Quarterly report pursuant to Section 13 or 15(d)

NOTE 4: RELATED PARTY TRANSACTIONS

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NOTE 4: RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2019
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 $2,544,542 and $2,719,653 as of March 31, 2019 and December 31, 2018, 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 March 31, 2019 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,521,123 is currently in default and the amount includes $294,423 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.


Convertible Debt


During the three months ended March 31, 2019, the Company borrowed an aggregate of $125,000, net of beneficial conversion features of $50,992, under convertible notes payable from a Company with an interest owned by a significant stockholder. The convertible notes are secured by assets and the common stock of the Company, bear interest at 12% per annum and are due three years from the dates of issuance. As of March 31, 2019 and December 31, 2018, the Company had outstanding short-term convertible notes payable of $4,882,384 and $4,660,381, net of unamortized discounts of $122,656 and $139,977, respectively and outstanding long-term convertible notes payable of $4,929,800 and $5,026,800, net of unamortized discounts of $2,932,396 and $3,154,012, 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 three months ended March 31, 2019 and 2018 was $289,932 and $487,044, respectively.


IP collateral


Nonconvertible Debt


During the three months ended March 31, 2019, the Company received $285,000 from the issuance of related party notes payable. The notes are due on demand and do not accrue interest. As of March 31, 2019 and December 31, 2018, the Company had outstanding notes payable of $370,000 and $85,000, respectively. These notes payable of the Company are unsecured, bear no interest and are due on demand.


During the three months ended March 31, 2019, the Company received $7,000 from an officer. The advance is due on demand and does not accrue interest. As of March 31, 2019 and December 31, 2018, the Company had outstanding advances payable to an officer of the Company of $8,600 and $1,600, 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 2019. Wyoming New Power is a related party because it is controlled by an entity that has a significant interest in Clean Coal Technologies, Inc.