Quarterly report pursuant to Section 13 or 15(d)

NOTE 4: RELATED PARTY TRANSACTIONS

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NOTE 4: RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]

NOTE 4: RELATED PARTY TRANSACTIONS


Wages and bonus payable to related parties


Accruals for salary and bonuses to officers and directors are included in accrued liabilities in the balance sheets and totaled $2,279,807 and $2,023,992 as of September 30, 2018 and December 31, 2017, respectively. As part of the separation agreement with Mr. Ponce de Leon, the Company agreed to pay him all his accrued salary within two years but agreed to pay him $200,000 by November 2015 out of revenues earned. As the Company did not earn revenue in 2015 and as at December 2017 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,472,055 is currently in default and the amount includes $245,341in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.


Convertible Debt


During the nine months ended September 30, 2018, the Company borrowed an aggregate of $1,692,300, net of beneficial conversion feature of $1,343,488, under convertible notes payable from a Company with an interest owned by a significant stockholder. As of September 30, 2018 and December 31, 2017, the Company had outstanding short-term convertible notes payable of $5,484,060 and $4,551,227, net of unamortized discounts of $287,964 and $310,428, respectively and outstanding long term convertible notes payable of $1,703,905 and $1,493,558, net of unamortized discounts of $2,873,252 and $2,582,075, respectively. The convertible notes payable are convertible at $0.06 per share, which was a discount to the market price on the date of issuance. Amortization expense related to debt discounts on convertible debt for the nine months ended September 30, 2018 and 2017 was $1,074,876 and $956,321 respectively.


During the nine months ended September 30, 2018, the holder of convertible debt elected to convert a total of $280,507 in principal into 3,506,333 shares of common stock, or $0.08 per share.


Nonconvertible Debt


During the nine months ended September 30, 2018, the Company received $35,000 from the issuance of a related party note payable. The note is due on demand and does not accrue interest. As of September 30, 2018 and December 31, 2017, the Company had outstanding notes payable to former affiliates of the Company of $85,000 and $50,000, respectively. These notes payable of the Company are unsecured, bear no interest and are due on demand.


During the nine months ended September 30, 2018, the Company received $1,600 from a related party advance. The advance is due on demand and does not accrue interest. As of September 30, 2018 and December 31, 2017, the Company had outstanding advances payable to an officer of the Company of $1,600 and $0, respectively. The advances payable are unsecured, bear no interest and are due on demand.


Customer Deposit


During July 2017, the Company entered into a non-binding agreement to explore the opportunity of engaging in a license of Clean Coal Pristine M technology. As part of the non-binding agreement, in September 2017, the Company received a non-refundable deposit of $100,000, subject to application to any future license agreement, from Wyoming New Power. The license agreement is for 2 million ton per annum agreement. The remainder of the license fee will be due upon the signing of a definitive license agreement expected in the second half of 2018. Wyoming New Power is a related party because it is controlled by an entity that has a significant interest in Clean Coal Technologies, Inc.