Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.23.1
NOTES PAYABLE
3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 8. NOTES PAYABLE

 

The following table summarizes the Company’s notes payable:

 

    Interest rate     Date of maturity  

March 31, 2023

   

December 31, 2022

 
Credit note I(ii)     10 %   January 1, 2020   $ 286,446     $ 426,909  
Discount on credit note I                 (27,715 )     (41,572 )
Lee Lytton           On Demand     3,500       3,500  
M. Hortwitz     10 %   October 14, 2016     10,000       10,000  
                $ 272,231 (i)   $ 398,837  

 

  (i) All notes are current liabilities (due within one year or less from March 31, 2023).
     
  (ii) 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, and included (as discussed below) 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 which expired 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 shares of common stock, at an exercise price of $0.05 per share which expired 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. Payments totaling $150,000 were made on this note during the first quarter of 2023, applied to accrued interest first and then principal.

 

 

The following is a schedule of future minimum repayments of notes payable as of March 31, 2023:

 

         
2023   $ 272,231  
Thereafter      
Total   $ 272,231