| RELATED PARTY TRANSACTIONS |
NOTE
12 – RELATED PARTY TRANSACTIONS
Eric
A. Brock, the Company’s Chief Executive Officer
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On August 14, 2020, pursuant to the terms of the Series A Preferred
Stock Offering, Mr. Brock purchased 52,500 shares of Series A Preferred totaling $315,000 (the “Series A Shares”).
On December 8, 2020, the Series A Shares mandatorily converted into an aggregate of 66,676
shares of Common Stock, which includes an aggregate of 13,084 shares of Common Stock in connection with a 25% premium. and an aggregate
of 842 shares of Common Stock in lieu of declaring a dividend on shares of Series A Convertible Preferred Stock. See NOTE 9 for
details. |
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During the year ended December 31, 2020, we accrued $131,494 for salary owed during 2020 to Mr. Brock, which amount remains outstanding on December 31, 2020. On January 29, 2021, we paid Mr. Brock $64,344. The balance of $67,150 is expected to be paid during the second quarter of 2021. |
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Between April 16 and December 31, 2019, we accrued $141,667 in payroll for Mr. Brock. On March 12, 2020, Mr. Brock waived the accrued payroll. |
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On September 27, 2019, pursuant to the terms of a Securities Purchase Agreement (see NOTE 9), Mr. Brock, purchased 400,000 Units totaling $1,000,000. |
Stewart
G. Kantor, the Company’s President and Chief Financial Officer
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During year ended December 31, 2020, we accrued $2,956 for salary owed during 2020 to Mr. Kantor.. As of December 31, 2020, the accrued balance was $274,831. On January 29, 2021, the Company paid Mr. Kantor $137,416. The balance of $137,415 is expected to be paid during the second quarter of 2021. |
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As of December 31, 2019, Mr. Kantor had accrued payroll totaling $280,209. On March 12, 2020, Mr. Kantor waived $8,334 in accrued salary. |
Thomas
V. Bushey, the Company’s President from June 3, 2020 and January 19, 2021
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On January 19, 2021, Mr. Bushey resigned as the Company’s President. Effective January 19, 2021, Mr. Bushey will have the right to receive 500,000 RSU Shares (375,000 RSU Shares vested as of December 31, 2020 and 125,000 RSU Shares on which the Compensation Committee accelerated vesting), which RSU Shares will be issued on June 3, 2022 pursuant to Mr. Bushey’s deferral election. |
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For the period from June 3, 2020 to December 31, 2020, we accrued payroll and vacation amounts totaling $115,385 and $9,046, respectively. As of December 31, 2020, the total accrued balance was $124,431. On January 19, 2021, Mr. Bushey waived the accrued payroll amounts in the amount of $115,385. |
Energy
Capital, LLC
At
the Closing, we entered into a Loan and Security Agreement with Energy Capital, a greater than 10% stockholder of the Company,
pursuant to which Energy Capital loaned the Company an aggregate principal amount of $10,000,000 (see NOTE 8 for further details).
The Promissory Notes, with an aggregate of $10,563,104 principal and interest outstanding, were converted into 1,408,414 Units
in the aforementioned Purchase Agreement (see NOTE 9 for further details), and the debt owed under the Promissory Notes was extinguished.
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