Note 6 - Related Party Transactions

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

6.

Related Party

Transactions

On

April

4,

2016,

Dr. Chen received

$75,000

for repayment of funds advanced to the Company between

January

18,

2016

and

March

18,

2016,

which were to be used for general operating expenses.

On

May

23,

2016,

Amarillo Biosciences, Inc. (“ABI”), the Principal, entered into an Agency and Service Agreement with ACTS Global Healthcare, Inc. (“ACTS Global”), a Taiwan Corporation, the Agent. ABI advanced ACTS Global “Principal Funds” in the amount of NTD

$3,000,681

($91,968

USD), to be utilized and /or expended by ACTS Global solely as instructed by ABI. Additional advances

may

be made by ABI to ACTS Global as necessary. For their services, ACTS Global, is be paid by ABI,

one

percent

(1%)

of the Principal’s services expended by the Agent at the Principal’s direction. Any other services rendered by the Agent will be paid for by the Principal based on comparable and/or reasonable values of the service rendered. As of

December

31,

2016,

ACTS Global has expended

$54,133

for the benefit of the Company, leaving a balance of

$37,835,

which is included on the Company Balance Sheet in Advances to related party. The agency fee to ACTS Global was

$546

for

2016.

During the year ended

December

31,

2016,

the Company purchased ginseng at a cost of

$17,929

from

Hidden Valley Herbs of Kentucky, which is owned and operated by ABI Director and Stockholder Paul Tibbits.

On

November

7,

2016,

the Company received a deposit in the amount of

$124,833

from Amarillo Biosciences (Hong Kong) Ltd., an entity consisting of the Company’s certain private placement shareholders and other shareholders who are not related parties, for the purchase of medical equipment. The medical equipment was delivered on

January

13,

2017.

In

April

2016,

the Company received proceeds of

$187,500

from an investor related to Amarillo Biosciences (Hong Kong) Ltd. in exchange for the potential issuance of

1,000,000

shares of common stock (Private Placement

2016

-

2).

As of

December

31,

2016,

the shares have not been issued and the amount received is included in Advances from related party. As of the filing date, the stock subscription has not been executed.

On

December

20,

2016,

the Board of Directors approved the award of bonuses to Dr. Stephen T. Chen, Chairman of the Board, CEO, and President; and Bernard Cohen, Vice President and Chief Financial Officer. Dr. Chen received a cash bonus of

$25,000

and shares of the Company’s unregistered, voting common stock in the amount of

$37,500.

Bernard Cohen received a cash bonus of

$12,500

and shares of the Company’s unregistered, voting common stock in the amount of

$5,000.

The cash bonuses were paid on

December

30,

2016

and the stock award is included in Accounts Payable and Accrued Expenses as of

December

31,

2016.

The stock award was issued on

January

3,

2017.

Shares were priced at the average of all trading day closing quotes on the OTC-BB for the month of

December

2016.