Quarterly report pursuant to Section 13 or 15(d)

Notes Payable - Related Party - Schedule of Notes Payable - Related Party (Details)

v3.19.1
Notes Payable - Related Party - Schedule of Notes Payable - Related Party (Details) - USD ($)
Mar. 31, 2019
Dec. 31, 2018
Less: unamortized discount of imputed interest of 4% [1]
Total debt 7,250,000 7,250,000
Less: current maturities 7,250,000 7,250,000
Long-term debt, net of current maturities
Unsecured Note Payable [Member]    
Total debt [2] 1,250,000 1,250,000
Unsecured Note Payable One [Member]    
Total debt [1] $ 6,000,000 $ 6,000,000
[1] 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. Starting from July 1, 2018, the note bears 10% annual interest.
[2] 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.