SCHEDULE OF NOTES PAYABLE |
SCHEDULE
OF NOTES PAYABLE
|
|
Interest rate |
|
|
Date of maturity |
|
|
December 31, 2022 |
|
|
December 31, 2021 |
|
Truck loan (ii) |
|
|
5.49 |
% |
|
|
January 20, 2022 |
|
|
$ |
— |
|
|
$ |
4,021 |
|
Credit note I(iii) |
|
|
10 |
% |
|
|
January 01, 2020 |
|
|
|
426,909 |
|
|
|
831,387 |
|
Discount on credit note I |
|
|
|
|
|
|
|
|
|
|
(41,572 |
) |
|
|
(97,001 |
) |
Credit note II(iv) |
|
|
10 |
% |
|
|
December 31, 2022 |
|
|
|
— |
|
|
|
2,085,432 |
|
Lee Lytton |
|
|
|
|
|
|
On demand |
|
|
|
3,500 |
|
|
|
3,500 |
|
Credit note III (v) |
|
|
10 |
% |
|
|
December 31, 2021 |
|
|
|
— |
|
|
|
416,900 |
|
Quinten Beasley(vi)
|
|
|
10 |
% |
|
|
October
14, 2016 |
|
|
|
— |
|
|
|
5,000 |
|
Jovian Petroleum Corporation (vii) |
|
|
3.5 |
% |
|
|
December 31, 2021 |
|
|
|
— |
|
|
|
178,923 |
|
M. Horowitz |
|
|
10 |
% |
|
|
October 14, 2016 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
|
|
|
|
|
|
|
|
$ |
398,837 |
(1) |
|
$ |
3,438,162 |
|
|
(i) |
All
notes are current (due within one year or less from December 31, 2022.) |
|
|
|
|
(ii) |
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 were due monthly. This note was satisfied
in 2022. |
|
(iii) |
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 matured 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. |
|
(iv) |
On
December 1, 2021, the Company signed an amended loan agreement with a third party for $2,085,432,
which combined prior credit notes and accrued interest on those amounts. The loan bears interest at 10%
per annum and had a maturity date of December
31, 2022. The note held a security interest against the 25%
Working Interest in the Cona assets and a security guarantee of a working interest in the Utikuma oil field and a working interest
in the TLSAU field. The note was assigned to Blue Sky Resources on February 11, 2022, and moved to Related Party Notes Payable. See
Note 7. Related Party Notes Payable. |
|
|
|
|
(v) |
Various shareholder advances were provided by Joel. 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. On August 31, 2021, this loan was in default due to missed interest payments, and a default interest rate was applied to the principal balance. On February 3, 2022, $150,000 of this note was assigned to Blue Sky Resources. All balances of this note have been moved to Related Party Notes Payable. See Note 7. Related Party Notes Payable.
|
|
(vi) |
This note was reclassified to Notes Payable – Related Party, due to Mr. Beasley’s beneficial ownership of our common stock.
See Note 7. Related Party Notes Payable. |
|
|
|
|
(vii) |
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. On February 2, 2022, the LOC was assigned to Blue Sky Resources, and moved
to Related Party Notes Payable. See note 7. Related Party Notes Payable. Also, see Note 16. Subsequent Events regarding the dispute
of this value. |
|