NOTES PAYABLE |
NOTE
8. NOTES PAYABLE
The
following table summarizes the Company’s notes payable:
SCHEDULE
OF 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:
SCHEDULE
OF FUTURE MINIMUM REPAYMENTS OF NOTES PAYABLE
|
|
|
|
|
2023 |
|
$ |
272,231 |
|
Thereafter |
|
|
— |
|
Total |
|
$ |
272,231 |
|
|