SCHEDULE OF RELATED PARTY NOTES PAYABLE |
The
chart below summarizes the related party Notes Payable as of December 31, 2020 and 2019.
SCHEDULE OF RELATED PARTY NOTES PAYABLE
|
|
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.
|
(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. |
|