidiary |
| Clean Energy Global, LLC (formerly Hydrogen Ultra, LLC) | 100% | LLC | Texas | Subsidiary |

---

All significant inter-company transactions have been eliminated in the preparation of the consolidated financial statements.

The Company has adopted a fiscal year end of April 30.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

Our significant accounting policies are described in our Annual Report on Form 10-K for the year ended April 30, 2022 filed with the SEC on July 15, 2022.

*Consolidation*

The accompanying consolidated financial statements include the accounts of the Company and its aforementioned subsidiaries and entities under common ownership. All significant intercompany accounts and transactions have been eliminated in consolidation. The ownership interests in subsidiaries that are held by owners other than the Company are recorded as non-controlling interest and reported in our consolidated balance sheets within stockholders' deficit. Losses attributed to the non-controlling interest and to the Company are reported separately in our consolidated statements of operations.

---

| |
|:---|
| 9 |
| *[**Table of Contents**](#TOC)* |

---

*Use of Estimates*

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

*Property and equipment*

Property and equipment is recorded at the lower of cost or estimated net recoverable amount, and is depreciated using the straight-line method over the estimated useful life of the related asset as follows:

---

| | |
|:---|:---|
| Office furniture and equipment | 10 years |
| Computer equipment and software | 5 years |
| Land improvements | 15 years |
| Land easements | 10 years |

---

The land easements owned by the Company have a legal life of 10 years.

Maintenance and repairs are charged to expense as incurred. Significant renewals and betterments will be capitalized. At the time of retirement or other disposition of equipment, the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.

The Company will assess the recoverability of property and equipment by determining whether the depreciation and amortization of these assets over their remaining life can be recovered through projected undiscounted future cash flows. The amount of equipment impairment, if any, will be measured based on fair value and is charged to operations in the period in which such impairment is determined by management.

*Derivative liabilities*

In a series of subscription agreements, the Company issued warrants in prior years that contained certain anti-dilution provisions that were previously identified as derivatives. In addition, the Company had previously identified the conversion feature of certain convertible notes payable and convertible preferred stock as derivatives. Through April 30, 2021, the number of warrants or common shares to be issued under these agreements was indeterminate; therefore, the Company concluded that the equity environment was tainted and all additional warrants, stock options and convertible debt were included in the value of the derivative. During the year ended April 30, 2022 it was determined that the Company could increase their authorized common shares at any time, therefore the environment was no longer deemed to be tainted and all derivative liabilities were written off the books.

We estimate the fair value of the derivatives using multinomial lattice models that value the derivative liabilities based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management's estimates of various potential equity financing transactions. These inputs are subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities will fluctuate from period to period, and the fluctuation may be material.

---

| |
|:---|
| 10 |
| *[**Table of Contents**](#TOC)* |

---

*Fair value of financial instruments*

Under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 820, *Fair Value Measurements and Disclosures,* and ASC 825, *Financial Instruments,* the FASB establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This Statement reaffirms that fair value is the relevant measurement attribute. The adoption of this standard did not have a material effect on the Company's consolidated financial statements as reflected herein. The carrying amounts of cash, prepaid expense and other current assets, accounts payable, accrued expenses and notes payable reported on the accompanying consolidated balance sheets are estimated by management to approximate fair value primarily due to the short-term nature of the instruments.

An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value using a hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy prioritized the inputs into three levels that may be used to measure fair value:

Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in markets that are not active.

Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

*Revenue Recognition*

The Company has adopted ASC 606, Revenue from Contracts with Customers, as amended, using the modified retrospective method, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. To date, the Company has no operating revenues; therefore, there was no cumulative effect of adopting the new standard and no impact on our consolidated financial statements. The new standard provides a single comprehensive model to be used in the accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific guidance. The standard's stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASC 606 includes provisions within a five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation.

*Project Costs*

All project costs incurred, including acquisition of refinery rights, planning, design and permitting, have been recorded as project costs and expensed as incurred.

---

| |
|:---|
| 11 |
| *[**Table of Contents**](#TOC)* |

---

*Basic and Diluted Income (Loss) per Share*

Basic net income or loss per share is calculated by dividing net income or loss (available to common stockholders) by the weighted average number of common shares outstanding for the period. Diluted income or loss per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, warrants, convertible debt and convertible preferred stock, were exercised or converted into common stock. For the nine months ended January 31, 2023 all potentially dilutive securities had an anti-dilutive effect and basic net loss per common share is the same as diluted net loss per share. For the nine months ended January 31, 2022 the dilutive effect of options, warrants, and convertible notes payable was 40,686,123.

*Stock-based Compensation*

Pursuant to FASB ASC 718, the Company accounts for the issuance of equity instruments, including grants of stock options and warrants, to acquire goods and/or services based on the fair value of the goods and services or the fair value of the equity instrument at the time of issuance, whichever is more reliably determinable. The measurement date for the fair value of the equity instruments issued is determined as the earlier of (i) the date at which a commitment for performance is reached or (ii) the date at which the performance is complete. In the case of equity instruments issued for services to be performed over time, the fair value of the equity instrument is recognized over the service period. For the nine months ended January 31, 2023 and 2022, the Company recorded stock-based compensation of $495,000 and $0, respectively.

*Recently Issued Accounting Pronouncements*

The Company has reviewed all new accounting pronouncements issued or proposed by the FASB and does not believe any of the accounting pronouncements has had, or will have, a material impact on its consolidated financial position or results of operations.

**NOTE 3 – GOING CONCERN**

Our consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit, and have reported negative cash flows from operations since inception. Additionally, we have a working capital deficit, therefore there is a question of whether or not we have the cash resources to meet our operating commitments for the next twelve months and have, or will obtain, sufficient capital investments to implement our business plan. Our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established and emerging markets and the competitive environment in which we operate.

Since inception, our operations have primarily been funded through private debt and equity financing, and we expect to continue to seek additional funding through private or public equity and debt financing. Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital or that amounts will be adequate to meet our needs. These factors, among others, raise substantial doubt that we will be able to continue as a going concern for a reasonable period of time.

---

| |
|:---|
| 12 |
| *[**Table of Contents**](#TOC)* |

---

The consolidated financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The consolidated financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

**NOTE 4 – RELATED PARTY TRANSACTIONS**

*Accounts Payable and Accrued Expenses – Related Parties*

Accounts payable and accrued expenses to related parties, consisting primarily of consulting fees and expense reimbursements payable, totaled $271,865 and $76,770 as of January 31, 2023 and April 30, 2022, respectively.

