NOTES RECEIVABLE

9 Months Ended

Sep. 30, 2024

NOTES RECEIVABLE

NOTES RECEIVABLE

NOTE 5 – NOTES RECEIVABLE

Notes receivable as of September 30, 2024 and December 31, 2023 consisted of the following:

	September 30, 2024		December 31, 2023
McCoy Elkhorn Coal LLC	$	135,267	$	135,267
American Resources Corporation Note		100,000		100,000
T. R. Mining & Equipment Ltd.		50,000		-
Total Notes Receivable	$	285,267	$	235,267

McCoy Elkhorn Coal LLC

On May 20, 2022, the Company entered into an agreement to fund the development of a series of coal mines located in Pike County, Kentucky in exchange for a promissory note to repay the Company its capital invested, plus interest, and then an ongoing overriding royalty from coal sold from the mines. $117,623 plus interest of $17,643 has been funded by the Company under this contract thus far.  The operator of the property is a related entity and is described more in Note 12, Related Party Transactions.

American Resources Corporation

On July 31, 2022, the Company purchased certain payments that are owed to Texas Tech University (“TTU”) from American Resources Corporation for the agreement to participate in sponsored research services performed by TTU and agreed to assume responsibility for those payments.  The payments that were due to TTU amounted to $184,663 and the Company has since paid $100,000 of that amount so far on behalf of American Resources Corporation.  A note payable between the Company and American Resources Corporation was created to reflect the assumption by the Company of these payments and the note pays interest of 7.0% interest rate, compounded quarterly, and matures on July 31, 2024.  There are no collateral or guarantees. The operator of the technology is a related entity and is described more in Note 12, Related Party Transactions.

T. R. Mining & Equipment Ltd.

On February 2, 2024, February 29, 2024, April 4, 2024, May 7, 2024, and June 14, 2024, the Company invested the amount of $10,000 each into T.R. Mining & Equipment Ltd. in the form of Promissory Notes and a royalty payable to the Company on all products and materials sold from the permit over the life of the permitted resource.  The Promissory Notes hold a 10.0% annual interest rate, compounded monthly, and matures on December 31, 2025. The Royalty Agreement provides the Company with a perpetual royalty of 10.0% of all sales of ores that are mined and sold from the permitted resource. The operator is a related entity and is described more in Note 12, Related Party Transactions.