Okmin Resources, Inc 10-K for FY2026
Okmin Resources, Inc. (OKMN)
About this 10-K
Okmin Resources, Inc filed this 10-K on October 13, 2026, covering the fiscal year ended June 30, 2026 (FY2026).
Okmin Resources, Inc. reported a $367,299 net loss for the year ended June 30, 2026, a $708,433 working capital deficit, and substantial doubt about going concern; it anticipates minimum 2027 cash needs of $230,000 and ineffective disclosure controls. AI summary
Headline figures
Fiscal year ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $8859
- down 60.1% from $22.18K a year earlier
- Net loss
- $367.3K
- compared with a net loss of $597.17K a year earlier
- Diluted EPS
- $0.00
- compared with -$0.01 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the fiscal year ended
Or
For the transition period from ___________ to ___________
Commission file number:
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(I.R.S. Employer Identification No.) | |
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Securities registered pursuant to Section 12(b) of the Act:
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Securities registered under Section 12(g) of the Exchange Act:
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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
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| ☒ | Smaller reporting company | |||
| Emerging growth company |
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As of December 31, 2025, the last business
day of the Registrant’s most recently completed second fiscal quarter, the market value of our common stock held by non-affiliates
was $
As of October 13, 2026, the issuer had shares of its common stock outstanding.
Documents incorporated by reference: None
TABLE OF CONTENTS
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PART I
Forward-Looking Statements
This Annual Report on Form 10-K (this “Annual Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve substantial risks and uncertainties. The forward-looking statements are contained principally in Part I, Item 1. “Business,” Part I, Item 1A. “Risk Factors,” and Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” but are also contained elsewhere in this Annual Report in some cases you can identify forward-looking statements by terminology such as “may”, “should”, “potential”, “continue”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates”, and similar expressions. These statements are based on our current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements.
You should refer to Item 1A. “Risk Factors” section of this Annual Report for a discussion of important factors that may cause our actual results to differ materially from those expressed or implied by our forward-looking statements. As a result of these factors, we cannot assure you that the forward-looking statements in this Annual Report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. We do not undertake any obligation to update any forward-looking statements. Unless the context requires otherwise, references to “we,” “us,” “our,” and “Company,” refer to Okmin Resources, Inc. and its subsidiaries.
ITEM 1. BUSINESS.
Overview
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, 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) | 72.5% Net Revenue Interest in the Vitt oil lease located in Neosho County, Kansas |
| 2) | 95% joint-venture interest in Pushmataha, a natural gas project in Southeast Oklahoma |
The Company also retains a 10% overriding royalty interest in West Sheppard Pool, a natural gas project in Northeast Oklahoma, once the operator receives $22,850 in revenue from the project.
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 natural resource related 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.
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The Company’s fiscal year end is June 30.
For the 2027 fiscal year we anticipate cash needs of approximately $230,000 for general corporate overhead and for operations on our existing lease properties. This amount does not include funding for any potential workovers, re-entries, stimulation treatments and recompletions of existing non or low producing wells. Any new work on our properties will require additional capital. Based on the Company’s cash position as of June 30, 2026, additional financing will be required to meet its budgeted expenditures for fiscal 2027. Management intends to raise such additional funding through debt financing or private sales of the Company’s securities, but no assurance can be given that such financing will be available on acceptable terms or at all.
Activities with Operating Partners
We own working and royalty interests in oil and natural gas prospects in varying stages of exploration and development. The operators of our projects are familiar with the geology and operating components of each project. Although the operators have their own technical staff and consultants, consistent with industry practice with smaller independent oil and natural gas companies, we utilize our own consultants, as needed.
Environmental Laws and Regulations
Environmental Matters
Our operations and properties are subject to extensive and changing federal, state, and local laws and regulations relating to environmental protection, including the generation, storage, handling, emission, transportation, and discharge of materials into the environment, and relating to safety and health. The recent trend in environmental legislation and regulation generally is toward stricter standards, and this trend will likely continue. These laws and regulations may:
| · | Require the acquisition of a permit or other authorization before construction or drilling commences and for certain other activities; |
| · | Limit or prohibit construction, drilling and other activities on certain lands lying within wilderness and other protected areas; and |
| · | Impose substantial liabilities for pollution resulting from operations. |
The permits required for our operations may be subject to revocation, modification, and renewal by issuing authorities. Governmental authorities have the power to enforce their regulations, and violations are subject to fines or injunctions, or both.
Research and Development
No research and development expenditures have been incurred during the past two fiscal years.
Insurance
Our operators undertake to have general liability and property insurance coverage in amounts deemed sufficient for the business operations. Our insurance coverage is limited, and there is no guarantee that any insurance coverage would be sufficient to protect the value of our assets or to fully cover any losses sustained. Payment of substantial liabilities in excess of coverage could require diversion of internal capital away from regular business, which could result in the curtailment or suspension of our current and projected future operations.
Forward Plan
We have primarily engaged in oil and natural gas exploration and production by participating, on a proportionate basis, alongside third-party interests in wells drilled and completed in spacing units that include our acreage.
During the fiscal year ending June 30, 2027, our operational activities will be focused on development and production of our oil and gas interests with our joint interest operators.
In fiscal 2027 and beyond, we intend to seek additional growth opportunities including but not limited to the oil and gas and the natural resources sectors. This may include further acquisition of assets, participation with current and new industry partners in their exploration and development projects, and the acquisition of interests in existing companies.
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Business Strategy
Key elements of our business strategy include:
| · | Deploy capital in a strategic manner and review opportunities to raise additional funds to maintain liquidity. We will be highly selective in the projects we evaluate and will review opportunities to improve our financial position through various means. |
| · | Evaluate and Pursue Value-Enhancing Transactions. We will continuously evaluate strategic opportunities that we believe will enhance shareholder value. |
Industry Operating Environment
The oil and natural gas industry is affected by many factors that we generally cannot control. Government regulations, particularly in the areas of taxation, energy, climate change and the environment, can have a significant impact on operations and profitability. Significant factors that will impact oil prices in the current fiscal year and future periods include the current military activity in the Strait of Hormuz in the Middle East, the Russian war with Ukraine, inflation, demand in Asian and European markets, and the extent to which members of the Organization of the Petroleum Exporting Countries (“OPEC”) and other oil exporting nations manage oil supply through export quotas. Natural gas prices are generally determined by North American supply and demand and are also affected by imports and exports of liquefied natural gas. Weather also has a significant impact on demand for natural gas since natural gas is a primary heating source.
Seasonality
Winter weather conditions and lease stipulations can limit or temporarily halt our drilling and producing activities and other oil and natural gas operations and those of our operating partners. These constraints and the resulting shortages or high costs could delay or temporarily halt the operations of our operating partners and materially increase our operating and capital costs. Such seasonal anomalies can also pose challenges for meeting well drilling objectives and may increase competition for equipment, supplies and personnel during the spring and summer months, which could lead to shortages and increase costs or delay or temporarily halt our operations and those of our operating partners.
Governmental Regulation
Our operations are subject to various rules, regulations and limitations impacting the oil and natural gas exploration and production industry as a whole.
Regulation of Oil and Natural Gas Production
Our oil and natural gas exploration, production and related operations are subject to extensive rules and regulations promulgated by federal, state, tribal and local authorities and agencies. Many states may also have statutes or regulations addressing conservation matters, including provisions for the unitization or pooling of oil and natural gas properties, the location of wells, the method of drilling and casing wells, the surface use and restoration of properties upon which wells are drilled, the sourcing and disposal of water used in the process of drilling, the flaring of natural gas, completion and abandonment, the establishment of maximum rates of production from wells, and the regulation of spacing, plugging and abandonment of such wells. The effect of these regulations is to limit the amount of oil and natural gas that we can produce from our wells and to limit the number of wells or the locations at which we can drill. Moreover, many states impose a production or severance tax with respect to the production and sale of oil, natural gas and natural gas liquids within their jurisdictions. Failure to comply with any such rules and regulations can result in substantial penalties. The regulatory burden on the oil and natural gas industry will most likely increase our cost of doing business and may affect our profitability. Because such rules and regulations are frequently amended or reinterpreted, we are unable to predict the future cost or impact of complying with such laws. Significant expenditures may be required to comply with governmental laws and regulations and may have a material adverse effect on our financial condition and results of operations. Additionally, currently unforeseen environmental incidents may occur or past non-compliance with environmental laws or regulations may be discovered. Therefore, we are unable to predict the future costs or impact of compliance. Additional proposals and proceedings that affect the oil and natural gas industry are regularly considered by Congress, the states, the Federal Energy Regulatory Commission (“FERC”) and the courts. We cannot predict when or whether any such proposals may become effective.
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Regulation of Transportation of Oil
Sales of crude oil, condensate and natural gas liquids are not currently regulated and are made at negotiated prices. Nevertheless, Congress could re-enact price controls in the future. Our sales of crude oil are affected by the availability, terms and cost of transportation. The transportation of oil by common carrier pipelines is also subject to rate and access regulation. The FERC regulates interstate oil pipeline transportation rates under the Interstate Commerce Act. In general, interstate oil pipeline rates must be cost-based, although settlement rates agreed to by all shippers are permitted and market-based rates may be permitted in certain circumstances. Effective January 1, 1995, the FERC implemented regulations establishing an indexing system (based on inflation) for transportation rates for oil pipelines that allows a pipeline to increase its rates annually up to a prescribed ceiling, without making a cost-of-service filing. Every five years, the FERC reviews the appropriateness of the index level in relation to changes in industry costs.
Intrastate oil pipeline transportation rates are subject to regulation by state regulatory commissions. The basis for intrastate oil pipeline regulation and the degree of regulatory oversight and scrutiny given to intrastate oil pipeline rates varies from state to state. Insofar as effective interstate and intrastate rates are equally applicable to all comparable shippers, we believe that the regulation of oil transportation rates will not affect our operations in any way that is of material difference from those of our competitors that are similarly situated.
Further, interstate and intrastate common carrier oil pipelines must provide service on a non-discriminatory basis. Under this open access standard, common carriers must offer service to all similarly situated shippers requesting service on the same terms and under the same rates. When oil pipelines operate at full capacity, access is generally governed by pro-rationing provisions set forth in the pipelines’ published tariffs. Accordingly, we believe that access to oil pipeline transportation services generally will be available to us to the same extent as to our similarly situated competitors.
Regulation of Transportation and Sales of Natural Gas
Historically, the transportation and sale for resale of natural gas in interstate commerce has been regulated by the FERC under the Natural Gas Act of 1938 (“NGA”), the Natural Gas Policy Act of 1978 (“NGPA”) and regulations issued under those statutes. In the past, the federal government has regulated the prices at which natural gas could be sold. While sales by producers of natural gas can currently be made at market prices, Congress could reenact price controls in the future.
Onshore gathering services, which occur upstream of FERC jurisdictional transmission services, are regulated by the states. Although the FERC has set forth a general test for determining whether facilities perform a non-jurisdictional gathering function or a jurisdictional transmission function, the FERC’s determinations as to the classification of facilities is done on a case-by-case basis. State regulation of natural gas gathering facilities generally includes various safety, environmental and, in some circumstances, nondiscriminatory take requirements. Although such regulation has not generally been affirmatively applied by state agencies, natural gas gathering may receive greater regulatory scrutiny in the future.
Intrastate natural gas transportation and facilities are also subject to regulation by state regulatory agencies, and certain transportation services provided by intrastate pipelines are also regulated by FERC. The basis for intrastate regulation of natural gas transportation and the degree of regulatory oversight and scrutiny given to intrastate natural gas pipeline rates and services varies from state to state. Insofar as such regulation within a particular state will generally affect all intrastate natural gas shippers within the state on a comparable basis, we believe that the regulation of similarly situated intrastate natural gas transportation in any states in which we operate and ship natural gas on an intrastate basis will not affect our operations in any way that is of material difference from those of our competitors. Like the regulation of interstate transportation rates, the regulation of intrastate transportation rates affects the marketing of natural gas that we produce, as well as the revenues we receive for sales of our natural gas.
Marketing, Major Customers and Delivery Commitments
Markets for oil and natural gas are volatile and are subject to wide fluctuations depending on numerous factors beyond our control, including seasonality, economic conditions, foreign imports, political conditions in other energy producing countries, OPEC market actions, and domestic government regulations and policies. All of our production is marketed by our industry partners for our benefit and is sold to competing buyers, including large oil refining companies and independent marketers. Substantially all of our production is sold pursuant to agreements with pricing based on prevailing commodity prices and the volume of product delivered, subject to adjustment for regional differentials and similar factors. We had no material delivery commitments as of June 30, 2026.
Competition
The oil and natural gas business is highly competitive in the search for and acquisition of additional reserves and in the sale of oil and natural gas. Our competitors principally consist of major and intermediate-sized integrated oil and natural gas companies, independent oil and natural gas companies and individual producers and operators. Specifically, we compete for property acquisitions and our operating partners compete for the equipment and labor required to operate and develop our properties. Our competitors may be able to pay more for properties and may be able to define, evaluate, bid for and purchase a greater number of properties than we can. Ultimately, our future success will depend on our ability to develop or acquire additional reserves at costs that allow us to remain competitive.
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Human Capital Resources
We believe that our success depends upon our ability to attract, develop and retain key personnel. The Company currently has a single officer who serves as President/CEO. We otherwise rely on the services of independent contractors.
Our Offices
Our principal executive office is located at 16501 Ventura Blvd., Suite 400, Encino CA, 91436.
Our Website
www.okminresources.com
Legal Proceedings
We are not currently a party to any material legal proceedings.
Reports to Security Holders
We intend to furnish our shareholders annual reports containing financial statements audited by our independent registered public accounting firm and to make available quarterly reports containing unaudited financial statements for each of the first three quarters of each year. We file Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K with the SEC in order to meet our timely and continuous disclosure requirements. We may also file additional documents with the SEC if they become necessary in the course of our company’s operations.
The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is www.sec.gov.
ITEM 1A. RISK FACTORS.
An investment in our common stock involves a high degree of risk. You should carefully consider the following material risk factors as well as all other information set forth or referred to in this report before purchasing shares of our common stock.
