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Note 5 - Notes Payable
12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]

5. Notes Payable


Related Party


The $3,006,753 amount owed to HBL was discharged when the Company paid $180,405 in full and final settlement of the Class Four – General Unsecured Debt.


The Company owed Paul Tibbits, a Director, principal and interest on a promissory note which had existed since 2010, in the amount of $235,056. The debt was discharged when ABI paid $12,000 and $2,103 in principal and interest, respectively, in full and final settlement of the Class Four – General Unsecured Debt.


From July 22, 2010 through February 8, 2012, Paul Tibbits had received a total of 3,262 shares of the Company’s Series 2010-A 10% Convertible Preferred Stock in exchange for repayments of promissory notes, payment of interest on notes payable, dividends on the Preferred Stock, and interest on unpaid dividends on the Preferred Stock. As of the filing date of the Chapter 11 Petition, October 31, 2013, Mr. Tibbits was owed $65,909 for accrued unpaid dividends and accrued interest on the unpaid dividends. The debt was discharged when ABI paid $3,471 and $484 in unpaid dividends and interest on unpaid dividends, respectively, in full and final settlement of the Class Four – General Unsecured Debt. Pursuant to the Rules of Bankruptcy, insomuch as the amounts owed to Mr. Tibbits were under-secured (there was no collateral securing this debt), no interest on unpaid dividends accrued from the filing date through the Effective Date of the Plan, November 20, 2014. Dividends, however, continued to accrue through November 20, 2014 as permitted by the U.S. Bankruptcy Code and Rules of Bankruptcy. At December 31, 2014, $34,279 of unpaid dividends have been accrued.


The Yang Group has provided working capital loans in the total amount of $2,324,185 to ABI in fiscal years 2012, 2013, and 2014. A significant amount of the cash provided was transferred to the company through Dr. Stephen Chen, ABI CEO. Pursuant to the Plan of Reorganization, The Yang Group received 16,115,848 shares of ABI Common Equity in exchange for discharge of the Class Two – Allowed Unsecured of (The) Yang (Group) as of the Effective Date of the Plan, November 20, 2014.


On the Effective Date, the Class Three Secured Claim of Yang will be deemed allowed in the amount of $150,000, secured by the same assets that secured Yang’s prepetition secured claim (See Texas Financing Statement No. 13-0029795076). This claim will bear interest at the Applicable Federal Rate, and be fully amortized and paid as follows: five (5) consecutive equal annual installments of combined principal and interest, beginning September 1, 2014, and continuing on the same date of each succeeding year until September 1, 2018, when the obligation is due and payable in full.


Subsequent to consummation of the Plan, The Yang Group has provided $384,555 for post-reorganization financing.


Non-Related Party


We had a line of credit with Wells Fargo for $20,000, with an interest rate of prime rate plus 6.75 percent. There was an outstanding balance of $18,376 on October 31, 2013, when the Chapter 11 Petition was filed. As provided by the Plan of Reorganization, The debt was discharged when ABI paid $1,111 in full and final settlement of the Class Four– General Unsecured Debt.