Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY NOTES PAYABLE (Tables)

v3.22.1
RELATED PARTY NOTES PAYABLE (Tables)
3 Months Ended
Mar. 31, 2021
Related Party Notes Payable  
SCHEDULE OF RELATED PARTY NOTES PAYABLE

The following table summarizes the Company’s related party notes payable:

 

              Balance at:  
    Interest rate     Date of maturity   March 31, 2021     December 31, 2020  
Quinten Beasley     10 %   October 14, 2016   $ 5,000     $ 5,000  
Jovian Petroleum Corporation (i)     4 %   December 31, 2021     178,064       188,285  
Ivar Siem (ii)     12 %   On demand           200,000  
Ivar Siem (ii)     Non-interest     On demand           50,000  
Ivar Siem (ii)     9 %   December 31, 2021     278,435        
Mark M Allen (iii)     9 %   September 2, 2021     55,000       55,000  
Mark M Allen (iv)     10 %   June 30, 2021             135,000  
Mark M Allen (v)     12 %   June 30, 2021     200,000       200,000  
Mark M Allen (vi)     10 %   June 30, 2020           100,000  
Discount on Mark M Allen ($100K)                       (11,536 )
Mark M Allen (vi)     10 %   June 30, 2020           125,000  
Discount on Mark M Allen ($125K)                       (11,420 )
Mark Allen (vi)     9 %   June 30, 2021     245,938        
Discount on Mark M Allen ($245K)                 (11,922 )      
                $ 950,516     $ 1,035,329  

 

  (i) 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 (“Jovian”). 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 former CEO and director. The initial agreement was for a period of 6 months, and it 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 period-end this LOC has been extended until December 31, 2021.
     
  (ii) 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 Ivar Siem. 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. On January 1, 2021, the Company entered into an amended loan agreement in the amount of $278,435, which combined the three previous loans, along with accrued interest. The note bears an interest rate of 9% and matures on December 21, 2021.

 

 

  (iii) 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. Mr. Allen is responsible for the future oversight and management of the SUDS field located in Creek County, Oklahoma. The note bears interest at an interest rate of 9% per annum and matures on August 15, 2021.
     
  (iv) 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 mature on June 30, 2020. On March 30, 2021, this note was settled with shares of the company. More details can be found in Note 10. Equity.
     
  (v) 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.
     
  (vi) 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. 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. On January 1, 2021, the Company entered into an amended loan agreement in the amount of $245,938, which combined the two previous loans, along with accrued interest. The note bears an interest rate of 9% and matures on June 30, 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 March 31, 2021:

 

       
2021   $ 962,438  
Thereafter      
 Total   $ 962,438