Effective July 1, 2019, we entered into a consulting agreement with Maple Resources Corporation ("Maple Resources"), a related party controlled by our President and CEO, that provides for payment of consulting fees and expense reimbursement related to business development, financing and other corporate activities. Effective March 1, 2021 the Maple Resources consulting agreement provided for monthly consulting fees of $20,000. During the nine months ended January 31, 2023, we incurred consulting fees and expense reimbursement to Maple Resources totaling $180,000 and we made payments to Maple Resources of $142,600.

In addition, the consulting agreement provides for the issuance to Maple Resources of shares of our common stock each month with a value of $5,000, with the number of shares issued based on the average closing price of the stock during the prior month. During the nine months ended January 31, 2023 we recorded $45,000 for accrued consulting fees and we issued no shares for payment.

Amounts included in accounts payable and accrued expenses – related parties due to Maple Resources totaled $127,285 ($65,000 payable in stock) and $40,000 ($20,000 payable in stock) as of January 31, 2023 and April 30, 2022, respectively.

During the nine months ended January 31, 2023, Jack Hanks, our President and CEO, made advances of $2,190 to assist the Company with cash flow challenges, therefore the amount was included in accounts payable and accrued expenses – related parties as of January 31, 2023.

Effective October 1, 2018, we entered into a consulting agreement with Leslie Doheny-Hanks, the wife of our President and CEO, to issue shares of our common stock each month with a value of $2,500, with the number of shares issued based on the average closing price of the stock during the prior month. The related party consultant provides certain administrative and accounting services and is reimbursed for expenses paid on behalf of the Company. During the nine months ended January 31, 2023 we recorded $22,500 for the amount payable in stock under the consulting agreement and recorded consulting fees and expense reimbursements owed to Mrs. Hanks of $66,797. During the nine months ended January 31, 2023 we made repayments of $21,794 to Mrs. Hanks for reimbursable expenses. Amounts included in accounts payable and accrued expenses – related parties due to Mrs. Hanks totaled $87,816 ($32,500 payable in stock) and $17,264 ($10,000 payable in stock) as of January 31, 2023 and April 30, 2022, respectively.

Effective February 1, 2021 the Company entered into consulting agreements with three children of our President and CEO, which were amended as of December 31, 2021 to continue on a month-to-month basis. During the nine months ended January 31, 2023 we incurred $80,539 for fees and expense reimbursements to the children and paid $66,965. Amounts included in accounts payable and accrued expenses – related parties due to the children totaled $22,074 and $8,500 as of January 31, 2023 and April 30, 2022, respectively.

---

| |
|:---|
| 13 |
| *[**Table of Contents**](#TOC)* |

---

Effective September 1, 2021, we entered into a consulting agreement with BNL Family Trust, a related party to Bruce Lemons, Director, to issue shares of our common stock each month with a value of $2,500, with the number of shares issued based on the average closing price of the stock during the prior month. During the nine months ended January 31, 2023 we recorded $22,500 for the amount payable in stock under the consulting agreement and issued 91,414 shares as repayment for $1,006 owed (see Note 8). Amounts included in accounts payable and accrued expenses – related parties due to BNL Family Trust totaled $32,500 (all payable in stock) and $11,006 ($10,000 payable in stock) as of January 31, 2023 and April 30, 2022, respectively.

*Equity Activity – Related Parties*

During the nine months ended January 31, 2023 the Company granted 3,000,000 warrants each to Maple Resources and BNL Family Trust, therefore recognized $330,000 in stock-based compensation based on the grant date fair value (see Note 8).

**NOTE 5 – PROPERTY AND EQUIPMENT**

Property and equipment consisted of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,** <br> **2022** |
| Office furniture and equipment | $13864 | $13864 |
| Computer equipment and software | 6555 | 17517 |
| Refinery land | 721828 | 721828 |
| Refinery land improvements | 468426 | 468615 |
| Refinery land easements | 37015 | 37015 |
|  | 1247688 | 1258839 |
| Less accumulated depreciation and amortization | (160787) | (144642) |
|  | $1086901 | $1114197 |

---

Depreciation and amortization expense totaled $27,296 and $26,852 for the nine months ended January 31, 2023 and 2022, respectively.

**NOTE 6 – ACCRUED EXPENSES**

Accrued expenses consisted of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,** <br> **2022** |
| Accrued payroll | $30090 | $30090 |
| Accrued consulting | 39000 | 12000 |
| Accrued interest and penalties | 818089 | 714827 |
| Other | 94174 | 94358 |
|  | $981353 | $851275 |

---

---

| |
|:---|
| 14 |
| *[**Table of Contents**](#TOC)* |

---

**NOTE 7 – NOTES PAYABLE**

*Note Payable, Currently in Default*

Note payable, currently in default, consists of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,** <br>**2022** |
| Note payable to an unrelated party, matured March 18, 2014, with interest at 10% | $75001 | $75001 |
| Note payable to an unrelated party with an issue date of March 11, 2021 with interest at 10% [1] | 136952 | - |
|  | $211953 | $75001 |

---

---

| | |
|:---|:---|
| [1]  | Effective March 11, 2021 the Company entered into a promissory note with Vista Capital Investments, Inc with a principal amount of $250,000. The maturity date of the note was March 11, 2022 which was amended on February 23, 2021 to extend the due date to December 31, 2022. The note has an interest rate of 10% per annum from the date of funding. On February 23, 2022 the Company made a payment of $113,048 to pay down the note principal and effective January 1, 2023 the note went into default as the due date had passed with no extension. |

---

*Notes Payable*

Notes payable consist of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,**<br>**2022** |
| Note payable to an unrelated party with an issue date of February 22, 2021 with interest at 10% [1] | $250000 | $250000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$250,000 draw on March 5, 2021 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;$200,000 draw on March 26, 2021 | 200000 | 200000 |
| &nbsp;&nbsp;&nbsp;&nbsp;$50,000 draw on April 13, 2022 | 50000 | 50000 |
| Note payable to an unrelated party with an issue date of March 11, 2021 with interest at 10% [2] |  | 136952 |
| Note payable to an unrelated party with an issue date of February 28, 2022 with interest at 10% [3] | 102500 | 102500 |
| Note payable to an unrelated party with an issue date of March 3, 2022 with interest at 5% [4] | 181500 | 165000 |
| Total | $784000 | $904452 |

---

---

| | |
|:---|:---|
| [1] | Effective February 22, 2021 the Company entered into a promissory note with GS Capital Partners, LLC, with a principal amount of $1,000,000, which is subject to drawdown requests by the Company. The maturity date of the note is the earlier of (i) December 31, 2021 or (ii) the consummation by the Company of an equity or equity-based financing providing net proceeds to the Company sufficient to retire the outstanding indebtedness under the note. On December 30, 2021 the Company entered into amendment to the notes to extend the maturity date to March 31, 2022 and on April 12, 2022 the Company entered into an amendment to the notes to extend the maturity date to March 31, 2023. The note has an interest rate of 10% per annum from the date of each drawdown. |

