Strategic Environmental & Energy Resources, Inc. 10-Q

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds. During the quarterly report ended September 30, 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 July 2020 Common Stock 130,000 $ 16,900 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 August 2020 Common Stock 130,000 $ 18,200 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 September 2020 Common Stock 130,000 $ 15,600 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 September 2020 Common Stock 250,000 $ 16,300 Shares issued with short term note maturing June 11, 2020; no commissions paid Section 4(2); and/or Rule 506 Not applicable Clyde Berg, an individual September 2020 Common Stock 125,000 $ 11,300 Shares issued with short term note maturing December 7, 2020; no commissions paid Section 4(2); and/or Rule 506 Not applicable Clyde Berg, an individual September 2020 Common Stock 200,000 $ 13,000 Shares issued with short term note, originally maturing April 16, 2020, and extended; no commissions paid Section 4(2); and/or Rule 506 Not applicable Steven Wallit, an individual September 2020 Common Stock 200,000 $ 20,000 Shares issued for debenture extension; no commissions paid Section 4(2); and/or Rule 506 Not applicable Steven Wallit, 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 September 30, 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. 900,000 shares were recorded as penalty interest during the nine months ended September 30, 2020, which was valued at $99,000 based on the date of issuance. The $100,000 secured short-term note issued on July 2, 2019 was past due at September 30, 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 September 30, 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. 232,500 shares were recorded as penalty interest during the nine months ended September 30, 2020, which was valued at $26,400 based on the date of issuance. The $450,000 secured short-term note issued on December 14, 2019 was past due at September 30, 2020. We are continuing to accrue interest at the stated rate of 15% 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. ITEM 4. MINE SAFETY DISCLOSURES Not Applicable.