Okmin Resources (OKMN) posts Q3 2026 loss and flags going-concern risk
Okmin Resources Inc. reported continued operating losses and liquidity pressure for the quarter and nine months ended March 31, 2026. Oil and gas sales were modest, at $3,917 for the quarter and $8,819 for the nine months, down from the prior-year periods as the Blackrock oil joint venture was sold. Natural gas revenue from the Pushmataha joint venture increased as pipeline issues were addressed and Okmin’s interest rose.
The company posted a net loss of $106,444 for the quarter and $309,037 for the nine months, and recorded a $24,765 impairment on oil and gas properties. At March 31, 2026, Okmin had total assets of $105,410, including cash of $24,333 and oil and gas properties of $70,053, against current liabilities of $691,027, resulting in stockholders’ deficit of $585,617 and an accumulated deficit of $2,614,722. Management highlights a working capital deficit of $655,670 and formally raises substantial doubt about the company’s ability to continue as a going concern.
Okmin funded operations primarily through equity and insider support, raising $84,000 via private placements and receiving a $30,000 interest-free bridge loan from its CEO. A prior $231,000 convertible note was fully settled in shares. The company also benefited from a $10,066 litigation settlement and a $5,796 bad-debt recovery. A planned merger with BevPoint Capital that would have shifted the business toward hospitality did not close and was terminated when conditions were not met. Okmin remains focused on Oklahoma and Kansas oil and gas assets, including a 95% joint-venture interest in the Pushmataha gas field and a 10% overriding royalty interest in West Sheppard Pool, but currently has no proven reserves and very limited production. Management discloses ongoing material weaknesses in internal control over financial reporting, including lack of segregation of duties, absence of an audit committee, and insufficient U.S. GAAP expertise.
Positive
- None.
Negative
- Substantial going-concern doubt: Nine-month net loss of $309,037, accumulated deficit of $2,614,722, working capital deficit of $655,670, and limited cash raise significant uncertainty about the company’s ability to continue operating.
- Very low operating scale: Oil and gas revenues were only $8,819 for the nine months ended March 31, 2026, highlighting minimal production relative to fixed costs.
- Leveraged, deficit balance sheet: At March 31, 2026, Okmin reported $691,027 of current liabilities, a stockholders’ deficit of $585,617, and dependence on small equity raises and insider bridge loans.
- Ongoing internal-control weaknesses: Management cites material weaknesses, including lack of segregation of duties, no audit committee, and limited U.S. GAAP expertise, which heighten financial reporting risk.
- Terminated strategic merger: The planned merger with BevPoint Capital was canceled after conditions were not met, removing a potential path to a larger, diversified operating platform.
Insights
Okmin stays highly speculative, with weak cash flow and going-concern risk.
Okmin Resources remains a very early-stage oil and gas company with minimal production. For the nine months ended March 31, 2026, it generated only $8,819 of revenue, against a net loss of $309,037 and an impairment charge of $24,765 on oil and gas properties. The business still has no proven reserves and depends on small legacy projects in Oklahoma and Kansas, primarily the Pushmataha gas field.
The balance sheet is thin and stressed. At March 31, 2026, total assets were $105,410, including cash of just $24,333, versus current liabilities of $691,027. This creates a working capital deficit of $655,670 and a stockholders’ deficit of $585,617. Management explicitly states that these factors raise substantial doubt about the company’s ability to continue as a going concern. Operations were funded by $84,000 of equity placements and a $30,000 bridge loan from the CEO, underscoring reliance on external and insider financing.
From a governance and reporting standpoint, the company still reports material weaknesses in internal control over financial reporting, including lack of segregation of duties and absence of an audit committee. A previously announced merger with BevPoint Capital that would have transformed the business model was terminated when closing conditions were not met, leaving Okmin with its current small asset base. Future company filings will be important for tracking any new financings, changes in reserves or production, and progress in addressing internal control weaknesses and liquidity constraints.
Key Figures
Key Terms
full cost method financial
asset retirement obligation financial
overriding royalty interest financial
going concern financial
material weakness financial
working capital deficit financial
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(MARK ONE)
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________ |
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As of May 15, 2026, there were
OKMIN RESOURCES INC.
FORM 10-Q
March 31, 2026
TABLE OF CONTENTS
| PART I – FINANCIAL INFORMATION | ||
| Item 1. | Financial Statements | 1 |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 |
| Item 3. | Qualitative and Quantitative Disclosures about Market Risk | 18 |
| Item 4. | Controls and Procedures | 18 |
| PART II – OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 20 |
| Item 1A. | Risk Factors | 20 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 20 |
| Item 3. | Defaults Upon Senior Securities | 20 |
| Item 4. | Mine Safety Disclosures | 20 |
| Item 5. | Other Information | 20 |
| Item 6. | Exhibits | 21 |
| SIGNATURES | 22 |
i
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.
Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K, in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q, and information contained in other reports that we file with the Securities and Exchange Commission (“SEC”). You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.
We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us.
We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.
