| Loans Payable |
Schedule of Loans Payable
| As at | |
December 31, 2025 | | |
December 31, 2024 | |
| Unsecured, interest-bearing loan at 6% per annum2,3 | |
$ | 34,415 | | |
$ | 36,512 | |
| Unsecured, interest-bearing loan at 1% per month1 | |
| 3,461,250 | | |
| 3,141,750 | |
| Unsecured, interest-bearing loan at 8.25% per annum4 | |
| - | | |
| 1,034,484 | |
| Unsecured, interest-bearing loan at 52% per annum5 | |
| - | | |
| 1,009,883 | |
| Unsecured, interest-bearing loan at 12% per annum6 | |
| 147,391 | | |
| 139,349 | |
| Unsecured, interest-bearing loan at a variable interest rate7 | |
| 1,329,003 | | |
| - | |
| Total loans payable | |
| 4,972,059 | | |
| 5,361,978 | |
| Current portion of loans payable | |
| (4,972,059 | ) | |
| (5,361,978 | ) |
| Long-term portion of loans payable | |
$ | - | | |
$ | - | |
The Company is in compliance with all debt covenants on loans payable, other than as noted below, and
has not received any waivers from lenders.
| (1) | On
July 1, 2023, the Company entered into agreements with TR1 Master Fund to borrow $1,065,000
and $1,597,500. The loans were issued with a $65,000 and $97,500 discount, respectively,
and bear an interest rate of 1% per month. The maturity date was December 31, 2023, and the
Company is claiming that the principal of TR1 Master Fund agreed to extend the loans to December
31, 2024. In the event that the loan is repaid in full prior to the maturity date, the minimum
interest payments on the loans are $40,000 and $60,000, respectively. If, during the period
that any amount of the loan remains outstanding, the Company issues any equity, the Lender
may demand repayment of all or part of the principal amount of the loan in an amount equal
to the aggregate subscription price of the equity offering. Accrued interest in excess of
the minimum interest payments of $127,800 and $191,700, respectively were recorded during
the year ended December 31, 2025. The Company is currently in default on these loans, however, the Company has filed claims in connection with the ongoing
receivership proceedings of the lender and related entities, and is seeking to offset any
amounts outstanding against damages claimed by the Company (Note 24). |
| (2) | On
July 20, 2023, the Company entered into a promissory note for CAD$300,000 (USD$228,023) with
a company controlled by a related party as at December 31, 2025 and 2024. The promissory
note bears an interest rate of 6% per annum. The principal plus all accrued unpaid interest
is to be repaid on demand but no later than December 31, 2024, as a result, the Company is currently in default on this loan. During the year ended December
31, 2025, CAD$8,000 (USD$5,536) of the principal balance was repaid and CAD$2,693 (USD$1,965)
in interest was accrued. During the year ended December 31, 2024, CAD$218,509 (USD$157,016)
of the principal balance was repaid and CAD$13,072 (USD$9,543) in interest was accrued. |
| (3) | On
September 1, 2023, the Company entered into a promissory note with 2476393 Alberta Ltd for
CAD$546,000 (USD$402,115). The promissory note bears an interest rate of 6% per annum. The
principal plus all accrued unpaid interest is to be repaid on demand but no later than December
31, 2024. During the year ended December 31, 2024, the Company entered into a debt settlement
agreement to settle the CAD$546,000 (USD$397,948) principal amount. The Company issued 546,000
shares at a deemed price of $1.00 per share resulting in a CAD$109,200 (USD$81,417) loss
on extinguishment of loan payable. |
| (4) | On
December 13, 2024, Park Place Turkey Limited entered into a loan with Garanti Bank in the
amount of $1,120,000. The loan matures on November 13, 2025, and bears interest at 8.25%
per annum. Principal and accrued interest are paid monthly. During the year ended December
31, 2025, the Company made $1,035,679 in principal payments and $42,979 in interest payments.
As at December 31, 2025, the loan amount had been fully repaid. During the year ended December
31, 2024, the Company made $89,857 in principal payments and $7,700 in interest payments. |
TRILLION
ENERGY INTERNATIONAL INC.
Notes to the Consolidated Financial Statements
For the years ended December 31, 2025 and 2024
(Expressed
in U.S. dollars)
| 9. | | Loans Payable
(continued) |
| (5) | On
December 18, 2024, Park Place Turkey Limited entered into a loan with Garanti Bank in the
amount of ₺37,500,000 (or approximately USD$1,070,617). The loan matures on November
18, 2025, and bears interest at 52% per annum. Principal and accrued interest are paid monthly.
During the year ended December 31, 2025, the Company made ₺35,081,997 (USD$816,877)
in principal payments and ₺9,795,037 (USD$228,075) in interest payments. As at December
31, 2025, the loan amount had been fully repaid. During the year ended December 31, 2024,
the Company made ₺2,418,003 (USD$68,349) in principal payments and ₺1,625,000
(USD$45,933) in interest payments. |
| (6) | On
December 27, 2024, the Company entered into a loan agreement with an officer of the Company for CAD$200,000
(USD$138,782).
The loan bears interest at 12%
per annum and is due on demand. As at December 31, 2025, the loan accrued interest of CAD$2,031
(USD$1,617)
(2024 - CAD$263
(USD$183)). The Company is not in default on this loan. |
| (7) | On
July 17, 2025, Park Place Turkey Limited drew down ₺50,000,000
(or approximately USD$1,202,380)
from their overdraft facility with Ziraat Bankasi. This balance bears interest at a variable rate based on the banks effective
interest rate (approximately 31% for the year ended December 31, 2025) payable at the end
of each quarter. As at and for the year ended December 31, 2025, the loan accrued interest expense of $164,588. The Company is not
in default on this loan. |
|