10-Q 1 cpwr_10q.htm FORM 10-Q cpwr_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2023

 

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number 033-19411-C

 

OCEAN THERMAL ENERGY CORPORATION

(Exact name of registrant as specified in its charter)

 

Nevada

 

20-5081381

(State or other jurisdiction

of incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

3675 Market Street, Suite 200, Philadelphia, PA 19104

(Address of principal executive offices, including zip code)

 

(717) 299-1344

(Registrant’s telephone number, including area code)

 

n/a

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Exchange Act: None

 

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated Filer

☒

Smaller reporting company

☒

Emerging growth company

☐

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

As of September 8, 2023, issuer had 184,370,469 outstanding shares of common stock, par value $0.001.

 

 

 

 

TABLE OF CONTENTS

 

 

Description

 

Page

 

 

 

 

 

 

PART I-FINANCIAL INFORMATION

 

 

 

 

 

Item 1

Financial Statements

 

3

 

 

Condensed Consolidated Balance Sheets

 

3

 

 

Condensed Consolidated Statements of Operations

 

4

 

 

Condensed Consolidated Statements of Changes in Stockholders’ Deficiency

 

5

 

 

Condensed Consolidated Statements of Cash Flows

 

7

 

 

Notes to the Condensed Consolidated Financial Statements

 

8

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

18

 

Item 3

Quantitative and Qualitative Disclosures about Market Risk

 

20

 

Item 4

Controls and Procedures

 

21

 

 

 

 

 

 

PART II-OTHER INFORMATION

 

 

 

 

 

Item 2

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

 

22

 

Item 3

Defaults upon Senior Securities

 

22

 

Item 6

Exhibits

 

24

 

 

Signature

 

25

 

 

 
2

Table of Contents

 

PART I - FINANCIAL INFORMATION 

 

ITEM 1. FINANCIAL STATEMENTS

 

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

June 30,

2023

 

 

December 31,

2022

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

 

$55,097

 

 

$1,404

 

Prepaid expenses

 

 

5,000

 

 

 

5,000

 

Total Current Assets

 

 

60,097

 

 

 

6,404

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$60,097

 

 

$6,404

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIENCY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expense

 

$21,008,110

 

 

$20,517,881

 

Notes payable - related party

 

 

2,294,170

 

 

 

2,329,473

 

Convertible notes payable - related party, net

 

 

116,530

 

 

 

114,721

 

Notes payable

 

 

3,653,331

 

 

 

3,655,932

 

Convertible note payable, net

 

 

2,548,811

 

 

 

2,531,401

 

Advances payable – related party, net

 

 

62,008

 

 

 

57,760

 

Derivative liability

 

 

8,384,880

 

 

 

6,998,262

 

Total Current Liabilities

 

 

38,067,840

 

 

 

36,205,430

 

 

 

 

 

 

 

 

 

 

Long-term Liabilities

 

 

 

 

 

 

 

 

Convertible note payable, net

 

 

-

 

 

 

-

 

Convertible notes payable - related party, net

 

 

-

 

 

 

-

 

Notes payable

 

 

-

 

 

 

-

 

Total Liabilities

 

 

38,067,840

 

 

 

36,205,430

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (See Note 8)

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' deficiency

 

 

 

 

 

 

 

 

Preferred Stock, Series B, $0.001par value; 1,250,000 shares authorized, 518,750 and 518,750 shares issued and outstanding, respectively

 

 

519

 

 

 

519

 

Preferred Stock, Series C, $0.001 par value; 2,700,000 shares authorized, 2,300,000 and 2,300,000 shares issued and outstanding, respectively

 

 

2,300

 

 

 

2,300

 

Preferred Stock, Series D, $0.001 par value; 1,400 shares authorized, 984 and 278 shares issued and outstanding, respectively

 

 

1

 

 

 

-

 

Common stock, $0.001 par value; 200,000,000 shares authorized, 184,370,469 and 184,370,469 shares issued and outstanding, respectively

 

 

184,371

 

 

 

184,371

 

Additional paid-in capital

 

 

61,522,401

 

 

 

60,110,402

 

Accumulated deficit

 

 

(99,717,335 )

 

 

(96,496,618 )

Total Stockholders' Deficiency

 

 

(38,007,743 )

 

 

(36,199,026 )

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders' Deficiency

 

$60,097

 

 

$6,404

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 
3

Table of Contents

 

 

 OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the six months ended

 

 

 

 June 30,

2023

 

 

 June 30,

2022

 

 

 June 30,

2023

 

 

 June 30,

2022

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and compensation

 

$217,149

 

 

$207,485

 

 

$444,077

 

 

$410,263

 

Professional fees

 

 

105,340

 

 

 

143,639

 

 

 

196,677

 

 

 

274,428

 

General and administrative

 

 

40,113

 

 

 

38,639

 

 

 

85,673

 

 

 

91,652

 

