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Write-Off of Deposit
 3 Months Ended
Mar. 31, 2020
Write-off Of Deposit  
Write-Off of Deposit

7. 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. As of March 31, 2020, the Company has received four payments from CETA totaling $200,000. In April 2020, the Company received another payment from CETA in the amount of $25,000. While the Company is pursuing collection of $75,000 of the remaining deposit, the Company has established an allowance of the amount due from CETA at March 31, 2020, due to the uncertainty of collection. See Note 8-Commitments, Contingencies and Related-Party Transactions.