---

---

| |
|:---|
| 15 |
| *[**Table of Contents**](#TOC)* |

---

---

| | |
|:---|:---|
| [2] | Effective March 11, 2021 the Company entered into a promissory note with Vista Capital Investments, Inc with a principal amount of $250,000. The maturity date of the note was March 11, 2022 which was amended on February 23, 2021 to extend the due date to December 31, 2022. The note has an interest rate of 10% per annum from the date of funding. On February 23, 2022 the Company made a payment of $113,048 to pay down the note principal and effective January 1, 2023 the note went into default as the due date had passed with no extension. |
| [3] | Effective February 28, 2022 the Company entered into a promissory note with Oscar and Ilda Gonzales with a principal amount of $102,500. The maturity date of the note is February 28, 2026 and repayments on the note are to begin on March 1, 2023 in the amount of $3,309 per month. The note has an interest rate of 10% per annum. |
| [4] | Effective March 3, 2022 the Company entered into a promissory note with Sabby Volatility Warrant Master Fund with a principal amount of $165,000 in full satisfaction of all liquidated damages pursuant to a registration rights agreement dated December 22, 2021. The maturity date of the note is the earlier of February 28, 2023 or the date MMEX receives at least $6 million of proceeds from an equity or equity-based financing. In accordance with the terms of the note, if the note was not paid in full prior to June 22, 2022, the principal amount of the note was to increase to $181,500. Accordingly, during the nine months ended January 31, 2023 we recognized $16,500 in interest expense to increase the principal balance. |

---

*Convertible Note Payable, Currently in Default*

Convertible notes payable, currently in default, consist of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,**<br>**2022** |
| Note payable to an unrelated party, matured December 31, 2010, with interest at 10%, convertible into common shares of the Company [1] | $50000 | $50000 |
| Note payable to an unrelated party, matured January 27, 2012, with interest at 25%, convertible into common shares of the Company [2] | 25000 | 25000 |
|  | 75000 | 75000 |
| Less discount | - | - |
| Total | $75000 | $75000 |

---

---

| | |
|:---|:---|
| [1] | On March 8, 2010, the Company closed a note purchase agreement with an accredited investor pursuant to which the Company sold a $50,000 convertible note in a private placement transaction. In the transaction, the Company received proceeds of $35,000 and the investor also paid $15,000 of consulting expense on behalf of the Company. The convertible note was due and payable on December 31, 2010 with an interest rate of 10% per annum. The note is convertible at the option of the holder into our common stock at a fixed conversion price of $3.70, subject to adjustment for stock splits and combinations. |
| [2] | On January 28, 2011 and February 1, 2011, the Company closed a Convertible Note Agreement totaling $514,900 in principal amount of 25% Convertible Note (the "Notes") due on the first anniversary of the date of the Note, to a group of institutional and high net worth investors. The Notes are convertible into the Company's common stock at the holders' option at $1.00 per common share. All but $25,000 of the promissory notes plus interest were paid in full on March 23, 2011. |

---

---

| |
|:---|
| 16 |
| *[**Table of Contents**](#TOC)* |

---

*Convertible Notes Payable*

Current convertible notes payable consisted of the following at:

---

| | | |
|:---|:---|:---|
|  | **January 31,**<br>**2023** | **April 30,**<br>**2022** |
| Extension fee added to note payable to an accredited investor, with interest at 18%, convertible into common shares of the Company at a defined variable exercise price [1] | $158790 | $200000 |
| Extension fee added to note payable to an accredited investor, with interest at 18%, convertible into common shares of the Company at a defined variable exercise price [2] |  | 90000 |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at $0.10 per share [3] | 165000 | 165000 |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at variable exercise prices [4] | 31700 |  |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at $0.005 per share [5] | 200000 |  |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at $0.11 per share [6] | 78750 |  |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at $0.01 per share [7] | 100000 |  |
| Note payable to an accredited investor, with interest at 10%, convertible into common shares of the Company at $0.11 per share [8] | 54750 | - |
| Total | 788990 | 455000 |
| Less discount | (27070) | (22903) |
| Net | $761920 | $432097 |

---

---

| | |
|:---|:---|
| [1] | Effective March 31, 2020, the Company entered into a second amendment to certain convertible notes with GS Capital Partners, LLC ("GS") ($110,000 note dated September 13, 2018, $70,000 note dated September 18, 2018, $600,000 note dated October 5, 2018, and $110,000 note dated February 20, 2019) to extend the notes due dates to November 30, 2020. In consideration of the extension of the maturity dates of the notes the Company was to pay an extension fee of $200,000, which was added to the principal amount owed and would incur interest at 18% per annum. The extension fee is payable in cash at the earlier of (1) in connection with, and at the time of repayment of the Notes, or (2) on November 20, 2020, which, as of the date of this filing, has been extended to March 31, 2023. GS, at its option, may convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a 40% discount from the lowest trading price during the 20 days prior to conversion (with a floor of $3.00 per share during the first six months after issuance). During the nine months ended January 31, 2023 the Company made repayments of $41,210 on the note principal. |
| [2] | Effective September 12, 2019, the Company entered into an amendment to certain convertible notes with GS ($110,000 note dated September 13, 2018, $70,000 note dated September 18, 2018, and $600,000 note dated October 5, 2018) to extend the notes due dates to February 4, 2020. In consideration of the extension of the maturity dates of the notes the Company was to pay an extension fee of $90,000, which was added to the principal amount owed and would incur interest at 18% per annum The extension fee is payable in cash at the earlier of (1) in connection with, and at the time of repayment of the Notes, or (2) on November 20, 2020, which was extended to March 31, 2023. GS, at its option, could convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a 40% discount from the lowest trading price during the 20 days prior to conversion (with a floor of $3.00 per share during the first six months after issuance). During the nine months ended January 31, 2023 the Company issued 710,802 shares of common stock to pay the note and its related interest in full and recognized a $16,540 gain on settlement to reduce the debt to zero. |

