Note 6 - Notes Payable - Related Party

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

6. Notes Payable – Related Party.

	March 31, 2016			December 31, 2015
Note payable – related party	$	234,555		$	234,555
Note payable – related party		150,000			150,000
		384,555			384,555
Less: current portion		(384,555	)		(384,555	)
Notes payable – related party, long term	$	-		$	-

On November 20, 2014, the Class Three Secured Claim of Yang was 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 bears interest at the Applicable Federal Rate, will be fully amortized and paid as follows: four (4) consecutive equal annual installments of combined principal and interest, beginning September 1, 2015, and continuing on the same date of each succeeding year until September 1, 2018, when the obligation is due and payable in full. The first payment was due on September 1, 2015, in the amount of $37,811 (principal and interest). To date, the payment has not been made and there has been no demand for the payment. ABI is discussing the exchange of some or all of this debt, principal and interest, for ABI Common stock, with the holders. As of March 31, 2016, the outstanding balance is $150,000.

Subsequent to consummation of the Plan, The Yang Group provided $234,555 for post-reorganization financing. This is unsecured and draws interest at the short term Applicable Federal Rate. There has been no demand and the parties are contemplating the exchange of some or all of this debt for ABI Common stock. As of March 31, 2016, the outstanding balance is $234,555.