Unless otherwise indicated, references in this report to “we,” “us” or the “Company” refer to Okmin Resources, Inc. and its subsidiaries.
ii
PART 1 – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | June 30 | |||||||
| 2026 | 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Other receivable, net | ||||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Non-current assets | ||||||||
| Oil and gas properties, net | ||||||||
| Black Rock Joint Venture | ||||||||
| Total non-current assets | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued liabilities – related party | ||||||||
| Accrued interest payable – current portion | ||||||||
| Note payable – current portion | ||||||||
| Bridge loan payable – related party | ||||||||
| Other liabilities | ||||||||
| Total current liabilities | ||||||||
| Stockholders’ Equity (Deficit): | ||||||||
| Preferred Stock, $ | ||||||||
| Common stock, $ | ||||||||
| Additional paid-in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ equity (deficit) | ( | ) | ( | ) | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
| 1 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Nine Months Ended March 31, 2026 | Nine Months Ended March 31, 2025 | |||||||||||||
| Revenue | ||||||||||||||||
| Oil and gas sales | $ | $ | $ | $ | ||||||||||||
| Total revenues | ||||||||||||||||
| Cost of revenue | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Gross loss | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative expense | ||||||||||||||||
| Depreciation, depletion and amortization | ||||||||||||||||
| Allowance for doubtful accounts | ||||||||||||||||
| Impairment | ||||||||||||||||
| Total operating expenses | ||||||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other Income (expense) | ||||||||||||||||
| Interest income | ||||||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Litigation settlement | ||||||||||||||||
| Bad debt recovery | ||||||||||||||||
| Other income | ||||||||||||||||
| Total other income (expense) | ( | ) | ( | ) | ||||||||||||
| Loss before taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Provision for income taxes | ||||||||||||||||
| Total net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | ||||||||||||||||
The accompanying notes are an integral part of these financial statements.
| 2 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
For the Nine Months Ended March 31, 2026 and 2025
(Unaudited)
| Additional | Stockholders' | |||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Paid-In | Accumulated | Equity/ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | (Deficit) | ||||||||||||||||||||||
| Balance June 30, 2024 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Shares issued for services | — | — | — | |||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance March 31, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Shares issued for services | — | — | — | |||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Shares issued for debt conversion | — | — | — | |||||||||||||||||||||||||
| Shares issued for services | — | — | — | |||||||||||||||||||||||||
| Private placement | — | — | — | |||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||
| Balance March 31, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
| 3 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Nine Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash from (used in) operations | ||||||||
| Depreciation and amortization | ||||||||
| Impairment of oil and gas properties | ||||||||
| Allowance of doubtful accounts | ||||||||
| Gain on forgiveness of accounts payable | ( | ) | ||||||
| Issuance of common stock for services | ||||||||
| Changes in assets and liabilities | ||||||||
| Accrued oil and gas sales | ( | ) | ||||||
| Accounts receivable | ( | ) | ||||||
| Accounts payable and accrued liabilities | ||||||||
| Accrued interest payable | ||||||||
| Other liabilities | ( | ) | ||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash Flows from Investing Activities | ||||||||
| Investment in oil and gas properties | ||||||||
| Net cash from investing activities | ||||||||
| Cash Flows from Financing Activities | ||||||||
| (Repayment of) note payable | ( | ) | ||||||
| Private placement of common stock | ||||||||
| Bridge loan | ||||||||
| Net cash from (used in) financing activities | ( | ) | ||||||
| Net change in cash | ( | ) | ||||||
| Cash - beginning of period | ||||||||
| Cash - end of period | $ | $ | ||||||
| Non-cash Transactions | ||||||||
| Common stock issued for note repayment | $ | |||||||
| Common stock issued for accrued interest payable | $ | |||||||
| Common stock issued for services | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
| 4 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
1. ORGANIZATION AND NATURE OF OPERATIONS
Business description
Okmin Resources, Inc. (collectively with its subsidiaries, “Okmin” or the “Company”) was incorporated in Nevada in December 2020 to engage in the business of the acquisition, exploration and development of oil and gas properties, mineral rights, and other natural resource assets.
Okmin has been focused on the acquisition and development of domestic oil and gas fields and investing in lower profile rework and recompletion opportunities with lower entry costs. The Company's initial projects are located in Oklahoma and Kansas.
The Company has two wholly owned subsidiaries that conduct oil and gas activities: Okmin Operations, LLC, organized on May 25, 2021 in the State of Kansas, and Okmin Energy LLC, organized on November 21, 2021 in the State of Oklahoma.
The Company has an interest in two projects:
| 1) | A 72.5% Net Revenue Interest in the Vitt oil lease located in Neosho County, Kansas |
| 2) | A 95% Joint Venture interest in Pushmataha, a natural gas project in Southeast Oklahoma |
The Company also retained a 10% overriding royalty interest in West Sheppard Pool, a natural gas project in Northeast Oklahoma.
The Company has not conducted any reserve evaluations or calculations, and there are currently no proven reserves on any of the Company’s properties.
Our business strategy is to enhance the value of our acquired operated assets through evaluation of certain properties with the goal of increasing production. We plan to deploy capital in a strategic manner and pursue value-enhancing transactions and expect to continuously evaluate strategic alternative opportunities that we believe will enhance shareholder value.
Subject to the Company being able to secure adequate additional financing, Okmin may also acquire the rights to and participate in drilling and/or other mining operations. The Company will evaluate other strategic corporate opportunities as they become available from time to time.
The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional funding to advance the Company’s current plan to rework and possibly develop its existing projects and to identify and acquire new projects.
The Company’s fiscal year end is June 30.
| 5 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company maintains its accounts on the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Accounting principles followed and the methods of applying those principles, which materially affect the determination of financial position, results of operations and cash flows are summarized below.
The financial statements are presented on a consolidated basis and include all of the accounts of Okmin Resources, Inc and its subsidiaries. All significant intercompany balances and transactions have been eliminated.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and certain assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ from these estimates.
