Northern Minerals & Exploration Ltd. (NMEX) is a junior natural resources company focused on oil and gas production in Texas and Oklahoma and gold and silver exploration in Nevada. In the year ended July 31, 2025, it recorded its first oil and gas revenue of $8,634, generating a modest gross margin of $264, but expenses and a non-cash impairment drove a larger loss. The company reported a net loss of $383,612, more than double the prior year’s loss of $170,340, including $140,744 of impairment on oil and gas properties.
Total assets were $162,265, mostly oil and gas properties, against $385,613 of liabilities, resulting in a stockholders’ deficit of $223,348 and only $4,059 of cash. Operations were funded primarily through related-party and third-party loans and small equity issuances, including stock issued to acquire interests in Lost Creek Acquisitions LLC. The auditor and management highlight recurring losses, negative working capital, and accumulated deficit as raising substantial doubt about the company’s ability to continue as a going concern, and management concludes internal controls over financial reporting are ineffective.