Annual report pursuant to Section 13 and 15(d)

RELATED PARTY NOTES PAYABLE (Tables)

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RELATED PARTY NOTES PAYABLE (Tables)
12 Months Ended
Dec. 31, 2020
Related Party Notes Payable  
SCHEDULE OF RELATED PARTY NOTES PAYABLE

The chart below summarizes the related party Notes Payable as of December 31, 2020 and 2019.

 

    Interest rate     Date of maturity   December 31, 2020     December 31, 2019  
Lee Lytton (i)         On demand           3,500  
Quinten Beasley     10 %   October 14, 2016     5,000       10,000  
Joel Oppenheim         On demand           217,208  
Joel Oppenheim     12 %   On demand           15,000  
Jovian Petroleum Corporation (ii)     3.5 %   December 31, 2021     188,285       362,583  
Ivar Siem (vi)     12 %   On demand     200,000       100,000  
Ivar Siem (vi)     No interest     On demand     50,000       50,000  
Joel Oppenheim (iii)     12 %   December 31, 2019           200,000  
Mark Allen–SUDS Development (ix)     9 %   September 2, 2021     55,000        
Mark Allen-SUDS Development (vii)     10 %   June 30, 2021     135,000        
Mark Allen     12 %   June 30, 2020     200,000        
Mark Allen (iv)     10 %   June 30, 2020     100,000        
Discount on note                 (11,536 )      
Mark Allen (v)     10 %   June 30, 2020     125,000        
Discount on note                 (11,420 )      
                $ 1,035,329     $ 983,291  

 

Note: Mark Allen’s notes were not included in related party notes payable at December 31, 2019 because he was not appointed as an officer of the Company until September 1, 2020. In 2020 his notes are reported in related party notes payable.

 

  (i) Not used

 

 

  (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, 2021.
     
    On January 20, 2020, Jovian Petroleum, purchased 1 unit of debt private placement with gross proceeds of $12,500. At maturity, the holder has the option to either collect the principal or convert the balance into shares/warrants. The conversion would be for 156,250 shares of common stock and warrants to purchase 312,500 shares of common stock at a price of $0.08 per unit. Jovian converted the debt into shares during 2020.
     
  (iii) Joel Oppenheim was no longer a related party on December 31, 2020. This note is now reflected in Note 5 (Notes Payable).
     
  (iv)

On January 3, 2020, the Company entered into a loan agreement in the amount of $100,000 with Mark M Allen. The note bore interest at an interest rate of 10% per annum and matures on June 1, 2020, with warrants to purchase 400,000 shares of common stock (the “Loan Warrants”), at an exercise price of $0.10 per share in Canadian dollars and expire on January 3, 2023. The fair value of issued warrants were recorded as a debt discount of $31,946 and monthly amortization of $1,775.

 

  (v) On February 14, 2020, the Company entered into a loan agreement in the amount of $125,000 with Mark M Allen. The note bore interest at an interest rate of 10% per annum and matures on June 1, 2020, with warrants to purchase 750,000 shares of common stock (the “Loan Warrants”), at an exercise price of $0.10 per share in Canadian dollars and expire on February 14, 2022. The fair value of issued warrants were recorded as a debt discount of $38,249 and monthly amortization of $1,903.
     
  (vi)

On August 15, 2019, the Company entered into a loan agreement in the amount of $75,000 with Ivar Siem. The note bears interest at an interest rate of 12% per annum with a four (4) month maturity.

 

On December 4, 2019, the Company entered into a loan agreement in the amount of $100,000 with Ivar Siem. The note bears interest at an interest rate of 12% per annum with a six (6) month maturity. At the maturity date, the note holder has the right to collect the principal plus interest or convert into 1,250,000 shares of common stock at $0.08 per share. In addition, if converted, the note holder will also receive 5,000,000 warrants at an exercise price of $0.10 per share, vesting immediately with a 36 month expiration period.

 

On February 28, 2020, the Company entered into a $50,000 loan agreement with a related party. The note does not bear any interest (0% interest rate) is due on demand. The note includes warrants to purchase 200,000 shares of common stock (the “Loan Warrants”), at an exercise price of $0.10 per share in Canadian dollars and expire on March 1, 2022. The warrants vest and will be issued on January 1, 2021.

     
  (vii) On January 6, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $135,000 ($62,000 on January 6, 2020, $45,000 on May 18, 2020 and $28,000 on June 26, 2020) from a third party. The third party is responsible for the future oversight and management of the SUDS field located in Creek County, Oklahoma. The note bore interest at an interest rate of 10% per annum and matures on June 30, 2020.
     
  (viii)

During 2019, the Company entered into a loan agreement in the amount of $200,000 with Mark M Allen. The note bears interest at an interest rate of 12% per annum and matures on June 30, 2021. At the maturity date, the note holder has the right to collect the principal plus interest or convert into 2,500,000 shares of common stock at $0.08 per share. In addition, upon conversion, the note holder will also receive 10,000,000 warrants at an exercise price of $0.10 per share, vesting immediately with a 36 month expiration period.

 

  (ix)

On April 15, 2020, the Company entered into a consulting agreement, with Mark M Allen, that included a funding clause where the Company borrowed $55,000 from Mr. Allen. The note bore interest at an interest rate of 9% per annum and matures on August 15, 2021.

SCHEDULE OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE

The following is a schedule of future minimum repayments of related party notes payable as of December 31, 2020:

 

       
2021   $ 1,035,329  
Thereafter      
Total    $ 1,035,329