---

---

| |
|:---|
| 17 |
| *[**Table of Contents**](#TOC)* |

---

---

| | |
|:---|:---|
| [3] | Effective April 12, 2022, the Company issued and delivered to GS a 10% convertible note in the principal amount of $165,000. The note was issued at a discount and the Company received net proceeds of $155,000 after payment of $10,000 of fees and expenses of the lender and its counsel. GS, at its option, can convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a price of $0.10 per share. The Company can prepay the note with prepayment penalties ranging from 105% to 125% during the first 180 days after issuance. |
| [4] | Effective June 7, 2022, the Company entered into a convertible promissory note with a principal amount of $105,000 with 1800 Diagonal Lending, LLC. The Company received $101,250 after payment of $3,750 in fees and expenses of the lender and its counsel. The note has an interest rate of 10% per annum and a maturity date of June 7, 2023. The note can be converted into shares of common stock at a price of $0.11 per share for the first 180 days and after that can be converted into shares of common stock at a variable exercise price that is equal to a 42% discount to the lowest trading price during the 10 days prior to conversion. During the nine months ended January 31, 2023 the note holder converted $73,300 worth of principal into 7,021,914 shares of common stock based on the variable conversion prices in effect on the date of the conversions. |
| [5] | Effective July 26, 2022, the Company issued and delivered to GS a 10% convertible note in the principal amount of $200,000, which was not funded until August 1, 2022. The note was issued at a discount and the Company received net proceeds of $185,000 after payment of $5,000 of fees and expenses of the lender and its counsel. GS, at its option, can convert the unpaid principal balance of, and accrued interest on, the note into shares of common stock at a price of $0.055 per share, subject to adjustment if there are future financings with more favorable rates. The Company can prepay the note with prepayment penalties ranging from 105% to 125% during the first 180 days after issuance. |
| [6] | Effective August 15, 2022, the Company entered into a convertible promissory note with a principal amount of $78,750 with 1800 Diagonal Lending, LLC. The Company received $75,000 after payment of $3,750 in fees and expenses of the lender and its counsel. The note has an interest rate of 10% per annum and a maturity date of August 15, 2023. The note can be converted into shares of common stock at a price of $0.11 per share for the first 180 days and after that can be converted into shares of common stock at a variable exercise price that is equal to a 42% discount to the lowest trading price during the 10 days prior to conversion. |
| [7] | Effective September 15, 2022, the Company entered into a convertible promissory note with a principal amount of $100,000 with Boot Capital, LLC. The Company received $91,250 after payment of $8,750 in fees and expenses of the lender and its counsel. The note has an interest rate of 10% per annum and a maturity date of September 15, 2023. The note can be converted into shares of common stock at a 42% discount from the lowest trading price during the 10 days prior to conversion. |
| [8] | Effective January 22, 2023, the Company entered into a convertible promissory note with a principal amount of $54,750 with 1800 Diagonal Lending, LLC. The Company received $50,000 after payment of $4,750 in fees and expenses of the lender and its counsel. The note has an interest rate of 10% per annum and a maturity date of January 18, 2024. The note can be converted into shares of common stock at a price of $0.11 per share for the first 180 days and after that can be converted into shares of common stock at a variable exercise price that is equal to a 42% discount to the lowest trading price during the 10 days prior to conversion. |

---

---

| |
|:---|
| 18 |
| *[**Table of Contents**](#TOC)* |

---

**NOTE 8 – STOCKHOLDERS' DEFICIT**

*Authorized Shares*

The Company has authorized 201,000,000 shares of capital stock, consisting of 200,000,000 shares of common stock and 1,000,000 shares of preferred stock.

*Common Stock*

During the nine months ended January 31, 2023, the Company issued a total of 27,685,956 shares of its common stock: 7,732,716 shares valued at $182,977 in conversion of convertible notes principal of $163,300 and accrued interest payable of $19,677; 16,188,264 shares issued for the exercise of warrants; 91,414 shares issued for an accrued liability with a related party of $1,006 (see Note 4); 100,000 shares issued for a debt discount valued at $5,380; 1,373,562 shares and 686,281 warrants (see *Warrants* below) issued for cash proceeds of $41,210, which was offset by $12,000 in offering costs; and 2,200,000 shares issued for the conversion of 19 shares of Series B preferred stock.

During the nine months ended January 31, 2022, the Company issued a total of 15,843,721 shares of its common stock: 170,000 shares (plus 3,580,000 prefunded warrants and 2,575,500 warrants, see Warrants below) for cash of $3,000,000; 6,433,743 shares valued at $154,437 in conversion of convertible notes principal of $149,444, accrued interest payable of $4,490 and payment of fees of $504; 6,817,224 shares valued at $74,989 in conversion of related party convertible notes principal; 17,754 shares issued pursuant to the rounding of fractional shares in connection with our reverse stock split; and 2,405,000 shares issued for the exercise of prefunded warrants. In conjunction with the stock and warrants issued for cash, the Company also issued 337,500 warrants to the placement agent (see Warrants below) and recognized $349,150 in out-of-pocket offering costs.

*Series A Preferred Stock*

The Series A preferred stock has no redemption, conversion or dividend rights; however, the holders of the Series A preferred stock, voting separately as a class, have the right to vote on all shareholder matters equal to 51% of the total vote.

During the nine months ended January 31, 2023 and 2022 the Company did not issue any shares of its Series A preferred stock.

*Series B Preferred Stock*

The Series B preferred stock has a stated value equal to $1,000, has no redemption or voting rights, and are entitled to receive dividends on preferred stock equal, on an as-of-converted-to-common-stock basis, to and in the same form as the dividends paid on shares of the common stock. The Series B preferred stock is convertible, at the option of the holder, into the number of shares of common stock determined by dividing the stated value of such share of Preferred Stock by the initial Conversion Price of $0.10, which was adjusted to $0.05 per share effective June 7, 2022.

During the nine months ended January 31, 2023 the Company did not issue any shares of its Series B preferred stock, however, as a result of the change in the Conversion Price that occurred on June 7, 2022, the Company recognized a deemed dividend of $2,534,402 to account for the change in fair value of the Series B preferred stock. Further, during the nine months ended January 31, 2023, the Company issued 2,200,000 shares of its common stock upon the conversion of 19 shares of the Series B preferred stock by the holder.

---

| |
|:---|
| 19 |
| *[**Table of Contents**](#TOC)* |

---

During the nine months ended January 31, 2022 the Company issued 1,500 shares of Series B preferred stock (plus 31,975,000 warrants, see *Warrants* below) for cash of $1,500,000. In conjunction with the stock issued for cash, the Company also issued 1,350,000 warrants to the placement agent (see *Warrants* below) and recognized $206,650 in out-of-pocket offering costs.

