Accrued Expenses – Related Parties

Accrued Expenses – Related Parties consists of unused vacation of officers, unreimbursed out-of-pocket expenses incurred by officers, and unpaid board and committee fees to members of the Company’s Board of Directors. As of December 31, 2020 and 2019, total accrued expenses – related parties amounted to $95,000 and $7,000, respectively.

Leases with Related Parties

The Company’s executive offices were located at 23902 FM 2978, Tomball, Texas 77375 (“Tomball Facility”). The Tomball Facility was leased from JBL Energy Partners, an entity solely owned by Jason Lane, the former CEO. The Tomball Facility was under a month-to-month lease initiated in April 2017 (“Tomball Lease”) at lease rate of $1,500 per month. Subsequent to the addition of a laboratory facility and outdoor storage facility for large equipment, the Tomball Lease was amended effective April 2019 increasing the lease rate to $5,000 per month. Total rent expense under this lease during the years ended December 31, 2020, and 2019 was $60,000 and $49,500, respectively which are included as part of Operating Expenses in the attached consolidated statements of operations. As of December 31, 2020, balance payable to JBL Energy Partners was $13,000 which is included as part of accounts payable and accrued expenses in the attached consolidated balance sheets. The Tomball Lease was terminated in connection with the resignation of Mr. Lane as a Director and Chairman of the Board of the Company.