Quarterly report pursuant to Section 13 or 15(d)

SCHEDULE OF NOTES PAYABLE (Details)

v3.22.2
SCHEDULE OF NOTES PAYABLE (Details) - USD ($)
 6 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Jan. 06, 2017
Short-Term Debt [Line Items]      
Interest rate     5.49%
Notes payable $ 3,268,889 $ 3,038,310  
Current portion of notes payable $ 3,268,889 3,037,737 $ 683
Truck Loan [Member]      
Short-Term Debt [Line Items]      
Interest rate [1] 5.00%    
Date of maturity [1] Jan. 20, 2022    
Notes payable [1] $ 6,017 9,917  
Current portion of notes payable $ 6,017 9,345  
Credit Note I [Member]      
Short-Term Debt [Line Items]      
Interest rate [2] 12.00%    
Date of maturity [2] May 11, 2021    
Notes payable [2] 800,000  
Current portion of notes payable 800,000  
Credit Note II [Member]      
Short-Term Debt [Line Items]      
Interest rate [3] 12.00%    
Date of maturity [3] Oct. 17, 2019    
Notes payable [3] 346,038  
Current portion of notes payable 346,038  
Credit Note III [Member]      
Short-Term Debt [Line Items]      
Interest rate [4] 15.00%    
Date of maturity [4] Apr. 25, 2021    
Notes payable [4] 750,000  
Discount (5,976)  
Current portion of notes payable 744,023  
Credit Note IV [Member]      
Short-Term Debt [Line Items]      
Interest rate [5] 10.00%    
Date of maturity [5] Jun. 30, 2021    
Notes payable [5] $ 916,024 937,109  
Discount (191,385) (285,768)  
Current portion of notes payable $ 724,639 651,251  
Credit Note V [Member]      
Short-Term Debt [Line Items]      
Interest rate [6] 10.00%    
Date of maturity [6] Dec. 31, 2021    
Notes payable [6] $ 918,049  
Current portion of notes payable $ 918,049  
Credit Note VI [Member]      
Short-Term Debt [Line Items]      
Interest rate [7] 10.00%    
Date of maturity [7] Dec. 31, 2021    
Notes payable [7] $ 1,133,104  
Current portion of notes payable 1,133,104  
Lee Lytton [Member]      
Short-Term Debt [Line Items]      
Notes payable $ 3,500 3,500  
Date of maturity [8] On demand    
Current portion of notes payable $ 3,500 3,500  
Joel Martin Oppenheim [Member]      
Short-Term Debt [Line Items]      
Interest rate [8] 10.00%    
Notes payable [8] 161,900  
Date of maturity [8] On demand    
Current portion of notes payable 161,900  
Joel Oppenheim One [Member]      
Short-Term Debt [Line Items]      
Interest rate [8] 10.00%    
Notes payable [8] 15,000  
Date of maturity [8] On demand    
Current portion of notes payable 15,000  
Joel Oppenheim Two [Member      
Short-Term Debt [Line Items]      
Interest rate [8] 10.00%    
Date of maturity [8] Oct. 17, 2018    
Notes payable [8] 240,000  
Current portion of notes payable 240,000  
Credit Note VII [Member]      
Short-Term Debt [Line Items]      
Interest rate [8] 10.00%    
Date of maturity [8] Dec. 31, 2021    
Notes payable [8] $ 416,900  
Current portion of notes payable 416,900  
Origin Bank (PPP Loan) [Member]      
Short-Term Debt [Line Items]      
Notes payable [9] 56,680 56,680  
Current portion of notes payable $ 56,680 56,680  
M. Hortwitz [Member]      
Short-Term Debt [Line Items]      
Interest rate 10.00%    
Date of maturity Oct. 14, 2016    
Notes payable $ 10,000 10,000  
Current portion of notes payable $ 10,000 $ 10,000  
[1] On January 6, 2017, the Company purchased a truck and entered into an installment note in the amount of $35,677 for a term of five years and interest at 5.49% per annum. Payments of principal and interest in the amount of $683 are due monthly.
