| RELATED PARTY NOTES PAYABLE |
NOTE
9. RELATED PARTY NOTES PAYABLE
The
following table summarizes the Company’s related party notes payable:
SCHEDULE OF RELATED PARTY
NOTES PAYABLE
| |
|
Interest rate |
|
|
Date of maturity |
|
March
31, 2023 |
|
|
December
31, 2022 |
|
| Quinten Beasley |
|
|
10 |
% |
|
October 14, 2016 |
|
|
5,000 |
|
|
|
5,000 |
|
| Blue Sky Resources (ii) |
|
|
3.5 |
% |
|
December 31, 2021 |
|
|
178,923 |
|
|
|
178,923 |
|
| Blue Sky Resources (iii) |
|
|
10 |
% |
|
December 31, 2021 |
|
|
150,000 |
|
|
|
150,000 |
|
| Blue Sky Resources (iv) |
|
|
10 |
% |
|
December 31, 2022 |
|
|
2,085,432 |
|
|
|
2,085,432 |
|
| Ivar Siem (v) |
|
|
9 |
% |
|
December 31, 2021 |
|
|
278,435 |
|
|
|
278,435 |
|
| Mark Allen (vi) |
|
|
9 |
% |
|
September 2, 2021 |
|
|
55,000 |
|
|
|
55,000 |
|
| Mark Allen (vii) |
|
|
12 |
% |
|
June 30, 2020 |
|
|
200,000 |
|
|
|
200,000 |
|
| Mark Allen (viii) |
|
|
9 |
% |
|
June 30, 2021 |
|
|
61,012 |
|
|
|
241,125 |
|
| Joel Oppenheim (ix) |
|
|
10 |
% |
|
December 31, 2021 |
|
|
266,900 |
|
|
|
266,900 |
|
| |
|
|
|
|
|
|
|
$ |
3,280,702 |
(i) |
|
$ |
3,460,815 |
|
| |
(i) |
All
notes are current liabilities (due within one year or less from March 31, 2023.) |
| |
|
|
| |
(ii) |
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 previously could 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. This LOC was subsequently extended until December 31, 2021. On February 2, 2022, the LOC was assigned to Blue Sky Resources. |
| |
|
|
| |
(iii) |
On
February 3, 2022, Joel Oppenheim, a former Board member, assigned $150,000
of his note to Blue Sky Resources. |
| |
|
|
| |
(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 was secured by a security interest against the 25% Working Interest in the Cona assets, 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. |
| |
|
|
| |
(v) |
On
August 15, 2019, the Company entered into a loan agreement in the amount of $75,000
with Ivar Siem, a member of the Board of Directors. The note bears interest at an interest rate of 12%
per annum with a four (4) month maturity. On December 4, 2019, the Company entered into a loan agreement in the amount of $100,000
with Ivar Siem. The note bears interest at an interest rate of 12%
per annum with a six (6) month maturity. At the maturity date, the noteholder has the right to collect the principal plus interest
or convert into 1,250,000
shares of common stock at $0.08
per share. In addition, if converted, the noteholder will also receive 5,000,000
warrants at an exercise price of $0.10
per share, vesting immediately with a 36-month expiration period. On February 28, 2020, the Company entered into a $50,000
loan agreement with Ivar Siem. The note does not bear any interest (0%
interest rate) and is due on demand. The note includes warrants to purchase 200,000
shares of common stock (the “Loan Warrants”), at an exercise price of $0.10
per share in Canadian dollars and expired on March
1, 2022. The warrants were issued on January 1, 2021. On January 1, 2021, the Company entered into an amended loan agreement
in the amount of $278,435,
which combined the three previous loans, along with accrued interest. The note bears an interest rate of 9%
per annum and matured on December
21, 2021. |
| |
(vi) |
On
April 15, 2020, the Company entered into an agreement with Mark Allen, that included a funding clause where the Company borrowed
$55,000
from Mr. Allen, the Company’s Chief Executive Officer. The note bears interest at an interest rate of 9%
per annum and matured on September
2, 2021. |
| |
|
|
| |
(vii) |
During
2019, the Company entered into a loan agreement in the amount of $200,000 with Mark Allen. The note bears interest at an interest
rate of 12% per annum and matured on June 30, 2020. At the maturity date, the note holder has the right to collect the principal
plus interest or convert into 2,500,000 shares of common stock at $0.08 per share. In addition, upon conversion, the note holder
will also receive 10,000,000 warrants at an exercise price of $0.10 per share, vesting immediately with a 36-month expiration period.
|
| |
|
|
| |
(viii) |
On
January 3, 2020, the Company entered into a loan agreement in the amount of $100,000 with
Mark Allen. The note bears interest at an interest rate of 10%
per annum and matured on June
1, 2020, with warrants to purchase 400,000
shares of common stock (the “Loan Warrants”), at an exercise price of $0.10
per share in Canadian dollars and expire on January 3, 2023. The fair value of issued warrants were recorded as a debt discount of
$31,946
and monthly amortization of $1,775.
On February 14, 2020, the Company entered into a loan agreement in the amount of $125,000
with Mark Allen. The note bears interest at an interest rate of 10%
per annum and matures on June
1, 2020, with warrants to purchase 750,000
shares of common stock (the “Loan Warrants”), at an exercise price of $0.10
per share in Canadian dollars and expired on February
14, 2022. The fair value of issued warrants were recorded as a debt discount of $38,249
and monthly amortization of $1,903.
On January 1, 2021, the Company entered into an amended loan agreement in the amount of $245,938,
which combined the two previous loans, along with accrued interest. The note bears an interest rate of 9%
and matured on June
30, 2021. A payment of $196,344 was made on this note in the first quarter of 2023, applied to accrued interest first and then
principal. |
| |
|
|
| |
(ix) |
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 matured on 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. |
The
following is a schedule of future minimum repayments of related party notes payable as of March 31, 2023:
SCHEDULE
OF FUTURE MINIMUM REPAYMENTS OF RELATED PARTY NOTES PAYABLE
| |
|
|
|
|
| 2023 |
|
$ |
3,280,702 |
|
| Thereafter |
|
|
— |
|
| Total |
|
$ |
3,280,702 |
|
|