RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | NOTE 8. RELATED PARTY TRANSACTIONS
Related party transactions not disclosed elsewhere in these financial statements include:
Deferred Revenue - Royalty Agreement
The Company has negotiated a royalty agreement with a related party by common CEO and director. In exchange for a non-refundable payment of $300,000, the Company intends to provide a royalty stream to this related party based on the gross production of Vanadium Oxide (“Vanadium”) from the company’s the oil sands leases. For each barrel of bitumen produced from the specified oil sands until March 21, 2039, or upon termination of mining, whichever is earlier, the Company will pay a royalty equal to 25 grams of Vanadium per barrel of bitumen produced, multiplied by the price of Vanadium Pentoxide 98% min in-warehouse Rotterdam published on the last business day of the month in which the gross production of bitumen occurred. The $300,000 is recorded as deferred revenue and will be recognized at such time as the Company begins to produce Vanadium.
Notes payable to related party
In December 2015, the Company borrowed $6,553 ($9,000 Canadian) under a note agreement with related parties. The lenders were related parties through an immediate family relationship with officers or directors of the Company and a common director. The note payable bears interest at the Bank of Canada Prime rate plus 1%. The Company could repay the loan and outstanding interest thereon by giving notice to the lender 15 days prior to the anticipated repayment. At December 31, 2025, the effective interest rate on this note payable was 5.45%. The balance of note payable, including interest, to related parties at December 31, 2025 and 2024 was $9,901 and $9,075, respectively. The Company recognized interest expense of $380, $509 and $531 for the years ended December 31, 2025, 2024 and 2023, respectively, in its Statements of Operations and Comprehensive Income (Loss).
Consulting fees
Mr. Newton is the President and a member of the Board of Directors of the Company. Mr. Newton does not bill the Company for his services as President; however, he has a service agreement with the Company. Pursuant to this agreement, the Company recognized consulting expenses of $46,640, $115,562and $176,197 for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, there were no consulting expenses included in Accounts payable and accrued liabilities – related party.
Dr. Michael Ranger is a member of the Board of Directors of the Company. Dr. Ranger does not receive compensation for his services as a member of the board; however, he has a service agreement with the Company, including consulting time and expense reimbursement. The Company incurred no consulting expenses related to this agreement for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025 and 2024, there were no consulting expenses included in Accounts payable and accrued liabilities – related party.
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