Note 14 - Related Party Transactions

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

NOTE

14

–

RELATED PARTY TRANSACTIONS

The Company has received loans from several related parties, as described above in Notes

9

and

11.

A loan totaling

$17,901

was made to Emergence Global Enterprises Inc. (“Emergence Global”) as of

December 31, 2020.

The loan was made for the business purpose of assisting Emergence with operating expenses. Emergence Global's Chief Executive Officer is Joseph Byrne, a

5%

shareholder and former CEO of CEN. Joseph Byrne, previously served as the Chief Executive Officer and member of the Board of Directors of the Company from

July 2017

until

November 13, 2019.

There are advances of

$1,179,328

and

$1,065,328

to CEN Ukraine as of

December 31, 2020

and

2019,

respectively. Such advances were made for the purpose of funding the operations of CEN Ukraine as summarized in Note

6.

CEN Ukraine was founded by Bill Chaaban. Prior to

December 3, 2017,

Bill Chaaban directly owned

51%

of CEN Ukraine. CEN Ukraine was founded to seek agricultural and pharmaceutical opportunities in Ukraine. Bill Chaaban personally funded the establishment and initial phases of CEN Ukraine. On

December 14, 2017,

the Company entered into a controlling interest purchase agreement with Bill Chaaban, our interim Chief Executive Officer and member of our board of directors, and another shareholder of CEN Ukraine, Usamakh Saadikh, a member of our board of directors, for

51%

of the outstanding equity interests of CEN Ukraine. The consideration will be paid by issuing common shares of the Company. The agreement, which is subject to certain conditions, has

not

closed as of

March 12, 2021,

as the Company needs to raise additional funds in order to proceed with the closing. Bahige (Bill) Chaaban, our Interim Chief Executive Officer and member of our Board of Directors, and Usamakh Saadikh, a member of our Board of Directors, each directly own

25.5%

of CEN Ukraine respectively. The remaining

49%

of CEN Ukraine is owned by XN Pharma, which is an entity jointly owned by Bahige (Bill) Chaaban and Usamakh Saadikh. Bahige (Bill) Chaaban and Usamakh Saadikh do

not

currently hold any positions with CEN Ukraine. CEN Ukraine is operated and controlled by its sole director. Pursuant to Ukrainian law, shareholders of a company do

not

have the ability to control the company or the actions of its director. CEN Ukraine is operated under the direction of its management per the guidelines of Ukrainian law.

On

July 12, 2017,

the Company's Shareholders elected individuals to serve as Directors on the Board. These individuals hold long-term convertible notes payable issued prior to the election. All notes payable bear interest at

5%

per annum and are convertible to common shares with various maturity dates. They became related parties when they were elected.

During the years ended

December 31, 2020

and

2019,

the Company incurred payroll and consulting expenses with certain Board Members and Officers totaling

$124,800

and

$154,517,

respectively. As of

December 31, 2020

and

2019,

$330,200

and

$263,900

was payable to these related parties for payroll and consulting charges, which are included within accrued expenses.

During

2017,

the Company purchased equipment from R&D Labs Canada, Inc., whose president is Bill Chaaban, in exchange for a

$300,000

note payable. This equipment was then sold to CEN Ukraine for a loss of

$255,141

in exchange for a

$44,859

note receivable, payable in

10

equal installments beginning in

2017

through

2026.

No

payments have been received as of

December 31, 2020,

however, management expects this balance to be collectible.