Summary Risk Factors
| · | our ability to obtain sufficient cash flow from operations, borrowing, and/or other sources to fulfill our business plan; |
| · | volatility in oil and natural gas prices, including further declines in oil prices and/or natural gas prices, which would have a negative impact on operating cash flow and could require further write-downs on our oil and natural gas assets; |
| · | the possibility that the oil and natural gas industry may be subject to new adverse regulatory or legislative actions (including changes to existing tax rules and regulations and changes in environmental regulation); |
| · | the general risks of exploration and development activities, including the failure to find oil and natural gas in sufficient commercial quantities to provide a reasonable return on investment; |
| · | future oil and natural gas production rates; |
| · | environmental risks; |
| · | availability of pipeline capacity and other means of transporting crude oil and natural gas production, and related midstream infrastructure and services; |
| · | competition in acquiring interest in existing properties and new acreage with other operating companies, resulting in less favorable terms or fewer opportunities being available; |
| · | higher drilling and completion costs related to competition for drilling and completion services and shortages of labor and materials; |
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| · | disruptions resulting from unanticipated weather events, natural disasters, and public health crises and pandemics, resulting in possible delays of drilling and completions and the interruption of anticipated production streams of hydrocarbons, which could impact expenses and revenues; |
| · | our lack of effective disclosure controls and procedures and internal control over financial reporting; |
| · | our ability to maintain the market for our common stock on OTC Markets; |
| · | dilution caused by new equity or debt offerings; |
| · | our need for additional capital to conduct our operations and fund our business, complete future acquisitions, and our ability to obtain such necessary funding on favorable terms, if at all; |
| · | the speculative nature of our oil and gas operations, and general risks associated with the exploration for, and production of oil and gas; including accidents, equipment failures or mechanical problems which may occur while drilling or completing wells or in production activities; operational hazards and unforeseen interruptions for which we may not be adequately insured; the threat and impact of terrorist attacks, cyber-attacks or similar hostilities; declining production; and losses or costs we may incur as a result of title deficiencies or environmental issues in the properties in which we invest, any one of which may adversely impact our operations; |
| · | changes in the legal and regulatory environment governing the oil and natural gas industry, including new or amended environmental legislation or regulatory initiatives which could result in increased costs, additional operating restrictions, or delays, or have other adverse effects on us; |
| · | improvements in or new discoveries of alternative energy technologies that could have a material adverse effect on our financial condition and results of operations; |
| · | the fact that our officers and directors beneficially own a majority of our common stock and that their interests may be different from other shareholders; |
| · | our dependence on the continued involvement of our present management; |
| · | economic downturns and possible recessions; |
| · | the need to write-down assets and/or shut-in wells, or our non-operated wells being shut-in by their operators; |
| · | future litigation or governmental proceedings which could result in material adverse consequences, including judgments or settlements; |
| · | unanticipated down-hole mechanical problems, which could result in higher-than-expected drilling and completion expenses and/or the loss of the wellbore or a portion thereof; and |
| · | Other risks disclosed below under “Risk Factors”. |
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Risk Factors
The following risk factors should be carefully considered in evaluating the information in this annual report on Form 10-K.
Risks Related to the Oil and Natural Gas Industry and Our Operations
The Company has a limited operating history and may not be successful in developing profitable business operations.
Okmin has a limited operating history since its formation in December 2020. As of the date of this filing, we have limited assets and revenues. Our future operating results will depend on many factors, including:
| · | The ability to raise or access adequate working capital; | |
| · | The success of our oil and gas exploration and development operations; | |
| · | Our ability to control our costs and produce sufficient quantities of oil and natural gas at a profit; | |
| · | The prices of oil and natural gas; and | |
| · | Our ability to attract and retain key management. |
Despite our best efforts, we may not be successful in our efforts to develop profitable business operations.
The oil and gas industry is highly competitive and there is no assurance that the Company will be successful.
The oil and natural gas exploration and production industry is intensely competitive, and the Company competes with other companies that have greater resources. Many of these companies not only explore for and produce oil and gas but also market oil and gas and other products on a regional, national or worldwide basis. These companies will be able to pay more for productive energy properties and exploratory prospects or define, evaluate, bid for and purchase a greater number of properties and prospects than Okmin’s financial or human resources permit. In addition, these companies will have a greater ability to continue exploration activities during periods of low commodity market prices. The Company’s larger competitors may be able to absorb the burden of present and future foreign, federal, state, local and other laws and regulations more easily than Okmin can, which would adversely affect its competitive position. The Company’s ability to acquire additional properties and to discover productive prospects in the future will be dependent upon its ability to evaluate and select suitable properties and to consummate transactions in a highly competitive environment. In addition, because Okmin has fewer financial and human resources than many companies in its industry, the Company may be at a disadvantage in bidding for exploratory prospects and producing properties.
The Company has limited interests in oil and gas leases and cannot guarantee that it will identify or acquire any additional viable leases or mineral property assets or interests.
Okmin presently only has partial interests in projects and leases with limited activity. The Company is currently seeking to identify other strategic opportunities and leases or mineral properties to acquire but the Company cannot guarantee it will find any valuable leases or mineral properties. Even if the Company enters into additional joint ventures or acquires additional interests in leases or other mineral properties on land being developed by a mining company, the Company cannot guarantee that it will be able to capitalize on the increased value of its leasehold.
If the Company cannot acquire any viable leases, mineral property assets or mineral property interests, or cannot find any oil and gas or minerals on such leases or mineral properties, or it is not economical to recover the oil and gas or minerals from those properties, the Company may have to curtail or cease operations.
Drilling for and producing oil and natural gas are highly speculative and involve a high degree of risk.
Exploring for and developing oil and natural gas involves a high degree of operational and financial risk. Predicting the costs involved in exploration and drilling is difficult to achieve with a high degree of certainty. Our potential drilling locations are in various stages of evaluation, ranging from locations that are ready to drill, to locations that will require substantial additional interpretation before they can be drilled. The budgeted costs of planning, drilling, completing and operating wells are often exceeded, and such costs can increase significantly due to various complications that may arise during the drilling and operating processes. Before a well is spudded, we may incur significant licensing, geological and geophysical costs, which are incurred whether a well eventually produces commercial quantities of hydrocarbons or is drilled at all. Exploration wells bear a much greater risk of loss than development wells. If our actual drilling and development costs are significantly more than our estimated costs, we may not be able to continue our operations as proposed and could be forced to modify our operating and/or drilling plans accordingly.
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If we decide to drill a certain location, there is a risk that no commercially productive oil or natural gas reservoirs will be found or produced. We may recomplete existing wells, drill new wells, or participate in new wells that are not productive. We may drill wells that are productive, but that do not produce sufficient net revenues to return a profit after drilling, operating and other costs. There is no way to predict in advance with absolute certainty whether any particular location will yield oil or natural gas in sufficient quantities to recover exploration, drilling or completion costs or to be economically viable. Even if sufficient amounts of oil or natural gas exist, we may damage the potentially productive hydrocarbon-bearing formation or experience mechanical difficulties while drilling or completing the well, resulting in a reduction in production and reserves from the well or abandonment of the well.
The Company has no proven oil and gas reserves, and future wells we drill may not yield oil or natural gas in commercial quantities or at all.
None of the Company’s properties have been evaluated for oil and gas reserves, and the Company has no proven reserves. There is no guarantee the Company’s properties contain sufficient recoverable oil and natural gas to be produced profitably, which may result in a loss of some or all of our investment in such projects. If we do not drill productive and profitable wells in the future, it will have a material adverse impact on the Company’s business operations and financial condition.
The Company has limited capital and will need to raise additional capital in the future.
We do not currently have the capital necessary to fund both our continuing operations and our planned growth. We will require additional capital to continue to grow our business through the operation, maintenance and further development of our existing ventures and through the acquisition of additional properties. We estimate that the Company will need to raise additional capital to fulfil its business plan including reworking and enhancing existing projects, acquiring further oil and gas interests, or to acquire mineral exploration properties. Obtaining additional financing would be subject to a number of factors, including the market prices for acquiring resource properties, investor acceptance of the Company’s interests, and investor sentiment. These factors may make the timing, amount, terms or conditions of additional financing unavailable to the Company. The most likely source of future funds presently available to the Company is through sale of equity capital. Any sale of share capital will result in dilution to existing stockholders. The terms of securities we issue in future capital transactions may be more favorable to our new investors, and may include preferences, superior voting rights and the issuance of other derivative securities, and issuances of incentive awards under equity employee incentive plans, which may have a further dilutive effect.
If we do not succeed in raising additional capital, our resources may not be sufficient to fund our planned operations and will have a significant negative effect on our operations and financial condition.
Oil and natural gas prices are volatile and declines in the prices of such commodities have in the past, and will continue in the future to, adversely affect our business, financial condition or results of operations, and our ability to meet our capital expenditure obligations or targets and financial commitments.
The price of oil and natural gas heavily influences our revenue, profitability, cash flows, liquidity, access to capital, present value and quality of our reserves, the nature and scale of our operations, and our future rate of growth. Oil and natural gas are commodities and, therefore, their prices are subject to wide fluctuations in response to relatively minor changes in supply and demand. In recent years, the markets for oil and natural gas have been volatile. These markets will likely continue to be volatile in the future. Further, oil prices and natural gas prices do not necessarily fluctuate in direct relation to each other. The price of crude oil has experienced significant volatility over recent years, with the price of a barrel of oil dropping below $20 during the early part of 2020, due in part to reduced global demand stemming from the global COVID-19 outbreak, and most recently rising to over $100 a barrel in April 2026 upon the outbreak of military action in Middle East around the Strait of Hormuz. Natural gas prices have recently traded around $3.00 per mcf. A prolonged period of low market prices for oil and natural gas, or further declines in the market prices for oil and natural gas, will likely result in capital expenditures being further curtailed and will adversely affect our business, financial condition and liquidity. Additionally, lower oil and natural gas prices have, and may in the future, cause, a decline in our stock price.
As described above, oil and natural gas are commodities and, therefore, their prices are subject to wide fluctuations in response to relatively minor changes in supply and demand. Historically, the commodities market has been volatile. An extended period of continued lower oil prices, or additional price declines, will have further adverse effects on us. The prices we receive for any future production and the prices received from operators of our non-operated production, and the levels of such production, will continue to depend on numerous factors, including the following:
| · | the domestic and foreign supply of oil and natural gas; |
| · | the domestic and foreign demand for oil and natural gas; |
| · | the prices and availability of competitors’ supplies of oil and natural gas; |
| · | the actions of the Organization of Petroleum Exporting Countries, or OPEC, and state-controlled oil companies relating to oil price and production controls; |
| · |
the price and quantity of foreign imports of oil and natural gas;
| |
| · | the impact of U.S. dollar exchange rates on oil and natural gas prices and inflation; |
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| · | domestic and foreign governmental regulations and taxes; |
| · | speculative trading of oil and natural gas futures contracts; |
| · | localized supply and demand fundamentals, including the availability, proximity, and capacity of gathering and transportation systems for natural gas; |
| · | the availability of refining capacity; |
| · | the prices and availability of alternative fuel sources; |
| · | weather conditions and natural disasters; |
| · | political conditions in or affecting oil, and natural gas producing regions, including South America and the recent conflicts in Ukraine and the Middle East; |
| · | the continued threat of terrorism and the impact of military action and civil unrest; |
| · | public pressure on, and legislative and regulatory interest within, federal, state, and local governments to stop, significantly limit, or regulate oil and gas exploration and production activities; |
| · | the level of global oil and natural gas inventories and exploration and production activity; |
| · | authorization of exports from the United States of liquefied natural gas; |
| · | the impact of energy conservation efforts; |
| · | technological advances affecting energy consumption; and |
| · | overall worldwide economic conditions. |
Declines in oil or natural gas prices will reduce not only our revenue but also the amount of oil and natural gas that we, and the operators of our properties, can produce economically. Should oil or natural gas prices decline in the future, the wells in which we have an interest may be forced to be shut-in, and exploration and development plans for prospects and exploration or development activities may need to be postponed or abandoned. Declines in the prices we receive for our oil and natural gas can also adversely affect our ability to finance capital expenditures, make acquisitions, raise capital and satisfy our financial obligations. In addition, declines in prices can reduce the amount of oil and natural gas that we can produce economically and the estimated future cash flow from that production, each of which would have a material negative effect on our business, financial condition, and results of operations.
We are not the operator of any of our properties in which we have an interest, and therefore have limited control over activities on our properties, including the timing of exploration or development efforts, associated costs, or the rate of production of these non-operated assets.
We are not the operator of our properties, and, as a result, our ability to exercise influence over the operations of these properties or their associated costs is limited. Our dependence on the operators and other working interest owners of these projects and our limited ability to influence operations and associated costs or control the risks could materially and adversely affect the realization of our targeted returns on capital in operating or acquisition activities. The success and timing of our development activities on properties operated by others therefore depends upon a number of factors, including:
| · | the nature and timing of the operator’s operations, including drilling and other activities; |
| · | the timing and amount of required capital expenditures; |
| · | the operator’s geological and engineering expertise and financial resources; | |
| · | the approval of other participants in operational decisions; and | |
| · | the operator’s selection of suitable technology. |
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The fact that our industry partners serve as operator makes it more difficult for us to predict future production, cash flows and liquidity needs. Our ability to grow our production often depends on decisions by our partners.
The development of oil and natural gas properties involves substantial risks that may result in a total loss of investment.
The business of exploring for, working over and developing natural gas and oil properties involves a high degree of business and financial risk, and thus a significant risk of loss of initial investment that even a combination of experience, knowledge and careful evaluation may not be able to overcome. The cost and timing of drilling, workover completing and operating wells is often uncertain. Factors which can delay or prevent drilling or production, or otherwise impact expected results, include but are not limited to:
| · | unexpected drilling conditions; |
| · | inability to obtain required permits from governmental authorities; |
| · | inability to obtain, or limitations on, easements from landowners; |
| · | uncertainty regarding our operating partners’ drilling schedules; |
| · | high pressure or irregularities in geologic formations; |
| · | equipment failures; |
| · | title problems; |
| · | fires, explosions, blowouts, cratering, pollution, spills and other environmental risks or accidents; |
| · | changes in government regulations and issuance of local drilling restrictions or moratoria; |
| · | adverse weather; |
| · | reductions in commodity prices; |
| · | pipeline ruptures; and |
| · | unavailability or high cost of equipment, field services and labor. |
A productive well may become uneconomic in the event unusual quantities of water or other non-commercial substances are encountered in the well bore that impair or prevent production. We may participate in wells that are or become unproductive or, though productive, do not produce in economic quantities. In addition, even commercial wells can produce less, or have higher costs, than we projected.
In addition, initial 24-hour or other limited-duration production rates announced regarding our oil and natural gas properties are not necessarily indicative of future production rates.
Dry holes and other unsuccessful or uneconomic exploration, exploitation and development activities can adversely affect our cash flow, profitability and financial condition, and can adversely affect our reserves.
Permitting requirements could delay our ability to start or continue our operations.
Oil and natural gas projects are subject to extensive permitting requirements. Failure to timely obtain required permits to start operations at a project could cause delay and/or the failure of the project resulting in a potential write-off of the investments made.
Seasonal weather conditions adversely affect our ability to conduct drilling activities in some of the areas where we operate.
Our oil and natural gas operations can be adversely affected by seasonal weather conditions. In these areas, drilling and other oil and natural gas activities sometimes cannot be conducted as effectively during the winter months, and this can materially increase our operating and capital costs. Certain of our operations are also subject to the risk of adverse weather events, such as thunderstorms and tornados.
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Unanticipated costs could require new capital that may not be available.
The oil and natural gas business has the opportunity for significant returns on investment, but achievement of such returns is subject to high risk. For example, initial results from one or more of the oil and natural gas programs could be marginal but warrant investing in more wells. Dry holes, over-budget exploration costs, low commodity prices, or any combination of these or other adverse factors, could result in production revenues falling below projections, thus adversely impacting cash expected to be available for a continued work program, and a reduction in cash available for investment in other programs. These types of events could require a reassessment of priorities and therefore potential re-allocations of existing capital and could also mandate obtaining new capital. There can be no assurance that we will be able to complete any financing transaction on acceptable terms.
Shortages of equipment, services and qualified personnel could reduce our cash flow and adversely affect results of operations.