Cash and cash Equivalents
The Company considers all highly liquid temporary
cash investments with an original maturity of three months or less to be cash equivalents. At March 31, 2026, the Company cash totaled
$
Oil and gas properties
The Company uses the full cost method of accounting for exploration and development activities as defined by the Securities and Exchange Commission (“SEC”). Under this method of accounting, the costs of unsuccessful, as well as successful, exploration and development activities are capitalized as properties and equipment. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves.
Oil and gas properties include costs that are excluded from costs being depleted or amortized. Oil and natural gas property costs excluded represent investments in unevaluated properties and include non-producing leasehold, geological, and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. The Company allocates a portion of its acquisition costs to unevaluated properties based on relative value. Costs are transferred to the full cost pool as the properties are evaluated over the life of the reservoir. Unevaluated properties are reviewed for impairment annually and are determined through an evaluation considering, among other factors, seismic data, requirements to relinquish acreage, drilling results, remaining time in the commitment period, remaining capital plan, and political, economic, and market conditions.
Gains and losses on the sale of oil and gas properties are not generally reflected in income unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Sales of less than 100% of the Company’s interest in the oil and gas property are treated as a reduction of the capital cost of the field, with no gain or loss recognized, as long as doing so does not significantly affect the unit-of-production depletion rate. Costs of retired equipment, net of salvage value, are usually charged to accumulated depreciation.
Depreciation, depletion, and amortization
The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of accumulated depreciation, depletion, and amortization (“DD&A”), estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized on a unit-of-production method.
Asset retirement obligations
The fair value of a liability for an asset’s retirement obligation (“ARO”) is recognized in the period in which an obligation occurs if a reasonable estimate of fair value can be made, with the corresponding charge capitalized as part of the carrying amount of the related
| 6 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
long-lived asset. The liability is accreted to its then-present value each subsequent period, and the capitalized cost is depleted over the useful life of the related asset. Abandonment costs incurred are recorded as a reduction of the ARO liability.
Inherent in the fair value calculation of an ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental, and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Settlements greater than or less than amounts accrued as ARO are recorded as a gain or loss upon settlement.
The Company has reviewed its oil and gas projects and determined an obligating event has not occurred. Therefore, the Company has not recognized any asset retirement obligation liabilities as of March 31, 2026 or June 30, 2025.
Fair Value
The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy in accordance with ASC 820, “Fair Value Measurements and Disclosures”. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available.
ASC 820 requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:
Level 1—Quoted market prices for identical assets or liabilities in active markets or observable inputs.
Level 2—Significant other observable inputs that observable market data can corroborate; and
Level 3—Significant unobservable inputs that observable market data cannot corroborate.
Financial instruments consist principally of cash and cash equivalents, accounts receivable, prepaid expenses, oil and gas properties, accounts payable, accrued liabilities, note payable, and interest payable. The recorded values of all financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
Revenue recognition
The Company is not the operator of any of its oil and gas properties. Sales of all oil and gas produced are the responsibility of the property operator. The operator recognizes revenue when production is sold at a fixed or determinable price, persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, and collectability is reasonably assured in accordance with ASC 606. The Company only recognizes oil and gas revenues when the operator has provided the Company with confirmation of the completed sale and the amount of the revenue attributable to the Company’s working interest has been determined.
Stock-based compensation
The Company accounts for stock-based compensation in accordance with ASC 718, “Compensation - Stock Compensation” (“ASC 718”). Stock-based compensation is recognized as compensation expense in the financial statements based on the fair value which is measured on the grant date for stock-settled awards. That expense is recognized over the period during which a grantee is required to provide services in exchange for the award. Stock-based compensation expense recognized during the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period, or in the period of grant for awards that vest immediately without any future service condition. For awards that vest over time, previously recognized compensation cost is reversed if the service or performance conditions are not satisfied and the award is forfeited.
| 7 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
Income taxes
Income taxes are accounted for under the asset and liability method in accordance with ASC 740, “Income Taxes”. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, their respective tax bases and operating loss, and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. Under ASC 740, the effect on deferred tax assets and liabilities or a change in tax rate is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced to estimated amounts to be realized using a valuation allowance. A valuation allowance is applied when in management’s view, it is more likely than not that such deferred tax asset will be unable to be utilized.
In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures, which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. The Company adopted the ASU 2023-09 on July 1, 2025, prospectively, and it did not have a material effect on our financial statements.
Segment Reporting
The Company adopted ASC 2023-07, ASU 2023-07, Improvements to Reportable Segment Disclosures, effective July 1, 2024, The Company operates in a single reportable segment, oil and gas exploration and production. Due to limited revenue, significant expenses are primarily corporate in nature and not allocated across multiple business units.
3. GOING CONCERN
The Company currently has limited operations. These condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.
