Strategic Environmental & Energy Resources, Inc. 10-Q

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds. From January 1, 2020 to March 31, 2020, we had the following sales and issuances of unregistered equity securities: Date of Sale Title of Security Number Sold Consideration Consideration Received and Description of Underwriting or Other Discounts to Market Price or Convertible Security Afforded to Purchases Exemption from Registration Claimed If Option, Warrant or Convertible Security, Terms of Exercise or Conversion Security Holder January 2020 Common Stock 115,000 $ 8,050 Shares issued as penalty for not meeting short term note maturity date; no commissions paid Section 4(2); and/or Rule 506 Not applicable Clyde Berg, an individual February 2020 Common Stock 115,000 $ 10,350 Shares issued as penalty for not meeting short term note maturity date; no commissions paid Section 4(2); and/or Rule 506 Not applicable Clyde Berg, an individual March 2020 Common Stock 122,500 $ 14,700 Shares issued as penalty for not meeting short term note maturity date; no commissions paid Section 4(2); and/or Rule 506 Not applicable Clyde Berg, an individual These transactions were conducted in reliance on the exemptions from the registration requirements of the Securities Act of 1933, as amended, based on the private sale of the securities and the Company’s relationships with the security holders. ITEM 3. DEFAULTS UPON SENIOR SECURITIES The $500,000 secured short-term note issued on February 1, 2019 was past due at March 31, 2020. We are accruing 100,000 shares of Company stock per month, recorded as interest, as penalty shares per agreement with the lender, until paid. 300,000 shares were recorded as penalty interest during the three months ended March 31, 2020, which was valued at $28,000 based on the date of issuance. The $100,000 secured short-term note issued on July 2, 2019 was past due at March 31, 2020. We are continuing to accrue interest at the stated rate of 12% until the loan is paid in full, or an extension agreement is reached with the lender. We are currently in discussions with the lender regarding these matters, although we have not obtained a written waiver or entered into an amendment revising these terms. The $150,000 secured short-term note issued on July 18, 2019 was past due at March 31, 2020. We are accruing 15,000 shares of Company stock per month, which increased to 30,000 shares of common stock per month March 16, 2020, recorded as interest, as penalty shares per agreement with the lender, until paid. 52,500 shares were recorded as penalty interest during the three months ended March 31, 2020, which was valued at $5,100 based on the date of issuance. ITEM 4. MINE SAFETY DISCLOSURES Not Applicable. 31