Note 4 - Notes Payable - Related Party

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

4

.

Notes Payable

-

Related Part

y

	2016		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.