Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. EFLO ENERGY, INC. (1448806) 10-Q published on Jul 21, 2015 at 4:26 pm
Reporting Period: May 30, 2015
In April 2015, the Company entered into a loan agreement with FIB and Holloman Corporation (“Holloman” and collectively, the “Lenders”). The Lenders agreed to provide funds as requested by the Company (the “Short-term Loans”). The Short-term Loans bear interest at a rate of 10% per annum and are due on or before February 1, 2016. The Short-term Loans are secured by the assets of the Company and its wholly-owned subsidiaries. The Short-term Loans are related party transactions as a director of the Company is related to FIB and a director of the Company is related to Holloman.
On June 2, 2014, $25,000 in principal payable on the 2013 Convertible Notes was converted into 25,000 shares of the Company’s common stock at a conversion price of $1.00 per share. On April 29, 2015, the remaining $2,230,000 in principal payable on the 2013 Convertible Notes was converted into 2,230,000 shares of the Company’s common stock at a conversion price of $1.00 per share. The Company also issued 401,400 shares of the Company to settle $501,750 of interest at a rate of $1.25 per share.
We completed our acquisition of an initial working interest of 22.989% (including a 69.337% working interest in one shut in gas well) in the KGP on July 18, 2012, with an effective date of July 1, 2012. Since that date, we have been responsible for the operations of the KGP and have recognized our portion of its related net revenues (which are immaterial) and development costs as an increase to the unamortized cost pool related to our unproven interests. At this time, the other partners in the project are not interested in developing the asset. EFLO is in discussions with third parties to participate in development funding.
On June 2, 2014, $25,000 in principal payable on the 2013 Convertible Notes was converted into 25,000 shares of our common stock at a conversion price of $1.00 per share. On April 29, 2015, the remaining $2,230,000 in principal payable on the 2013 Convertible Notes was converted into 2,230,000 shares of our common stock at a conversion price of $1.00 per share. The Company also issued 401,400 shares of the Company to settle $501,750 of interest at a rate of $1.25 per share.
At May 31, 2015, the Short-term Loans principal balance was CAD$130,000 ($104,533). During the nine months ended May 31, 2015, the Company recorded interest expense of $726. Subsequent to May 31, 2015, the Company received additional Short-term Loans from FIB and Holloman of CAD$208,000.