Total Operating Expenses

 

 

362,602

 

 

 

389,763

 

 

 

726,427

 

 

 

776,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from Operations

 

 

(362,602 )

 

 

(389,763 )

 

 

(726,427 )

 

 

(776,343 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expenses)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service income

 

 

7,000

 

 

 

-

 

 

 

12,000

 

 

 

-

 

Interest expense, net

 

 

(536,416 )

 

 

(448,069 )

 

 

(1,051,123 )

 

 

(882,322 )

Amortization of debt discount

 

 

(33,174 )

 

 

(61,517 )

 

 

(65,969 )

 

 

(124,316 )

Change in FV of derivative liability

 

 

(1,662,631 )

 

 

(54,089 )

 

 

(1,389,220 )

 

 

(1,822,743 )

Gain on conversion of debt

 

 

22

 

 

 

33,332

 

 

 

22

 

 

 

35,599

 

Total Other Income (Expense)

 

 

(2,225,199 )

 

 

(530,343 )

 

 

(2,494,290 )

 

 

(2,793,782 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Before Income Taxes

 

 

(2,587,801 )

 

 

(920,106 )

 

 

(3,226,764 )

 

 

(3,570,125 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss

 

$(2,587,801 )

 

$(920,106 )

 

$(3,220,717 )

 

$(3,570,125 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss per Common Share – Basic and diluted

 

$(0.01 )

 

$(0.01 )

 

$(0.02 )

 

$(0.02 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding – Basic and diluted

 

 

184,370,469

 

 

 

157,502,337

 

 

 

184,370,469

 

 

 

150,912,815

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 
4

Table of Contents

 

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

(Unaudited)

 

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

 

 

 Total

 

 

 

Number of

 

 

Par

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Value

 

 

Shares

 

 

Value

 

 

Capital

 

 

Deficit

 

 

Deficiency

 

Balance December 31, 2021

 

 

2,818,750

 

 

$2,819

 

 

 

174,370,469

 

 

$174,371

 

 

$59,379,402

 

 

$(89,584,516 )

 

$(30,027,924 )

Series D Preferred Stock issued for cash

 

 

135

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

270,000

 

 

 

-

 

 

 

270,000

 

Series D Preferred Stock issued for conversion of notes and interest

 

 

143

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

286,000

 

 

 

-

 

 

 

286,000

 

Common Stock issued for conversions of notes payable

 

 

-

 

 

 

-

 

 

 

5,000,000

 

 

 

5,000

 

 

 

105,000

 

 

 

-

 

 

 

110,000

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,570,125 )

 

 

(3,570,125 )

Balance June 30, 2022 (Unaudited)

 

 

2,819,028

 

 

$2,819

 

 

 

179,370,469

 

 

$179,371

 

 

$60,040,402

 

 

$(93,154,641 )

 

$(32,932,049 )

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

 

 

 Total

 

 

 

Number of

 

 

Par

 

 

Number of

 

 

Par

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Value

 

 

Shares

 

 

Value

 

 

Capital

 

 

Deficit

 

 

Deficiency

 

Balance December 31, 2022

 

 

2,819,028

 

 

$2,819

 

 

 

184,370,469

 

 

$184,371

 

 

$60,110,402

 

 

$(96,496,618 )

 

$(36,199,026 )

Series D Preferred Stock issued for cash

 

 

175

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

350,000

 

 

 

-

 

 

 

350,000

 

Series D Preferred Stock issued for conversion of notes and interest

 

 

531

 

 

 

1

 

 

 

-

 

 

 

-

 

 

 

1,061,999

 

 

 

-

 

 

 

1,062,000

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(3,220,717 )

 

 

(3,220,717 )

Balance June 30, 2023 (Unaudited)

 

 

2,819,734

 

 

$2,820

 

 

 

184,370,469

 

 

$184,371

 

 

$61,522,401

 

 

$(99,717,335 )

 

$(38,007,743 )

 

 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 
5

Table of Contents

 

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIENCY

(Unaudited)

 

FOR THE THREE MONTHS ENDED JUNE 30, 2023 AND 2022 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Total

 

 

 

Number of

Shares

 

 

Par 

Value

 

 

Number of

Shares

 

 

Par 

Value

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Stockholders’

Deficiency

 

Balance March 31, 2022 (Unaudited)

 

 

2,818,923

 

 

$2,819

 

 

 

174,370,469

 

 

$174,371

 

 

$59,725,402

 

 

$(92,234,535)

 

$(32,331,943)

Series D Preferred Stock issued for cash

 

 

15

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

30,000

 

 

 

-

 

 

 

30,000

 

Series D Preferred Stock issued for conversion of notes and interest

 

 

90

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

180,000

 

 

 

-

 

 

 

180,000

 

Common Stock issued for conversions of notes payable

 

 

-

 

 

 

-

 

 

 

5,000,000

 

 

 

