Related Party Transactions
|3 Months Ended|
Mar. 31, 2023
|Related Party Transactions|
|Related Party Transactions||
Note 8. 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. During the three months ended March 31, 2023 and 2022, the Company paid or accrued $90,000 in fees to AGD Advisory Group, Inc. As of March 31, 2023 and December 31, 2022, the total amount due to AGD Advisory Group, Inc. was $370,000, and is included in accounts payable.
The Company’s CFO, John McVicar, renders professional services to the Company through 1508586 Alberta Ltd., an affiliate of Mr. McVicar’s. During the three months ended March 31, 2023 and 2022, the Company paid or accrued $60,000 and nil, respectively, in fees to 1508586 Alberta Ltd.
Due to Camber Energy, Inc.
During 2022 and 2021, Camber Energy, Inc. 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 have a controlling financial interest. As of March 31, 2023 and December 31, 2022, the amounts due to Camber aggregated $6,077,300 and $6,572,300, respectively.
At the time of acquisition, Simson-Maxwell had several amounts due to/due from related parties and notes payable to certain employees, officers, family members and entities owned or controlled by such individuals. The Company assumed these balances and loan agreements in connection with the acquisition.
The balance of amounts due to and due from related parties as of March 31, 2023 and December 31, 2022 are as follows:
Simmax Corp. owns a 17% non-controlling interest in Simson-Maxwell and is majority owned by a Director of Simson-Maxwell. Adco Power Ltd., an industrial, electrical and mechanical construction company, is a wholly owned subsidiary of Simmax Corp., and conducts business with Simson-Maxwell.
During the three months ended March 31, 2023 and 2022, Simson-Maxwell recorded sales to Adco Power Ltd. in the amount of $nil and $36,482, respectively. During the three months ended March 31, 2023 and 2022, Simson-Maxwell recorded purchases from Adco Power Ltd. in the amount of $19,726 and nil, respectively.
The notes payable to related parties as of March 31, 2023 and December 31, 2022 are as follows:
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://www.xbrl.org/2003/role/disclosureRef