*Warrants*

A summary of warrant activity during the six months ended January 31, 2023 is presented below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Shares** | **Weighted Average**<br>**Exercise Price** | **Weighted Average**<br>**Remaining** <br>**Contractual Life** <br>**(Years)** |
| Outstanding, April 30, 2022 | 35508000 | $0.06 | 4.64 |
| Granted | 27261781 | $0.07 |  |
| Cancelled / Expired | (17575500) | $0.10 |  |
| Exercised | (16245000) | $0.00 |  |
| Outstanding, January 31, 2023 | 28949281 | $0.09 | 5.54 |

---

During the nine months ended January 31, 2023 the Company granted 3,000,000 warrants each to two entities affiliated with the Company's two board members (see Note 4) and a consultant. The fair value of the warrants was $495,000 and recognized in additional paid-in capital. Additionally, effective June 7, 2022 the Company entered into an agreement to reduce the exercise price of its Series C and Series D warrants, from $0.10 to $0.05. The Company accounted for this modification as a cancellation of the previous award and issuance of a new award in its place, however, as there was no change in the fair value as a result of the modification, no additional expense was recorded on the Company's books. Lastly, during the nine months ended January 31, 2023 the Company issued 686,281 warrants in conjunction with the sale of common stock (see *Common Stock* above). As the fair value of the warrants granted would have had a net zero impact to equity (increasing additional paid in capital and recording offering costs for the same amount), the Company did not break out or complete a separate valuation of the warrants granted in association with the capital raise. The 686,281 warrants have an exercise price of $0.045 and have a one-year life.

*Common Stock Reserved*

Combined with the 48,890,638 common shares outstanding as of January 31, 2023, all authorized common shares had been issued or reserved for issuance of outstanding warrants, stock options, and convertible notes payable and no common shares were available for share issuances other than those shares included in the reserves.

**NOTE 9 – COMMITMENTS AND CONTINGENCIES**

*Legal*

In the ordinary course of business, we may be, or have been, involved in legal proceedings from time to time. During the nine months ended January 31, 2023 we were not involved in any material legal proceedings.

---

| |
|:---|
| 20 |
| *[**Table of Contents**](#TOC)* |

---

**NOTE 10 – SUBSEQUENT EVENTS**

In accordance with ASC 855-10, there have been no subsequent events that are required to be reported through the filing date of these consolidated financial statements other than those stated below.

Subsequent to January 31, 2023, the Company issued 91,051,350 shares of common stock in exchange for the conversion of convertible notes, made up of $159,200 worth of principal, $13,377 worth of accrued interest, and $1,620 worth of fees.

Effective February 25, 2023 the Company entered into a $20,000 convertible promissory note with Maple Resources Corporation, a related party controlled by our President and CEO.

Effective February 28, 2023 the Company replaced its March 3, 2022 promissory note with Sabby Volatility Warrant Master Fund for a convertible note with a principal amount of $226,875. The Company recognized $36,716 in financing costs associated with the replacement, equal to the difference of the convertible note principal and the amount due for principal and interest on the promissory note on the date of replacement.

On March 6, 2023, the Company amended its Articles of Incorporation to increase the authorized capital stock of the Company to 1,000,000,000 shares of common stock and 1,000,000 shares of preferred stock.

Subsequent to January 31, 2023 the Company issued 89,243,803 shares of common stock in exchange for the conversion of 169 shares of Series B preferred stock. The holder of such preferred stock also holds warrants with the Company and has given notice to the Company that the number of Series B warrants conversion has been reset to 3,500,000,000 shares resulting from the anti-dilution adjustments arising from conversions of the Company's other convertible debt holders subsequent to January 31, 2023.

---

| |
|:---|
| 21 |
| *[**Table of Contents**](#TOC)* |

---

**ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion and analysis constitute forward-looking statements for purposes of the Securities Act and the Exchange Act and as such involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. The words "expect", "estimate", "anticipate", "predict", "believes", "plan", "seek", "objective" and similar expressions are intended to identify forward-looking statements or elsewhere in this report. Important factors that could cause our actual results, performance or achievement to differ materially from our expectations are discussed in detail in Item 1 above. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by such factors. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Notwithstanding the foregoing, we are not entitled to rely on the safe harbor for forward looking statements under 27A of the Securities Act or 21E of the Exchange Act as long as our stock is classified as a penny stock within the meaning of Rule 3a51-1 of the Exchange Act. A penny stock is generally defined to be any equity security that has a market price (as defined in Rule 3a51-1) of less than $5.00 per share, subject to certain exceptions.

The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements, including the notes thereto.

**Overview**

<u>Company Information and Business Plan</u>

MMEX Resources Corporation ("MMEX") was formed as a Nevada corporation in 2005. The current management team lead an acquisition of the Company (then named Management Energy, Inc.) through a reverse merger completed in 2010 and thereafter changed the Company's name to MMEX Mining Corporation.

Our portfolio contains the following pipeline of planned projects:

**Clean Energy Global, LLC**

*Project 1: Pecos Clean Fuels & Transport, LLC -Ultra Clean Fuels Refining-Pecos County, Texas*

We have teamed with Polaris Engineering to develop an ultra-clean transportation fuel, up to 11,600 barrel per day feedrate crude oil refining facility at our Pecos County, Texas site to produce 87° gasoline, ultra-low sulphur diesel and low-sulphur fuel oil, utilizing the Polaris Ultra FuelsTM patented concept, which removes over 95% emissions of a standard refinery. The planned carbon capture features of the project will be owned, financed, constructed and operated by an independent third-party. The Ultra FuelsTM concept, with capex and technical details completed in the Front-End Load-2 ("FEL-2") study, features small size facilities to take advantage of proximity to smaller markets and/or locate directly near crude oil production areas near the Company's owned 126-acre site. Because equipment is fabricated in modular units and shipped to site, this allows for an 18-month project completion time and more rapid implementation than traditional facilities. The smaller size and footprint, as well as lower emissions, also allows for faster permitting which we obtained for this facility from the Texas Commission on Environmental Quality on February 18, 2022.

---

| |
|:---|
| 22 |
| *[**Table of Contents**](#TOC)* |

---

*Project 2: Arroyo Cabral, Cordoba Province Argentina Solar Power Project.*

The Company along with its international partners have entered a proposal with EPEC, the local utility in Cordoba Province to build potentially the Arroyo Cabral 48 MWe solar park for local power demand following the Company's completion of a confidential information memorandum and pre-feasibility study for the project completed in June 2021. The local utility, EPEC, has proposed a Build Own Transfer structure with EPEC contributing 15% of the project costs as an equity contribution. The financing of the project potentially is to be provided by the Company's international partners and other third parties.

**Hydrogen Global, LLC**

*Project 3: Hydrogen Global- Pecos County, Texas- Green Hydrogen Project*

This planned project to utilize the proprietary electrolyzer technology of Siemens Energy, a major international technology provider to the Company, plans to convert water to hydrogen through electrolysis. The facility will utilize solar power, with the Company's water supply to produce up to 55 tons of hydrogen production per day. The Company and Siemens have completed the Front-End Engineering and Design ("FEED") study in April 2022, which outlines the capex of the electrolyzer complex on the Company's 321-acre site. The Company is in discussions with several renewable power developers to become the technology provider for 160 MWe solar power component. In addition, the Company is in discussions with two potential product off-takes (i) with a technology provider for the Ammonia complex, for conversion of the hydrogen to ammonia to facilitate transportation of the finished product for the export market in either Europe or Asia and (ii) international partners to provide turn-key mobility markets to include hydrogen fueling stations and buses utilizing hydrogen fuel cells. The potential markets would be the major metropolitan areas in the U.S. and Texas to include Austin, Dallas, Houston, and San Antonio.