5,000

 

 

 

105,000

 

 

 

-

 

 

 

110,000

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(920,106)

 

 

(920,106)

Balance June 30, 2022 (Unaudited)

 

 

2,819,028

 

 

$2,819

 

 

 

179,370,469

 

 

$179,371

 

 

$60,040,402

 

 

$(93,154,641)

 

$(32,932,049)

 

 

 

Preferred Stock

 

 

Common Stock

 

 

 Additional

 

 

 

 

Total

 

 

 

Number of

Shares

 

 

Par 

Value

 

 

Number of

Shares

 

 

Par 

Value

 

 

Paid-in

Capital

 

 

Accumulated

Deficit

 

 

Stockholders’

Deficiency

 

Balance March 31, 2023 (Unaudited)

 

 

2,819,573

 

 

$2,820

 

 

 

184,370,469

 

 

$184,371

 

 

$61,200,401

 

 

$(97,129,534)

 

$(35,741,942)

Series D Preferred Stock issued for cash

 

 

130

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

260,000

 

 

 

-

 

 

 

260,000

 

Series D Preferred Stock issued for conversion of notes and interest

 

 

31

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

62,000

 

 

 

-

 

 

 

62,000

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,587,801)

 

 

(2,587,801)

Balance June 30, 2023 (Unaudited)

 

 

2,819,734

 

 

$2,820

 

 

 

184,370,469

 

 

$184,371

 

 

$61,522,401

 

 

$(99,717,335)

 

$(38,007,743)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 
6

Table of Contents

 

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Unaudited)

 

 

 

2023

 

 

2022

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net loss

 

$(3,220,717 )

 

$(3,570,125 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Change in fair value of derivative liability

 

 

1,389,220

 

 

 

1,822,743

 

Amortization of debt discount

 

 

65,969

 

 

 

124,316

 

Gain on conversion of debt

 

 

(22 )

 

 

(35,599 )

Stock issued for second commitment fee

 

 

-

 

 

 

-

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expense

 

 

-

 

 

 

-

 

Accounts payable and accrued expenses

 

 

1,467,595

 

 

 

1,388,564

 

Net Cash Used In Operating Activities

 

 

(297,955 )

 

 

(270,101 )

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Advances from related parties

 

 

4,248

 

 

 

-

 

Repayment of notes payable

 

 

(2,600 )

 

 

-

 

Proceeds from sale of preferred stock

 

 

350,000

 

 

 

270,000

 

Net Cash Provided by Financing Activities

 

 

351,648

 

 

 

270,000

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

53,693

 

 

 

(101 )

Cash at beginning of period

 

 

1,404

 

 

 

957

 

Cash at End of Period

 

$55,097

 

 

$856

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest expense

 

$2,493

 

 

$10,293

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Preferred stock issued for conversion of notes and accrued interest

 

$1,062,000

 

 

$286,000

 

Common stock issued for conversion of notes payable

 

$-

 

 

$110,000

 

Convertible notes payable and accrued interest converted into common stock

 

$-

 

 

$20,075

 

Convertible notes payable and accrued interest converted into preferred stock

 

$59,420

 

 

$100,945

 

Related party convertible notes payable and accrued interest converted into preferred stock

 

$-

 

 

$12,043

 

Related party note payable and accrued interest converted into preferred stock

 

$1,000,000

 

 

 

-

 

Notes payable and accrued interest converted into preferred stock

 

$-

 

 

$168,138

 

Derivative liability extinguished upon conversion of note payable

 

$2,602

 

 

$130,398

 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 
7

Table of Contents

  

OCEAN THERMAL ENERGY CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(UNAUDITED)

 

NOTE 1 – NATURE OF BUSINESS AND BASIS OF PRESENTATION

 

Ocean Thermal Energy Corporation is currently in the businesses of:

 

 

·

OTEC and SWAC/LSC-designing ocean thermal energy conversion (“OTEC”) power plants and seawater air conditioning and lake water air conditioning (“SWAC/LSC”) plants for large commercial properties, utilities, and municipalities. These technologies provide practical solutions to mankind’s three oldest and most fundamental needs: clean drinking water, plentiful food, and sustainable, affordable energy without the use of fossil fuels. OTEC is a clean technology that continuously extracts energy from the temperature difference between warm surface ocean water and cold deep seawater. In addition to producing electricity, some of the seawater running through an OTEC plant can be efficiently desalinated using the power generated by the OTEC technology, producing thousands of cubic meters of fresh water every day for use in agriculture and human consumption in the communities served by its plants. This cold, deep, nutrient-rich water can also be used to cool buildings (SWAC/LSC) and for fish farming/aquaculture. In short, it is a technology with many benefits, and its versatility makes OTEC unique.

