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Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2023

Note 6. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


	September 30,		December 31,
	2023		2022
Accounts payable	$	3,749,916	$	910,002
Office access deposits		-		235
Unearned revenue		-		20,936
Accrued interest (various notes and loans payable)		241,585		349,497
Accrued interest (working interest royalty programs)		1,546,673		1,437,711
Accrued tax penalties and interest		554,836		524,286
Accounts payable and accrued expenses	$	6,093,010	$	3,242,667

	September 30,		December 31,
	2023		2022
Accounts payable- related parties	$	3,507,834	$	4,112,300
Accrued interest (notes payable)- related parties		291,896		30,678
Accounts payable and accrued expenses	$	3,799,730	$	4,142,978
Accrued compensation	$	1,246,579	$	1,302,890

As of September 30, 2023 and December 31, 2022, our accounts payable are primarily made up of trade payables for the purchase of crude oil. As of September 30, 2023 and December 31, 2022, trade accounts payables in the amount of $2,842,979 and $4,000,681 is with a vendor who our CEO is a beneficiary of. As of September 30, 2023 and December 31, 2022, $250,526 and $37,685 of accounts payable is related to services rendered, which are not trade payables, with a vendor of which our CEO is a beneficiary.

In March 2023, the Compensation Committee reviewed the Company’s 2022 results, including, but not limited to, the progress of the Company’s historic business and certain acquisitions completed by the Company during 2022, and approved discretionary bonuses, which have been accrued as of December 31, 2022, for the Chief Financial Officer, and an acquisition consultant, in the amounts of $505,467 (included in accrued compensation) and $421,222 (included in accounts payable), respectively.

As of September 30, 2023, accrued compensation to current employees includes $71,005 in accrued vacation pay due to our Chief Executive Officer, which may be payable in cash or stock if unused, and $720,145 due to our Chief Financial Officer, with $54,183 in accrued sick and vacation pay that may be payable in cash if unused, and the remainder paid in cash.

On May 23, 2023, our subsidiary White Claw Colorado City, LLC (“WCCC”), supplemented an existing Master Agreement (the “Master Agreement”) with Maxus Capital Group, LLC (“Maxus”), under a two year agreement, which Maxus agreed to finance the build-out of our new facility located on the land leased by our subsidiary, VivaVentures Remediation Corp., in Houston, Texas. We expect Maxus to fund approximately $2.2 million to finance the build-out of the Houston location in the form of a finance lease (see Note 8) for the wash plant, and we will lease the wash plant facility financed by Maxus under WCCC’s supplement to the Master Agreement. During the construction phase of this agreement, the Company controls the asset with construction costs funded by Maxus recorded as a liability. As of September 30, 2023 the Company has recorded a $1,564,771 liability in accounts payable related to the construction related to this agreement that has been funded by Maxus.

In July 2023, the Fund Manager, WealthSpace, LLC, of Viva Wealth Fund I, LLC (VWF), paid distributions to LLC unit holders in the amount of $414,329. The Company recorded this payment in behalf of VWF in accounts payable as of September 30, 2023. Subsequent to September 30, 2023, the $414,329 payable to WealthSpace, LLC was reimbursed by VWF and the payable was eliminated.