*Project 4: Hydrogen Global- Tierra del Fuego Province Argentina-Green Hydrogen Project*

---

| |
|:---|
| 23 |
| *[**Table of Contents**](#TOC)* |

---

*Project 5: Hydrogen Global- Tangier Morocco- Green Hydrogen Project*

The Company has identified sea-based land assets in Tangier Morocco and is in negotiations for the supply of 160MWe of certified renewable power with local utility. The Company has international partners with local presence in Morocco. Tangier has developed what is now the largest trading hub in Africa with ten major ports (https://www.marineinsight.com/know-more/10-major-ports-in-morocco/) including multi-modal deep seaports, multiple free-zones areas with substantial tax and trade incentives and it is located 15km from Europe ports (Spain and Gibraltar). Tangier and the neighboring coastal area benefit from some of the best wind conditions in the world, which can also be associated with solar power generation. The Kingdom of Morocco is strongly pushing the use of renewable energy and has recently issued a Green Hydrogen regulatory framework. The principal off-take markets are the shipping and terminal companies present in the Tangier Port Med including APM Terminals (https://www.apmterminals.com/en/medport-tangier/about/our-terminal), and CGM-CMA (https://www.cma-cgm.com).

*Project 6: Hydrogen Global- Southern Coast of Peru-Green Hydrogen Project*

The Company has entered advanced discussions with Peru's principal electric power distribution company to develop potentially a Green Hydrogen project to produce up to 55 tons per day of hydrogen, requiring 160 MWe of constant and certified renewable power load. The Company plans to use its Siemens Energy Electrolyzer FEED template and adapt it for Peru. The Peru distribution company will also provide the land area as part of the transaction – approximately 5 hectares, by the sea to facilitate exports of green Hydrogen/Ammonia/Methanol to Asia and the U.S. West Coast. Peru's mining industry with its use of heavy extraction and transportation equipment has significant market potential for the Company's hydrogen production.

*Project 7: Hydrogen Global- Pecos County, Texas-Blue Hydrogen Project*

The Company is in planning discussions with a super major oil company (the "Super Major") to develop jointly a Blue Hydrogen project at the Company's Pecos County, Texas site. The Project plans to utilize potentially a portion of the Super Major's 2 billion cubic feet per day natural gas production and transportation from the area to produce hydrogen utilizing an autothermal reformer ("ATR") technology, In turn, the hydrogen will be used in Siemens Energy turbines and generator sets to produce 365 MWe of electric power which are projected to utilize initially a 75% hydrogen-25% natural gas feed and moving to a 100% hydrogen feed, with the electric power to be marketed by the power commodity trading desk of the Super Major. Solar and wind power will be utilized in the ATR and under discussions with the renewable power companies developing the Company's other solar projects in the area. The planned carbon capture features of the project will be owned, financed, constructed and operated by an independent third-party.

Completion of these projects is dependent upon our obtaining the necessary capital for planning, construction and start-up costs. There is no assurance that such financing can be obtained on favorable terms.

**Results of Operations**

<u>Revenues</u>

We have not yet begun to generate revenues.

---

| |
|:---|
| 24 |
| *[**Table of Contents**](#TOC)* |

---

<u>General and Administrative Expenses</u>

Our general and administrative expenses decreased to $211,084 for the three months ended January 31, 2023 from $274,407 for the three months ended January 31, 2023, which was due the conservation of cash during the period, and increased to $1,379,285 for the nine months ended January 31, 2023 from $991,407 for the nine months ended January 31, 2022. The increase was a result of due diligence fees incurred during the period, as well as the Company issuing 3,000,000 shares each to two entities affiliated with the Company's two board members and a consultant and recognizing $495,000 as stock-based compensation during the nine months ended January 31, 2023, versus no similar expense recognized during the nine months ended January 31, 2022.

<u>Project Costs</u>

We expense the direct costs incurred on our projects, including acquisition of rights, planning, design and permitting. Our project costs have decreased to $20,520 for the three months ended January 31, 2023 from $369,950 for the three months ended January 31, 2022 and decreased to $96,560 for the nine months ended January 31, 2023 from $1,379,676 for the nine months ended January 31, 2022. The levels of spending on our projects will vary from period to period based on availability of financing and will be expensed as project costs are incurred. The decrease in the current period, then, was because we did not have funding available to invest in our projects during the current period.

<u>Depreciation and Amortization Expense</u>

Our depreciation and amortization expense results from the depreciation of land improvements and amortization of land easements and totaled $9,099 and $8,888 for the three months ended January 31, 2023 and 2022, respectively, and totaled $27,296 and $26,852 for the nine months ended January 31, 2023 and 2022, respectively.

<u>Other Income (Expense)</u>

Our interest expense includes interest accrued on debt, amortization of debt discount and penalties assessed on debt. Interest expense totaled $67,177 and $49,566 for the three months ended January 31, 2023 and 2022, respectively and totaled $193,190 and $311,821 for the nine months ended January 31, 2023 and 2022, respectively. The decrease in interest expense for the nine months is due to lower levels of new non-related party convertible debt in the current period as a result of debt being paid off or converted into shares common stock. Additionally, the lower levels of debt also resulted in less amortization of debt discount to interest expense and less loan penalties incurred in the period.

We reported gains on derivative liabilities of $0 and $3,010,042 for the nine months ended January 31, 2023 and 2022, respectively. We had previously identified the variable conversion feature of certain convertible notes payable as derivatives. We estimated the fair value of the derivatives using multinomial lattice models that value the warrants based on a probability weighted cash flow model using projections of the various potential outcomes. These estimates are based on multiple inputs, including the market price of our stock, interest rates, our stock price volatility and management's estimates of various potential equity financing transactions. These inputs were subject to significant changes from period to period and to management's judgment; therefore, the estimated fair value of the derivative liabilities would fluctuate from period to period, and the fluctuation has been material. During the nine months ended January 31, 2022 all derivative liabilities were written off the books, resulting in a large gain in the prior period.

We reported a net gain (loss) on extinguishment of liabilities of $16,540 and $233,303 for the nine months ended January 31, 2023 and 2022, respectively, and $0 and $96,993 for the three months ended January 31, 2023 and 2022, respectively. The larger gain in the prior period was mostly due to our loan from the Small Business Administration being forgiven along the forgiveness of a convertible note, versus smaller loan amounts being forgiven in the current period.