The demand for qualified and experienced field personnel to drill wells and conduct field operations, geologists, geophysicists, engineers and other professionals in the oil and natural gas industry can fluctuate significantly, often in correlation with oil and natural gas prices and activity levels in new regions, causing periodic shortages. These problems can be particularly severe in certain regions where we conduct operations. During periods of high oil and natural gas prices, the demand for drilling rigs and equipment tends to increase along with increased activity levels, and this may result in shortages of equipment. Higher oil and natural gas prices generally stimulate increased demand for equipment and services and subsequently often result in increased prices for drilling rigs, crews and associated supplies, oilfield equipment and services, and personnel in exploration, production and midstream operations. These types of shortages and subsequent price increases could significantly decrease our profit margin, cash flow and operating results and/or restrict or delay our ability to drill those wells and conduct those activities that we currently have planned and budgeted, causing us to miss our forecasts and projections.
Competition may limit our opportunities in the oil and natural gas business.
The oil and natural gas business is very competitive. We compete with many public and private exploration and development companies in finding investment opportunities. We also compete with oil and natural gas operators in acquiring acreage positions. Our principal competitors are small to mid-size companies with in-house petroleum exploration and drilling expertise. Many of our competitors possess and employ financial, technical and personnel resources substantially greater than ours. They also may be willing and able to pay more for oil and natural gas properties than our financial resources permit, and may be able to define, evaluate, bid for and purchase a greater number of properties. In addition, there is substantial competition in the oil and natural gas industry for investment capital, and we may not be able to compete successfully in raising additional capital if needed.
The Company’s properties are concentrated in one geographic area.
The Company’s projects are located in Oklahoma and Kansas. Since our properties are contained in a limited area, a number of our properties could experience the same adverse conditions at the same time, resulting in a relatively greater impact on our operations than if we had a more diversified portfolio of properties. Such conditions could have a negative material effect on our business and financial condition.
If our access to oil and natural gas markets is restricted, it could negatively impact our production and revenues.
Market conditions or limited availability of satisfactory oil and natural gas transportation arrangements may hinder our access to oil and natural gas markets or delay our production. The availability of a ready market for our oil and natural gas production depends on a number of factors, including the demand for and supply of oil and natural gas and the proximity of our production to pipelines and other midstream facilities. The ability to market our production depends in substantial part on the availability and capacity of gathering systems, pipelines, rail transportation and processing facilities owned and operated by third parties. In order to secure takeaway capacity and related services, we or our operating partners may be forced to enter into arrangements that are not as favorable to operators as those in other areas.
Many of our joint operating agreements contain provisions that may be subject to legal interpretation, including allocation of non-consent interests, complex payout calculations that impact the timing of reversionary interests, and the impact of joint interest audits.
Substantially all of our oil and natural gas interests are subject to joint operating and similar agreements. Some of these agreements include payment provisions that are complex and subject to different interpretations and/or can be erroneously applied in particular situations.
Joint interest audits are a normal process in our business to ensure that operators adhere to standard industry practices in the billing of costs and expenses related to our oil and natural gas properties. However, the ultimate resolution of joint interest audits can extend over a long period of time in which we attempt to recover excessive amounts charged by the operator. Joint interest audits result in incremental costs for the audit services and we can incur substantial amounts of legal fees to resolve disputes with the operators of our properties.
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Certain U.S. federal income tax deductions currently available with respect to oil and natural gas drilling and development may be eliminated as a result of future legislation.
Possible elimination of certain key U.S. federal income tax incentives currently available to oil and gas exploration and production could be eliminated in the future. If enacted into law, any such proposals would eliminate certain tax preferences applicable to taxpayers engaged in the exploration or production of natural resources. The passage of any legislation as a result of such proposals or any other similar changes in U.S. federal income tax laws could eliminate or postpone certain tax deductions that are currently available with respect to oil and natural gas exploration and development, and any such change could increase our tax liability and negatively impact our results of operations and financial condition.
We may purchase interests in oil and natural gas properties with liabilities or risks that we did not know about or that we did not assess correctly, and, as a result, we could be subject to liabilities that could adversely affect our results of operations.
Before acquiring oil and natural gas properties, we estimate the reserves, future oil and natural gas prices, operating costs, potential environmental liabilities, and other factors relating to the properties. However, our review involves many assumptions and estimates, and their accuracy is inherently uncertain. As a result, we may not discover all existing or potential problems associated with the property interests we buy. We may not become sufficiently familiar with the properties to assess fully their deficiencies and capabilities. We generally do not perform inspections on every well or property, and we may not be able to observe mechanical and environmental problems even when we conduct an inspection. The seller may not be willing or financially able to give us contractual protection against any identified problems, and we may decide to assume environmental and other liabilities in connection with the properties we acquire. If we acquire properties with risks or liabilities we did not know about or that we did not assess correctly, our business, financial condition, and results of operations could be adversely affected as we settle claims and incur cleanup costs related to these liabilities.
Improvements in or new discoveries of alternative energy technologies could have a material adverse effect on our financial condition and results of operations.
Because our operations depend on the demand for oil and natural gas, any improvement in or new discoveries of alternative energy technologies (such as wind, solar, geothermal, fuel cells and biofuels) that increase the use of alternative forms of energy and reduce the demand for oil, gas and oil and gas related products could have a material adverse impact on our business, financial condition and results of operations.
Negative public perception regarding us and/or our industry could have an adverse effect on our operations.
Negative public perception regarding us and/or our industry resulting from, among other things, concerns raised by advocacy groups about waste disposal, oil spills, hydraulic fracturing, seismic activity, climate change, explosions of natural gas transmission lines and the development and operation of pipelines and other midstream facilities may lead to increased regulatory scrutiny, which may, in turn, lead to new state and federal safety and environmental laws, regulations, guidelines and enforcement interpretations. Additionally, environmental groups, landowners, local groups and other advocates may oppose our operations through organized protests, attempts to block or sabotage our operations or those of our midstream transportation providers, intervene in regulatory or administrative proceedings involving our assets or those of our midstream transportation providers, or file lawsuits or other actions designed to prevent, disrupt or delay the development or operation of our assets and business or those of our midstream transportation providers. These actions may cause operational delays or restrictions, increased operating costs, additional regulatory burdens and increased risk of litigation. Moreover, governmental authorities exercise considerable discretion in the timing and scope of permit issuance and the public may engage in the permitting process, including through intervention in the courts. Negative public perception could cause the permits we require to conduct our operations to be withheld, delayed or burdened by requirements that restrict our ability to profitably conduct our business.
Recently, activists concerned about the potential effects of climate change have directed their attention towards sources of funding for fossil-fuel energy companies, which has resulted in certain financial institutions, funds and other sources of capital restricting or eliminating their investment in energy-related activities. Ultimately, this could make it more difficult to secure funding for exploration and production activities.
Risks Related to Governmental Regulations
Oil and natural gas operations are subject to environmental, legislative and regulatory initiatives that can materially adversely affect the timing and cost of operations and the demand for crude oil and natural gas.
Our operations are subject to stringent and complex federal, state and local laws and regulations relating to the protection of human health and safety, the environment and natural resources. These laws and regulations can restrict or impact our business activities in many ways including, but not limited to the following:
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| · | requiring the installation of pollution-control equipment or otherwise restricting the handling or disposal of wastes and other substances associated with operations; |
| · | limiting or prohibiting construction activities in sensitive areas, such as wetlands, coastal regions or areas that contain endangered or threatened species and/or species of special statewide concern or their habitats; |
| · | requiring investigatory and remedial actions to address pollution caused by our operations or attributable to former operations; |
| · | requiring noise, lighting, visual impact, odor and/or dust mitigation, setbacks, landscaping, fencing, and other measures; |
| · | restricting access to certain equipment or areas to a limited set of employees or contractors who have proper certification or permits to conduct work (e.g., confined space entry and process safety maintenance requirements); and |
| · | restricting or even prohibiting water use based upon availability, impacts or other factors. |
Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal enforcement measures, including the assessment of monetary penalties, the imposition of remedial or restoration obligations, and the issuance of orders enjoining future operations or imposing additional compliance requirements. Certain environmental statutes impose strict, joint and several liability for costs required to clean up and restore sites where hazardous substances, hydrocarbons or wastes have been disposed or otherwise released. Moreover, local restrictions, such as state or local moratoria, city ordinances, zoning laws and traffic regulations, may restrict or prohibit the execution of operational plans. In addition, third parties, such as neighboring landowners, may file claims alleging property damage, nuisance or personal injury arising from our operations or from the release of hazardous substances, hydrocarbons or other waste products into the environment.
The trend in environmental regulation is to place more restrictions and limitations on activities that may affect the environment. We monitor developments at the federal, state and local levels to keep informed of actions pertaining to future regulatory requirements that might be imposed in order to mitigate the costs of compliance with any such requirements. We also monitor industry groups that help formulate recommendations for addressing existing or future regulations and that share best practices and lessons learned in relation to pollution prevention and incident investigations.
See “Environmental Laws and Regulations” in Item 1 – Business in this Form 10-K for a discussion of the major environmental, health and safety laws and regulations that relate to our business. We cannot reasonably predict what applicable laws, regulations or guidance may eventually be adopted with respect to our operations or the ultimate cost to comply with such requirements.
Our ability to produce crude oil, natural gas, and associated liquids economically and in commercial quantities could be impaired if we are unable to acquire adequate supplies of water for our drilling operations and/or completions or are unable to dispose of or recycle the water we use at a reasonable cost and in accordance with applicable environmental rules.
The hydraulic fracturing process on which we and others in our industry depend to complete wells that will produce commercial quantities of crude oil and natural gas, and requires the use and disposal or recycling of significant quantities of water. Our inability to secure sufficient amounts of water, or to dispose of, or recycle the water used in our operations, could adversely impact our operations. Moreover, the imposition of new environmental initiatives and regulations could include restrictions on our ability to conduct certain operations such as hydraulic fracturing or disposal of wastes, including, but not limited to, produced water, drilling fluids, and other wastes associated with the exploration, development, or production of crude oil, natural gas, and.
Compliance with environmental regulations and permit requirements governing the withdrawal, storage, and use of surface water or groundwater necessary for hydraulic fracturing of wells may increase our operating costs and cause delays, interruptions, or termination of our operations, the extent of which cannot be predicted, all of which could have an adverse effect on our operations and financial condition.
Risks related to the Company
The Company’s auditors have expressed a “Going Concern” opinion.
The Company’s auditor has included a “going concern” opinion in its auditors’ report to the Company's consolidated financial statements for the fiscal year ended June 30, 2026. The opinion was included as a result of the Company's history of operating losses and negative financial trends. If the Company is unable to meet its obligations, it will not be able to fulfill its business plan and be forced to reduce certain operations or cease operations altogether.
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We depend significantly upon the continued involvement of our present management.
We depend to a significant degree upon the involvement of our management, specifically, our Chief Executive Officer and Chief Financial Officer, Jonathan Herzog. Our performance and success are dependent to a large extent on the efforts and continued employment of Mr. Herzog. We do not believe that Mr. Herzog could be quickly replaced with personnel of equal experience and capabilities, and his successor(s) may not be as effective. If Mr. Herzog or any of our other key personnel resign or become unable to continue in their present roles and if they are not adequately replaced, our business operations could be adversely affected.
We have an active Board of Directors that meets several times throughout the year and is intimately involved in our business and the determination of our operational strategies. Members of our Board of Directors work closely with management to identify potential prospects, acquisitions, and areas for further development. If any of our directors resign or become unable to continue in their present role, it may be difficult to find replacements with the same knowledge and experience and as a result, our operations may be adversely affected.
Our Directors together have majority voting control over the Company which limits the ability of other common shareholders to choose management and influence corporate matters.
Our Directors, Jonathan Herzog and Shmuel (Samuel) Naparstek, together control 40,100,000 common shares and 5,000,000 shares of Series A preferred stock, which, on an as-converted basis represents a majority of our outstanding voting shares and gives them voting control over the Company. This gives them the ability to control the outcome of all matters submitted to our stockholders for approval, including the election, removal, and replacement of our directors, amendments to our Articles of Incorporations and Bylaws, and any decisions pertaining to a merger, consolidation, or sale of any or all of our assets.
The Company’s principal officer and director may be subject to conflicts of interest.
Jonathan Herzog, the Company’s President, Chief Executive Officer and a director, devotes only that portion of his time to the Company’s affairs that he deems necessary to accomplish the Company’s business plan. Mr. Herzog may also devote part of his working time to other business and employment endeavors, including roles and consulting relationships with other entities, and he may have responsibilities to these other entities which would result in conflicts of interest with the Company. Such conflicts include deciding how much time to devote to the Company’s affairs, as well as what business opportunities should be presented to the Company. Currently, Okmin has no policy in place to address such conflicts of interest.
The Company may have difficulty managing growth in our business, which could adversely affect our financial condition and results of operations.
As an early-stage company, growth in accordance with our business plan, if achieved, could place a significant strain on our financial, technical, operational, and management resources. As we expand our activities and increase the number of projects we are evaluating or in which we participate, there will be additional demands on our financial, technical, operational, and management resources. The failure to continue to upgrade our technical, administrative, operating, and financial control systems or the occurrences of unexpected expansion difficulties, including the failure to recruit, engage or retain professionals in the oil and natural gas industry, whether as employees or outside contractors, could have a negative material effect on our business and financial condition.
Applicable regulatory requirements, including those contained in and issued under the Sarbanes-Oxley Act of 2002, may make it difficult for the Company to retain or attract qualified officers and directors, which could adversely affect the management of its business and its ability to obtain or retain listing of its common stock.
The Company may be unable to attract and retain those qualified officers, directors and members of board committees required to provide for effective management because of the rules and regulations that govern publicly held companies, including, but not limited to, certifications by principal executive officers. The enactment of the Sarbanes-Oxley Act has resulted in the issuance of a series of related rules and regulations and the strengthening of existing rules and regulations by the SEC, as well as the adoption of new and more stringent rules by the stock exchanges. The perceived increased personal risk associated with these changes may deter qualified individuals from accepting roles as directors and executive officers.
Further, some of these changes heighten the requirements for board or committee membership, particularly with respect to an individual’s independence from the corporation and level of experience in finance and accounting matters. The Company may have difficulty attracting and retaining directors with the requisite qualifications. If the Company is unable to attract and retain qualified officers and directors, the management of its business and its ability to obtain or retain listing of our shares of common stock on any stock exchange (assuming the Company elects to seek and are successful in obtaining such listing) could be adversely affected.
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We have not voluntary implemented various corporate governance measures, in the absence of which, shareholders may have more limited protections against interested director transactions, conflict of interest and similar matters.
Recent Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted in the adoption of various corporate governance measures designed to promote the integrity of the corporate management and the securities markets. Some of these measures have been adopted in response to legal requirements. Others have been adopted by companies in response to the requirements of national securities exchanges, such as the NYSE or the NASDAQ Stock Market, on which their securities are listed. Among the corporate governance measures that are required under the rules of national securities exchanges are those that address board of directors’ independence, audit committee oversight, and the adoption of a code of ethics. While we intend to adopt certain corporate governance measures such as a code of ethics and established an audit committee, Nominating and Corporate Governance Committee, and Compensation Committee of our board of directors, we presently do not have any independent directors. We intend to expand our board membership in future periods to include independent directors. It is possible that if we were to have independent directors on our board, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested directors and that policies had been implemented to define responsible conduct. For example, in the absence of audit, nominating and compensation committees comprised of at least a majority of independent directors, decisions concerning matters such as compensation packages to our senior officers and recommendations for director nominees may be made by directors who have an interest in the outcome of the matters being decided. Prospective investors should bear in mind our current lack of both corporate governance measures and independent directors in formulating their investment decisions.
We have identified material weaknesses in our internal control over financial reporting, and our management has concluded that our disclosure controls and procedures were not effective during 2025 and 2026. We cannot assure you that additional material weaknesses or significant deficiencies do not exist or that they will not occur in the future. If our internal control over financial reporting or our disclosure controls and procedures are not effective, we may not be able to accurately report our financial results or prevent fraud, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price.
Effective internal controls are necessary for us to provide reliable financial reports and effectively prevent fraud. We maintain a system of internal control over financial reporting, which is defined as a process designed by, or under the supervision of, our principal executive officer and principal financial officer, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. A “material weakness” is 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 our financial statements will not be prevented or detected on a timely basis. Based on the results of management’s assessment and evaluation of our internal controls, our principal executive officer and principal financial officer concluded that our internal control over financial reporting was not effective as of June 30, 2026 due to the material weaknesses described below.
As of June 30, 2026, we have identified the following material weaknesses:
| ● | 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. |
As a result, our management concluded that our disclosure controls and procedures were not effective as of June 30, 2026 and 2025, such that the information relating to us required to be disclosed in the reports we file with the SEC (a) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (b) is accumulated and communicated to our management to allow timely decisions regarding required disclosures and such disclosure controls and procedures have not been deemed effective since approximately June 30, 2021.
A material weakness is 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 control deficiency 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.
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If the Company fails to maintain an effective system of internal controls, it may not be able to accurately report its financial results or detect fraud. Consequently, investors could lose confidence in the Company’s financial reporting and this may decrease the trading price of its stock.
The Company must maintain effective internal controls to provide reliable financial reports and detect fraud. The Company has been assessing its internal controls to identify areas that need improvement. It is in the process of implementing changes to internal controls but has not yet completed implementing these changes. Failure to implement these changes to the Company’s internal controls or any others that it identifies as necessary to maintain an effective system of internal controls could harm its operating results and cause investors to lose confidence in the Company’s reported financial information. Any such loss of confidence would have a negative effect on the trading price of the Company’s stock.
Insurance may be insufficient to cover future liabilities.
Our business is currently focused on oil and natural gas exploration and development, and we also have potential exposure to general liability and property damage associated with the ownership of other corporate assets. We depend on the operators of our oil and gas properties for insurance for those oil and natural gas operations. We may be liable for claims in excess of any coverage and for any deductibles required. If uncovered liabilities are substantial, any payment could adversely impact the Company’s liquidity, which could result in the reduction or cessation of operations. Moreover, some liabilities are not insurable at a reasonable cost or at all.
We are dependent upon information technology systems, which are subject to disruption, damage, failure and risks associated with implementation and integration.
We are dependent upon information technology systems in the conduct of our operations. Our information technology systems are subject to disruption, damage or failure from a variety of sources, including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design. Cybersecurity incidents, in particular, are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information and the corruption of data. Various measures have been implemented to manage our risks related to information technology systems and network disruptions. However, given the unpredictability of the timing, nature and scope of information technology disruptions, we could potentially be subject to operational delays, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems and networks or financial losses from remedial actions, any of which could have a material adverse effect on our cash flows, competitive position, financial condition or results of operations.
Risks Associated with our Securities
Our common stock has been approved for trading on the OTCQB, but trading volume in our common stock has been limited, and there is no assurance that an active market will develop.
Our common stock was approved for trading on the OTCQB in September 2022. To date, trading volume in our common stock has been limited. Investors may have difficulty buying or selling our common shares. There is no assurance that an active market for our common stock will develop or that our common stock will achieve any particular trading price. Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investors.
In addition, our common stock is unlikely to be followed by any market analysts, and there may be few institutions acting as market makers for our common stock. Either of these factors could adversely affect the liquidity and trading price of our common stock.
Securities which are traded on OTC Markets may not provide as much liquidity for our investors as more recognized senior exchanges such as the Nasdaq stock market or other national or regional exchanges.
The Company’s Common Stock is currently quoted on the OTCQB Tier of OTC Markets under the symbol of “OKMN”. OTC Markets is a computer network that provides information on current “bids” and “asks”, as well as volume information. As of the date hereof, limited active trading market has developed for our Common Stock. Securities traded on OTC Markets are usually thinly traded, highly volatile, have fewer market makers and are not followed by analysts. The SEC’s order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on OTC Markets. Quotes for stocks included on OTC Markets are not listed in newspapers and are often unavailable at many of the online websites which publish stock quotes. Therefore, prices for securities traded solely on OTC Markets may be difficult to obtain and holders of our securities may be unable to resell their securities at or near their original acquisition price, or at any price.
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Our stock price and trading volume may be volatile, which could result in substantial losses for our stockholders.
The equity trading markets may experience periods of volatility, which could result in highly variable and unpredictable pricing of equity securities. The market price of our common stock could change in ways that may or may not be related to our business, our industry or our operating performance and financial condition. In addition, the trading volume in our common stock may fluctuate and cause significant price variations to occur. We have experienced significant volatility in the price of our stock over the past two years. Until a more active market develops for our common stock, if ever, the price at which it trades is more likely to fluctuate significantly. Prices for our common stock will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for our shares, developments affecting our business, including the impact of matters referred to elsewhere in these risk factors, investor perception of the Company, and general economic and market conditions. No assurances can be given that an orderly or liquid market will ever develop for the shares of our common stock. We cannot assure you that the market price of our common stock will not fluctuate or decline significantly in the future. In addition, the stock markets in general can experience considerable price and volume fluctuations.
We are subject to the “penny stock” rules which adversely affect the liquidity of our Common Stock.
The SEC has adopted regulations which generally define “penny stock” to be an equity security that has a market price of less than $5.00 per share, subject to specific exemptions. The market price of our Common Stock is less than $5.00 per share and therefore we are considered a “penny stock” according to SEC rules. This designation requires any broker-dealer selling these securities to disclose certain information concerning the transaction, obtain a written agreement from the purchaser and determine that the purchaser is reasonably suitable to purchase the securities. These rules limit the ability of broker-dealers to solicit purchases of our Common Stock and therefore reduce the liquidity of the public market for our shares should one develop.
Financial Industry Regulatory Authority (“FINRA”) sales practice requirements may also limit a stockholder’s ability to buy and sell our Common Stock, which could depress the price of our Common Stock.
FINRA has adopted rules that require a broker-dealer to have reasonable grounds for believing that the investment is suitable for that customer before recommending an investment to a customer. Prior to recommending speculative low-priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives, and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low-priced securities will not be suitable for at least some customers. Thus, the FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our Common Stock, which may limit your ability to buy and sell our shares of Common Stock, have an adverse effect on the market for our shares of Common Stock, and thereby depress our price per share of Common Stock.
Shareholders may experience dilution of their ownership interests because of the future issuance of additional common shares.
In the future, we may issue additional authorized but previously unissued equity securities, resulting in the dilution of the ownership interests of our shareholders. We may also issue additional shares of our securities that are convertible into or exercisable for common shares, as the case may be, in connection with hiring or retaining employees, future acquisitions, future sales of its securities for capital raising purposes, or for other business purposes. The future issuance of any such additional shares may create downward pressure on the value of our securities. There can be no assurance that we will not be required to issue additional shares, warrants or other convertible securities in the future in conjunction with any capital raising efforts, including at a price (or exercise prices) below the price at which our shares may be valued or are trading in a public market.
The sale of the additional shares of Common Stock could cause the value of our Common Stock to decline.
The sale of a substantial number of shares of our Common Stock, or anticipation of such sales, could make it more difficult for us to sell equity or equity-related securities in the future at a time and at a price that we might otherwise wish.
Our Common Stock price may decrease due to factors beyond our control.
The stock market from time to time has experienced extreme price and volume fluctuations, which have particularly affected the market prices for emerging growth companies, and which often have been unrelated to the operating performance of the companies. These broad market fluctuations may adversely affect the market price of our stock, if a trading market for our stock ever develops. If our shareholders sell substantial amounts of their stock in the public market, the price of our stock could fall. These sales also might make it more difficult for us to sell equity, or equity-related securities, in the future at a price we deem appropriate.
The market price of our stock may also fluctuate significantly in response to the following factors, most of which are beyond our control:
| · | variations in our quarterly operating results; |
| · | changes in general economic conditions; |
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| · | changes in market valuations of similar companies; |
| · | announcements by us or our competitors of significant acquisitions, strategic partnerships or joint ventures, or capital commitments; |
| · | loss of a major customer, partner or joint venture participant; and |
| · | the addition or loss of key managerial and collaborative personnel. |
Any such fluctuations may adversely affect the market price or value of our Common Stock, regardless of our actual operating performance. As a result, stockholders may be unable to sell their shares, or may be forced to sell them at a loss.
We have not paid dividends in the past and do not expect to pay dividends in the future. Any return on investment may be limited to the value of our common stock
We have never paid cash dividends on our common stock and do not anticipate paying cash dividends in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors may consider relevant. If we do not pay dividends, our common stock may be less valuable because a return on your investment will only occur if its stock price appreciates.
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ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
ITEM 1C. CYBERSECURITY
ITEM 2. PROPERTIES.
Okmin’s principal office is located at 16501 Ventura Blvd., Suite 400, Encino, CA, 91436. The Company has a month-to-month lease arrangement for our corporate offices at a cost of approximately $150 - $200 per month, with meeting space available to it on demand on a pay per use basis. This arrangement is adequate for the Company’s current needs.
At this time, Okmin does not anticipate purchasing any real estate, nor does it anticipate purchasing any real property for its office.
Oil and Gas Properties
The Company’s interests in lease holdings are all within the Cherokee Platform, a geological feature underlying an area of northeastern Oklahoma and southeastern Kansas in the mid-continent region of the United States. The Cherokee Platform has been an established oil producing region for the last century.
Oklahoma – Blackrock Joint Venture
In February 2021, Okmin entered into a Joint Venture Agreement and Operating Agreement committing $100,000 in the initial phase to acquire working interests in ten oil and gas leases located in Okmulgee and Muskogee Counties in Oklahoma. Under the Operating Agreement, Okmin’s Joint Venture partner, Blackrock Energy LLC (“Blackrock”) was the Operator of the project, handling the day-to-day operations on the ground. Pursuant to a further agreement entered into on June 10, 2022, the Company added an additional five oil and gas leases across 739 acres to its joint venture with Blackrock, thereby expanding the overall project to fifteen leases covering over 1,500 acres.
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 12.5% to 23.5%. State production tax on oil sales is 7%. In the fiscal year ended June 30, 2026, the Company’s share of revenues from oil and gas sales from the Blackrock Joint Venture totaled $1,268 and lease operating costs were $1,591.
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 50% working interest in the Blackrock Joint Venture for $25,000 and an additional 45% interest in the joint venture for the Pushmataha Gas Field. As a result of this transaction, the Company has disposed of its entire interest in the Blackrock Joint Venture.
Kansas
In July 2021, the Company through its wholly owned Kansas subsidiary, Okmin Operations, LLC, entered into an agreement to acquire a 72.5% Net Revenue Interest in the Vitt Lease located in Neosho County, Kansas. Okmin Operations, LLC acquired the lease with a cash payment of $25,000 together with a commitment to make additional capital and operating expenditures to rework the wells on the lease. In the fiscal year ended June 30, 2026 lease operating expenses recorded for the Vitt were $3,825. To date, the Company’s aggregate additional capital and lease operating expenditures on the lease are approximately $112,400. The lease covers 160 acres and includes eleven existing oil and gas wells and four water injection wells.
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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 $50,000. Under the agreement, J & S McCoy Enterprises and Earnest Ashlock, the principal of Petron, together retained a 15% Net Revenue Interest in the Vitt Lease. Upon the lease becoming fully operational, it is anticipated that the parties will contribute capital costs in accordance with their percentage working interest, of which Okmin’s working interest is 85.8571428571%. The remaining 12.5% Net Revenue Interest of the lease reverts back to the landowners. During the 4th quarter of fiscal 2026, Petron notified the Company that its operator’s license has expired and is not presently up for renewal, but they are currently in discussions with other licensed operators to assume operation of the lease. Additionally, due to a lack of ongoing production over the past year, there is a risk of the lease lapsing, as such we have written off the entire capital value of this project, though are still exploring ways to continue developing the property.
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 were $Nil in the last fiscal year ended June 30, 2026, and $354 in the fiscal year ended June 30, 2025.
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 50% joint venture interest with Blackrock in the Pushmataha Gas Field, comprising 6 leases covering an area of 3,840 acres located in Pushmataha County, Oklahoma. Blackrock had previously entered into a separate option to acquire working interests ranging from 92 -100% in the existing wells and lease acreage from a third party. In connection with the initial acquisition, the Company expended approximately $253,000 in cash. Under the terms of the Joint Venture agreement, after deducting operating costs including a flat sum of $1,000 per month to Blackrock as operator, the Company shall receive all net income from revenues of the project until it has recouped $125,000, thereafter, the parties shall equally split the income.
In August 2025, the Company entered into an agreement with Blackrock to exchange its 50% working interest in another project with Blackrock for $25,000 and an additional 45% interest in the Joint Venture for the Pushmataha Gas Field, which has increased the Company’s interest to 95%. The Company and Blackrock have agreed to offset lease operating charges against the $25,000 portion of the transaction.
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 fiscal year ended June 30, 2026, lease operating expenditures were $26,927 with additional gas fees, transportation and taxes aggregating $2,282. The operator believes with additional capital expenditures for reworking and recompletion efforts it can optimize the production potential of this field. The application of newer technologies could also have an important impact on the economics for this asset.
In July 2026, the Company and the property operator received an unsolicited proposal from a third-party to acquire 100% of the Pushmataha project, including the Company’s 95% working interest and the operator’s 5% interest in the project. The acquirer proposed to pay $150,000 cash at closing and an additional $100,000 cash within 120 days, with the Company and the operator retaining a 10% carried working interest in the Pushmataha project. No transaction was concluded, and the offer subsequently expired. Although management remains in conversations with the third-party offeror, there is no guarantee that any transaction or other business agreement will result.
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West Sheppard Pool Field in North East Oklahoma
In August 2021, the Company entered into an option agreement with Blackrock to acquire a 50% joint venture interest in the West Sheppard Pool Field, a series of leases totaling 1,930 acres located in Okmulgee County, Oklahoma. In November 2021, the Company exercised its option and entered into a definitive joint venture and operating agreement with Blackrock at a cost of $150,000 in cash.
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 50% interest in the West Sheppard Pool project to Sheppard Pool Operating, LLC, the operator of the project. After Sheppard Pool Operating has received $22,850 in revenue from the project, the Company will receive a 10% overriding royalty interest (“ORRI”) in the project. Sheppard Pool may elect to reduce the 10% ORRI to 5% by a one-time payment of $100,000 to the Company within 4 years of the effective date of the agreement.
IMPAIRMENT OF OIL AND GAS PROPERTIES
During the fiscal year ended June 30, 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 twelve months ended June 30, 2026, impairment charges of $29,030 were recorded as an expense.
