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Note 4 - Related Party Transactions
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

NOTE 4 RELATED PARTY TRANSACTIONS

 

Advances from Related Party

 

The Company received advances from AEI Management, Inc., a Company owned by a significant shareholder, totaling $88,956 and $58,244 during the three months ended  March 31, 2022 and 2021, respectively. The advances are unsecured, non-interest bearing and are payable on demand. During the three months ended March 31, 2022, the Company repaid $10,000 of the advances and converted $413,206 of advances to a senior secured convertible note due February 24, 2024.

 

The Company received advances from Jay Leaver, President of the Company, totaling $31,280 and $149,500 during the three months ended  March 31, 2022 and 2021, respectively. The advances are unsecured, non-interest bearing and is payable on demand. During the three months ended March 31, 2022, the Company converted $325,580 of advances to a senior secured convertible note due February 24, 2024.

 

As of  March 31, 2022 and  December 31, 2021, there was $0 and $628,550 of short-term advances due to related parties, respectively.

 

Accounts Payable and Accrued Expenses - Related Parties

 

As of March 31, 2022, there was $227,332 of accounts payable related parties which consisted of $203,484 due to Leaverite Exploration, Inc. d/b/a Leaverite Consulting (“Leaverite Exploration”), a corporation wholly-owned by our President, Jay Leaver pursuant to a consulting agreement, $5,558 due to former CFO John Lepin, $12,500 due to Fidare Consulting Group pursuant to a consulting agreement and $5,790 due to Staley Engineering LLC for consulting services

 

As of December 31, 2021, there was $228,668 of accounts payable related parties which consisted of $203,484 due to Leaverite Exploration, $4,394 due to former CFO John Lepin, $10,000 due Kelloff Oil &Gas, LLC, a limited liability company and $5,790 due to Staley Engineering LLC for consulting services.

 

Notes Payable - Related Party

 

On  December 3, 2020, the Company executed a promissory note for $65,000 with the Jay Leaver, our President. The unsecured note matured three years from date of issuance and bore interest at a rate of 5% per annum. As of  December 31, 2021, the note payable had unpaid accrued interest in the amount of $13,003. On  February 23, 2022, the promissory note was amended to a principal amount of $406,750, which includes the original $65,000 plus additional advances of $325,580, and accrued interest of $16,170. An additional $110,235 was advanced during the three months ended March 31, 2022 maturing February 23, 2025. In  February 2022, Mr. Leaver advanced an additional $500,000 to the Company. On  February 25, 2022, Mr. Leaver’s $406,750 promissory note and $500,000 advance were assigned to 20 Shekels, Inc, a corporation wholly-owned by Marshwiggle, LLC, a limited liability company jointly owned by Mr. Leaver and his spouse and on February 25, 2022 the Company issued $906,750 of its secured senior secured convertible notes due February 24, 2024, bearing interest at a rate of 7.25% per annum (the “7.25% Note”) in exchange for the prior obligations. The 7.25% Note is convertible into shares of the Company’s Common Stock at $5.00 per share. See Note 6 - Convertible Credit Line Payable and Senior Securied convertible Notes Payable - Related Party.