Related Party Transactions
|6 Months Ended|
Jun. 30, 2022
|Related Party Transactions|
|Related Party Transactions||
Note 9. Related Party Transactions
The Company’s CEO and director, James Doris, renders professional services to the Company through AGD Advisory Group, Inc., an affiliate of Mr. Doris’s. As of June 30, 2022 and December 31, 2021, the total amount due to AGD Advisory Group, Inc. was $370,000 and $270,000, respectively and is included in accounts payable. Additionally, Mr. Doris has made several loans through promissory notes to the Company, all accruing interest at 12%, and payable on demand. During the twelve months ended December 31, 2021, the Company made payments totaling $63,319 toward principal and interest associated with these loans, and Mr. Doris in separate transactions sold $506,000 of his loans to independent third parties. As of June 30, 2022 and December 31, 2021, there are no remaining balances due to Mr. Doris for these loans.
The Company’s former CFO, Frank W. Barker, Jr., renders professional services to the Company through FWB Consulting, Inc., an affiliate of Mr. Barker’s. As of June 30, 2022 and December 31, 2021, the total amount due to FWB Consulting, Inc. was $1,450 and $341,968, respectively and is included in accounts payable.
Simson-Maxwell was a privately held Canadian company that was formerly a part of a consolidated group, Simmax Corp. At the time of the acquisition, Simson-Maxwell had intercompany balances due to/due from Simmax Corp., a receivable from Adco Power Ltd. and its majority owner and had entered into various note agreements with certain employees, officers, family members and entities owned or controlled by such individuals. As of December 31, 2021, Simmax Corp had a 17% noncontrolling interest in Simson-Maxwell. Viking assumed the intercompany balances and the loan agreements in connection with the acquisition. Simson-Maxwell conducts business with Adco Power Ltd., an entity owned and controlled by an employee and officer of Simson Maxwell. Adco Power Ltd. is an industrial, electrical and mechanical construction company.
During the period October 18, 2021 to December 31, 2021 revenues from Adco Power Ltd. were approximately $36,000.
The balances of the related party receivables and payables as of June 30, 2022 and December 31, 2021 are as follows:
Notes payable to related parties represent loans from certain employees, officers, family members and entities owned or controlled by such individuals. The notes bear interest at six percent per annum with monthly principal and interest payments and a maturity date of December 31, 2023. The notes payable to related parties as of June 30, 2022 and December 31, 2021 are as follows:
Due to Camber Energy, Inc.
During 2021 and the first six months of 2022, Camber made various cash advances to the Company. The advances are non-interest bearing and stipulate no repayment terms or restrictions. Camber owns 63% of the Company but does not control the Company. As of June 30, 2022 and December 31, 2021, the amounts due to Camber aggregated $8,022,300 and $4,100,000, respectively.
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://www.xbrl.org/2003/role/disclosureRef