The following table details the Company’s net oil and gas production by project in the fiscal year ended June 30, 2026.
Net Oil and Gas Production by Project
For the fiscal year ended June 30, 2026
| Oil | Natural Gas | |||||||||||||||||||||||||||
| Project | Production (BBLS) | Avg. Cost ($) | Avg. Sales Price ($) | Production (MCF) | Avg. Cost ($) | Avg. Sales Price ($) | Total Revenue ($) | |||||||||||||||||||||
| Black Rock JV | 21 | 72 | 60.59 | — | — | — | 1,268 | |||||||||||||||||||||
| Pushmataha | — | — | — | 2,360.43 | 11 | 3.22 | 7,591 | |||||||||||||||||||||
| Vitt Lease | — | — | — | — | — | — | — | |||||||||||||||||||||
Net Oil and Gas Production by Project For the fiscal year ended June 30, 2025 | ||||||||||||||||||||||||||||
| Oil | Natural Gas | |||||||||||||||||||||||||||
| Project | Production (BBLS) | Avg. Cost ($) | Avg. Sales Price ($) | Production (MCF) | Avg. Cost ($) | Avg. Sales Price ($) | Total Revenue ($) | |||||||||||||||||||||
| Black Rock JV | 328 | 56 | 61.83 | — | 0 | — | 20,294 | |||||||||||||||||||||
| Pushmataha | — | — | — | 811 | 24 | 1.89 | 1,532 | |||||||||||||||||||||
| West Sheppard | — | — | — | — | — | — | — | |||||||||||||||||||||
| Vitt Lease | 5.44 | 55 | 65.17 | — | — | — | 354 | |||||||||||||||||||||
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The acreage of each of our projects as of June 30, 2026 is included in the following table.
Total Acreage | Developed Acreage | Undeveloped Acreage | ||||||||||||||||||||||
| Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
| Pushmataha | 3,840 | 3,648 | 3,840 | 3,648 | — | — | ||||||||||||||||||
| Vitt Lease | 160 | 137 | 40 | 34.25 | 120 | 102.75 | ||||||||||||||||||
| Total | 4,000 | 3,785 | 3,920 | 3,682.25 | 120 | 102.75 | ||||||||||||||||||
The acreage of each of our projects as of June 30, 2025 is included in the following table.
Total Acreage | Developed Acreage | Undeveloped Acreage | ||||||||||||||||||||||
| Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
| Black Rock JV | 1,529 | 764.5 | 1,529 | 764.5 | — | — | ||||||||||||||||||
| Pushmataha | 3,840 | 1,920 | 3,840 | 1,920 | — | — | ||||||||||||||||||
| West Sheppard | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
| Vitt Lease | 160 | 137 | 40 | 34.25 | 120 | 102.75 | ||||||||||||||||||
| Total | 5,529 | 2,821.5 | 5,409 | 2,718.75 | 120 | 102.75 | ||||||||||||||||||
The following table details the current classification of all existing wells on each of our projects as of June 30, 2026.
Total Wells (producing and idle) | Producing Oil Wells | Producing Natural Gas Wells | ||||||||||||||||||||||
| Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
| Pushmataha | 7 | 7 | — | — | 6 | 6 | ||||||||||||||||||
| Vitt Lease | 11 | 9.4 | — | — | — | — | ||||||||||||||||||
| Total | 18 | 16.4 | — | — | 6 | 6 | ||||||||||||||||||
The following table details the classification of all existing wells on each of our projects as of June 30, 2025.
Total Wells (producing and idle) | Producing Oil Wells | Producing Natural Gas Wells | ||||||||||||||||||||||
| Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
| Black Rock JV | 38 | 19 | 6 | 3 | — | — | ||||||||||||||||||
| Pushmataha | 7 | 3.5 | — | — | 6 | 3 | ||||||||||||||||||
| Vitt Lease | 11 | 9.4 | — | — | — | — | ||||||||||||||||||
| Total | 82 | 44.9 | 6 | 3 | 6 | 3 | ||||||||||||||||||
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To date, Okmin has focused on reworking currently producing wells and upgrading the infrastructure on its projects. The Company believes that with additional capital commitments there is potential to increase production on each of the projects. Each of the projects has largely been without any notable work or investment expenditures in a number of years, and existing well spacing on most of the projects is considerably less than currently allowed which would permit infill drilling into much of the acreage classified as developed. In addition to the current activities on existing wells, the Company and its consultants have evaluated a number of potential work programs to increase production. These include:
| · | Recompletion of wells into additional known hydrocarbon zones; |
| · | Deepening wells; |
| · | Stimulating reservoirs utilizing modern techniques; |
| · | Infill drilling within the current permittable spacing; |
| · | New drilling on undeveloped portions of the leases. |
In the absence of a new funding partner or other circumstances changing, with the current industry environment and capital constraints, the Company anticipates minimal expenditures in connection with existing project areas. If we do not succeed in raising additional capital, our resources may not be sufficient to fund our ongoing operations and will have a significant negative effect on our operations and financial condition.
Management is also evaluating other strategic corporate opportunities, which may include acquiring the rights to and participate in drilling and/or other natural resource related operations, or opportunities outside the natural resource industry.
ITEM 3. LEGAL PROCEEDINGS.
We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
Market Information
Beginning in September 2022, our common stock was approved for trading on the OTCQB Tier of OTC Markets under the stock symbol “OKMN”. Any OTC Markets quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
The following table sets forth the range of high and low trading prices of the Company’s Common Stock during the periods indicated.
| Fiscal Year 2026 | High | Low | ||||||
| Quarter ended June 30, 2026 | $ | 0.07 | $ | 0.05 | ||||
| Quarter ended March 31, 2026 | $ | 0.1198 | $ | 0.0325 | ||||
| Quarter ended December 31, 2025 | $ | 0.0444 | $ | 0.0137 | ||||
| Quarter ended September 30, 2025 | $ | 0.06 | $ | 0.03 | ||||
| Fiscal Year 2025 | High | Low | ||||||
| Quarter ended June 30, 2025 | $ | 0.06 | $ | 0.06 | ||||
| Quarter ended March 31, 2025 | $ | 0.09 | $ | 0.03 | ||||
| Quarter ended December 31, 2024 | $ | 0.05 | $ | 0.04 | ||||
| Quarter ended September 30, 2024 | $ | 0.05 | $ | 0.04 | ||||
The closing sales price of the Company’s common stock as reported on June 30, 2026, was $0.07 per share.
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Holders of Our Common Stock
The Company’s transfer agent is Vstock Transfer, 18 Lafayette Place, Woodmere, NY 11598. Their phone number is (212) 828-8436, and their website is www.vstocktransfer.com.
Based upon the records of the Company’s transfer agent, the number of holders of record of our common stock, including depositories, as of June 30, 2026 was 81.
Dividends
The Company has never declared or paid any cash or stock dividends on its common stock. The Company currently intends to retain future earnings, if any, to finance the expansion of its business. As a result, the Company does not anticipate paying any cash dividends in the foreseeable future. The payment of dividends on our common stock is within the discretion of our board of directors.
Securities Authorized for Issuance under Equity Compensation Plans
Under a consulting agreement dated July 7, 2022 between the Company and Sierra Land Resources, LLC, the Company agreed to compensate Sierra for advisory work related to land and resource development. The Company will compensate Sierra in cash or common shares, with the value of the share computed at the average trading price of the shares during the month in which the work was performed. This agreement has no fixed maximum number of shares that can be issued and was not approved by shareholders.
Except for the consulting agreement disclosed above, the Company presently does not have any other equity compensation plan.
Recent Sales of Unregistered Securities
During the three most fiscal years ended June 30, the Company issued the following shares of common stock in unregistered transactions without the participation of any broker-dealer or underwriter:
| Date | Description |
Number of Shares Issued |
Recipient |
Proceeds ($) |
Consideration | Exemption | ||||||||||||||
| August 2023 | (a) | Common Stock | 460,000 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| August 2023 | (b) | Common Stock | 59,375 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| November 2023 | (c) | Common Stock | 151,305 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| June 2024 | (c) | Common Stock | 321,741 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| November 2024 | (d) | Common Stock | 2,500,000 | Director | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| November 2024 | (e) | Common Stock | 250,000 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| December 2024 | (c) | Common Stock | 225,000 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| June 2025 | (f) | Common Stock | 500,000 | Legal Fees | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| September 2025 | (g) | Common Stock | 6,503,024 | Convertible Holder | $ | Nil | Debt Conversion | Sec. 4(a)(2) | ||||||||||||
| September 2025 | (c) | Common Stock | 173,090 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| September 2025 | (h) | Common Stock | 1,000,000 | PP Investors | $ | 30,000 | Cash | Sec. 4(a)(2) | ||||||||||||
| December 2025 | (c) | Common Stock | 113,252 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| March 2026 | (i) | Common Stock | 1,800,000 | PP Investors | $ | 54,000 | Cash | Sec. 4(a)(2) | ||||||||||||
| March 2026 | (j) | Common Stock | 1,000,000 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| June 2026 | (c) | Common Stock | 22,200 | Consultants | $ | Nil | Services | Sec. 4(a)(2) | ||||||||||||
| (a) | As of August 1, 2023, the Company issued 460,000 shares pursuant to a consulting agreement which vest quarterly, at a deemed price of $0.22 per share. During the fiscal year ended June 30, 2024 we expensed $75,866 in connection with this agreement. |
| (b) | As of August 28, 2023, the Company issued 59,375 shares at a deemed price of $0.12 per share for previous services valued at $7,125 rendered by its consulting geologist. |
| (c) | These shares were issued under an ongoing services agreement with Sierra Land Resources, LLC, in connection with consulting services on the Company’s oil and gas properties. Additional shares under the agreement were issued on June 30, 2024, December 3, 2024, September 19, 2025, December 30, 2025, and June 25, 2026. |
| (d) | Samuel Naparstek joined the Board as a Director effective July 30, 2024, was awarded 2,500,000 shares at $0.04 per share in lieu of consulting work and services. |
| (e) | The Company’s Board of Directors approved the issuance of 250,000 shares of the Company’s common stock in lieu of a cash payments of $10,000 in consideration of a compliance consulting services agreement. |
| (f) | On June 24, 2025, the Company issued 500,000 shares at a deemed price of $0.0482 per share for legal fees. |
| (g) | 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. |
| (h) | 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. |
| (i) | 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. |
| (j) | On March 27, 2026, the Company issued 1,000,000 common shares at $0.05 per share to a corporate advisor. |
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With respect to sales designated in the table by “Sec. 4(a)(2),” these shares were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), as privately negotiated, isolated, non-recurring transactions not involving any public offer or solicitation. Each purchaser represented that such purchaser’s intention was to acquire the shares for investment only and not with a view toward distribution. Each of the recipients of securities in these transactions was an accredited or sophisticated person and had adequate access, through employment, business or other relationships, to information about us.
The Company has repurchased no equity securities in the fiscal years ended June 30, 2026 or June 30, 2025.
ITEM 6. SELECTED FINANCIAL DATA
As the Company is a Smaller Reporting Company (as defined by Rule 229.10(f)(1)), the Company is not required to provide the information under this item.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and related notes appearing elsewhere in this Annual Report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. See “Cautionary Note Regarding Forward-Looking Statements.” Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth under “Risk Factors” and elsewhere in this Annual Report.
Cautionary 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 June 30, 2026 should be read in conjunction with our audited financial statements and the notes to those audited financial statements that are included elsewhere in this Annual Report on Form 10-K. 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 Annual 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 Annual 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.
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.
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Our goal is to increase production from our existing oil and gas interests. Currently, our primary producing property is Pushmataha, which is producing minor amounts of natural gas at a loss. We will require additional capital to increase production, and we may seek a new partner for the project. Unless we are able to increase production from the property, these operating losses will continue. The Vitt property is not currently producing, and the lease may expire without new work expenditures that are required to maintain the lease. On West Sheppard Pool Field, we will receive a 10% overriding royalty interest once the operator receives $22,850 in revenue from the project. This condition has not yet been satisfied. We are also reviewing potential strategic corporate opportunities, including acquiring additional oil and gas and mineral properties or drilling interests, and other non-resource ventures, that we believe will enhance shareholder value.
Results of Operations
Fiscal Years ended June 30, 2026 and 2025
Revenue
We generated $8,859 in revenue from oil and gas sales for the fiscal year ended June 30, 2026, as compared to $22,180 in revenues for the fiscal year ended June 30, 2025. The decrease in revenue is attributable to lower gas prices and the sale of our producing Black Rock project, which we exchanged for a larger interest in the Pushmataha project. Costs of revenues were $34,625 in the year ended June 30, 2026 versus $42,713 for the year ended June 30, 2025, attributable to the Company decreasing lease operating costs resulting from the sale of one of our projects and additionally, only conducting limited operations under the current market conditions including the price of natural gas.
General and Administrative Expense
General and administrative expenses decreased to $306,140 for the year ended June 30, 2026, compared to $388,579 for the year ended June 30, 2025.
For the year ended June 30, 2026, general and administrative expenses included consulting and professional fees related to land and resource development management, corporate advisory services, investor relations and other consulting services. Included in these expenses were non-cash consulting expenses of $66,035, compared to $143,100 for the year ended June 30, 2025, representing the value of common stock issued in lieu of cash for services rendered.
Additionally, general and administrative expenses for each of the years ended June 30, 2026 and 2025 included $162,000 of accrued and deferred compensation.
In the year ended June 30, 2026, of note we recorded the following expenses as compared to the corresponding year ended June 30, 2025: Interest expense was higher at $18,670 vs $17,262; listing related fees were higher at $17,700 vs. $17,100; legal fees were a marginal $150 vs $20,500, audit fees increased to $35,874 vs $31,385; compensation in connection with accounting and bookkeeping reduced to $10,082 vs $16,996. Other expenses related to compensation, filing and transfer agent fees, rent and other general and administrative expenses necessary for our operations.
Net loss
The Company incurred a net loss of $367,299 for the year ended June 30, 2026, compared to a net loss of $597,167 for the year ended June 30, 2025. The decrease in net loss was primarily attributable to lower impairment and general and administrative expenses.
Impairment expense for the year ended June 30, 2026 was $29,030, compared to $167,003 for the year ended June 30, 2025. The prior-year impairment charge resulted from the Company’s assessment of the carrying value of its oil and gas properties.
Expenses for the year ended June 30, 2026 included $162,000 of accrued and deferred compensation, which was unchanged from the prior year; lease operating expenses, including taxes and royalties, of $34,625, compared to $42,713 in 2025; interest expense of $18,670, compared to $17,262 in 2025; accounting and audit fees of $45,956, compared to $48,381 in 2025; and non-cash consulting and professional fees of $66,035 related to common stock issued for services, compared to $143,100 in 2025. The Company also incurred other general and administrative expenses necessary to support its operations.
Depreciation expense decreased to $2,113 for the year ended June 30, 2026, compared to $5,436 for the year ended June 30, 2025.
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Net cash used in operating activities
In the year ended June 30, 2026, operating activities used cash of $86,168, including the net loss of $367,299. Non-cash items included depreciation and amortization of $2,113, and impairment of oil and gas properties of $29,030. We recorded an allowance for doubtful accounts of $12,607 and bad debt recovery of $12,393 which were related to our property transaction exchanging our Black Rock interest for an increased interest in the Pushmataha project. We recorded a non-cash gain on forgiveness of accounts payable of $16,761. We also issued $66,034 in common stock for services. Changes in assets and liabilities included an increase in accrued oil and gas sales of $28, an increase in accounts payable and accrued liabilities of $185,071, and a decrease in other liabilities of $9,328.