 

 

 

 

·

EcoVillages-developing and commercializing our EcoVillages, as well as working to develop or acquire new complementary assets. EcoVillages are communities whose goal is to become more socially, economically, and ecologically sustainable and whose inhabitants seek to live according to ecological principles, causing as little impact on the environment as possible. We expect that our EcoVillage communities will range from a population of 50 to 150 individuals, although some may be smaller. We may also form larger EcoVillages, of up to 2,000 individuals, as networks of smaller subcommunities. We expect that our EcoVillages will grow by the addition of individuals, families, or other small groups. We expect to use our technology in the development of our EcoVillages, which should add significant value to this line of business.

 

The unaudited condensed consolidated financial statements include the accounts of the company and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, our financial statements reflect all adjustments that are of a normal recurring nature necessary for presentation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP).

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and presented in accordance with GAAP.

 

The accompanying consolidated balance sheet at December 31, 2022 has been derived from audited consolidated financial statements, but does not include all disclosures required by GAAP. The accompanying unaudited condensed consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and related notes to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with SEC. In the opinion of management, all material adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been made to the condensed consolidated financial statements. The condensed consolidated financial statements include all material adjustments (consisting of normal recurring accruals) necessary to make the condensed consolidated financial statements not misleading as required by Regulation S-X Rule 10-01. Operating results for the three and six months ended June 30, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or any future periods.

 

 
8

Table of Contents

 

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation

 

The condensed consolidated financial statements include the accounts of the company and its wholly-owned subsidiaries Ocean Thermal Energy Bahamas Ltd., OTE BM Ltd. and OCEES International Inc. ("OCEES"). Intercompany balances and transactions have been eliminated in consolidation. We have an effective interest of 100% in each of our subsidiaries.

 

Agreement to Sell Subsidiary

 

On August 25, 2022, we entered into a Stock Purchase Agreement to sell OCEES to Epaphus Global Energy, LLC (“Epaphus”). Epaphus is controlled by Jeremy Feakins, our chief executive officer and a director. The transaction was approved unanimously by our directors who do not have an interest in the transaction.

 

In exchange for the sale of OCEES, we will receive:

 

 

•

$1,000,000 in the form of canceled amounts owed by us to certain individuals, including Mr. Feakins, who have assigned their right to receive those payments to Epaphus;

 

•

$75,000 in cash per month for 12 months following the date of the purchase agreement; and

 

•

70% of the net profit of any currently contemplated project to build an ocean thermal energy conversion power plant entered into by OCEES.

 

Under the terms of the purchase agreement, Epaphus has the unilateral right to return OCEES to us and receive a full refund of all portions of the purchase price paid as of the return of OCEES at any time for one year following the date of the purchase agreement.

 

Because the purchase agreement had not closed as of June 30, 2023, or through the date of filing of this report, it has not been reflected in these financial statements.

 

Use of Estimates

 

In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include the assumptions used in the valuation of equity-based transactions, valuation of derivative liabilities, and valuation of deferred tax assets.

 

 
9

Table of Contents

 

Cash and Cash Equivalents

 

We consider all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. We had no cash equivalents at June 30, 2023, and December 31, 2022.

 

Business Segments

 

We operate in one segment and, therefore, segment information is not presented.

 

Fair Value

 

Financial Accounting Standards Board Accounting Standard Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

 

 

·

Level 1-Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the reporting date.

 

·

Level 2-Pricing inputs are quoted for similar assets or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 2 includes assets or liabilities valued at quoted prices adjusted for legal or contractual restrictions specific to these investments.

 

·

Level 3-Pricing inputs are unobservable for the assets or liabilities; that is, the inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability.

 

Management believes the carrying amounts of the short-term financial instruments, including cash and cash equivalents, prepaid expenses, accounts payable, accrued liabilities, notes payable, and other liabilities, reflected in the accompanying balance sheets, approximate fair value at June 30, 2023, and December 31, 2022, due to the relatively short-term nature of these instruments.

 

We accounted for derivative liability at fair value on a recurring basis under Level 3 at June 30, 2023, and December 31, 2022 (see Note 5).

 

Concentrations

 

Cash, cash equivalents, and restricted cash are deposited with major financial institutions, and at times, such balances with any one financial institution may be in excess of FDIC-insured limits. As of June 30, 2023, and December 31, 2022, no balances exceeded FDIC-insured limits.

 

Loss per Share

 

Basic loss per share is calculated by dividing our net loss available to common shareholders by the weighted average number of common shares during the period. Diluted loss per share is calculated by dividing our net loss by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.

 

 
10

Table of Contents

 

  The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as of June 30, 2023 and 2022, as they would be anti-dilutive:

 

 

 

Six Months Ended June 30,

 

 

 

2023

 

 

2022

 

Shares underlying warrants outstanding

 

 

69,000

 

 

 

125,073

 

Shares underlying convertible notes outstanding

 

 

1,041,523,839

 

 

 

686,697,434

 

Shares underlying convertible preferred stock outstanding

 

 

16,687,500

 

 

 

16,687,500

 

 

 

 

1,058,280,339

 

 

 

703,510,007

 

 

Recent Accounting Pronouncements

 

We have reviewed all recently issued, but not yet adopted, accounting standards to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on current or future earnings or operations.

