Barrel Energy Inc (BRLL)

[againstallodds]

California Hemp lease: Money flying out the window

The March 31 st financials shows that Sangha is being extremely generous to a relative owning the California Hemp fields and that

https://www.otcmarkets.com/otcapi/company/financial-report/369437/content

During the year ended September 30, 2019, the Company signed a land lease agreement for the production of hemp. The lease is a 10 year lease with annual payments of $602,000 and was modified for the initial payments of $301,000 each in May and June. A director
of the Company is related to the owner of the land leased.


NOTE 7- OPERATING LEASE

On May 14, 2019, the Company signed a land lease in central California for 602 acres at $1,000 per acre to grow hemp for
fiber usage. The lease is for 10 years with annual costs of $602,000 with the initial payment of $301,000 on March 30, 2020
and second payment of $301,000 on June 30, 2020 with the balance of the annual payments being made on April 1 of each
subsequent year. The lease holder is a related party to one of the directors of the Company. As of June 30, 2022 the
Company has accrued $1,655,500 of unpaid lease payments as accounts payable. The lease terminates in May 2029. As of
March 31, 2023, the Company recorded a right of use asset of $2,158,250 and operating lease liability of $2,384,170 with
a lease expense for the year of $602,000, respectively.
The yearly rental obligations including the lease agreements are as follows:
2023 $ 301,000
2024 $ 602,000
2025 $ 602,000
2026 $ 602,000
2027 and thereafter $1,806,000

Total lease payments $ 3,913,000

Less present value discount $ (1,528,830)

$ 2,384,170
Less operating lease short term $ (301,720)

Operating lease liability, long term $ 2,082,450