Related Party Transactions Disclosure	12 Months Ended
Dec. 31, 2020
Notes
Related Party Transactions Disclosure	3. Related Party Transactions *Consulting Fees* Certain stockholders of the Company and entities affiliated with management that perform services for customers were compensated at various rates. Total consulting expenses incurred by these entities amounted to $62,852 and $386,735 for the years ended December 31, 2020 and 2019, respectively. Amounts payable to these entities amounted to $9,460 and $102,700 at December 31, 2020 and 2019, respectively. *Prepaid Expenses* There were no amounts advanced to related entities in 2020 or 2019. PwrCor, Inc. Notes to Financial Statements December 31, 2020 3. Related Party Transactions (continued) *Technology Development Fees* Under a technology development agreement the Company has with TTH, the Company reimburses TTH for managing the work by a contracted third party on various technology developments as agreed to on a case-by-case basis. The amounts payable under this arrangement amounted to $243,112 at December 31, 2020 and 2019. The Company obtains full rights to any intellectual property it develops or acquires through such payments. *Intangible Asset Valuation* The Company performs a qualitative assessment of its intangible assets to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of its one such asset is less than its carrying amount. As a result of management’s qualitative assessment, the Company determined that the carrying value of its license agreement warranted no loss or impairment as of December 31, 2020. *License Agreements* In December, 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two officers and directors of the Company, who also serve in management positions with TTH. TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor for the patent applications and inventions licensed thereunder was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons. The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents. However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company. The Company will pay TTH a royalty equal to five (5%) percent of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000, which has been paid. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined). The accompanying December 31, 2020 and 2019 balance sheet presents the carrying value of the license fee at $135,000 net of $40,500 and $27,000 in accumulated amortization, respectively. The cost of the license agreement is being amortized over ten years for an estimated $13,500 annually. The Company periodically performs an analysis of its contractual rights and arrangements and establishes asset value based on that analysis.

Related Party Transactions Disclosure

12 Months Ended

Dec. 31, 2020

3. Related Party Transactions

Consulting Fees

Certain stockholders of the Company and entities affiliated with management that perform services for customers were compensated at various rates. Total consulting expenses incurred by these entities amounted to $62,852 and $386,735 for the years ended December 31, 2020 and 2019, respectively. Amounts payable to these entities amounted to $9,460 and $102,700 at December 31, 2020 and 2019, respectively.

Prepaid Expenses

There were no amounts advanced to related entities in 2020 or 2019.

PwrCor, Inc.

Notes to Financial Statements

December 31, 2020

3. Related Party Transactions (continued)

Technology Development Fees

Under a technology development agreement the Company has with TTH, the Company reimburses TTH for managing the work by a contracted third party on various technology developments as agreed to on a case-by-case basis. The amounts payable under this arrangement amounted to $243,112 at December 31, 2020 and 2019. The Company obtains full rights to any intellectual property it develops or acquires through such payments.

Intangible Asset Valuation

The Company performs a qualitative assessment of its intangible assets to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of its one such asset is less than its carrying amount. As a result of management’s qualitative assessment, the Company determined that the carrying value of its license agreement warranted no loss or impairment as of December 31, 2020.

License Agreements

In December, 2017, the Company entered into an intellectual property license agreement with Thermal Tech Holdings, LLC, a Delaware limited liability company (“TTH”). TTH is an entity owned equally by two entities affiliated, respectively, with two officers and directors of the Company, who also serve in management positions with TTH.

TTH is the owner of certain patent applications as well as the inventions relating to the Company’s proprietary engine technology (the “Licensed Patents and Technical Information”). The Licensed Patents and Technical Information were developed by an independent non-profit research institute (the “Contractor”). All work done by the Contractor for the patent applications and inventions licensed thereunder was paid for by TTH in order that TTH, rather than the Company, would be at risk if the research, development, engineering and design work were of little or no value. Furthermore, the work performed by the Contractor for TTH was confidential for competitive business reasons.

The Patent License grants the Company a worldwide non-exclusive license to use the Technical Information to make, use or sell any products and/or services which would be covered by these specific Licensed Patents. However, TTH may not license any Licensed Patents and Technical Information to any competitive entity, or to any other entity without the prior written consent of the Company.

The Company will pay TTH a royalty equal to five (5%) percent of the Net Revenue (as defined) of all Licensed Products covered by a Licensed Patent sold by the Company and its affiliates, as well as an initial license fee of $135,000, which has been paid. The Patent License will terminate upon the expiration of all Licensed Patents. The Company may terminate the agreement on ninety (90) days’ prior written notice. TTH may terminate the agreement on ninety (90) days’ prior written notice for uncured defaults (as defined).

The accompanying December 31, 2020 and 2019 balance sheet presents the carrying value of the license fee at $135,000 net of $40,500 and $27,000 in accumulated amortization, respectively. The cost of the license agreement is being amortized over ten years for an estimated $13,500 annually.

The Company periodically performs an analysis of its contractual rights and arrangements and establishes asset value based on that analysis.