Quarterly report pursuant to Section 13 or 15(d)

SCHEDULE OF NOTES PAYABLE (Details)

v3.22.2
SCHEDULE OF NOTES PAYABLE (Details) - USD ($)
9 Months Ended
Sep. 30, 2021
Dec. 31, 2020
Jan. 06, 2017
Short-Term Debt [Line Items]      
Interest rate     5.49%
Notes payable $ 3,363,524 $ 3,038,310  
Current portion of notes payable $ 3,363,524 3,037,737 $ 683
Truck Loan [Member]      
Short-Term Debt [Line Items]      
Interest rate [1] 5.00%    
Date of maturity Jan. 20, 2022    
Notes payable $ 4,022 9,917  
Current portion of notes payable $ 4,022 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 12.00%    
Date of maturity Oct. 17, 2019    
Notes payable 346,038  
Current portion of notes payable 346,038  
Credit Note III [Member]      
Short-Term Debt [Line Items]      
Interest rate 15.00%    
Date of maturity Apr. 25, 2021    
Notes payable 750,000  
Current portion of notes payable 744,023  
Discount on Credit Note III [Member]      
Short-Term Debt [Line Items]      
Discount (5,976)  
Credit Note IV [Member]      
Short-Term Debt [Line Items]      
Interest rate 10.00%    
Date of maturity Jun. 30, 2021    
Notes payable [3] $ 838,220 937,109  
Current portion of notes payable 694,026 651,251  
Discount on Credit Note IV [Member]      
Short-Term Debt [Line Items]      
Discount $ (144,194) (285,768)  
Credit Note V [Member]      
Short-Term Debt [Line Items]      
Interest rate [3] 10.00%    
Date of maturity [3] Dec. 31, 2021    
Notes payable [3] $ 918,049  
Current portion of notes payable $ 918,049  
Credit Note VI [Member]      
Short-Term Debt [Line Items]      
Interest rate [4] 10.00%    
Date of maturity [4] Dec. 31, 2021    
Notes payable $ 1,133,104  
Current portion of notes payable 1,133,104  
Lee Lytton [Member]      
Short-Term Debt [Line Items]      
Notes payable [5] $ 3,500 3,500  
Date of maturity [5] On demand    
Current portion of notes payable $ 3,500 3,500  
Joel Oppenheim [Member]      
Short-Term Debt [Line Items]      
Interest rate 1000.00%    
Notes payable [6] 161,900  
Date of maturity [6] On demand    
Current portion of notes payable 161,900  
Joel Oppenheim I [Member]      
Short-Term Debt [Line Items]      
Interest rate [6] 10.00%    
Notes payable [6] 15,000  
Date of maturity [6] On demand    
Current portion of notes payable 15,000  
Joel Oppenheim II [Member]      
Short-Term Debt [Line Items]      
Interest rate [6] 10.00%    
Date of maturity [6] Oct. 17, 2018    
Notes payable [6] 240,000  
Current portion of notes payable 240,000  
Credit Note VII [Member]      
Short-Term Debt [Line Items]      
Interest rate [7] 10.00%    
Date of maturity [7] Dec. 31, 2021    
Notes payable [7] $ 416,900  
Current portion of notes payable 416,900  
Origin Bank (PPP Loan) [Member]      
Short-Term Debt [Line Items]      
Notes payable 56,680  
Current portion of notes payable 56,680  
Quinten Beasley [Member]      
Short-Term Debt [Line Items]      
Interest rate [7] 10.00%    
Date of maturity [7] Oct. 14, 2016    
Notes payable $ 5,000  
Current portion of notes payable $ 5,000  
Jovian Petroleum Corporation [Member]      
Short-Term Debt [Line Items]      
Interest rate [7] 3.50%    
Date of maturity [7] Dec. 31, 2021    
Notes payable $ 178,923  
Current portion of notes payable $ 178,923  
M Horowitz [Member]      
Short-Term Debt [Line Items]      
Interest rate [7] 10.00%    
Date of maturity [7] Oct. 14, 2016    
Notes payable $ 10,000 10,000  
M. Hortwitz [Member]      
Short-Term Debt [Line Items]      
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 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.
[4] 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.
[5] 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.
[6] 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.
[7] 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. As of September 1, 2021, Zel Khan and Quinten Beasley resigned from their positions at Petrolia Energy, so this note has been removed from the related party section.