Schedule of Related Party Notes Payable |
The
chart below summarizes the related party Notes Payable as of December 31, 2018 and 2017.
|
|
Interest
rate |
|
|
Date
of maturity |
|
December
31, 2018 |
|
|
December
31, 2017 |
|
Leo
Womack (i) |
|
|
— |
|
|
On
demand |
|
|
3,000 |
|
|
|
— |
|
Lee
Lytton (i) |
|
|
— |
|
|
On
demand |
|
|
3,500 |
|
|
|
3,500 |
|
Quinten
Beasley |
|
|
10 |
% |
|
October
14, 2016 |
|
|
10,000 |
|
|
|
10,000 |
|
Joel
Oppenheim (i) |
|
|
— |
|
|
On
demand |
|
|
215,333 |
|
|
|
47,000 |
|
Jovian
Petroleum Resources (i) |
|
|
— |
|
|
On
demand |
|
|
— |
|
|
|
146,600 |
|
Bow
(i) |
|
|
— |
|
|
On
demand |
|
|
33,144 |
|
|
|
— |
|
Blue
Sky Resources (i) |
|
|
— |
|
|
On
demand |
|
|
131,699 |
|
|
|
— |
|
Jovian
Petroleum Resources (ii) |
|
|
3.5 |
% |
|
February
9, 2019 |
|
|
35,210 |
|
|
|
— |
|
Ivar
Siem (iii) |
|
|
12 |
% |
|
October
17, 2018 |
|
|
20,000 |
|
|
|
— |
|
Joel
Oppenheim (iii) |
|
|
12 |
% |
|
October
17, 2018 |
|
|
10,000 |
|
|
|
— |
|
Blue
Sky Resources (iv) |
|
|
9 |
% |
|
May
31, 2019 |
|
|
148,862 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
$ |
610,748 |
|
|
$ |
207,100 |
|
|
(i) |
Balances
are non-interest bearing and due on demand. |
|
(ii) |
On
February 9, 2018, the Company entered into a Revolving Line of Credit Agreement (“LOC”) for $200,000 (subsequently
increased to $500,000 on April 12, 2018) with Jovian Petroleum Corporation. The CEO of Jovian is Quinten Beasley, our former
director (resigned October 31, 2018), and 25% of Jovian is owned by Zel C. Khan, our CEO and director. The initial agreement
is for a period of 6 months and can be extended for up to 5 additional terms of 6 months each. All amounts advanced pursuant
to the LOC will bear interest from the date of advance until paid in full at 3.5% simple interest per annum. Interest will
be calculated on a basis of a 360-day year and charged for the actual number of days elapsed. Subsequent to year-end this
LOC has been extended until December 31, 2019. |
|
(iii) |
On
August 17, 2018, the Company sold an aggregate of $90,000 in convertible promissory notes (the “Director Convertible
Notes”), to the Company’s directors, Ivar Siem ($20,000) through an entity that he is affiliated with; Leo Womack
($60,000); and Joel Oppenheim ($10,000). The Director Convertible Notes accrue interest at the rate of 12% per annum until
paid in full and were due and payable on October 17, 2018. The amount owed may be prepaid at any time without penalty. The
outstanding principal and interest owed under the Director Convertible Notes are convertible into common stock of the Company,
from time to time, at the option of the holders of the notes, at a conversion price of $0.10 per share. As additional consideration
for entering into the notes, the Company agreed to grant warrants to purchase one share of the Company’s common stock
at an exercise price of $0.10 per share for each dollar loaned pursuant to the Director Convertible Notes (the “Bridge
Note Warrants”). The warrants had a contractual life of one year. As such, the Company granted (a) 20,000 Bridge Note
Warrants to an entity affiliated with Ivar Siem; (b) 60,000 Bridge Note Warrants to Leo Womack; and (c) 10,000 Bridge Note
Warrants to Joel Oppenheim. The Director Convertible Notes contain standard and customary events of default. The Company fair
valued the warrants issued using the Black-Scholes Option Pricing Model for a total fair value of $6,249. On October 22, 2018,
$60,000 in Director Convertible Notes were settled by offsetting against $60,000 proceeds required for the exercise of warrants. |
|
(iv) |
On
June 8, 2018, the Company entered into the Acquisition Note with Blue Sky in the amount of CAD$406,181. The Note bears interest
at 9% per annum and is due in full at maturity on November 30, 2018. The Company may, at its sole discretion, extend the maturity
date for a period of six months with notice to the lender and payment of 25% of the principal amount. At December 31, 2018,
the maturity date had been extended to May 31, 2019. On April 1, 2019, the Company utilized its LOC with Jovian to pay off
in its entirety the June 8, 2018 Acquisition Note with Blue Sky. |
|