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Subsequent Events
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 9 - SUBSEQUENT EVENTS

 

On December 17, 2019 the Company issued a promissory note to Granite Peak Resources (“GPR”) for $192,080   representing the disbursements made on the Company’s behalf during 2019. The note is payable one year from its issuance and accrues interest at 6% per annum.

 

In December 2019, 4,500,000 options granted in 2013 and originally exercisable at $0.44 per share were exercised by GPR at a price of $0.0426 per share (the current fair market value per share based on the average of the median price and VWAP for the preceding 90 days) in exchange for the $192,080 note.

 

The Company entered into a Forbearance Agreement with GPR effective December 20, 2019. GPR has agreed to forbear any foreclosure proceedings for six months in exchange for the Company pledging the stock of the its subsidiaries as additional collateral under its outstanding obligations. During the nine months ended September 30, 2019, GPR advanced $109,055 in direct payments on the Company’s behalf to reduce certain accounts payable by $51,055, and outstanding convertible promissory notes by $58,000.

 

On March 16, 2020 the Company executed a Line of Credit (“LOC”) with GPR evidenced by a promissory note. The LOC is for up to $2,500,000, matures over three years and may be increased by up to another $1,000,000 and extended an additional two years, respectively, at GPR’s sole option. The LOC is for funding operating expenses critical to the Company’s redirection and all requests for funds may be approved or disapproved in GPR’s sole discretion. The LOC bears interest at 10% per annum, is convertible into shares of the Company’s common stock at a per share price of $0.04 based on the last closing sale price and will be secured by the real and personal property GPR already has under lien. The $109,055 advanced by GPR during the nine months ended September 30, 2019 will be incorporated into this LOC.