---

| |
|:---|
| 25 |
| *[**Table of Contents**](#TOC)* |

---

<u>Net Income (Loss)</u>

As a result of the above, we reported net income (loss) of $(307,880) and $(605,818) for the three months ended January 31, 2023 and 2022, respectively and $(1,679,791) and $533,589 for the nine months ended January 31, 2023 and 2022, respectively.

<u>Deemed Dividend</u>

Effective June 7, 2022 we reduced the conversion price of our Series B preferred stock from $0.10 to $0.05. This resulted in the recognition of a deemed dividend of $2,534,402 during the nine months ended January 31, 2023 in order to account for the change in fair value of the Series B preferred stock.

<u>Net Income (Loss) Attributable to Common Shareholders</u>

As a result of the deemed dividend, our net loss attributed to common shareholders was $(4,214,193) for the nine months ended January 31, 2023. We had no similar activity during the nine months ended January 31, 2022 or the three months ended January 31, 2023 and 2022, therefore net income (loss) attributed to the Company was the same as net income (loss) of $533,589, $(307,880), and $(605,818), respectively.

**Liquidity and Capital Resources**

<u>Working Capital</u>

As of January 31, 2023, we had current assets of $32,351, comprised only of cash and prepaid expenses, and current liabilities of $3,841,267, resulting in a working capital deficit of $3,808,916.

<u>Sources and Uses of Cash</u>

Our sources and uses of cash for the six months ended January 31, 2023 and 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2023** | **2022** |
| Cash, beginning of period | $136867 | $330449 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (619849) | (2946469) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities |  | (255504) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 490500 | 3767370 |
| Cash, end of period | $7518 | $895846 |

---

We used net cash of $619,849 in operating activities for the nine months ended January 31, 2023 as a result of our net loss of $1,679,791, offset by non-cash net expense totaling $559,468, an increase in prepaid expenses of $22,500, and increases in accounts payable, accrued expenses, and accounts payable and accrued expenses - related party of $477,974.

---

| |
|:---|
| 26 |
| *[**Table of Contents**](#TOC)* |

---

We used net cash of $2,946,469 in operating activities for the nine months ended January 31, 2022 as a result of our net income of $533,589, non-cash expenses totaling $104,674 and increases in accrued expenses of $62,653. This was offset by our non-cash gains of $3,243,345, increase in our prepaid expenses and other current assets of $21,990, a decrease in accounts payable of $190,268 and a decrease in accounts payable and accrued expenses – related party of $191,782.

Net cash used in investing activities for the nine months ended January 31, 2023 was $0 compared to $255,504 for the nine months ended January 31, 2022 which was comprised of the purchase of land and costs incurred for land improvements during the period.

Net cash provided by financing activities for the nine months ended January 31, 2023 was $490,500, comprised of proceeds of $502,500 from convertible notes payable and $41,209 from the sale of common stock, offset by offering costs of $12,000 and repayments of convertible notes payable of $41,209.

Net cash provided by financing activities for the nine months ended January 31, 2022 was $3,767,370, comprised of proceeds from notes payable of $200,000, proceeds from convertible notes payable of $78,500, proceeds from the sale of our common stock of $3,000,000, and proceeds from the sale of our series B preferred stock of $1,500,000. This was offset by repayments of notes payable of $200,000, repayments of convertible notes payable of $255,331, and offering costs incurred of $555,799.

<u>Going Concern Uncertainty</u>

Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. We have incurred continuous losses from operations, have an accumulated deficit, and have reported negative cash flows from operations since inception. Additionally, we have a working capital deficit, therefore there is a question of whether or not we have the cash resources to meet our operating commitments for the next twelve months and have, or will obtain, sufficient capital investments to implement our business plan. Our ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered by entrance into established and emerging markets and the competitive environment in which we operate.

Since inception, our operations have primarily been funded through private debt and equity financing, and we expect to continue to seek additional funding through private or public equity and debt financing. Our ability to continue as a going concern is dependent on our ability to generate sufficient cash from operations to meet our cash needs and/or to raise funds to finance ongoing operations and repay debt. However, there can be no assurance that we will be successful in our efforts to raise additional debt or equity capital and/or that our cash generated by our operations will be adequate to meet our needs. These factors, among others, raise substantial doubt that we will be able to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments that might result from the outcome of any uncertainty as to the Company's ability to continue as a going concern. The financial statements also do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

---

| |
|:---|
| 27 |
| *[**Table of Contents**](#TOC)* |

---

**Off-Balance Sheet Arrangements**

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

**Critical Accounting Policies**

Our results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to inventories, investments, intangible assets, income taxes, financing operations, and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

For further information on our significant accounting policies see the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended April 30, 2022 filed with the SEC and Note 2 to our condensed consolidated financial statements included in this quarterly report. There were no changes to our significant accounting policies during the nine months ended January 31, 2023.

**ITEM 3 Quantitative and Qualitative Disclosures About Market Risk**

As a smaller reporting company, we are not required to provide the information required by this Item.

**ITEM 4 Controls and Procedures**

**(a) Evaluation of Disclosure Controls and Procedures**

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined) in Exchange Act Rules 13a – 15(c) and 15d – 15(e). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 ("Securities Exchange Act") is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act, as amended. Our management assessed the effectiveness of our internal control over financial reporting as of January 31, 2023. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in 2013 Internal Control-Integrated Framework. Based on our evaluation, management concluded that we maintained effective internal control over financial reporting as of January 31, 2023, based on the COSO framework criteria. Management believes our processes and controls are sufficient to ensure the that the consolidated financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented in accordance with U.S. GAAP.

**(b) Changes in Internal Control over Financial Reporting**

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

---

| |
|:---|
| 28 |
| *[**Table of Contents**](#TOC)* |

---

**PART II – OTHER INFORMATION**

**ITEM 1 Legal Proceedings**

None.

**ITEM 1A Risk Factors**

Not applicable.

**ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds**

On December 20, 2022 the Company issued 1,194,782 shares of its common stock in exchange for the cashless exercise of 1,200,000 Series B warrants.

On December 20, 2022 the Company issued 796,521 shares of its common stock in exchange for the cashless exercise of 800,000 Series B warrants.

On December 20, 2022 the Company issued 1,526,718 shares of common stock in exchange for the conversion of $20,000 in convertible debt.

On January 9, 2023 the Company issued 1,754,386 shares of common stock in exchange for the conversion of $20,000 in convertible debt.

On January 10, 2023 the Company issued 795,979 shares of its common stock in exchange for the cashless exercise of 800,000 Series B warrants.

On January 11, 2023 2 the Company issued 1,194,000 shares of common stock in exchange for the cashless exercise of 1,200,000 Series B warrants.