 

NOTE 3 – GOING CONCERN

 

The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying unaudited condensed consolidated financial statements, we had a net loss of $3,220,717 and used $297,955 of cash in operating activities for the six months ended June 30, 2023. We had a working capital deficiency of $38,007,743 and a stockholders’ deficiency of $38,007,743 as of June 30, 2023. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our projects under development. We continue to apply for grant funding from the U.S. Department of Energy. Our applications focus on desalinated water, ammonia, and hydrogen production from an OTEC facility. On March 11, 2022, President Biden signed a bill that provides $162 million for the Water Power Technologies Office budget. About $112 million of that money is slated for marine energy. We plan to apply for funding to support projects where our technology would apply. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

 

NOTE 4 – CONVERTIBLE NOTES AND NOTES PAYABLE

 

During the six months ended June 30, 2023, $35,303 of related party notes and $964,697 of related accrued interest were converted into 500 shares of Series D Preferred Stock.

 

During the six months ended June 30, 2023, $46,750 of notes and $12,670 of related accrued interest were converted into 31 shares of Series D Preferred Stock.

 

During the six months ended June 30, 2022, $215,000 of notes and $66,126 of related accrued interest was converted into 143 shares of Series D Preferred Stock.

 

During the six months ended June 30, 2022, $20,075 of notes were converted into 5,000,000 shares of common stock.

 

 
11

Table of Contents

 

The following convertible notes and notes payable were outstanding at June 30, 2023:

 

 Date of

 

 

Maturity

 

 

Interest

 

 

In

 

Original

 

 

Principal

at

June 30,

 

 

Discount

at

June 30,

 

 

Carrying

Amount

at

June 30,

 

 

Related Party

 

 

Non Related Party

 

Issuance

 

 

Date

 

 

Rate

 

 

Default

 

Principal

 

 

2023

 

 

2023

 

 

2023

 

 

Current

 

 

Long-Term

 

 

Current

 

 

Long-Term

 

12/01/07

 

 

09/01/15

 

 

 

7.00

%

 

Yes

 

 

125,000

 

 

 

85,821

 

 

 

-

 

 

 

85,821

 

 

 

-

 

 

 

-

 

 

 

85,821

 

 

 

-

 

09/25/09

 

 

10/25/11

 

 

 

5.00

%

 

Yes

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

50,000

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

100,000

 

 

 

81,121

 

 

 

-

 

 

 

81,121

 

 

 

-

 

 

 

-

 

 

 

81,121

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

25,000

 

 

 

21,955

 

 

 

-

 

 

 

21,955

 

 

 

-

 

 

 

-

 

 

 

21,955

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

25,000

 

 

 

21,945

 

 

 

-

 

 

 

21,945

 

 

 

-

 

 

 

-

 

 

 

21,945

 

 

 

-

 

02/03/12

 

 

12/31/19

 

 

 

10.00

%

 

Yes

 

 

1,000,000

 

 

 

1,000,000

 

 

 

-

 

 

 

1,000,000

 

 

 

-

 

 

 

-

 

 

 

1,000,000

 

 

 

-

 

08/15/13

 

 

10/31/23

 

 

 

10.00

%

 

No

 

 

158,334

 

 

 

158,334

 

 

 

-

 

 

 

158,334

 

 

 

-

 

 

 

-

 

 

 

158,334

 

 

 

-

 

12/31/13

 

 

12/31/15

 

 

 

8.00

%

 

Yes

 

 

290,000

 

 

 

130,000

 

 

 

-

 

 

 

130,000

 

 

 

-

 

 

 

-

 

 

 

130,000

 

 

 

-

 

04/01/14

 

 

12/31/18

 

 

 

10.00

%

 

Yes

 

 

2,265,000

 

 

 

1,067,197

 

 

 

-

 

 

 

1,067,197

 

 

 

1,067,197

 

 

 

-

 

 

 

-

 

 

 

-

 

12/22/14

 

 

03/31/15

 

 

 

22.00

%*

 

Yes

 

 

200,000

 

 

 

200,000

 

 

 

-

 

 

 

200,000

 

 

 

-

 

 

 

-

 

 

 

200,000

 

 

 

-

 

12/26/14

 

 

12/26/15

 

 

 

22.00

%*

 

Yes

 

 

100,000

 

 

 

100,000

 

 

 

-

 

 

 

100,000

 

 

 

-

 

 

 

-

 

 

 

100,000

 

 

 

-

 

03/12/15

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

394,380

 

 

 

394,380

 

 

 

-

 

 

 

394,380

 

 

 

394,380

 

 

 

-

 

 

 

-

 

 

 

-

 