[2] On May 9, 2018, Bow entered into an Amended and Restated Loan Agreement with a third party. The Loan Agreement increased by $800,000 the amount of a previous loan agreement entered into between Bow and the Lender, to $1,530,000. The amount owed under the Loan Agreement accrues interest at the rate of 12% per annum (19% upon the occurrence of an event of default) and is due and payable on May 11, 2021, provided that the amount owed can be prepaid prior to maturity, beginning 60 days after the date of the Loan Agreement, provided that the Company gives the Lender 10 days’ notice of our intent to repay and pays the Lender the interest which would have been due through the maturity date at the time of repayment. The Loan Agreement contains standard and customary events of default, including cross defaults under other indebtedness obligations of us and Bow, and the occurrence of any event which would have a material adverse effect on us or Bow. The Company is required to make principal payments of $10,000 per month from January through September 2019 with the remaining balance of $710,000 due at maturity on May 11, 2021. The additional $800,000 borrowed in connection with the entry into the Loan Agreement was used by the Company to acquire a 25% working interest in approximately 41,526 acres located in the Luseland, Hearts Hill, and Cuthbert fields, located in Southwest Saskatchewan and Eastern Alberta, Canada (collectively, the “Canadian Properties” and the “Working Interest”). Upon the disposition of Bow, a total of $730,000 of the obligations owed under the Loan Agreement were transferred to Blue Sky Resources Ltd. (“Blue Sky”).
[3] On September 17, 2018, the Company entered into a loan agreement with a third party for $200,000 to acquire an additional 3% working interest in the Canadian Properties. The loan bears interest at 12% per annum and has a maturity date of October 17, 2019. Payments of principal and interest in the amount of $6,000 are due monthly. The loan is secured against the Company’s 3% working interest in the Canadian Properties and has no financial covenants. During 2020, the LOC balance increased by $146,000 resulting in a $346,038 ending balance. On January 1, 2021, the Lender signed an amended loan agreement, which moved the balance of this note to credit note VI. More details can be found in footnote (vi) and (vii).
[4] On April 25, 2019, the Company entered into a promissory note (an “Acquisition Note”) with a third-party in the amount of $750,000 to acquire working interests in the Utikuma oil field in Alberta Canada. The Note bears interest at 9% per annum and is due in full at maturity on April 25, 2021. No payments are required on the note until maturity while interest is accrued. In addition, warrants to purchase 500,000 shares of common stock with an exercise price of $0.12 per share expiring on May 1, 2021, were issued associated with the note. The fair value of issued warrants were recorded as a debt discount of $38,249 and amortization of $8,366. The notes hold a security guarantee of working interest in the Utikuma oil field and a working interest in the TLSAU field. On January 1, 2021, the Lender signed an amended loan agreement, which moved the balance of this note to credit note V. More details can be found in footnote (vi).
[5] On January 2, 2020, the Company entered into a loan agreement in the amount of $1,000,000 with a third party (including a $120,000 origination fee). The note bore interest at an interest rate of $10% per annum and matures on June 30, 2020, with warrants to purchase 5,000,000 shares of common stock (the “Loan Warrants”), at an exercise price of $0.10 per share in Canadian dollars and expire on January 2, 2023. The fair value of issued warrants were recorded as a debt discount of $266,674 and monthly amortization of $11,111. These funds were initially placed in escrow, then on May 29, 2020, they were used for the purchase of the Utikuma oil field. Pursuant to a loan extension agreement, on October 30, 2020, the Company issued warrants to purchase 5,000,000 of common stock, at an exercise price of $0.05 per share, expiring on January 6, 2023. The fair value of the issued warrants was recorded as a debt discount of $166,289 and monthly amortization of $4,614.14.
[6] On January 1, 2021, the Company signed an amended loan agreement with a third party for $918,049, which combined credit note III along with $146,038 of credit note II and accrued interest on those amounts. The loan bears interest at 10% per annum and has a maturity date of December 31, 2021. The warrants associated with credit note III are applied as a discount to the amended loan. The note holds a security guarantee of a working interest in the Utikuma oil field and a working interest in the TLSAU field.
[7] On January 1, 2021, the Company signed an amended loan agreement with a third party for $1,133,104, which combined credit note I along with $200,000 of credit note II and accrued interest on those amounts. The loan bears interest at 10% per annum and has a maturity date of December 31, 2021. The note holds a security interest against the 25% Working Interest in the Cona assets.
[8] Various shareholder advances provided by Mr. Oppenheim during 2018 and 2019. There were no formal documents drawn. Interest rates were applied based on other similar loan agreements entered into by the Company during that period. On February 12, 2021, the Company entered into an amended loan agreement in the amount of $416,900 that consolidated these amounts. The loan bears interest at 10% per annum and has a maturity date of December 31, 2021.
[9] On April 23, 2020, the Company was granted a $56,680 business loan through the Paycheck Protection Program (PPP) administered through the CARES act. The loan amount was based 2.5 times the Company’s average monthly payroll costs. The company applied for loan forgiveness, and it was granted on July 26, 2021.