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NOTE 4. RELATED PARTY TRANSACTIONS
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12 Months Ended |
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Dec. 31, 2012
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| Related Party Transactions Disclosure [Text Block] |
NOTE
4. RELATED PARTY TRANSACTIONS
During
the year ended December 31, 2011, the Company had a note
payable to a Company officer. The note was unsecured and
payable upon demand. The note bore interest at 8% per annum
if not paid promptly upon demand. The outstanding principal
balance on the note was $0 and $34,201 at December 31, 2012
and December 31, 2011, respectively. The balance
was paid in full during the three months ended June 30,
2012.
During
the year ended December 31, 2011, the Company had a note
payable to a Company officer. The note is unsecured and
payable upon demand. The note bore interest at 8% per
annum. The outstanding principal balance on the note was $0
and $8,100 at December 31, 2012 and December 31, 2011,
respectively. The balance was paid in full
during the three months ended June 30, 2012.
During
the year ended December 31, 2011, the Company loaned
$9,800 to a Company affiliated through common control.
The receivable balance was $24,800 at December 31,
2011. The receivable balance was forgiven in
connection with the Company’s change in control on
May 4, 2012. The Company recorded a bad debt
expense of $24,800 during the year ended December 31,
2012.
On
March 14, 2012 the Company entered into a promissory note
with a related party in the amount of
$100,000. The note amount bears a 0% interest
rate, and was unsecured. The note was paid in
full during the three months ended June 30, 2012.
In
addition, through June 30, 2012, related parties contributed
another $5,044 to the Company for operations. The payable was
paid in full during the three months ended June 30,
2012.
At
December 31, 2012 the Company had accounts receivable –
related-party of $4,805. This amount pertains to the net
payment due from Kingman Operating Company for oil sold in
December 2012.
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