XML 67 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Write-Off of Deposit
12 Months Ended
Dec. 31, 2018
Banking and Thrift [Abstract]  
Write-Off of Deposit

8. WRITE-OFF OF DEPOSIT

 

In December 2017, the Company entered into a Letter of Intent (“LOI”) with Clean Energy Technology Association, Inc. (“CETA”) to purchase an option to acquire 50 shares of CETA, or lease certain oil and natural gas properties inside an area of mutual interest. The Company made a $250,000 option payment, which was refundable in the event that the Company and CETA were unable to complete the transaction by August 1, 2018. In 2018, the Company paid an additional $124,000 to CETA, In September 2019, the Company issued CETA a demand letter requesting return of the amounts deposited. While the Company is pursuing collection of the deposit, the Company has established an allowance for the entire $374,000 due from CETA at December 31, 2018 due to the uncertainty of collection of the deposit. See Note 11-Commitments, Contingencies and Related Party Transactions.