In the year ended June 30, 2025, operating activities used cash of $104,395, including the net loss of $597,167. Non-cash items included depreciation and amortization of $5,436, impairment of oil and gas properties of $167,003, and issuance of common stock for services of $143,100. Changes in assets and liabilities included accrued oil and gas sales of $66, increase in accounts payable and accrued liabilities of $230,355, an increase in accrued interest payable of $14,414, and an increase in other liabilities of $950.
Net cash from investing activities
There was no cash flows from investing activities in either fiscal year ended June 30, 2026 and 2025.
Net cash from financing
In the year ended June 30, 2026 net cash provided from financing activities was $96,858. The private placements of common shares provided cash of $84,000, and a bridge loan from the Company’s President and CEO provided cash of $30,000. Repayment of short term borrowing used cash of $17,142. For the year ended June 30, 2025, financing activities provided cash of $43,602. Repayments on the previous convertible note used cash of $24,000, and short term borrowing provided cash of $67,602.
Liquidity and Capital Resources
Current Financial Condition
As of June 30, 2026, the Company had total assets of $87,897, comprised primarily of cash of $22,178 and oil and gas properties of $65,654. As of June 30, 2026, the Company had total liabilities of $730,676, primarily consisting of deferred and accrued compensation of $600,750, accounts payable of $38,810, short term borrowing of $61,116, and bridge loans totaling $30,000 advanced by the Company’s President and Chief Executive Officer.
On September 19, 2025, the Company issued 6,503,024 shares of common stock to a former convertible noteholder in full settlement of all outstanding principal and accrued interest. Following the issuance, the note was fully satisfied, no amounts remained outstanding, and the Company had no remaining convertible notes.
The Company incurred a net loss of $367,299 for the year ended June 30, 2026 and had an accumulated deficit of $2,672,984 as of June 30, 2026. At June 30, 2026, the Company had a working capital deficit of approximately $708,433.
The Company remains an early-stage company and, to date, has generated only limited revenues from operations. The Company anticipates that operating revenues will remain limited until it is able to commit additional capital resources to the development and operation of its assets.
For the 2027 fiscal year we anticipate cash needs of approximately $230,000 for general corporate overhead and for operations on our existing lease properties. This amount does not include funding for any potential workovers, re-entries, stimulation treatments and recompletions of existing non or low producing wells. Any new work on our properties will require additional capital. The Company plans to obtain the required capital through private sales of securities or debt financing.
To date, we have funded our operations primarily through private sales of equity and/or convertible securities for cash. We depend upon debt and/or equity financing and revenues to fund our ongoing operations and to execute our current business plan. In the 2027 fiscal year, such capital requirements and the requirements for our planned ongoing activities is greater than the capital we currently have available. 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. Our most likely source of additional capital is through the sale of our securities, including common stock. We may also obtain capital through the sale of preferred stock or convertible securities, or through debt financing. If we are unable to obtain additional financing it would have a material adverse effect upon our business, financial condition and results of operations, including negatively affecting our ability to complete ongoing activities and which could cause us to curtail or cease certain of our operations.
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Terminated Merger Agreement with Bevpoint Capital LP
As a component of our goal to investigate new business opportunities, the Company entered into a merger agreement with BevPoint Capital LP, a Florida limited partnership ("BevPoint") on January 29, 2026. 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 March 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 value of $50,000 to Mr. Glashow.
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. Such estimates include the review of the valuation of its oil and gas properties for impairment, possible asset retirement obligations, and the value of its common shares issued for services. 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 FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU requires disclosure of significant segment expenses regularly provided to the chief operating decision maker, an amount for other segment items, and the measure of segment profit or loss used by the chief operating decision maker, including for entities with a single reportable segment. We adopted ASU 2023-07 for the year ended June 30, 2025. Adoption did not have a material effect on the Company’s financial position or results of operations.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU enhances income tax disclosures, primarily related to the rate reconciliation and income taxes paid. For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. We adopted ASU 2023-09 during the fiscal year ended June 30, 2026. The adoption did not have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses”. ASU 2024-03 requires public business entities to provide additional disclosures regarding specified categories of expenses included within relevant income statement captions. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures.
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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 audited financial statements, the Company had a net loss of $367,299 for the year ended June 30, 2026 and an accumulated deficit of $2,672,984 as of the same date. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.
The Company had a working capital deficit of $708,433 as at June 30, 2026. In the 2027 fiscal year we anticipate cash needs of a minimum of $230,000, to maintain general corporate overhead and for continued work in maintaining our existing lease properties. This does not include any potential workovers, re-entries, stimulation treatments and recompletions of existing non or low producing wells, which would require additional capital commitments. The Company plans to obtain that capital by issuing equity securities, which may consist of either capital stock or convertible debt.
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 financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
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.
ITEM 7A. 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 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The financial statements and the other information required by this Item can be found beginning on page F-1.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
None.
ITEM 9A. 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 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 13a-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 Annual 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 June 30, 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.
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Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed 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. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.
We carried out an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s internal control over financial reporting as of June 30, 2026. 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.
Material Weaknesses and Corrective Actions
The following material weaknesses in our internal control over financial reporting continued to exist at June 30, 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. |
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.
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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 in our internal controls over financial reporting that occurred during the fiscal year ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.
ITEM 9B. OTHER INFORMATION.
During the year ended June 30, 2025, no director
or officer of the Company
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The following table sets forth the names and positions of our current executive officers and directors.
| Name | Age | Position with the Company | ||
| Jonathan Herzog | 55 | President, Chief Executive Officer, Chief Financial Officer, Secretary, and Director | ||
| Samuel Naparstek | 65 | Director |
Jonathan D. Herzog - Mr. Jonathan Herzog has been a Director and the President and Chief Executive Officer of Okmin Resources, Inc. since its inception in December 2020. Mr. Herzog has over 30 years of corporate and senior management experience. During the past five years, Mr. Herzog has also served as an executive officer and director of Chabad of the Valley, a non-profit umbrella organization in Los Angeles, which oversees multiple community centers and many charitable and social service programs. Additionally, during this time, Mr. Herzog has been self-employed as a corporate and investor relations consultant for both private and public companies. From 2015 to 2016, Mr. Herzog served as President and a Director of Intelligent Buying, Inc (now known as Sentient Brands Holdings). From 1995 to 1999, Mr. Herzog was a licensed Securities Dealer and Designated Trading Representative at Bell Securities Limited (now known as Bell Potter Securities), a member firm of the Australian Stock Exchange. In 2002, Mr. Herzog relocated to the United States and served as the President of Avenue Energy, Inc., achieving the transition from newly formed oil and gas exploration company to an oil producer in 2003. Mr. Herzog also served as a Director on the Board of various other companies, including: Avenue Group and its subsidiary companies, Bickhams Media and VideoDome Networks, which were acquired by ROO Group, Inc in 2004. In more recent years, Mr. Herzog also served as a strategic advisor to investment group Morzev in the formation of USA Rare Earth (Nasdaq: USAR). Mr. Herzog was a Fellow of the Australian Institute of Company Directors from 1993 to 2011. Mr. Herzog holds a Bachelors Degree in Economics from Monash University in Melbourne, Australia.
Shmuel “Samuel” Naparstek - In July, 2024, the Board appointed Shmuel “Samuel” J. Naparstek to serve on the Board filling a vacancy after Tom Lapinski’s retirement. Mr. Naparstek has built a global network of investors, innovators and philanthropists, and has served as a Corporate Consultant to Okmin Resources since January 2021. Since 2002, Mr. Naparstek has been engaged in various consulting roles with private and public companies. Mr. Naparstek has been a board member of Perfectomundo Inc. since September 2018, and has been instrumental in building and growing a variety of their new tequila brands in the marketplace. Prior to 2002, Mr. Naparstek was a principal executive of a network of non-profit organizations focused on religious, educational and social service activities. He continues to be actively sought out as an advisor to organizations and charitable foundations on the West Coast.
Directors hold office until the next annual meeting, or by written consent, of the Company’s shareholders, and the election and qualification of their successors. Officers hold office at the pleasure of the Company’s Board of Directors, and are subject to removal at any time by the Board.
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Board Leadership Structure and Role in Risk Oversight
Our Board of Directors (“Board”) is primarily responsible for overseeing our risk management processes on behalf of the Company. The Board receives and reviews periodic reports from management, auditors, legal counsel, and others, as considered appropriate regarding our company’s assessment of risks. In addition, the Board focuses on the most significant risks facing our company and our company’s general risk management strategy, and also ensures that risks undertaken by our company are consistent with the board’s appetite for risk. While the Board oversees our company’s risk management, management is responsible for day-to-day risk management processes. We believe this division of responsibilities is the most effective approach for addressing the risks facing our company and that our board leadership structure supports this approach.
Family Relationships
There is no family relationship between the individuals serving as executive officers and directors.
Involvement in Certain Legal Proceedings
During the past ten years, none of the persons serving as our executive officers and directors has been the subject of any of the following legal proceedings that are required to be disclosed pursuant to Item 401(f) of Reg. S-K: (a) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (b) any criminal convictions or any criminal proceedings in which the person is a named subject (excluding traffic violations and other minor offenses); (c) any order, judgment, or decree permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; (d) any finding by a court, the SEC or the CFTC to have violated a federal or state securities or commodities law, any law or regulation respecting financial institutions or insurance companies, or any law or regulation prohibiting mail or wire fraud in connection with any business entity; or (e) any sanction or order of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or other organization that has disciplinary authority over its members or persons associated with a member. Further, no such legal proceedings are believed to be contemplated by governmental authorities against any director or executive officer.
Code of Ethics
The Company has not yet adopted a code of ethics as contemplated by Item 406 of Reg. S-K that would apply to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions due to the Company’s small size, small number of Officer and Directors, and lack of employees. Our Board plans to adopt a written code of business conduct and ethics (“Code”) that applies to our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. We intend to post on our website a current copy of the Code and all disclosures that are required by law in regard to any amendments to, or waivers from, any provision of the Code.
Insider Trading Policy
The Company has not yet adopted an insider trading policy as contemplated by Item 408 of Reg. S-K. Currently, we have one individual who serves as an Officer and as a Director, and a second individual who serves as a Director. The Company has no employees. Our Officer and Directors are subject to insider trading regulations and prohibitions under the federal securities laws.
Nominating Committee
We have not adopted any procedures by which security holders may recommend nominees to our Board of Directors.
Audit Committee
The Board of Directors acts as the Audit Committee and the Board has no separate committees. The Company has no qualified financial expert at this time because it has not been able to hire a qualified candidate. Further, the Company believes that it has inadequate financial resources at this time to hire such an expert.
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Indemnification of Directors and Officers
Our directors and executive officers are indemnified as provided by Nevada law and our Bylaws. These provisions state that our directors may cause us to indemnify a director or former director against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, actually and reasonably incurred by him as a result of him acting as a director. The indemnification of costs can include an amount paid to settle an action or satisfy a judgment. Such indemnification is at the discretion of our board of directors and is subject to the Securities and Exchange Commission’s policy regarding indemnification.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Exchange Act requires a company's directors and officers, and persons who own more than 10% of any class of a company's equity securities which are registered under Section 12 of the Exchange Act, to file with the SEC initial statements of beneficial ownership on Form 3, reports of changes in ownership on Form 4, and annual reports on Form 5 concerning their ownership of and transactions concerning our common stock and other equity securities. Such officers, directors and 10% stockholders are also required to furnish the company with copies of all Section 16(a) reports they file. Based solely on our review of the copies of such forms received by the Company, or written representations from the reporting persons as of the date of this Report, management believes that all Section 16(a) filing requirements applicable to directors, officers and 10% stockholders with respect to the fiscal year ended June 30, 2026, have been fulfilled.
ITEM 11. EXECUTIVE COMPENSATION.
With the exception of the Company’s President, Chief Executive Officer and Chief Financial Officer, Jonathan Herzog, as detailed below, the Company has not paid compensation to its executive officers. To date, the Company also has not paid any compensation to directors for their service as such.
In connection with the formation of the Company, 5,000,000 shares of the Company’s Series A preferred stock were designated and later subsequently issued to Mr. Herzog at a deemed value of $0.001 per share with no cash consideration in lieu of work performed in organizing the corporation. Each share of Series A preferred stock has voting rights of ten votes per share, though it is not entitled to receive dividends. Additionally, each share of Series A preferred stock may be converted at $0.01 per preferred share into ten shares of common stock.
From inception through October 2021, the Company paid no cash compensation to any officer or director for their service as such. Commencing as of November 1, 2021, the Company agreed to compensate Mr. Herzog with $6,750 per month in cash compensation, together with a further $6,750 monthly to be accrued and deferred until management determines that the Company is in a position to make such payments. 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 President, Chief Executive Officer and Chief Financial Officer. As of the fiscal years ended June 30, 2026 and June 30, 2025, the Company has accrued $600,750 and $438,750 in outstanding compensation, respectively.
The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by the Company during the fiscal years ended June 30, 2026, 2025 and 2024, in all capacities for the accounts of our executive officers, including the Chief Executive Officer.
| Name and principal position | Year | Salary Paid in Cash |
Salary Accrued |
Other Compensation |
Total Compensation |
||||||||||||||
| Jonathan Herzog, | 2026 | $ | — | $ | 162,000 | $ | — | $ | 162,000 | ||||||||||
| President, CEO and CFO | 2025 | _--- | 162,000 | — | 162,000 | ||||||||||||||
| 2024 | 20,250 | 141,750 | — | 162,000 | |||||||||||||||
| Samuel Naparstek, | 2026 | $ | — | $ | — | $ | -- | $ | -- | ||||||||||
| Director * | 2025 | — | — | 100,000 | 100,000 | ||||||||||||||
| 2024 | — | — | — | — | |||||||||||||||
| Thomas Lapinski, | 2026 | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Former Chairman ** | 2025 | — | — | — | — | ||||||||||||||
| 2024 | — | — | — | — | |||||||||||||||
| * | Samuel Naparstek joined the Board as a Director subsequent to the end of fiscal 2024 effective July 30, 2024. Since 2021, Mr. Naparstek has served as a corporate consultant to the Company. In November 2024, the Company issued Mr. Naparstek 2,500,000 common shares at $0.04 per share for ongoing consulting services. |
| ** | Mr. Lapinski resigned as Chairman subsequent to the end of fiscal 2024 effective July 30, 2024. |
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Outstanding Equity Awards at Fiscal Year-End Table
The Company did not issue equity awards to executive officers during the year ended June 30, 2026.
Employment Agreements
None.
Grants of Plan Based Awards
We did not make any plan-based equity or non-equity awards grants to named executives during the years ended June 30, 2026 and 2025.
Option Exercises
There were no options exercised by our named officers during the years ended June 30, 2026 and 2025.
Compensation of Directors
As of the year ended June 30, 2026, our directors did not earn compensation for their service as a director for the years ended June 30, 2026 and 2025.
Pension, Retirement or Similar Benefit Plans
There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.