04/07/15

 

 

04/07/18

 

 

 

10.00

%

 

Yes

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

50,000

 

 

 

-

 

11/23/15

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

02/25/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

05/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

10/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

37,500

 

 

 

12,500

 

 

 

-

 

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

-

 

10/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

-

 

12/21/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

-

 

03/09/17

 

 

(1)

 

 

 

 

10.00

%

 

No

 

 

200,000

 

 

 

177,000

 

 

 

-

 

 

 

177,000

 

 

 

177,000

 

 

 

-

 

 

 

-

 

 

 

-

 

07/13/17

 

 

07/13/19

 

 

 

6.00

%

 

Yes

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

25,000

 

 

 

-

 

07/18/17

 

 

07/18/19

 

 

 

6.00

%

 

Yes

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

25,000

 

 

 

-

 

07/26/17

 

 

07/26/19

 

 

 

6.00

%

 

Yes

 

 

15,000

 

 

 

15,000

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

-

 

12/20/17

 

 

(2)

 

 

 

 

10.00

%

 

Yes

 

 

979,156

 

 

 

859,156

 

 

 

-

 

 

 

859,156

 

 

 

-

 

 

 

-

 

 

 

859,156

 

 

 

-

 

11/06/17

 

 

12/31/18

 

 

 

10.00

%

 

Yes

 

 

646,568

 

 

 

543,093

 

 

 

-

 

 

 

543,093

 

 

 

543,093

 

 

 

-

 

 

 

-

 

 

 

-

 

02/19/18

 

 

(3)

 

 

 

 

18.00

%*

 

Yes

 

 

629,451

 

 

 

1,161,136

 

 

 

-

 

 

 

1,161,136

 

 

 

-

 

 

 

-

 

 

 

1,161,136

 

 

 

-

 

09/19/18

 

 

09/28/21

 

 

 

6.00

%

 

Yes

 

 

10,000

 

 

 

10,000

 

 

 

-

 

 

 

10,000

 

 

 

-

 

 

 

-

 

 

 

10,000

 

 

 

-

 

12/14/18

 

 

12/22/18

 

 

 

24.00

%*

 

Yes

 

 

474,759

 

 

 

578,075

 

 

 

-

 

 

 

578,075

 

 

 

-

 

 

 

-

 

 

 

578,075

 

 

 

-

 

01/02/19

 

 

(4)

 

 

 

 

17.00

%

 

No

 

 

310,000

 

 

 

310,000

 

 

 

-

 

 

 

310,000

 

 

 

-

 

 

 

-

 

 

 

310,000

 

 

 

-

 

08/14/19

 

 

10/31/2021

 

 

 

8.00

%

 

Yes

 

 

26,200

 

 

 

26,200

 

 

 

-

 

 

 

26,200

 

 

 

-

 

 

 

-

 

 

 

26,200

 

 

 

-

 

 

(5)

 

 

10/31/2021

 

 

 

8.00

%

 

Yes

 

 

105,000

 

 

 

40,000

 

 

 

-

 

 

 

40,000

 

 

 

5,000

 

 

 

-

 

 

 

35,000

 

 

 

-

 

 

(6)

 

 

01/02/22

 

 

 

8.00

%

 

Yes

 

 

296,750

 

 

 

225,000

 

 

 

-

 

 

 

225,000

 

 

 

15,000

 

 

 

-

 

 

 

210,000

 

 

 

-

 

 

(8)

 

 

05/12/22

 

 

 

8.00

%

 

Yes

 

 

15,000

 

 

 

15,000

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

(9)

 

 

09/01/22

 

 

 

8.00

%

 

Yes

 

 

170,000

 

 

 

155,000

 

 

 

-

 

 

 

155,000

 

 

 

-

 

 

 

-

 

 

 

155,000

 

 

 

-

 

 

(10)

 

 

08/30/23

 

 

 

8.00

%

 

No

 

 

285,000

 

 

 

280,000

 

 

 

21,972

 

 

 

258,028

 

 

 

4,629

 

 

 

-

 

 

 

253,399

 

 

 

-

 

 

(11)

 

 

11/30/23

 

 

 

8.00

%

 

No

 

 

5,000

 

 

 

5,000

 

 

 

599

 

 

 

4,401

 

 

 

4,401

 

 

 

-

 

 

 

-

 

 

 

-

 

 

(7)

 

 

(7)

 

 

 

 

10.00

%

 

No

 

 

625,000

 

 

 

625,000

 

 

 

-

 

 

 

625,000

 

 

 

-

 

 

 

-

 

 

 

625,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

9,850,598

 

 

$

8,635,413

 

 

$

22,571

 

 

$

8,612,842

 

 

$

2,410,700

 

 

$

-

 

 

$

6,202,142

 

 

$

-

 

 

 
12

Table of Contents

 

(1)

Maturity date is 90 days after demand.

(2)

Bridge loans were issued at dates between December 2017 and May 2018. Principal is due on the earlier of 18 months from the anniversary date or the completion of L2 Capital financing with gross proceeds of a minimum of $1.5 million.

(3)

L2 Capital note was drawn down in five tranches between 02/16/18 and 05/02/18.

(4)

Loans were issued from 01/02/19 to 03/23/19. Principal and interest are due when funds are received from the litigation between Ocean Thermal Energy Corporation vs. Robert Coe, et al.

(5)

Notes were issued between 10/14/19 and 11/05/19. The notes bear an interest rate of 8% and mature 10/31/21. They can be converted into 250,000 shares of common stock. They can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

(6)

Notes were issued between 12/09/19 and 11/25/20. The notes bear an interest rate of 8% and mature 01/02/22. They can be converted into 250,000 shares of common stock. They can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

(7)

Notes were issued between 11/02/20 and 03/18/21. The notes bear an interest rate of 10%. Repayment will be made as follows: (i) the principal and interest within five business days following our receipt of $25.5 million from the Robert Coe, et al Phase One Litigation; and (ii) the additional payment within five business days following our actual receipt of any funds from the Robert Coe, et al., Phase Two Litigation, less legal fees accrued up to that date. Payment will be made as such funds are actually received by us and after deductions of accrued legal fees up to that date.

(8)

Notes were issued between 05/14/20 and 08/11/20. The notes bear an interest rate of 8% and mature 05/12/22. They can be converted into 250,000 shares of common stock. They can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

(9)

Notes were issued in November 2020 and during the first two quarters of 2021. The notes bear an interest rate of 8% and mature 09/01/22. They can be converted into 250,000 shares of common stock. They can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

(10)

Notes were issued during the third quarter of 2021. The notes bear an interest rate of 8% and mature 08/30/23. They can be converted into 250,000 shares of common stock. They can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

(11)

Note was issued during November of 2021. The note bears an interest rate of 8% and matures 11/30/23. It can be converted into 250,000 shares of common stock. It can be converted when the stock closing price reaches $1 or on the maturity, whichever occurs first.

*

Default interest rate.

 

The following convertible notes and notes payable were outstanding at December 31, 2022:

 

Date of

 

 

Maturity

 

 

Interest

 

 

In

 

Original

 

 

Principal

at

December 31,

 

 

Discount

at

December 31,

 

 

Carrying

Amount

at

December 31,

 

 

Related Party

 

 

Non Related Party

 

Issuance

 

 

Date

 

 

Rate

 

 

Default

 

Principal

 

 

2022

 

 

2022

 

 

2022

 

 

Current

 

 

Long-Term

 

 

Current

 

 

Long-Term

 

12/01/07

 

 

09/01/15

 

 

 

7.00

%

 

Yes

 

 

125,000

 

 

 

85,821

 

 

 

-

 

 

 

85,821

 

 

 

-

 

 

 

-

 

 

 

85,821

 

 

 

-

 

09/25/09

 

 

10/25/11

 

 

 

5.00

%

 

Yes

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

50,000

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

100,000

 

 

 

83,166

 

 

 

-

 

 

 

83,166

 

 

 

-

 

 

 

-

 

 

 

83,166

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

25,000

 

 

 

22,233

 

 

 

-

 

 

 

22,233

 

 

 

-

 

 

 

-

 

 

 

22,233

 

 

 

-

 

12/23/09

 

 

12/23/14

 

 

 

7.00

%

 

Yes

 

 

25,000

 

 

 

22,223

 

 

 

-

 

 

 

22,223

 

 

 

-

 

 

 

-

 

 

 

22,223

 

 

 

-

 

02/03/12

 

 

12/31/19

 

 

 

10.00

%

 

Yes

 

 

1,000,000

 

 

 

1,000,000

 

 

 

-

 

 

 

1,000,000

 

 

 

-

 

 

 

-

 

 

 

1,000,000

 

 

 

-

 

08/15/13

 

 

10/31/23

 

 

 

10.00

%

 

No

 

 

158,334

 

 

 

158,334

 

 

 

-

 

 

 

158,334

 

 

 

-

 

 

 

-

 

 

 

158,334

 

 

 

-

 

12/31/13

 

 

12/31/15

 

 

 

8.00

%

 

Yes

 

 

290,000

 

 

 

130,000

 

 

 

-

 

 

 

130,000

 

 

 

-

 

 

 

-

 

 

 

130,000

 

 

 

-

 

04/01/14

 

 

12/31/18

 

 

 

10.00

%

 

Yes

 

 

2,265,000

 

 

 

1,102,500

 

 

 

-

 

 

 

1,102,500

 

 

 

1,102,500

 

 

 

-

 

 

 

-

 

 

 

-

 

12/22/14

 

 

03/31/15

 

 

 

22.00

%*

 

Yes

 

 

200,000

 

 

 

200,000

 

 

