RELATED PARTY TRANSACTIONS
|6 Months Ended|
Jun. 30, 2020
|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 $3,175,564 and $3,090,052 as of June 30, 2020 and December 31, 2019, 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 June 30, 2020 has still not earned revenue, the obligation to Mr. Ponce de Leon of $1,643,793 is currently in default and the amount includes $441,613 in accrued interest. It is the Company’s intention to pay Mr. Ponce de Leon immediately upon receiving revenue.
During the six months ended June 30, 2020, the Company borrowed $24,900, net of beneficial conversion features of $4,150, and issued 1,250,000 shares of common stock in conversion of $100,000 principal 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 June 30, 2020, and December 31, 2019, the Company had outstanding short-term convertible notes payable of $8,734,691 and $6,594,469, net of unamortized discounts of $863,170 and $658,922, respectively and outstanding long-term convertible notes payable of $1,069,353 and $2,626,753, net of unamortized discounts of $531,922 and $1,558,289, respectively.
The convertible notes payable are convertible at $0.06 per share, which was a discount to the market price on the dates of issuance. Amortization expense related to debt discounts on convertible debt for the six months ended June 30, 2020 and 2019 was $826,269 and $589,000, respectively.
As of June 30, 2020, and December 31, 2019, the Company had outstanding notes payable of $675,000 and $675,000, respectively.
As of June 30, 2020, and December 31, 2019, the Company had outstanding advances payable to an officer of the Company of $79,600 and $79,600, respectively. The advances payable are unsecured, bear no interest and are due on demand.
Non-Binding License Agreement – related party
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 two million tons per annum. The remainder of the license fee will be due upon the signing of a definitive license agreement. Wyoming New Power is a related party because it is controlled by an entity that has a significant interest in Clean Coal Technologies, Inc.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef