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Note 6 - Notes Payable - Related Party
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Debt Disclosure [Text Block]
6.
Notes Payable – Related Parties.
 
   
September 30, 2016
   
December 31, 2015
 
Note payable – related party
  $ -     $ 234,555  
Note payable – related party
    -       150,000  
      -       384,555  
Less: current portion
    -       (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, no payments have been made and there has been no demand for the payment.
 
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. On June 30, 2016, the two debts were consolidated into one convertible promissory note. The convertible promissory note is due on demand, unsecured, bears interest at the Short-Term Applicable Federal Rate of .64% per annum, and is convertible into Amarillo Biosciences, Inc. Common Stock at a price of $.1875 per share. The amounts owed to The Yang Group after the debts were consolidated totaled $384,555 which represented all amounts then owed to The Yang Group. Those debts along with the associated liens, security interests, and accrued interest were assigned by The Yang Group to Dr. Stephen T. Chen, effective as of June 30, 2016. Subsequent to the assignment, Dr. Chen released the lien (Texas file #13-0029795076) and authorized Amarillo Biosciences, Inc. to file a UCC-3 Amendment Statement terminating the lien.