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Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

Note 5. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:


		September 30,				December 31,
		2024				2023
Accounts payable		$	8,070,842			$	5,226,071
Office access deposits			-				-
Unearned revenue			9,107,297				9,107,297
Accrued interest (various notes and loans payable)			122,331				178,999
Accrued interest (working interest royalty programs)			1,591,907				1,396,528
Accrued tax penalties and interest			742,801				669,747
Accounts payable and accrued expenses		$	19,635,178			$	16,578,642


		September 30,				December 31,
		2024				2023
Accounts payable- related parties		$	738,633			$	1,933,817
Accrued interest (notes payable)- related parties			39,926				0
Accounts payable and accrued expenses- related parties		$	778,559			$	1,933,817
Accrued compensation		$	1,046,481			$	1,968,063

For the nine months ended September 30, 2024, our accounts payable and accrued expenses include unverified billings from a service provider in the amount of $371,075, of which the Company is in the process of reviewing and may dispute in the near future.

As of September 30, 2024 and December 31, 2023, our accounts payable are primarily made up of trade payables for the purchase of crude oil and unearned revenue related to the construction of and intended sale leaseback of Remediation Processing Unit- System A & B.

As of September 30, 2024 and December 31, 2023, trade accounts payables in the amount of $109,129 and $1,933,817 is with a vendor who our CEO is a beneficiary of. As of September 30, 2024 and December 31, 2023, accounts payable related to consulting services rendered of $596,341 and $178,325, are with a vendor who our CEO is a beneficiary of.

As of September 30, 2024, accrued compensation to current employees includes $147,982 in accrued vacation pay due to our Chief Executive Officer, which may be payable in cash or stock if unused, and $315,627 due to our Chief Financial Officer, which includes $90,002 in accrued sick and vacation pay is payable in cash if unused and $168,443 in accrued bonuses. Accrued compensation includes prorated year end accrued cash bonuses that are considered probable.

On August 22, 2024, we entered into a new executive employment agreement with our Vice President, Marketing. Pursuant to the new employment agreement, our Vice President, Marketing will receive $200,000 annually (the “Base Salary”), which after the first annual anniversary the Base Salary may increase to $350,000 contingent upon the Company achieving net profitability of $500,000 of all commodity trades by the Vice President, Marketing. In addition, the employment agreement provides for annual incentive cash and equity compensation of up to $440,000 based on certain performance goals as further set forth therein. As an inducement to enter into the executive employment agreement, the Vice President, Marketing is entitled to receive a one-time signing grant of Company common stock equivalent in value to $150,000, which is priced per share based on the closing price on the day of such grant (calculated to be 71,090 shares based on the effective date of the executive employment agreement). The signing bonus has not been issued and is due not later than thirty (30) calendar days after we file an amended Registration Statement on Form S-8 with the Securities and Exchange Commission registering shares under a Long-Term Incentive Plan (“LTIP”), and the shares will only vest as set forth in the LTIP.