Executive Compensation Philosophy
Our Board of Directors determines the compensation given to our executive officers in their sole determination. Our Board of Directors reserves the right to pay our executives or any future executives a salary, and/or issue them shares of common stock issued in consideration for services rendered and/or to award incentive bonuses which are linked to our performance, as well as to the individual executive officer’s performance. This package may also include long-term stock-based compensation to certain executives, which is intended to align the performance of our executives with our long-term business strategies. Additionally, while our Board of Directors has not granted any performance base stock options to date, the Board of Directors reserves the right to grant such options in the future, if the Board in its sole determination believes such grants would be in the best interests of the Company.
Incentive Bonus
The Board of Directors may grant incentive bonuses to our executive officers and/or future executive officers in its sole discretion, if the Board of Directors believes such bonuses are in the Company’s best interest, after analyzing our current business objectives and growth, if any, and the amount of revenue we are able to generate each month, which revenue is a direct result of the actions and ability of such executives.
Long-Term, Stock Based Compensation
In order to attract, retain and motivate executive talent necessary to support the Company’s long-term business strategy we may award our executives and any future executives with long-term, stock-based compensation in the future, at the sole discretion of our Board of Directors.
| 34 |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
The following table sets forth certain information, as of September 28, 2026, with respect to the beneficial ownership of the outstanding common stock by (i) any holder of more than five (5%) percent; (ii) each of the Company’s executive officers and directors; and (iii) the Company’s directors and executive officers as a group. Except as otherwise indicated, each of the stockholders listed below has sole voting and investment power over the shares beneficially owned.
| Name of Beneficial Owner | Common Shares Beneficially Owned | Percentage of Ownership of Common Stock (1) | ||||||
| Jonathan Herzog (2) | 80,000,000 | 44.8 | % | |||||
| Thomas Lapinski (3) | 20,200,000 | 15.7 | % | |||||
| Roy Mansano (4) | 10,753,024 | 8.4 | % | |||||
| Aharonoff Family Trust (5) | 12,500,000 | 9.7 | % | |||||
| Shmuel Naparstek | 10,100,000 | 7.9 | % | |||||
| All officers and directors as a group (2 persons) | 90,100,000 | 50.5 | % | |||||
| (1) | Based on 128,511,487 shares of common stock outstanding as of September 28, 2026, together with securities exercisable or convertible into shares of common stock within 60 days of September 28, 2026 for each stockholder. Under the rules of the Securities and Exchange Commission, a person is deemed to be the beneficial owner of a security if such person has or shares the power to vote or direct the voting of such security or the power to dispose or direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities if that person has the right to acquire beneficial ownership within 60 days of September 28, 2025. Unless otherwise indicated by footnote, the named entities or individuals have sole voting and investment power with respect to the shares of common stock beneficially owned. |
| (2) | Includes (i) 30,000,000 shares of common stock of the Company, and (ii) 50,000,000 shares of common stock of the Company issuable upon conversion of 5,000,000 shares of Series A Preferred Stock held by Mr. Herzog. Each share of Series A Preferred Stock (i) may be converted at $0.01 per preferred share into 10 shares of common stock, and (ii) has voting rights of ten votes per share. |
| (3) | Includes 200,000 shares beneficially owned by Judy Lapinski, the spouse of Thomas Lapinski, the former Chairman of the Company. |
| (4) | Includes 3,000,000 shares of common stock owned directly by Mr. Mansano plus the following additional shares owned indirectly by Mr. Mansano through another entity he controls: 1,250,000 shares of common stock, 6,503,024 shares of common stock issued in September 2025 in full payment of the outstanding principal amount and accrued interest of the Company’s convertible note held by Mr. Mansano (the “Convertible Note”). |
| (5) | Voting and investment power of the Aharonoff Family Trust is held by Daniel and Vardit Aharonoff. |
No Director, executive officer, affiliate or any owner of record or beneficial owner of more than 5% of any class of voting securities of the Company is a party adverse to the Company or has a material interest adverse to the Company.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
The following includes a summary of transactions since the beginning of the 2025 fiscal year, or any currently proposed transaction, in which the Company was or is to be a participant and the amount involved exceeded or exceeds the lesser of $120,000 or one percent of the average of its total assets at year-end for the last two completed fiscal years, and in which any related person had or will have a direct or indirect material interest (other than compensation described under “Executive Compensation”). Except for the bridge loans received from the Company’s President and CEO, we believe the terms obtained or consideration that we paid or received, as applicable, in connection with the transactions described below were comparable to terms available or the amounts that would be paid or received, as applicable, in arm’s-length transactions.
Transactions with Related Persons
Since July 1, 2024, the Company has completed the following transactions with related persons:
| a) | On September 19, 2025 the Company issued 6,503,024 common shares at $0.03 per share to an entity controlled by Roy Mansano to satisfy in full payment on an existing convertible note with the Company. Mr. Mansano is considered a related person due to his ownership of greater than 5% of the Company’s issued and outstanding common shares. |
| b) | On November 12, 2024, the Company issued 2,500,000 common shares at $0.04 per share to Samuel Naparstek, a Director of the Company, for corporate consulting services. |
| c) | On November 26, 2025, the Company’s President, CEO and Director Jonathan Herzog extended the Company a bridge loan advance of $10,000 with no specified due date and no interest payable. In the quarter ended March 31, 2026, Mr. Herzog advanced to the Company an additional $20,000 under the same terms. |
| d) | The Company maintains several credit cards and business lines of credit with large financial institutions. Jonathan Herzog, the Company’s President, CEO and Director, has personally guaranteed these credit arrangements and is responsible for repayment if the Company is unable to repay the amounts borrowed. |
| 35 |
Procedures for Approval of Related Party Transactions
Our Board of Directors is charged with reviewing and approving all potential related party transactions. All such related party transactions must then be reported under applicable SEC rules. We have not adopted other procedures for review, or standards for approval, of such transactions, but instead review them on a case-by-case basis.
Director Independence
Because our common stock is not currently listed on a national securities exchange, we currently use the definition in Nasdaq Listing Rule 5605(a)(2) for determining director independence, which provides that an “independent director” is a person other than an executive officer or employee of the company or any other individual having a relationship which, in the opinion of the company's Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Our Board of Directors has undertaken a review of its composition and the independence of each director. Based on the review of each director’s background, employment and affiliations, including family relationships, the Board of Directors has determined that there are no “independent directors” under the rules and regulations of the SEC.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Fiscal Year Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Audit fees | 35,874 | $ | 31,385 | |||||
| Audit-related fees | — | — | ||||||
| Tax fees | — | — | ||||||
| All other fees | — | — | ||||||
| Total fees | $ | 35,874 | $ | 31,385 | ||||
AUDIT FEES. Consists of fees billed for professional services rendered for the audit of the Company’s consolidated financial statements and review of the interim consolidated financial statements included in quarterly reports and services in connection with statutory and regulatory filings or engagements.
AUDIT-RELATED FEES. Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s consolidated financial statements and are not reported under “Audit Fees.”
TAX FEES. Consists of fees billed for professional services for tax compliance, tax advice and tax planning.
ALL OTHER FEES. Consists of fees for products and services other than the services reported above.
Policy On Audit Committee Pre-Approval Of Audit And Permissible Non-Audit Services Of Independent Auditors
The Company currently does not have a designated Audit Committee, and accordingly, the Company’s Board of Directors’ policy is to pre-approve all audit and permissible non-audit services provided by the independent auditors. These services may include audit services, audit-related services, tax services and other services. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. The independent auditors and management are required to periodically report to the Company’s Board of Directors regarding the extent of services provided by the independent auditors in accordance with this pre-approval, and the fees for the services performed to date. The Board of Directors may also pre-approve particular services on a case-by-case basis.
| 36 |
ITEM 15. EXHIBITS
| 37 |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Date: October 13, 2026
| Okmin Resources, Inc. | |||
| By: | /s/ Jonathan Herzog | ||
| Jonathan Herzog | |||
| President, Chief Executive Officer and Chief Financial Officer | |||
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||
|
|
||||
| /s/ Jonathan Herzog | President, Chief Executive Officer, Chief Financial Officer and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) | October 13, 2026 | ||
| Jonathan Herzog |
POWER OF ATTORNEY
Know all persons by these presents that each individual whose signature appears below constitutes and appoints Jonathan Herzog, our Chief Executive Officer and Chief Financial Officer as a true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to (i) act on, sign and file with the Securities and Exchange Commission any and all amendments to this Report together with all schedules and exhibits thereto, (ii) act on, sign and file with the Securities and Exchange Commission any and all exhibits to this Report and any and all exhibits and schedules thereto, (iii) act on, sign and file any and all such certificates, notices, communications, reports, instruments, agreements and other documents as may be necessary or appropriate in connection therewith and (iv) take any and all such actions which may be necessary or appropriate in connection therewith, granting unto such agent, proxy and attorney-in-fact, full power and authority to do and perform each and every act and thing necessary or appropriate to be done, as fully for all intents and purposes as he might or could do in person, and hereby approving, ratifying and confirming all that such agent, proxy and attorney-in-fact, or any of his or their substitute or substitutes may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| Signature | Title | Date | ||
| /s/ Jonathan Herzog | Chief Executive Officer, Chief Financial Officer and Director | October 13, 2026 | ||
| Jonathan Herzog | (Principal Executive Officer and Principal Financial Officer and Principal Accounting Officer) |
| 38 |
INDEX TO FINANCIAL STATEMENTS
| Page(s) | |
| Report of Independent Registered Public Accounting Firm | F-2 |
| Consolidated Balance Sheets – As of June 30, 2026 and 2025 | F-3 |
| Consolidated Statements of Operations – For the Years Ended June 30, 2026 and June 30, 2025 | F-4 |
| Consolidated Statements of Changes in Stockholders’ Equity (Deficit) – For the Years Ended June 30, 2026 and June 30, 2025 | F-5 |
| Consolidated Statements of Cash Flows – For the Years Ended June 30, 2026 and June 30, 2025 | F-6 |
| Notes to Consolidated Financial Statements | F-7 |
| F-1 |
|
VICTOR MOKUOLU, CPA PLLC Accounting | Advisory | Assurance & Audit | Tax |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and
Board of Directors of Okmin Resources, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Okmin Resources, Inc. and Subsidiaries (the “Company”) as of June 30, 2026 and 2025, and the related consolidated statements of operations, changes in stockholders’ equity (deficit), and cash flows, for the years ended June 30, 2026 and 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for the years ended June 30, 2026 and 2025 in conformity with accounting principles generally accepted in the United States of America.
Substantial Doubt about the Company's ability to continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3, Going Concern, to the financial statements, the Company has an accumulated deficit of $2,672,984 as of June 30, 2026, compared to an accumulated deficit of $2,305,685 as of June 30, 2025. Additionally, as of June 30, 2026, the Company had a working capital deficit of $708,433, compared to a working capital deficit of $742,439 as of June 30, 2025. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s evaluation of the events and conditions and management’s plans regarding these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
| www.vmcpafirm.com | Ph: 713.588.6622 | Fax: 1.833.694.1494 | ask@vmcpafirm.com |
| F-2 |
|
VICTOR MOKUOLU, CPA PLLC Accounting | Advisory | Assurance & Audit | Tax |
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
 | |
| We have served as the Company’s auditor since 2024. | |
|
October 13, 2026 PCAOB ID: |
|
| www.vmcpafirm.com | Ph: 713.588.6622 | Fax: 1.833.694.1494 | ask@vmcpafirm.com |
| F-3 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30 | June 30 | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Other current assets | ||||||||
| Total current assets | ||||||||
| Oil and gas properties, net | ||||||||
| Black Rock Joint Venture | ||||||||
| Other assets and restricted cash | ||||||||
| Total noncurrent 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 | ||||||||
| Short-term borrowing | ||||||||
| Other liabilities | ||||||||
| Total current liabilities | ||||||||
| Stockholders’ Equity (Deficit): | ||||||||
| Preferred Stock, $ par value, shares authorized, shares issued and outstanding at June 30, 2026 and 2025, respectively | ||||||||
| Common stock, $ par value, shares authorized, and and issued and outstanding at June 30, 2026 and 2025, respectively | ||||||||
| 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 consolidated financial statements.
| F-4 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year | Year | |||||||
| Ended | Ended | |||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Revenue | ||||||||
| Oil and gas sales | $ | $ | ||||||
| Cost of revenue | ||||||||
| Gross profit (loss) | ( | ) | ( | ) | ||||
| Operating expenses: | ||||||||
| General and administrative expense | ||||||||
| Depreciation, depletion and amortization | ||||||||
| Impairment of oil and gas properties | ||||||||
| Allowance for doubtful accounts | ||||||||
| Total operating expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Other income | ||||||||
| Interest income | ||||||||
| Litigation settlement | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| Gain on forgiveness of accounts payable | ||||||||
| Total other income (expense) | ( | ) | ||||||
| Loss before taxes | ( | ) | ( | ) | ||||
| Provision for income taxes | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Net income (loss) per share | ||||||||
| Basic | $ | ( | ) | $ | ( | ) | ||
| Weighted average number of shares outstanding | ||||||||
| Basic | ||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-5 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
For the Years Ended June 30, 2026 and 2025
| 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, June 30, 2025 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
| Shares issued for debt conversion | — | |||||||||||||||||||||||||||
| Shares issued for services | — | |||||||||||||||||||||||||||
| Private placement | — | |||||||||||||||||||||||||||
| Net loss | — | — | ( | ) | ( | ) | ||||||||||||||||||||||
| Balance June 30, 2026 | $ | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
| F-6 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
Year Ended | Year Ended | |||||||
| June 30, 2026 | June 30, 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operations | ||||||||
| Depreciation and amortization | ||||||||
| Impairment of oil and gas properties | ||||||||
| Allowance for doubtful accounts | ||||||||
| Bad debt recovery | ||||||||
| Gain on forgiveness of accounts payable | ( | ) | ||||||
| Issuance of common stock for services | ||||||||
| Changes in assets and liabilities | ||||||||
| Accrued oil and gas sales | ( | ) | ||||||
| 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 | ||||||||
| (Repayment of) cash from short-term borrowing | ( | ) | ||||||
| Net cash from 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 consolidated financial statements.
| F-7 |
OKMIN RESOURCES INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 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 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 the Pushmataha project, a natural gas project in Southeast Oklahoma |
The Company also retains a 10% overriding royalty
interest in West Sheppard Pool, a natural gas project in Northeast Oklahoma, once operator receives $
During the fiscal year ended June 30, 2026, the
Company disposed of its entire interest in the Blackrock JV for consideration of $
The Company has not conducted any reserve evaluations or calculations, and there are currently no proven reserves on any of the Company’s properties.
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.
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.
The Company has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act permitted for Emerging Growth Companies. This is a change from prior periods and the election is irrevocable. The Company has adopted all standards at public company effective dates.
The Company has elected not to use the extended transition period permitted for Emerging Growth Companies.
| F-8 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
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
All highly liquid temporary cash investments with
an original maturity of three months or less are considered to be cash equivalents. At June 30, 2026, the Company maintained its cash
and cash equivalents of $
Segment Information
ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas and business segments. The Company’s chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities in the Oil and Gas sector as operating and reportable segment at the consolidated level. The CODM uses consolidated net income (loss) as the sole measure of segment profit or loss for purposes of assessing performance and allocating resources. The CODM reviews consolidated financial information, including revenues and expenses as presented in the consolidated statements of operations. All financial information disclosed herein represents the results of the Company’s single reportable segment. The accounting policies of the reportable segment are the same as those described in the summary of significant accounting policies.
