| Schedule of Notes Payable - Related Party |
| |
|
September 30, 2018 |
|
|
December 31, 2017 |
|
| 13.25% unsecured note payable due May 5, 2017 (1) |
|
$ |
1,250,000 |
|
|
$ |
1,250,000 |
|
| 0% unsecured note payable due September 30, 2018 (2) |
|
|
6,000,000 |
|
|
|
6,000,000 |
|
| Less: unamortized discount of imputed interest of 4% (2) |
|
|
- |
|
|
|
(114,268 |
) |
| Total debt |
|
|
7,250,000 |
|
|
|
7,135,732 |
|
| Less: current maturities |
|
|
7,250,000 |
|
|
|
7,135,732 |
|
| Long-term debt, net of current maturities |
|
$ |
- |
|
|
$ |
- |
|
| (1) |
Effective January 5, 2017, Foothills borrowed $1,250,000 from Berwin Trading Limited that, due to its 20% beneficial ownership in the Company, is a related party. This note called for interest at 9% per annum; but because it was not paid when due interest was to have accrued at a default rate of 11% from the due date of the note. The Company used net proceeds of this loan to satisfy certain obligations under a Purchase and Sale Agreement with Total Belief Limited, dated December 30, 2016, for general working capital and to support certain target drilling activities. |
| |
|
| (2) |
On December 30, 2016, in connection with the TBL acquisition, Foothills entered into a promissory note in the amount of $6,000,000. This note bears no interest during its term. The Company calculated and recorded $342,804 of imputed interest as debt discount. |
|