Certain affiliates have made non-interest-bearing advances. The balances of these advances, which are due on demand and include the Advances from Related Parties noted in Note 5, totaled $615,432 as of March 31, 2021 and December 31, 2020. Included in accounts payable related parties as of March 31, 2021 December 31, 2020, are expenses incurred with these affiliates totaling $76,512 and $76,512, respectively.
In January 11, 2019, the Company entered into that certain Forbearance Agreement between the Company and Nicholas Campanella. Mr. Campanella is owed approximately $648,400 in principal and interest on loans and lines of credit issued by the Company. Those debt obligations are currently in default. As consideration for the forbearance of those debts, the Company has agreed to provide a pledge of 100% membership interest in MedRecycler, LLC, and wholly owned subsidiary of the Company organized in the state of Nevada which holds 51,000 shares of MedRecycler-RI, Inc. as security against the moneys owed. The amounts owed to Mr. Campanella date back nearly five years and represent cash payments made by Mr. Campanella to Sun Pacific Power Corp. On April 3, 2019, Mr. Campanella agreed to extend the forbearance until December 31, 2022.
In order to secure financing for the MedRecycler-RI, Inc. West Warrick, Rhode Island waste to energy facility, Mr. Campanella agreed that upon initial financing of the project, he shall pledge substantially all of his holdings in the Company, assign his pledges in MedRecycler, LLC, and certain properties held by Mr. Campanella, personally, in order to collateralize the debt obligations. As consideration for his inducement, the Board of Directors has deemed it fair consideration to issue Mr. Campanella 39,000 shares of MedRecycler-RI, Inc. In addition, MedRecycler-RI, Inc. had engaged the services of Marmac Corporate Advisors, LLC and Eilers Law Group, P.A. to oversee, negotiate and to facilitate the initial financing and capital structure of MedRecycler-RI, Inc. As neither party has received compensation for their services for the Company or MedRecycler-RI, Inc. since August of 2018 thru January of 2019, the Board of Directors, in January 2019, deemed it fair consideration to issue Marmac Corporate Advisors, LLC and Eilers Law Group, P.A. 8,000 and 2,000 shares of MedRecycler-RI, Inc., respectively. As a result, the Company shall maintain 51% of the ownership of MedRecycler-RI, Inc. through its MedRecycler, LLC holdings. During the year ended December 31, 2020, the Company paid Mr. Campanella $165,000 of fees for overseeing the project. The Company also agreed to pay consulting fees to Marmac Corporate Advisors, LLC in the amount of $15,000 a month effective February 1, 2019 for one year totaling $165,000 and $15,000 a month thereafter.
On February 7, 2019, pursuant to an Indenture of Trust entered into by our subsidiary, MedRecycler-RI, Inc., a Rhode Island corporation and UMB Bank, N.A., a national banking association (“UMB”) (the “Indenture”), Sun Pacific Holding Corp. (the “Company”) entered into that certain Guarantee of Payment and Performance with UMB acting as Trustee, whereby the Company agreed to guarantee any and all payments and/or other obligations owed by MedRecycler-RI, Inc. pursuant to the Indenture.
In order to secure the financing described herein, Mr. Campanella, Marmac Corporate Advisors, LLC and Eilers Law Group, P.A. have further agreed to pledge, upon funding, 100% of their ownership in MedRecycler-RI, Inc. as well as Mr. Campanella’s assignment of his pledge from the Company of 100% of the membership interests of MedRecycler, LLC. As a result, 100% of MedRecycler-RI, Inc. will be pledged, upon funding, to the lending party as security for the note and/or bond.
On May 20, 2019, Nicholas Campanella agreed to forbear any of his rights to convert any portion of his related party debt into common stock until such time that the Company had sufficient authorized shares to honor full conversion of all principal and accrued interest into common stock of the Company.
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NOTE 9 – SEGMENT INFORMATION
The Company operates in three segments: outdoor advertising, construction management services, and industrial waste management. Summary information by segment is as follows:
Summary balance sheet information by segment as of March 31, 2021 is as follows:
Construction Services Outdoor Advertising Industrial Waste Total
Cash $ 1,930 $ 54,450 $ 88,196 $ 144,576
Escrowed Cash - - 117,824 117,824
Accounts receivable - 19,354 - 19,354
Current Assets 1,930 73,804 206,020 281,754
Property Plant and Equipment 95,520 - 1,276,561 1,372,081
Right-of-Use Asset - - 1,075,871 1,075,871
Deposits and Other 22,531 - 6,547,415 6,569,946
Total assets $ 119,981 $ 73,804 $ 9,105,867 $ 9,299,652
Accounts Payable and Accrued Expenses 1,402,018 276,494 1,502,790 3,181,302
Related Party Advances 615,432 - - 615,432
Notes Payable 230,492 - 10,037,802 10,268,294
Convertible Debt 506,621 - - 506,621
Right-of-Use Obligation - - 1,168,178 1,168,178
Total Liabilities 2,754,563 276,494 12,708,770 15,739,827
Net Stockholders’ Deficit $ (2,634,582 ) $ (202,690 ) $ (3,602,903 ) $ (6,440,175 )
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