 

-

 

 

 

200,000

 

 

 

-

 

 

 

-

 

 

 

200,000

 

 

 

-

 

12/26/14

 

 

12/26/15

 

 

 

22.00

%*

 

Yes

 

 

100,000

 

 

 

100,000

 

 

 

-

 

 

 

100,000

 

 

 

-

 

 

 

-

 

 

 

100,000

 

 

 

-

 

03/12/15

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

394,380

 

 

 

394,380

 

 

 

-

 

 

 

394,380

 

 

 

394,380

 

 

 

-

 

 

 

-

 

 

 

-

 

04/07/15

 

 

04/07/18

 

 

 

10.00

%

 

Yes

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

50,000

 

 

 

-

 

11/23/15

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

02/25/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

05/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

50,000

 

 

 

50,000

 

 

 

-

 

 

 

-

 

 

 

-

 

10/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

37,500

 

 

 

12,500

 

 

 

-

 

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

-

 

10/20/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

12,500

 

 

 

12,500

 

 

 

-

 

 

 

-

 

 

 

-

 

12/21/16

 

 

(1)

 

 

 

 

6.00

%

 

No

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

-

 

03/09/17

 

 

(1)

 

 

 

 

10.00

%

 

No

 

 

200,000

 

 

 

177,000

 

 

 

-

 

 

 

177,000

 

 

 

177,000

 

 

 

-

 

 

 

-

 

 

 

-

 

07/13/17

 

 

07/13/19

 

 

 

6.00

%

 

Yes

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

25,000

 

 

 

-

 

07/18/17

 

 

07/18/19

 

 

 

6.00

%

 

Yes

 

 

25,000

 

 

 

25,000

 

 

 

-

 

 

 

25,000

 

 

 

-

 

 

 

-

 

 

 

25,000

 

 

 

-

 

07/26/17

 

 

07/26/19

 

 

 

6.00

%

 

Yes

 

 

15,000

 

 

 

15,000

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

-

 

12/20/17

 

 

(2)

 

 

 

 

10.00

%

 

Yes

 

 

979,156

 

 

 

859,156

 

 

 

-

 

 

 

859,156

 

 

 

-

 

 

 

-

 

 

 

859,156

 

 

 

-

 

11/06/17

 

 

12/31/18

 

 

 

10.00

%

 

Yes

 

 

646,568

 

 

 

543,093

 

 

 

-

 

 

 

543,093

 

 

 

543,093

 

 

 

-

 

 

 

-

 

 

 

-

 

02/19/18

 

 

(3)

 

 

 

 

18.00

%*

 

Yes

 

 

629,451

 

 

 

1,161,136

 

 

 

-

 

 

 

1,161,136

 

 

 

-

 

 

 

-

 

 

 

1,161,136

 

 

 

-

 

09/19/18

 

 

09/28/21

 

 

 

6.00

%

 

Yes

 

 

10,000

 

 

 

10,000

 

 

 

-

 

 

 

10,000

 

 

 

-

 

 

 

-

 

 

 

10,000

 

 

 

-

 

12/14/18

 

 

12/22/18

 

 

 

24.00

%*

 

Yes

 

 

474,759

 

 

 

578,075

 

 

 

-

 

 

 

578,075

 

 

 

-

 

 

 

-

 

 

 

578,075

 

 

 

-

 

01/02/19

 

 

(4)

 

 

 

 

17.00

%

 

No

 

 

310,000

 

 

 

310,000

 

 

 

-

 

 

 

310,000

 

 

 

-

 

 

 

-

 

 

 

310,000

 

 

 

-

 

08/14/19

 

 

10/31/2021

 

 

 

8.00

%

 

Yes

 

 

26,200

 

 

 

26,200

 

 

 

-

 

 

 

26,200

 

 

 

-

 

 

 

-

 

 

 

26,200

 

 

 

-

 

 

(5)

 

 

10/31/2021

 

 

 

8.00

%

 

Yes

 

 

105,000

 

 

 

75,000

 

 

 

-

 

 

 

75,000

 

 

 

5,000

 

 

 

-

 

 

 

70,000

 

 

 

-

 

 

(6)

 

 

01/02/22

 

 

 

8.00

%

 

Yes

 

 

296,750

 

 

 

231,750

 

 

 

-

 

 

 

231,750

 

 

 

15,000

 

 

 

-

 

 

 

216,750

 

 

 

-

 

 

(8)

 

 

05/12/22

 

 

 

8.00

%

 

Yes

 

 

15,000

 

 

 

15,000

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

-

 

 

(9)

 

 

09/01/22

 

 

 

8.00

%

 

Yes

 

 

170,000

 

 

 

155,000

 

 

 

-

 

 

 

155,000

 

 

 

-

 

 

 

-

 

 

 

155,000

 

 

 

-

 

 

(10)

 

 

08/30/23

 

 

 

8.00

%

 

No