Okmin Resources, Inc. reported its financial results for the three months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the same period in the previous year. The company generated oil and gas sales of $5,991, a substantial decline from $22,677 in the prior year, primarily attributed to lower natural gas prices and suspended gas sales due to equipment failures at a compressor station. The gross profit for the quarter was a loss of $3,726, an improvement from a loss of $9,570 in the same quarter of 2023.

Total operating expenses decreased to $60,738 from $106,166 year-over-year, contributing to a reduced loss from operations of $64,464, compared to a loss of $115,736 in the prior year. The net loss for the quarter was $67,785, down from $111,835 in the same period last year. This reduction in losses reflects improved cost management despite the drop in revenue.

As of September 30, 2024, Okmin Resources reported total current assets of $73,602, slightly up from $72,281 as of June 30, 2024. However, total current liabilities increased to $600,939 from $533,159, leading to a working capital deficit of $527,337, compared to $460,878 in the previous quarter. The accumulated deficit also widened to $(1,776,303) from $(1,708,518).

Strategically, Okmin Resources has been active in acquiring working interests in various oil and gas leases. Notably, the company acquired a 72.5% net revenue interest in the Vitt Lease in Neosho County, Kansas, for $25,000, with additional expenditures totaling approximately $108,250 as of June 30, 2024. The company also holds a 50% joint venture interest in the West Sheppard Pool Field and the Pushmataha Gas Field, with ongoing commitments for operational expenditures.

The company’s cash position improved slightly, with cash and cash equivalents at $73,602 as of September 30, 2024, compared to $72,281 at the end of June 2024. However, the company continues to rely on debt and equity financing to support its operations, with anticipated cash needs of approximately $300,000 for the fiscal year 2025.

Okmin Resources acknowledged material weaknesses in its internal controls over financial reporting, citing insufficient documentation and lack of segregation of duties, which have been attributed to a shortage of qualified personnel and resources. The company has not reported any off-balance sheet arrangements that could affect its financial condition.