As reflected in the accompanying condensed consolidated
financial statements, the Company had a net loss of $
The Company had a working capital deficit of $
The Company’s future success is dependent upon its ability to achieve profitable operations, generate cash from operating activities and obtaining additional financing. If such additional financing is not available on terms acceptable to us or at all, then we may need to curtail our operations and/or take additional measures to conserve and manage our liquidity and capital resources, any of which would have a material adverse effect on our financial position, results of operations, and our ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
The accompanying condensed consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.
| 8 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
4. OIL AND GAS PROPERTIES
Oklahoma – Blackrock Joint Venture
In February 2021, Okmin
entered into a Joint Venture Agreement and Operating Agreement committing $
The Company, through its
joint venture partner Blackrock, put considerable effort into reworking and rehabilitating these leases. The land owner royalties
on these leases derived from gross revenue production varies from
The property has been negatively
affected by persistent infrastructure issues, nearly stagnant oil prices, and increasing operating costs. In August 2025, the Company
entered into an agreement with Blackrock to exchange its
Kansas
In July 2021, the Company
through its wholly owned Kansas subsidiary, Okmin Operations, LLC, entered into an agreement to acquire a
The Company had entered into
an operating agreement covering the Vitt Lease with Petron Oil and Gas LLC (“Petron”), pursuant to which Petron will handle
the reworking of the existing wells and other day to day operations at the lease. Under the operating agreement, the company fulfilled
its commitment for expenditures to rework the existing wells and to cover operator costs and expenses of at least $
This lease currently has fifteen wells on site. Nine oil and gas wells, two idle wells that require further evaluation, and four injection wells. These are shallow wells drilled down to the Bartlesville zone at a depth of 525 feet. The operator conducted some work on the wells in 2023, including rebuilding the downhole pumps, though the wells are not currently operating.
One
of the injection wells onsite remains idle. The Vitt lease is equipped with pump jacks, oil and water tanks and other equipment. Since
we acquired the lease a nominal amount of oil has been sold from it. Revenues of only $
West Sheppard Pool Field in North East Oklahoma
In August 2021, the Company entered into an option
agreement with Blackrock to acquire a
| 9 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
The 26 existing wells on the leases range from 850 feet to 1,950 feet in depth with gas production from several zones as their main objective. The Company received limited revenue from the property as gas sales were suspended due to required pipeline work and the failure of equipment owned by the gas pipeline company at its compressor station.
In November 2024, the Company assigned its
Pushmataha County – South East Oklahoma
In December 2021,
the Company exercised its option and entered into a definitive joint venture and operating agreement with Blackrock to acquire a
In August 2025, the Company
entered into an agreement with Blackrock to exchange its
The leases owned by the Joint Venture are subject to land owner royalties and other commitments resulting in net revenue interests to the joint venture of between 71% - 76%, with the exception of the Stephenson well, which has a net revenue interest of approximately 68%. Blackrock maintains the actual leases to the Pushmataha project, and at the present time, the Company’s interests are held via the joint venture agreement in place with Blackrock. Blackrock is exploring bringing in potential funding partners into Pushmataha on the Company’s behalf or another strategic transaction or sale.
Pushmataha has 7 existing gas wells ranging in depth from 10,000-12,300 feet. The wells were inactive since 2019 due to line leaks and lower gas prices, though in April 2021 some wells were put back online and have at various intervals produced between 100-300 MCFD.
The existing seven wells show additional behind-pipe zones and the joint venture partners assessed recompleting a new zone in one of the wells called the KDC. The operator previously had a rig out on site at KDC and commenced some work on the well and was planning to conduct a recompletion, though weather conditions made it too dangerous to proceed. Plans were also underway for the operator to commence repairing or possibly replacing the plunger lift systems of some of the wells, with the goal of dewatering the wells to enable the gas to flow freely. The joint venture partners have deferred pursuing this active rework activity during the current downturn in natural gas pricing or until additional capital is available.
In July 2022, a hydrocarbon survey was conducted across these leases utilizing a third party patented remote sensing technology, which has provided the operator with valuable data in charting the potential for the future development of this project. There is also space to drill new gas wells on the 3,840 acre leasehold, using the hydrocarbon mapping as a tool to locate the optimal drilling locations in these reservoirs.
In the nine months ended
March 31, 2026, revenue from the property increased to $
5. IMPAIRMENT OF OIL AND GAS PROPERTIES
During the nine months ended March 31, 2026, the Company
reviewed the capitalized value of its oil and gas properties and conducted a test to determine the current fair value and if any impairment
of the capitalized values was necessary. As a result of this test, the Company determined that the capitalized value exceeded the current
fair value. For the nine months ended March 31, 2026, an impairment charge of $
| 10 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
6. REVENUES AND COST OF REVENUES
For the nine months ended March 31, 2026, the Company
had production revenue of $
| Schedule of production and revenue | ||||||||||||||||||||||||||||
| Oil | Natural Gas | |||||||||||||||||||||||||||
| Project | Production (BBLS) | Avg. Cost ($) | Avg. Sales Price ($) | Production (MCF) | Avg. Cost ($) | Avg. Sales Price ($) | Total Revenue ($) | |||||||||||||||||||||
| Black Rock JV | ||||||||||||||||||||||||||||
| Pushmataha | ||||||||||||||||||||||||||||
| Vitt Lease | ||||||||||||||||||||||||||||
Subject to the Company being able to secure adequate additional financing, Okmin may also acquire the rights to and participate in drilling and/or other mining operations. The Company will evaluate exploration and mining opportunities and other strategic corporate opportunities as they become available from time to time.
There are no proven reserves of any classification in any of the projects listed above.