On January 17, 2023 the Company issued 1,292,352 shares of common stock in exchange for the cashless exercise of 1,300,000 Series B warrants.

On January 17, 2023 the Company issued 1,612,903 shares of common stock in exchange for the conversion of $15,000 in convertible debt.

On January 17, 2023 the Company issued 1,373,562 shares of common stock and 686,281 warrants in exchange for cash of $41,209.

On January 19, 2023 the Company issued 1,193,023 shares of common stock in exchange for the cashless exercise of 1,200,000 Series B warrants.

On January 20, 2023 the Company issued 2,127,907 shares of common stock in exchange for the conversion of $18,300 in convertible debt.

On January 23, 2023 the Company issued 719,914 shares of common stock in exchange for the cashless exercise of 724,500 Series B warrants.

On January 30, 2023 the Company issued 2,200,000 shares of common stock in exchange for the conversion of 19 shares of Series B preferred stock.

---

| |
|:---|
| 29 |
| *[**Table of Contents**](#TOC)* |

---

On February 1, 2023 the Company issued 2,433,962 shares of common stock in exchange for the conversion of $12,900 in convertible debt.

On February 1, 2023 the Company issued 1,300,000 shares of common stock in exchange for the conversion of 6.89 shares of Series B preferred stock.

On February 2, 2023 the Company issued 1,000,000 shares of common stock in exchange for the conversion of 5.3 shares of Series B preferred stock.

On February 3, 2023 the Company issued 2,661,447 shares of common stock in exchange for the conversion of $14,047 in convertible debt.

On February 6, 2023 the Company issued 2,660,377 shares of common stock in exchange for the conversion of $14,000 in convertible debt.

On February 6, 2023 the Company issued 1,600,000 shares of common stock in exchange for the conversion of 8.48 shares of Series B preferred stock.

On February 8, 2023 the Company issued 1,600,000 shares of common stock in exchange for the conversion of 8.44 shares of Series B preferred stock.

On February 9, 2023 the Company issued 3,800,000 shares of common stock in exchange for the conversion of 20.06 shares of Series B preferred stock.

On February 10, 2023 the Company issued 2,842,857 shares of common stock in exchange for the conversion of $9,950 in convertible debt.

On February 14, 2023 the Company issued 7,500,000 shares of common stock in exchange for the conversion of 26.25 shares of Series B preferred stock.

On February 17, 2023 the Company issued 3,782,609 shares of common stock in exchange for the conversion of $8,700 in convertible debt.

On February 21, 2023 the Company issued 4,083,332 shares of common stock in exchange for the conversion of 9.39 shares of Series B preferred stock.

On February 21, 2023 the Company issued 3,969,885 shares of common stock in exchange for the conversion of $7,598 in convertible debt.

On February 21, 2023 the Company issued 4,998,265 shares of common stock in exchange for the conversion of $9,567 in convertible debt.

On February 22, 2023 the Company issued 3,947,368 shares of common stock in exchange for the conversion of $7,500 in convertible debt.

On February 23, 2023 the Company issued 4,157,895 shares of common stock in exchange for the conversion of $7,900 in convertible debt.

On February 24, 2023 the Company issued 4,473,684 shares of common stock in exchange for the conversion of $8,500 in convertible debt.

---

| |
|:---|
| 30 |
| *[**Table of Contents**](#TOC)* |

---

On February 27, 2023 the Company issued 5,000,000 shares of common stock in exchange for the conversion of $9,500 in convertible debt.

On February 28, 2023 the Company issued 5,210,526 shares of common stock in exchange for the conversion of $9,900 in convertible debt.

On March 2, 2023 the Company issued 5,764,706 shares of common stock in exchange for the conversion of $9,800 in convertible debt.

On March 3, 2023 the Company issued 6,030,769 shares of common stock in exchange for the conversion of $9,794 in convertible debt.

On March 6, 2023 the Company issued 6,000,000 shares of common stock in exchange for the conversion of $10,200 in convertible debt.

On March 7, 2023 the Company issued 29,721,142 shares of common stock in exchange for the conversion of 48.27 shares of Series B preferred stock.

On March 8, 2023 the Company issued 13,741,144 shares of common stock in exchange for the conversion of $14,910 in convertible debt.

On March 9, 2023 the Company issued 38,639,328 shares of common stock in exchange for the conversion of 36 shares of Series B preferred stock.

On March 9, 2023 the Company issued 4,921,875 shares of common stock in exchange for the conversion of $3,938 in convertible debt.

On March 10, 2023 the Company issued 8,453,981 shares of common stock in exchange for the conversion of $5,394 in convertible debt.

**ITEM 3 Defaults Upon Senior Securities**

There is no information required to be disclosed by this Item.

**ITEM 4 Mine Safety Disclosures**

There is no information required to be disclosed by this Item.

**ITEM 5 Other Information**

There is no information required to be disclosed by this Item.

---

| |
|:---|
| 31 |
| *[**Table of Contents**](#TOC)* |

---

**ITEM 6 Exhibits**

---

| | |
|:---|:---|
| [31.1\*](mmex_ex311.htm) | [Certification by Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)](mmex_ex311.htm) |
| [32.1\*](mmex_ex321.htm) | [Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](mmex_ex321.htm) |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL<br>document). |
| 101.SCH  | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL  | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE  | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |

---

\* Filed herewith.

\*\* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

---

| |
|:---|
| 32 |
| *[**Table of Contents**](#TOC)* |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **MMEX Resources Corporation** | **MMEX Resources Corporation** |
| Dated: March 13, 2023 | By: | */s/ Jack W. Hanks* |
|  |  | Chief Executive Officer (Principal Executive Officer), President and Chief Financial Officer (Principal Financial and Accounting Officer) |

---

## Exhibit 31.1

**EXHIBIT 31.1**

**Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer**

I, Jack W. Hanks, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of MMEX Resources Corporation.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exhibit Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Dated: March 13, 2023 |  | */s/ Jack W. Hanks* |
|  | By: | Jack W. Hanks |
|  |  | Chief Executive Officer and Chief Financial Officer |

---

## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATION PURSUANT TO 18 USC, SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of MMEX Resources Corporation (the "Company") on Form 10-Q for the quarter ended January 31, 2023, as filed with the Securities and Exchange Commission on or about the date hereof (the "Report"), I, Jack W. Hanks, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Dated: March 13, 2023 |  | */s/ Jack W. Hanks* |
|  | By: | Jack W. Hanks |
|  |  | Chief Executive Officer and Chief Financial Officer |

---

A signed original of this written statement required by Section 906 has been provided to MMEX Resources Corporation and will be retained by MMEX Resources Corporation and furnished to the Securities and Exchange Commission or its staff upon request.