Related Party Transactions
|12 Months Ended|
Dec. 31, 2020
|Related Party Transactions|
|Note 5. Related Party Transactions||
The Company’s CEO and director, James Doris, has incurred expenses on behalf of, and made advances to, the Company in order to provide the Company with funds to carry on its operations. Additionally, Mr. Doris has made several loans through promissory notes to the Company, all accruing interest at 12%, and payable on demand. On December 21, 2020, the Company modified the exercise price of 1,666,667 previously issued common stock warrants from $0.30 to $0.001 per share. As of December 31, 2020, the total amount due to Mr. Doris for these loans is $559,122.
The Company’s CFO, Frank W. Barker, Jr., renders professional services to the Company through FWB Consulting, Inc., an affiliate of Mr. Barker’s for $20,000 per month. As of December 31, 2020, the total amount due to FWB Consulting, Inc. is $221,968 and is included in accounts payable. On December 21, 2020, the Company modified the exercise price of 555,556 previously issued common stock warrants from $0.25 to $0.001 per share. On December 31, 2020, the Company granted 1,333,333 common stock warrants to Mr. Barker with an exercise price of $0.001 per share. Additionally, the Company rented on a short-term basis, residential property from Mr. Barker during 2020 for $30,000 to facilitate corporate operations.
On December 31, 2020, the Company granted 44,444 common stock warrants with an exercise price of $0.001 per share to Lawrence Fisher, a member of the Board of Directors.
On December 31, 2020, the Company granted 66,667 common stock warrants with an exercise price of $0.001 per share to David Herskovits, a member of the Board of Directors.
During the year ended December 31, 2020, Troy Caruso and various entities affiliated with Mr. Caruso owned in aggregate more than 10% of the Company’s outstanding common stock. As of December 31, 2020, the ownership percentage has decreased below 10%. Mr. Caruso and his affiliates have provided funding under certain of the Company’s private placements, and consulting services. During the three months ended June 30, 2020, the Company repaid all short-term borrowings due to Mr. Caruso and certain of his affiliated entities which were advanced between September 30, 2019 and February 7, 2020, which included the issuance of 1,994,952 common shares at a fair value of $2,748,504. During the three months ended September 30, 2020, one of these affiliated entities was issued 286,099 common shares for services at a fair value of $321,657. Also, during the three months ended September 30. 2020, certain of these affiliated entities made two loans to the Company in the form of convertible promissory notes totaling $2,089,000. The Company issued 123,167 common shares upon execution of one of the notes and 1,897,948 common shares upon exercising the conversion privileges of both. As of December 31, 2020, Mr. Caruso and affiliated entities hold $650,000 of the Company’s convertible debt offering which commenced on February 18, 2020 and is included in long term debt.
Also see Note 1, with respect to transactions with Camber Energy, Inc.
No definition available.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef