Annual report pursuant to Section 13 and 15(d)

NOTE 4: RELATED PARTY TRANSACTIONS

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NOTE 4: RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2012
Related Party Transactions Disclosure [Text Block]
NOTE 4: RELATED PARTY TRANSACTIONS

Debt and convertible debt owed to related parties

On June 30, 2011, Clean Coal converted an aggregate of $1,168,169 of related party debt and $19,776 of accrued interest to an aggregate of 16,910,256 common shares.

On July 1, 2011, advances from related parties totaling $380,000 were converted to a convertible note. The note is unsecured, bears interest at 8% per annum and matures June 30, 2012. This note becomes convertible into Clean Coal common stock at $0.018 per share on January 1, 2012. Clean Coal evaluated the conversion option under FASB ASC 470-20 and determined it does not contain a beneficial conversion feature. The note holder agreed to extend the maturity date of the note for an additional six months or until shareholder approval of an increase to the authorized stock of the Company, whichever occurs first. The note of $380,000 and the related accrued interest of $2,499 were converted into 21,249,923 shares of common stock on June 28, 2012 and the remaining accrued interest on this note of $27,901 was converted to 1,550,077 common shares on August 23, 2012.

On July 22, 2011, Clean Coal borrowed $143,000 from its President and Chief Executive Officer. The note is unsecured, bears interest at 12.5% per annum and matures October 30, 2011. The note is payable in Clean Coal common stock at $0.0155 per share. Clean Coal evaluated the conversion option under FASB ASC 470-20 and determined it does not contain a beneficial conversion feature. As of December 31, 2012, this note was paid in full.

On August 8, 2011, Clean Coal borrowed $30,000 from its President and Chief Executive Officer. The note is unsecured, bears interest at 12.5% per annum and matures November 8, 2011. The note was payable in 1,935,484 shares of Clean Coal common stock. Clean Coal evaluated the conversion option under FASB ASC 470-20 and determined it does not contain a beneficial conversion feature. On November 4, 2011, this $30,000 note and $925 of interest were converted into 1,997,128 common shares.

On September 14, 2012, related party payables totaling $15,000 were converted into a related party note payable. The note is unsecured, bears interest at 8% per annum and matures December 10, 2012. As of December 31, 2012, this note was paid in full.

During the year ended December 31, 2012, Clean Coal made aggregate cash payments of $537,732 on its related party debt and convertible debt. No cash payments were made during the year ended December 31, 2011.

A summary of the debt and convertible from related parties outstanding as of December 31, 2012 and 2011 is as follows:

DATE OF
NOTE
 
TO
WHOM
 
MATURITY
DATE
 
INTEREST
RATE
   
December 31, 2012
   
December 31, 2011
Not Convertible: 
                       
June 30, 2008
 
Equimune Research Corp
 
June 30, 2010
   
10
%
 
$
-
   
$
252,641
 
September 30, 2009
 
Enviro Fuels MfgInc
 
Demand
   
0
%
   
-
     
98,091
 
September 30, 2009
 
Enviro Fuels MfgInc
 
Demand
   
0
%
   
-
     
500
 
October 31, 2009
 
Enviro Fuels MfgInc
 
Demand
   
0
%
   
-
     
3,000
 
November 30, 2009
 
Enviro Fuels MfgInc
 
Demand
   
0
%
   
-
     
500
 
March 8, 2010
 
Enviro Fuels MfgInc
 
September 8, 2010
   
10
%
   
-
     
25,000
 
                   
$
-
   
$
379,732
 
                                 
Convertible:
                               
July 1, 2011
 
Out of The Chute LLC
 
June 30, 2012
   
8
%
 
$
-
   
$
380,000
 
July 22, 2011
 
Robin Eves
 
October 31, 2011
   
12.5
%
   
-
     
143,000
 
                   
$
-
   
$
523,000
 

Accounts payable to related parties

At December 31, 2012 and December 31, 2011, unpaid services provided by related parties totaled $579,950 and $613,961, respectively.