7. LITIGATION SETTLEMENT
The Company was a party in a class-action lawsuit
filed against its former auditor which alleged negligence in their audit services. During the period ended March 31, 2026, the former
auditor settled the lawsuit. The Company’s portion of the settlement was $
8. STOCKHOLDERS’ EQUITY
Preferred stock
The Company is authorized
to issue
Common stock
The Company is authorized to issue
At March 31, 2026, the Company had
| 11 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
The Company has issued the following shares:
On November 12, 2024, the board of directors approved
the issuance of
On November 12, 2024, the Company issued
On December 3, 2024, the Company issued
On June 24, 2025, the Company issued
On September 19, 2025 the Company issued
On September 19, 2025, the Company issued
On September 26, 2025, the Company issued
On December 30, 2025, the Company issued
On March 16, 2026, the Company issued
On March 27, 2026, the Company issued
9. NET LOSS PER COMMON SHARE
A reconciliation of the components of basic and diluted net loss per common share for the three and nine months ended March 31, 2026 is presented below:
| Schedule of components of net loss per common share | ||||||||
Three months ended March 31, 2026 | Nine months ended March 31, 2026 | |||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Basic weighted average number of common shares outstanding | ||||||||
| Effect of dilutive securities: | ||||||||
| Preferred stock | ||||||||
| Diluted weighted average number of common shares outstanding | ||||||||
| Loss per common share | $ | ( | ) | $ | ( | ) | ||
| 12 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As of March 31, 2026
10. STOCK BASED COMPENSATION
The Company has not adopted any equity grant program. The Company’s Officers hold no stock options or unvested stock awards, and held none at any time during the year ended June 30, 2025.
During the nine months ended March 31, 2026, the Company issued the following common shares:
| · |
| · |
11. INCOME TAXES
Net operating loss carry forwards of approximately
$
12. RELATED PARTY TRANSACTIONS
As of November 1, 2021, the Company agreed to compensate
its Chief Executive Officer, President, and Chief Financial Officer Jonathan Herzog, at a rate of $13,500 per month, consisting of $6,750
in cash compensation and $6,750 to be accrued and deferred until management determines that the Company is in a position to make such
payments. Such accrued amounts may be paid in cash or may be satisfied through the issuance of common stock or preferred stock in lieu
of cash payments. Mr. Herzog has accrued the entire monthly compensation since October 2023. The Company and Mr. Herzog have not entered
into a formal written employment agreement in relation to Mr. Herzog’s compensation and employment terms. As of March 31, 2026 and
March 31, 2025, the Company has accrued $
On November 26, 2025, Mr. Herzog extended the Company
a bridge loan advance of $
13. CONVERTIBLE LOAN
In November 2021, the Company entered into a convertible
loan agreement with an accredited investor (the “Investor”) pursuant to which the Company raised $
In September 2025, the Company reached an agreement
with the Investor to convert all the principal and interest outstanding into common shares of the Company at a price of $
14. SUBSEQUENT EVENTS
On April 14, 2026 the Company reported that it had terminated its planned Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with BevPoint Capital LP. As previously disclosed, the completion of the transactions contemplated by the Merger Agreement was subject to the satisfaction of certain closing conditions. These closing conditions were not satisfied within the required timeframe. Therefore, the Company will not proceed with the transaction, and the Merger Agreement has been terminated in accordance with its terms.
Except for the termination of the transaction detailed above, the Company has evaluated subsequent events through the filing date of these financial statements and has disclosed that there are no such events that are material to the financial statements to be disclosed.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Special Note Regarding Forward-Looking Information
The following discussion and analysis of the results of operations and financial condition of Okmin Resources, Inc., and its subsidiaries (“Okmin” or the “Company”) as of March 31, 2026 should be read in conjunction with our unaudited financial statements and the notes to those unaudited financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us”, “we”, “our” and similar terms refer to Okmin. This Quarterly Report contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of our plans or strategies, projected or anticipated benefits from acquisitions to be made by us, or projections involving anticipated revenues, earnings or other aspects of our operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions, are intended to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements and the projections upon which the statements are based.
Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements. Except as required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
Unless otherwise indicated, references to the “Company,” “us” or “we” refer to Okmin Resources, Inc. and its subsidiaries.
U.S. Dollars are denoted herein by “USD,” “$” and “dollars”.
Overview
Okmin Resources, Inc. was organized in 2020 to engage in the business of the acquisition, exploration and development of mineral rights and natural resource assets.
Okmin has been focused on the acquisition and development of domestic oil and gas fields, investing in lower profile rework and recompletion opportunities with lower entry costs. The Company's initial projects are located in Oklahoma and Kansas.
The Company has two wholly owned subsidiaries that conduct oil and gas activities, Okmin Operations, LLC, incorporated on May 25, 2021 in the State of Kansas, and Okmin Energy LLC, incorporated on November 21, 2021 in the State of Oklahoma.
The Company has an interest in two projects:
| 1) | A 72.5% Net Revenue Interest in the Vitt oil lease located in Neosho County, Kansas |
| 2) | A 95% Joint Venture interest in Pushmataha, a natural gas project in Southeast Oklahoma |
The Company also retained a 10% overriding royalty interest in West Sheppard Pool, a natural gas project in Northeast Oklahoma.
The Company has not conducted any reserve evaluations or calculations, and there are currently no proven reserves on any of the Company’s properties.
Our business strategy is to enhance the value of our acquired operated assets through evaluation of certain properties with the goal of increasing production. We plan to deploy capital in a strategic manner and pursue value-enhancing transactions and expect to continuously evaluate strategic alternative opportunities that we believe will enhance shareholder value.
Subject to the Company being able to secure adequate additional financing, Okmin may also acquire the rights to and participate in drilling and/or other mining operations. The Company will evaluate other strategic corporate opportunities as they become available from time to time.
