Quarterly report pursuant to Section 13 or 15(d)

Related Party Transactions

v3.21.1
Related Party Transactions
6 Months Ended
Jun. 30, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

10. RELATED PARTY TRANSACTIONS

 

On April 10, 2019, Jovian, a related party, purchased 4 units of the debt private placement with gross proceeds of $50,000. These proceeds included $10,000 of cash and a $40,000 reduction in the Jovian LOC. At maturity, the holder has the option to either collect the principal or convert the balance into shares/warrants. The conversion would be for 625,000 shares of common stock and warrants to purchase 1,250,000 shares of common stock at a price of $0.08 per unit.

 

On April 10, 2019, Joel Oppenheim, a related party, purchased 4 units of the debt private placement with gross proceeds of $50,000. These proceeds included $10,000 of cash and a $10,000 reduction in a bridge loan and a $30,000 reduction in shareholders advances. At maturity, the holder has the option to either collect the principal or convert the balance into shares/warrants. The conversion would be for 625,000 shares of common stock and warrants to purchase 1,250,000 shares of common stock at a price of $0.08 per unit.

 

On April 10, 2019, American Resources Offshore, Inc., a related party, purchased 2 units of the debt private placement with gross proceeds of $25,000. These proceeds included $5,000 of cash and a $20,000 reduction in a bridge loan. At maturity, the holder has the option to either collect the principal or convert the balance into shares/warrants. The conversion would be for 312,500 shares of common stock and warrants to purchase 625,000 shares of common stock at a price of $0.08 per unit.

 

On April 10, 2019, Leo Womack, a related party, purchased 2 units of the debt private placement with gross proceeds of $25,000. These proceeds included $5,000 of cash and a $3,000 reduction in a shareholder advance balance and a $17,000 reduction in accrued board compensation from 2016. At maturity, the holder has the option to either collect the principal or convert the balance into shares/warrants. The conversion would be for 312,500 shares of common stock and warrants to purchase 625,000 shares of common stock at a price of $0.08 per unit.

 

Note that since the related party shares discussed above were not issued until August 2019, they were recorded as “Shares to be Issued” which is an equity account that is reported independently in the Statement of Changes in Stockholders’ Equity statement.