Related Party Transactions
|6 Months Ended|
Jun. 30, 2017
|Notes to Financial Statements|
|Note 3 Related Party Transactions||
During April 2015, the Company made an advance to Tanager Energy Inc., in conjunction with a joint investment in the second oil well of the Joffre Project. As of June 30, 2017, the balance owed by Tanager to the Company is $153,877. The Company has determined to reserve 50% of the balance and has reduced the amount shown as other receivable related party to $76,939 on the consolidated balance sheet.
On May 16, 2017, Tom Simeo, formerly the Companys Executive Chairman and a Director, resigned from all positions with the Company. During the six months ended June 30, 2017, Tom Simeo did not accrue payroll and made no advances to the Company. The Company paid a total of $20,643 against prior advances. Concurrent with his resignation, Mr. Simeo waived any remaining balance of prior advances previously payable to him. Any accruals and advances do not bear interest, are unsecured and have no specific terms of repayment. As of June 30, 2017, there are no remaining balances payable to Mr. Simeo.
During the six months ended June 30, 2017, the Companys CEO and Director, James Doris incurred expenses on behalf of, and made advances to the Company in the amount of $100,221 in order to provide the Company with funds to carry on its operations, and the Company made repayments of $279,381. These advances do not bear interest, are unsecured and have no specific terms of repayment. As of June 30, 2017, the amount due for advances and expenses paid on behalf of the Company is $215,286. The Company has not imputed interest as the amount is deemed immaterial. Additionally, during the six months ended June 30, 2017, Mr. Doris made several loans to the Company totaling $196,855, all accruing interest at 12%, and payable on demand. As of June 30, 2017, the total amount due to Mr. Doris for advances and expenses paid on behalf of the Company and loans is $1,077,677. Accrued interest of $123,036 is included in accrued expenses and other current liabilities at June 30, 2017.
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/presentationRef