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Terminated Merger Agreement with Bevpoint Capital LP
On January 29, 2026, the Company entered into a merger agreement with BevPoint Capital LP, a Florida limited partnership ("BevPoint"). BevPoint is the owner and operator of American Icon Brewery and intends to acquire similar businesses. Under the agreement, all interests in BevPoint would be converted into the right to receive an aggregate of 220,000,000 shares of Okmin common stock representing approximately 55.6% of the post-closing outstanding shares, with additional shares to be issued to BevPoint holders upon the achievement of certain financial milestones. The Company would also issue a convertible promissory note to the principals of the combined entity.
The merger was conditional upon a number of closing conditions, including the requirement that BevPoint would have $730,000 in immediately available cash in bank accounts, contributed by way of a bona fide equity infusion, free from any encumbrance or restriction.
In April 2026, the Company announced that these closing conditions were not satisfied within the required timeframe, and the merger agreement had been terminated.
New Corporate Advisor
In April 2026, the Company engaged Andrew Glashow as a corporate advisor. Mr. Glashow is a capital markets strategist and dealmaker with deep experience advising public and emerging growth companies on financings, M&A, and market positioning. He has been directly involved in structuring transactions from $1 million to $50 million, including reverse mergers, structured debt financings, and equity raises. Mr. Glashow works closely with management teams and boards to unlock shareholder value, improve capital access, and position companies for uplisting and strategic exits. He currently serves as a board member of Signature Apps and LEEF Brands Inc., and as an advisor to iDoc Telehealth. Upon his engagement, the Company issued 1,000,000 common shares of Okmin at a deemed value of $50,000 to Mr. Glashow.
RESULTS OF OPERATIONS
For the Three months ended March 31, 2026, as compared to the Three months ended March 31, 2025
Revenue
We generated revenue from oil and gas sales of $3,917 for the three months ended March 31, 2026, as compared to $6,159 in revenues from oil and gas sales generated in the three months ended March 31, 2025. The decrease in oil and gas revenues is a result of the sale earlier in the year of the Company’s Blackrock Joint Venture project, an oil project in Oklahoma. Revenue from natural gas from the Company’s joint venture interest in Pushmataha increased to $3,917 compared to revenue of $1,532 for the entire fiscal year ended June 30, 2025. The operator of the project has resolved some pipeline issues which have improved the property’s production and revenue. In general, lower natural gas prices reduce the sales price we receive for production sold and have also led to the curtailment of operations on certain of our properties until prices improve which causes a decrease of our production volumes.
General and Administrative Expense
General and administrative expenses decreased to $109,863 for the three months ended March 31, 2026 compared to $59,037 for the three months ended March 31, 2025. This increase is largely attributable to a one-time non-cash expense of $50,000 in connection with stock the Company issued in lieu of cash payment, as the Company recruited a new corporate advisor to its team. During the three months ended March 31, 2026, we recorded the following expenses as compared to the corresponding period in 2025: audit and accounting fees were lower $4,165 vs $6,544; filing & compliance higher at $9,000 vs $8,700. Other expenses were related to compensation, other filing and transfer agent fees, rent and other general and administrative expenses necessary for our operations.
Net Loss
The net loss for the three months ended March 31, 2026 was $106,444 compared to a net loss of $67,241 for the three months ended March 31, 2025. The expenses during the three month period ended March 31, 2026, included $10,777 in lease operating expenses (including taxes and royalties); $40,500 in deferred and unpaid compensation; $4,963 in interest expense, a one-time non-cash expense of $50,000 in connection with stock the Company issued to its new corporate advisor; and other general and administrative expenses necessary for our operations. Expenses during the comparative three month period ended March 31, 2025, included $9,758 in lease operating expenses (including taxes and royalties), $40,500 in deferred compensation, $3,528 in interest expense and other general and administrative expenses necessary for our operations. Other income includes $5,796 in bad debt recovery resulting from an offset of expenses at Pushmataha not being charged to us by Blackrock in lieu of a $25,000 receivable that the Company had previously recorded as an allowance for doubtful accounts, and a $10,066 litigation settlement payment received pursuant to a class-action lawsuit against the Company’s prior auditor.
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For the Nine months ended March 31, 2026, as compared to the Nine months ended March 31, 2025
Revenue
We generated revenue from oil and gas sales of $8,819 for the nine months ended March 31, 2026, as compared to $17,461 in revenues from oil and gas sales generated in the nine months ended March 31, 2025. The decrease in oil and gas revenues is largely a result of the sale earlier in the year of the Company’s Blackrock Joint Venture project, an oil project in Oklahoma. Natural gas sales in the nine months ended March 31, 2026 from the Company’s joint venture interest in Pushmataha increased to $7,551 compared to $1,532 for the entire year ended June 30, 2025, as the operator of the project corrected some pipeline issues which increased the volume of gas through the system, and the Company’s financial interest increased. In general, lower natural gas prices reduce the sales price we receive for production sold and have also led to the curtailment of operations until prices improve which causes a decrease of our production volumes.
General and Administrative Expense
General and administrative expenses decreased to $258,390 for the nine months ended March 31, 2026 as compared to $311,294 for the nine months ended March 31, 2025. The expenses during the nine month period ended March 31, 2026, included an aggregate of $64,935 in consulting and advisor fees versus $119,000 during the same period in 2025, the lower amount contributed to the decrease in expenses; both amounts are predominantly non-recurring and non-cash expenses in connection with stock issued to in lieu of cash payments for services. Additionally, during the nine months ended March 31, 2026, we recorded the following expenses as compared to the corresponding period in 2025: audit fees were higher $33,301 compared to $27,783; Accounting and bookkeeping fees were lower at $8,042 versus $14,089, and depreciation was lower at $1,979 versus. $4,077. Other expenses related to compensation, filing and transfer agent fees, rent and other general and administrative expenses necessary for our operations.