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. The Company does not currently have any proven oil and gas reserves, and the depreciation, depletion and amortization charges for the years ended June 30, 2026 and 2025 has consisted solely of depreciation of production and gathering equipment located on the Company’s projects. The Company provides for depreciation over the estimated life of each asset on a straight-line basis over 7 years.
| F-9 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
Asset Retirement Obligations
The fair value of a liability for an asset’s retirement obligation (“ARO”) is recognized in the period in which it is incurred if a reasonable estimate of fair value can be made, with the corresponding charge capitalized as part of the carrying amount of the related 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 as there are no established reserves, and the properties are in production. The amount of any future obligation is not reasonably estimable at present, but the obligation to plug and reclaim wells is likely to occur in future periods as they are permanently removed from production. Therefore, the Company has not recognized any asset retirement obligation liabilities as of June 30, 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 payable, and accrued liabilities. 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.
Allowance for Credit Losses
The Company accounts for expected credit losses
in accordance with ASC 326, “Financial Instruments – Credit Losses (CECL)”. Management evaluates the collectability
of receivables and records an allowance for expected credit losses based on factors including the counterparty’s credit history,
economic conditions, and historical repayment experience. During the fiscal year ended June 30, 2026, the Company recorded an allowance
for doubtful accounts of $
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 in accordance with ASC 606, which includes determining revenue recognition through the following steps: (1) identify contracts with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. 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.
| F-10 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
Basic earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding in the period. Diluted earnings (loss) per common share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common shares.
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.
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.
Recently Issued Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The ASU requires disclosure of significant segment expenses regularly provided to the chief operating decision maker, an amount for other segment items, and the measure of segment profit or loss used by the chief operating decision maker, including for entities with a single reportable segment. We adopted ASU 2023-07 for the year ended June 30, 2025. Adoption did not have a material effect on the Company’s financial position or results of operations.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU enhances income tax disclosures, primarily related to the rate reconciliation and income taxes paid. For public business entities, the amendments are effective for annual periods beginning after December 15, 2024. We adopted ASU 2023-09 during the fiscal year ended June 30, 2026. The adoption did not have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses”. ASU 2024-03 requires public business entities to provide additional disclosures regarding specified categories of expenses included within relevant income statement captions. The standard is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related 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.
| F-11 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
3. GOING CONCERN
The Company currently has limited operations. These 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 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 financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
| F-12 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 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 entered into
an operating agreement covering the Vitt Lease with Petron Oil and Gas LLC (“Petron”), pursuant to which Petron would handle
the reworking of the existing wells and other day to day operations at the lease. Under the operating agreement, the company has fulfilled
its commitment for expenditures to rework the existing wells and to cover operator costs and expenses of at least $
During the 4th quarter of fiscal 2026, Petron notified the Company that its operator’s license has expired and is not presently up for renewal, but they are currently in discussions with other licensed operators to assume operation of the lease. Additionally, due to a lack of ongoing production over the past year, there is a risk of the lease lapsing, as such we have written off the entire capital value of this project, though are still exploring ways to continue developing the property.
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, with no revenue recorded in the last fiscal year ended June 30, 2026.
During the year ended June 30, 2026, we wrote off the remaining capitalized value of the Vitt Lease of $
West Sheppard Pool Field in North East Oklahoma
In August 2021, the Company entered into an option
agreement with Blackrock to acquire a
| F-13 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 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%.
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. For the fiscal
year ended June 30, 2026, we recorded $
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 fiscal year
ended June 30, 2026, lease operating expenditures were $
| F-14 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
The following table details the carrying value of our oil and gas property interests for the year ended June 30, 2025 and 2026.
| Schedule of oil and gas property interests | ||||||||||||||||
| Blackrock JV | West Sheppard Pool | Pushmataha | Vitt (Kansas) | |||||||||||||
| Capitalized Value, July 1, 2024 | ||||||||||||||||
| Impairment | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Depreciation | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Capitalized Value, June 30, 2025 | ||||||||||||||||
| Impairment / reclassification | ( | ) | ( | ) | ||||||||||||
| Property exchange transaction | ( | ) | ||||||||||||||
| Depreciation | ( | ) | ( | ) | ( | ) | ||||||||||
| Capitalized Value, June 30, 2026 | ||||||||||||||||
5. IMPAIRMENT OF OIL AND GAS PROPERTIES
During the year ended June 30, 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 year ended June 30, 2026, an impairment charge of $
6. REVENUES AND COST OF REVENUES
For the year ended June 30, 2026, the Company
had production revenue of $
| Schedule of production and revenue | ||||||||||||||||||||||||||||
Oil and Gas production by property For the fiscal year ended June 30, 2026 | ||||||||||||||||||||||||||||
| Oil | Natural Gas | |||||||||||||||||||||||||||
| Project | Production (BBLS) | Avg. Cost ($) | Avg. Sales Price ($) | Production (MCF) | Avg. Cost ($) | Avg. Sales Price ($) | Total Revenue ($) | |||||||||||||||||||||
| Black Rock JV | ||||||||||||||||||||||||||||
| Pushmataha | ||||||||||||||||||||||||||||
| Vitt Lease | ||||||||||||||||||||||||||||
Oil and Gas production by property For the fiscal year ended June 30, 2025 | ||||||||||||||||||||||||||||
| Oil | Natural Gas | |||||||||||||||||||||||||||
| Project | Production (BBLS) | Avg. Cost ($) | Avg. Sales Price ($) | Production (MCF) | Avg. Cost ($) | Avg. Sales Price ($) | Total Revenue ($) | |||||||||||||||||||||
| Black Rock JV | ||||||||||||||||||||||||||||
| Pushmataha | ||||||||||||||||||||||||||||
| West Sheppard | ||||||||||||||||||||||||||||
| Vitt Lease | ||||||||||||||||||||||||||||
| F-15 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
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. SHORT-TERM BORROWING
The Company maintains several credit cards and
business lines of credit with large financial institutions. Interest is charged on the outstanding balance of each account monthly, and
interest rates vary from 16.0-24.74% annually. Interest expense related to this borrowing totaled $
Jonathan Herzog, the Company’s President, CEO and Director, has personally guaranteed these credit arrangements and is responsible for repayment if the Company is unable to repay the amounts borrowed.
8. IMPAIRMENT OF DOUBTFUL ACCOUNTS
The Company accounts for expected credit losses
in accordance with ASC 326, “Financial Instruments – Credit Losses (CECL)”. Management evaluates the collectability
of receivables and records an allowance for expected credit losses based on factors including the counterparty’s credit history,
economic conditions, and historical repayment experience. During the fiscal year ended June 30, 2026, the Company recorded an allowance
for doubtful accounts of $
9. STOCKHOLDERS’ EQUITY
Preferred stock
The Company is authorized
to issue shares of preferred stock with a par value of $ per share. As at June 30, 2026, the Company had a total of
shares of Series A preferred stock issued and outstanding.
Common stock
The Company is authorized to issue shares of common stock with a par value of $ per share.
At June 30, 2026, the Company had shares of its common stock issued and outstanding.
| F-16 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
The Company has issued the following shares in the two most recent fiscal years:
| · | On November 12, 2024, the board of directors approved the issuance of common shares at $ per share in connection with consulting services for the Company’s filings, preparation, compliance matters and business activities. |
| · | On November 12, 2024, the Company issued common shares at $ per share to Samuel Naparstek for corporate consulting services. |
| · | On December 3, 2024, the Company issued common shares at $ per share to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties. |
| · | On June 24, 2025, the Company issued common shares at a deemed price of $ per share for legal fees. |
| · | On September 19, 2025 the Company issued common shares at $ per share to satisfy in full payment on an existing convertible note with the Company. |
| · | On September 19, 2025, the Company issued common shares at $ 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 common shares at $
per share in connection with a private placement for proceeds of $ |
| · | On December 30, 2025, the Company issued common shares at $ 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 common shares at $ per
share in connection with a private placement for proceeds of $ |
| · | On March 27, 2026, the Company issued common shares at $ per share to a corporate advisor. |
| · | On June 29, 2026, the Company issued common shares at $ to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties. |
| 10. | 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 fiscal year ended June 30, 2026, the former
auditor settled the lawsuit. The Company’s portion of the settlement was $
| 11. | TERMINATED MERGER AGREEMENT |
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 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. In April 2026, the Company announced that these closing conditions were not satisfied within the required timeframe, and the merger agreement was terminated. The Company did not incur any specific costs due to the merger agreement or its termination.
| F-17 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
| 12. | NET INCOME PER COMMON SHARE |
A reconciliation of the components of net loss per common share for the years ended June 30, 2025 and 2024 are presented below:
| Schedule of components of net loss per common share | ||||||||
| 2026 | 2025 | |||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Basic weighted average number of common shares outstanding | ||||||||
| Effect of dilutive securities | ||||||||
| Preferred Stock | ||||||||
| Convertible Debt | ||||||||
| Effect of dilutive securities | ||||||||
| Diluted weighted average number of common shares outstanding | ||||||||
| Basic loss per common share | $ | ( | ) | $ | ( | ) | ||
| Diluted loss per common share | $ | ( | ) | $ | ( | ) | ||
The numerator for basic earnings per share is net income attributable to common stockholders. The numerator for diluted earnings per share is net income available to common stockholders.
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, 2026.
During the year ended June 30, 2026, the Company issued the following common shares for compensation:
| a) | common shares at $ per share to Sierra Land Resources, LLC in connection with an ongoing services agreement, whereby Mr. Ed Sierra serves as the Company’s Advisor on Land and Resource Development, which was initially entered into on July 2022. Under the agreement, the Company issues common shares to Sierra for their work in lieu of cash fees based upon the average price of the Company’s common stock for the month in which the services were performed. |
| b) | common shares at $ per share to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties. |
| c) | common shares at $ per share to Andrew Glashow upon his initial engagement for corporate advisory services. |
| d) | common shares at $ to Sierra Land Resources, LLC in connection with ongoing consulting on the Company’s oil and gas properties. |
| F-18 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
During the year ended June 30, 2025, the Company issued the following common shares for compensation:
| a) | common shares at a deemed value of $ |
| b) | common shares were issued at a deemed price of $ per share for a deemed value of $ |
| c) | common shares were issued at $ per share for a deemed value of $ |
| d) | common shares were issued at $ per share at a deemed value of $ |
14. INCOME TAXES
A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:
| Schedule effective income tax reconciliation | ||||||||
| Fiscal years ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Federal statutory income tax rate | ( | )% | ( | )% | ||||
| State income taxes, net of federal benefit | ( | ) | ( | ) | ||||
| Permanent differences | ||||||||
| Change in valuation allowance | ||||||||
| Provision for income taxes | % | % | ||||||
The benefit for income taxes differed from the amount computed using the US federal income tax rate of 21.0% for June 30, 2026 and 2025 were as follows:
| Schedule of income tax provision | ||||||||
| Fiscal years ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Income tax (benefit) | ( | ) | ( | ) | ||||
| Non-deductible | ||||||||
| Change in valuation allowance | ||||||||
| Income tax (benefit) per financial statements | ||||||||
Net operating loss carry forwards of $
| F-19 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
15. 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. The Company and Mr. Herzog have not entered into a formal written employment agreement in relation to Mr. Herzog’s
compensation and employment terms. None of the cash portion of Mr. Herzog’s compensation was paid during fiscal 2026 or fiscal 2025
ended June 30, and therefore the cash compensation portion has also been accrued. As of June 30, 2026 and June 30, 2025, the Company has
accrued $
The Board of Directors approved a bridge financing
facility with Mr. Herzog for up to $
On November 12, 2024, the Company issued common shares at $ per share to Samuel Naparstek, a Director of the Company, for corporate consulting services.
On September 19, 2025 the Company issued common shares at $ per share to an entity controlled by Roy Mansano to satisfy in full payment on an existing convertible note with the Company. Mr. Mansano is considered a related person due to his ownership of greater than 5% of the Company’s issued and outstanding common shares.
16. 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 $
On January 3, 2023, the convertible loan agreement was amended to limit the Investor’s ability to convert the loan to only that portion of the outstanding loan amount that would result in the Investor being the beneficial owner of not more than 9.99% of the Company’s class of common stock. In the quarter ended September 30, 2023, the Company, in agreement with the Investor, temporarily suspended monthly repayments. The loan continued to accrue interest during this period.
The Company has determined that the loan is accounted for as a liability and not equity as repayment is being made in cash pursuant to the repayment schedule, and no conversion of any of the principal or interest into common shares has been made. Management assessed there is no embedded derivative and therefore no need for the bifurcation of proceeds at initial recognition.
In September 2025, the Company reached an agreement
with the Investor to convert all the principal and interest outstanding as of June 30, 2025 into common shares of the Company at a price
of $ per share. All interest accrued on the note after June 30, 2025 was forgiven. The outstanding principal converted was $
| F-20 |
OKMIN RESOURCES INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2026 |
17. SUBSEQUENT EVENTS
In July 2026,
The Company has evaluated subsequent events through the filing date of these financial statements and has determined that there are no such events that are material to the financial statements to be disclosed.
F-21
Exhibit 31.1
CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Jonathan Herzog, certify that:
1. I have reviewed this Annual Report on Form 10-K for the year ended June 30, 2026, of Okmin Resources, Inc.;
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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls 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, and evaluated the effectiveness of our internal control over financial reporting, and printed in this report our conclusions about the effectiveness of our internal control over financial reporting, as of the end of the period covered by this report based on such evaluation;
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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
| Dated: October 13, 2026 | |
| /s/ Jonathan Herzog | |
| Jonathan Herzog | |
| Chief Executive Officer and President (principal executive officer) |
Exhibit 31.2
CERTIFICATION OF PRINCIPAL FINANCIAL AND ACCOUNTING
OFFICER
PURSUANT TO SECTION 302 OF THE
SARBANES-OXLEY ACT OF 2002
I, Jonathan Herzog, certify that:
1. I have reviewed this Annual Report on Form 10-K for the year ended June 30, 2026, of Okmin Resources, Inc.;
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 and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls 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, and evaluated the effectiveness of our internal control over financial reporting, and printed in this report our conclusions about the effectiveness of our internal control over financial reporting, as of the end of the period covered by this report based on such evaluation;
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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.
| Dated: October 13, 2026 | |
| /s/ Jonathan Herzog | |
| Jonathan Herzog | |
| Chief Financial Officer (principal financial and accounting officer) |
Exhibit 32.1
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the annual report on Form 10-K of Okmin Resources, Inc. (the “Company”) for the year ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jonathan Herzog, the Chief Executive Officer and President, of the Company, do hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: October 13, 2026
| /s/ Jonathan Herzog | |
| Jonathan Herzog | |
| Chief Executive Officer and President | |
| (principal executive officer) |
Exhibit 32.2
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the annual report on Form 10-K of Okmin Resources, Inc. (the “Company”) for the year ended June 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jonathan Herzog, the Chief Financial Officer, of the Company, do hereby certify pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge and belief that:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: October 13, 2026
| /s/ Jonathan Herzog | |
| Jonathan Herzog | |
| Chief Financial Officer (principal financial and accounting officer) |