Annual report pursuant to Section 13 and 15(d)

Notes Payable - Schedule of Notes Payable (Details)

v3.21.1
Notes Payable - Schedule of Notes Payable (Details) - USD ($)
 12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Jan. 06, 2017
May 08, 2014
Note payable $ 2,097,078 $ 1,061,876    
Current portion of notes payable $ 653,540 335,877    
Mark Allen [Member]        
Interest rate 12.00%      
Date of maturity Jun. 30, 2021      
Note payable $ 200,000    
Current portion of notes payable $ 200,000    
M. Hortwitz [Member]        
Interest rate 10.00% 10.00%    
Date of maturity Oct. 14, 2016 Oct. 14, 2016    
Note payable $ 10,000 $ 10,000    
Current portion of notes payable $ 10,000    
Backhoe Loan [Member]        
Interest rate 2.90% [1] 2.90% [1]   2.90%
Date of maturity [1] May 08, 2017 May 08, 2017    
Note payable [1] $ 32,601    
Truck Loan [Member]        
Interest rate 5.49% [2] 5.49% [2] 5.49%  
Date of maturity [2] Jan. 20, 2022 Jan. 20, 2022    
Note payable [2] $ 16,141 $ 23,237    
Current portion of notes payable $ 7,502 $ 15,999 $ 683  
Credit Note I [Member]        
Interest rate [3] 12.00% 12.00%    
Date of maturity [3] May 11, 2021 May 11, 2021    
Note payable [3] $ 800,000 $ 800,000    
Current portion of notes payable $ 90,000 $ 710,000    
Credit Note II [Member]        
Interest rate [4] 12.00% 12.00%    
Date of maturity [4] Oct. 17, 2019 Oct. 17, 2019    
Note payable [4] $ 346,038 $ 196,038    
Current portion of notes payable $ 346,038    
Credit Note III [Member]        
Interest rate [5] 15.00%      
Date of maturity [5] Apr. 25, 2021      
Note payable [5] $ 750,000    
Discount on credit note III [Member]        
Discount on credit note III $ (25,101)    
[1] On May 8, 2014, the Company, purchased a backhoe. The Company assumed an installment note in the amount of $57,613 for a term of three years and interest at 2.9% per annum. The backhoe was returned to the seller, consequently the outstanding debt balance of $32,601 was forgiven in 2019.
[2] 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.
[3] 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 the Working Interest in the Canadian Properties described in Note 6.In order to induce the Lender to enter into the Loan Agreement, the Company agreed to issue the Lender 500,000 shares of restricted common stock (the "Loan Shares"), which were issued on May 18, 2018, and warrants to purchase 2,320,000 shares of common stock (the "Loan Warrants"), of which warrants to purchase (a) 320,000 shares of common stock have an exercise price of $0.10 per share in Canadian dollars and expire in May 15, 2021, (b) 500,000 shares of common stock have an exercise price of $0.12 per share in U.S. dollars, and expire on May 15, 2021; and (c) 1,500,000 shares of common stock have an exercise price of $0.10 per share in U.S. dollars and expire on May 15, 2020.The fair value of the 500,000 common shares issued were assessed at the market price of the stock on the date of issuance and valued at $47,500. The fair value of the Canadian dollar denominated warrants issued were assessed at $30,012 using the Black Scholes Option Pricing Model. The fair value of the U.S. dollar denominated warrants issued were assessed at $182,650 using the Black Scholes Option Pricing Model. The Company determined the debt modification to be an extinguishment of debt and recorded a total loss on extinguishment of debt of $260,162.Upon the disposition of Bow pursuant to the Exchange Agreement described under Note 5, a total of $730,000 of the obligations owed under the Loan Agreement were transferred to Blue Sky.
[4] On September 17, 2018, the Company entered into a loan agreement (LOC) with a third party for $200,000 (which was later increased to $500,000) to acquire an additional 3% working interest in the Canadian Properties (See Note 6). The loan bears interest at 3.5% per annum and has a maturity date of October 17, 2019. Payments of principal and interest in the amount of $6,000 are due monthly. The loan is secured against the Company's 3% Working Interest in the Canadian Properties and has no financial covenants.During 2019, the LOC balance increased by $150,000 resulting in a $346,038 ending balance.
[5] On April 25, 2019, the Company entered into a promissory note (an Acquisition Note") with a third party in the amount of $750,000 to acquire working interests in the Utikuma oil field in Alberta Canada. The Note bears interest at 15% per annum and is due in full at maturity at April 25, 2021. No payments are required on the note until maturity while interest is accrued. In addition, warrants to purchase 500,000 shares of common stock with an exercise price of $0.012 per share expiring on May 1, 2021 were issued associated with the note and were recorded as a debt discount on the balance sheet. The notes hold a security guarantee of a 50% Working Interest in the Utikima oil field and a 100% Working Interest in the Twin Lakes Properties.During 2019, the Company entered into a loan agreement in the amount of $200,000 with a third party. The note bears interest at an interest rate of 12% per annum and matures on June 30, 2021. 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.On January 15, 2019, the Company entered into a loan agreement in the amount of $125,000 with a third party. The note bore interest at an interest rate of $4% per annum and was to mature on January 15, 2020. On September 30, 2019, Jovian Petroleum Corporation reimbursed the $125,000 to the third party. Consequently, the $125,000 debt balances was transferred into the Jovian LOC and is now included in the $362,583 at December 31, 2019 (see Note 8: Related Party Notes Payable)