Net Loss
The net loss for the nine months ended March 31, 2026 was $309,037 compared to a net loss of $353,785 for the nine months ended March 31, 2025. The Expenses during the nine month period ended March 31, 2026, included $25,799 in lower lease operating expenses, including taxes and royalties, compared to $30,538 during the nine month period ended March 31, 2025; Impairment losses on oil and gas properties were higher in the nine month period ended March 31, 2026 at $24,765 versus $15,761 in 2025; Consulting and advisor fees were $64,935 compared to $119,000 during the same period in 2025; Filing and compliance fees of $17,700 were higher compared to $8,700 in 2025. The Company also recorded $121,500 in accrued and unpaid compensation, plus other general and administrative expenses necessary for our operations. Interest expense was higher at $14,657 versus $11,035. Other income includes $5,796 in bad debt recovery resulting from an offset of expenses at Pushmataha not being charged to us by Blackrock in lieu of a $25,000 receivable that the Company had previously recorded as an allowance for doubtful accounts, and a $10,066 litigation settlement payment received pursuant to a class-action lawsuit against the Company’s prior auditor.
Net cash used in investing activities
In the nine month periods ended March 31 2026 and 2025, there were no investing activities and net cash was $Nil for both nine month periods.
Net cash (used) in operating activities
Net cash used in operating activities in the nine months ended March 31, 2026 totaled $101,155 compared to $13,595 in the nine months ended March 31, 2025.
Net cash from financing activities
Net cash provided by financing activities in the nine months ended March 31, 2026 totaled $114,000 compared to cash used of ($18,000) in the nine months ended March 31, 2025. Financing activity in the nine months ended March 31, 2026 included $84,000 raised in private placements of our common stock and a $30,000 at call bridge loan extended to the Company by our President and Chief Executive Officer.
LIQUIDITY AND CAPITAL RESOURCES
Current Financial Condition
As of March 31, 2026, we had total assets of $105,410, comprised primarily of cash and cash equivalents of $24,333 and oil and gas properties of $70,053. As at March 31, 2026, we had total liabilities of $691,027, primarily comprised of deferred compensation expense of $560,250 as the CEO is deferring salary in an effort to conserve cash and $30,000 in non-interest bearing bridge loans which he extended to the Company for working capital. Additionally, there is accounts payable of $37,118 and other liabilities of $63,659.
Our business plan calls for substantial capital resource requirements and we have incurred significant losses since inception. The Company had a net loss of $309,037 for the nine months ended March 31, 2026 and an accumulated deficit of $2,614,722 as of March 31, 2026. The Company had a working capital deficit of $655,670 as at March 31, 2026 and for the remainder of the 2026 fiscal year, the Company anticipates cash needs of approximately $50,000. The Company anticipates receiving limited revenue from oil and gas sales and intends to obtain the remaining capital through private sales of securities or debt funding.
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To date, we have funded our operations primarily through the issuance of equity securities for cash and short term loans. We depend upon debt and/or equity financing and revenues to fund our ongoing operations and to execute our current business plan. In the current 2026 fiscal year, such capital requirements will be in excess of what we have in available cash for planned ongoing activities.
We will be required to obtain alternative or additional financing from financial institutions, investors or otherwise, in order to maintain and expand our existing operations. The failure by us to obtain such financing would have a material adverse effect upon our business, financial condition and results of operations, and adversely affect our ability to complete ongoing activities.
Critical Accounting Estimates
This management’s discussion and analysis of financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. GAAP. Preparation of financial statements requires management to make assumptions, estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and the related disclosures of contingencies. Management bases its estimates on various assumptions and historical experience, which are believed to be reasonable; however, due to the inherent nature of estimates, actual results may differ significantly due to changed conditions or assumptions. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our financial statements are fairly presented in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material.
Recently Issued Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Improvements to Reportable Segment Disclosures. The ASU enhances disclosure of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”), extends certain annual disclosures to interim periods, and permits more than one measure of segment profit or loss to be reported under certain conditions. The amendments are effective for the Company in years beginning after December 15, 2023, and interim periods within years beginning after December 15, 2024. The Company adopted ASC 2023-07, effective July 1, 2024. The adoption of this ASU affects only the Company’s disclosures, with no impacts to its financial condition or results of operations.
In November 2024, the FASB issued Accounting Standards Update (“ASU”) 2024-03, Disaggregation of Income Statement Expenses, requiring all public business entities to provide additional disclosure of the nature of expenses include in the income statement. This ASU is effective for fiscal years beginning after December 15, 2026, and for interim reporting periods beginning after December 15, 2027, on a prospective basis, with early adoption permitted. We are currently evaluating the impact on our financial statement disclosures.
Management does not believe any recently issued but not yet effective accounting pronouncements, if adopted, would have a material effect on the Company’s present or future financial statements.
Going Concern Qualification
The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business.
As reflected in the accompanying condensed financial statements, the Company had a net loss of $309,037 for the nine months ended March 31, 2026 and an accumulated deficit of $2,614,722 as of March 31, 2026. These factors, among others, raise doubt about the Company’s ability to continue as a going concern.
The Company had a working capital deficit of $655,670 as at March 31, 2026 and management believes that the Company will require additional working capital for the remainder of the 2026 fiscal year. For the remainder of the 2026 fiscal year, the Company anticipates cash needs of approximately $50,000. The Company anticipates receiving limited revenue from oil and gas sales and intends to obtain the remaining capital through debt and/or equity funding.
