Note 12 - Subsequent Events

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements

Subsequent Events [Text Block]

12.  Subsequent Events

On January 31, 2012, Hope Capital, Inc., exercised its right to convert debt into equity by sending a Notice of Conversion to ABI to convert $12,000 principal amount of the note dated May 24, 2011, into 579,710 shares of ABI Common Stock at $0.0207 per share.  The shares were issued in a timely manner in accordance with the covenants of the Note.  The Conversion Price used was the Variable Conversion Price as defined by the Note.  The principal balance of the note after the conversion was $28,000.

On February 3, 2012, Hope Capital, Inc., exercised its right to convert debt into equity by sending a Notice of Conversion to ABI to convert $14,000 principal amount of the note dated May 24, 2011, into 672,329 shares of ABI Common Stock at $0.0207 per share.  The shares were issued in a timely manner in accordance with the covenants of the Note.  The Conversion Price used was the Variable Conversion Price as defined by the Note.  The principal balance of the note after the conversion was $14,000.

On February 6, 2012, Hope Capital, Inc., exercised its right to convert debt into equity by sending a Notice of Conversion to ABI to convert $14,000 principal amount of the note dated May 24, 2011, into 693,069 shares of ABI Common Stock at $0.0202 per share.  The shares were issued in a timely manner in accordance with the covenants of the Note.  The Conversion Price used was the Variable Conversion Price as defined by the Note.  The principal balance of the note after the conversion was $0.00.

On January 6, 2012, Paul and Marian Tibbits purchased 100 shares of Series 2010-A Convertible Preferred Stock for $100 per share.  The total amount of the transaction was $10,000 and the Par Value was $0.01 per share. On January 26, 2012, Paul and Marian Tibbits purchased 123 shares of Series 2010-A Convertible Preferred Stock for $81.3008 per share.  The total amount of the transaction was $10,000 and the Par Value was $0.01 per share.

On February 8, 2012, 1,339 shares of Series 2010-A Convertible Preferred Stock was issued to Paul and Marian Tibbits for debt (850 shares at $100 per share for $85,000 principal of Notes #2 – 6), accrued interest on debt (253 shares at $100 per share for $25,300), accrued and unpaid preferred dividends (232 shares at $100 per share for dividends of $23,197), and accrued and unpaid interest on unpaid preferred dividends (4 shares at $100 per share for interest on unpaid dividends of $379).

A new warrant was issued to Warrant Strategies, Inc. on February 6, 2012.  On February 6, 2012, Amarillo Biosciences, Inc. issued 693,069 shares for debt at $0.0202 per share. The Base Share Price for this dilutive issuance was $0.0202 per share.  ABI sent a Dilutive Issuance Notice to Warrant Strategies, Inc. on February 6, 2012.  The notice was sent pursuant to the Series A Common Stock Purchase Warrant dated June 16, 2009, Section 3(b), “…the Exercise Price shall be reduced to equal the Base Share Price and the number of Warrant Shares issuable hereunder shall be increased such that the aggregate Exercise price issuable hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such adjustment.

ABI issued a new Purchase Warrant dated February 6, 2012 reflecting the new Warrant Share amount of 2,217,817 shares and an adjusted Exercise Price of $0.0202 per share.  The new warrant was sent to Warrant Strategies, Inc. and return of the old warrant was requested.

On February 9, 2012, 50,000 shares of S-8 registered common stock were issued to Kimball Miller for payment of June 2011 consulting services.

On February 22, 2012, the Board of Directors appointed Stephen T. Chen, PhD as Chairman of the Board and Chief Executive Officer. Dr. Joseph Cummins will remain as President and became Chief Operating Officer. Dr. Chen has been a director of the company since February 1996.

On January 24, 2012, $10,000 was received from Steve Chen.  This was a short-term interest-free loan for operations. On February 23, 2012, $50,000 was received from Steve Chen.  This was an equity contribution to be used for operations. On February 27, 2012, $80,000 was received from Steve Chen.  This was an equity contribution to be used to repay previous loans. On February 28, 2012, $70,000 was disbursed by wire to Shen An Chou to repay short-term, interest-free loan of December 17, 2011. On February 28, 2012, $10,000 was disbursed by wire to Steve Chen to repay short-term, interest-free loan of January 24, 2012. On March 8, 2012, $20,000 was received from Steve Chen.  This was an equity contribution to be used for operations. On March 14, 2012, $20,000 was received from Steve Chen.  This was an equity contribution to be used for operations. On March 30, 2012, $12,000 was received from Steve Chen. This was an equity contribution to be used for operations. On April 4, 2012, $13,000 was received from Steve Chen. This was an equity contribution to be used for operations.