The Company’s future success is dependent upon its ability to achieve profitable operations, generate cash from operating activities and obtaining additional financing. If such additional financing is not available on terms acceptable to us or at all, then we may need to curtail our operations and/or take additional measures to conserve and manage our liquidity and capital resources, any of which would have a material adverse effect on our financial position, results of operations, and our ability to continue as a going concern. The condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
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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.
Inflation
The effect of inflation on our revenue and operating results was not significant.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management is responsible for establishing and maintaining disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to reasonably ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 15d-15(e) under the Exchange Act. In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
At the end of the period covered by this Quarterly Report, we conducted an evaluation (the “Evaluation”), under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2026, the disclosure controls and procedures of our Company were not effective to ensure that the information required to be disclosed in our Exchange Act reports was recorded, processed, summarized and reported on a timely basis because of the material weaknesses in internal control over financial reporting described below.
Material Weaknesses and Corrective Actions
In connection with the audits of our financial statements for the fiscal years ended June 30, 2025 and 2024, we identified certain deficiencies relating to our internal control over financial reporting that constitute a material weakness under standards established by the Public Company Accounting Oversight Board (the “PCAOB”). The PCAOB defines a material weakness as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis.
The following material weaknesses in our internal control over financial reporting continued to exist at March 31, 2026:
| ● | We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”); | |
| ● | We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our limited size and early-stage nature of operations, segregation of all conflicting duties may not always be possible and may not be economically feasible; however, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals; | |
| ● | We lack an audit committee of our board of directors; and | |
| ● | We have insufficient monitoring and review of controls over the financial reporting closing process, including the lack of individuals with current knowledge of U.S. GAAP. |
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We believe that these material weaknesses primarily relate, in part, to our lack of sufficient staff with appropriate training in U.S. GAAP and SEC rules and regulations with respect to financial reporting functions, and the lack of robust accounting systems, as well as the lack of sufficient resources to hire such staff and implement these accounting systems.
Subject to raising sufficient additional capital, we plan to take a number of actions in the future to correct these material weaknesses including adding experienced accounting and financial personnel and retaining third-party consultants to review our internal controls and recommend improvements. We will need to take additional measures to fully mitigate these issues, and the measures we have taken, and expect to take, to improve our internal controls may not be sufficient to (1) address the issues identified, (2) ensure that our internal controls are effective or (3) ensure that the identified material weakness or other material weaknesses will not result in a material misstatement of our annual or interim financial statements. In addition, other material weaknesses may be identified in the future. If we are unable to correct deficiencies in internal controls in a timely manner, our ability to record, process, summarize and report financial information accurately and within the time periods specified in the rules and forms of the SEC will be adversely affected. This failure could negatively affect the market price and trading liquidity of our common stock, cause investors to lose confidence in our reported financial information, subject us to civil and criminal investigations and penalties, and generally materially and adversely impact our business and financial condition.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures and internal control over financial reporting, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures and internal control over financial reporting must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Changes in Internal Controls over Financial Reporting
There were no changes (including corrective actions with regard to material weakness) in our internal controls over financial reporting 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.
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PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we may be subject to ordinary routine litigation incidental to our normal business operations. We are not currently a party to any litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business, operating results, cash flows or financial condition.
ITEM 1A. RISK FACTORS.
Risk factors describing the major risks to our business can be found under Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended June 30, 2025. There has been no material change in our risk factors from those previously discussed in the Annual Report on Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
During the nine month period ended March 31, 2026, the Company issued the following shares of common stock:
On September 19, 2025 the Company issued 6,503,024 common shares at $0.03 per share to satisfy in full payment on an existing convertible note with the Company.
On September 19, 2025, the Company issued 173,090 common shares at $0.06 per share to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties.
On September 26, 2025, the Company issued 1,000,000 common shares at $0.03 per share in connection with a private placement for proceeds of $30,000.
On December 30, 2025, the Company issued 113,252 common shares at $0.04 per share to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties.
On March 16, 2026, the Company issued 1,800,000 common shares at $0.03 per share in connection with a private placement for proceeds of $54,000.
On March 27, 2026, the Company issued 1,000,000 common shares at $0.05 per share to a corporate advisor, who has joined the Company.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the three months ended March 31, 2026, no
director or officer of the Company
Appointment of Advisor
The Company has brought Mr. Andrew Glashow onto its team as a corporate advisor.
Andrew Glashow is a capital markets strategist and dealmaker with deep experience advising public and emerging growth companies on financings, M&A, and market positioning. He has been directly involved in structuring transactions from $1 million to $50 million, including reverse mergers, structured debt financings, and equity raises. Mr. Glashow works closely with management teams and boards to unlock shareholder value, improve capital access, and position companies for uplisting and strategic exits. He currently serves as a board member of Signature Apps and LEEF Brands Inc., and as an advisor to iDoc Telehealth.
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ITEM 6. EXHIBITS
|
Exhibit Number |
Description | |
| 31.1* | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14a or 15d-14(a) under the Securities Exchange Act of 1934, as amended, and adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1* | Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 - the cover page from the Registrant’s Quarterly Report on Form 10-Q for the six months ended December 31, 2024, is formatted in Inline XBRL. |
* Filed herewith.
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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.
| OKMIN RESOURCES INC. | ||
| Date: May 15, 2026 | /s/ Jonathan Herzog | |
|
Jonathan Herzog, Chief Executive Officer and Chief Financial Officer (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)
|
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