Related Party Transactions.

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. To date, ABI has advanced to 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. Pursuant to the Agreement, additional advances

may

be made by ABI to ACTS Global. An advance in the amount of

$37,500

was made to ACTS Global on

September 1, 2017.

ACTS Global was also engaged by ABI to perform such other business services as

may

be requested by ABI in the agreed geographic area of Taiwan and the People’s Republic of China. That Agency Agreement is still in force. For their services, ACTS Global, is to be paid by ABI,

one

percent (

) 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

September 30, 2017,

ACTS Global has a balance of

$28,584

to be utilized for the benefit of the Company, which is included on the Company’s Balance Sheet in Advance to related party.

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

). As of

September 30, 2017,

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.

December 20, 2016,

effective

January 1, 2017,

the Board of Directors approved a resolution whereby Dr. Chen's annual compensation was changed to

$90,000

cash per annum and

$75,000

per annum payable in the Company's unregistered, voting common stock. The Board also approved the change in compensation to Bernard Cohen to

$65,000

cash per

annum and

$10,000

per annum payable in the Company's unregistered, voting common stock. The cash compensation is to be paid on the normal payroll cycle of

15th

and

31st

of each month and stock compensation to be paid quarterly. Shares are to be priced at the average of all trading day closing quotes on the OTC-BB for the month preceding date of issuance, with such shares to be issued on the

first

business day after the close of each calendar quarter or as soon thereafter as practicable. During the period ended

September 30, 2017,

the Company has issued an aggregate of

535,525

shares of common stock valued at

$122,500.

As of

September 30, 2017,

the Company has accrued

$21,250

in Accounts Payable and Accrued Expenses representing

2017

shares that have

not

been issued.

May 25 2017,

a Convertible Promissory Note in the amount of

$70,000

was issued to Dr. Chen in exchange for the aggregated amounts of

three

cash advances. The Convertible Note is due on demand, is unsecured, bears interest at the Short-Term Applicable Federal Rate of

.86%

per annum, and is convertible into ABI common stock at a stock price of

$.1875

per share.

September 1 2017,

a Convertible Promissory Note in the amount of

$25,000

was issued to Dr. Chen in exchange for

one

cash advance. The Convertible Note is due on demand, is unsecured, bears interest at the Short-Term Applicable Federal Rate of

.96%

per annum, and is convertible into ABI common stock at a stock price of

$.1875

per share.

September 29, 2017,

the Company wired cash funds in the amount of

$13,000

to CTBC Bank Co Ltd in Taipei, Taiwan for the purpose of funding a cash account for the Company to begin direct branch business operations in the country. The minimum deposit amount required to open the account was NTD

300,000

which at the time was equivalent to

$10,000

(USD). The Company wired

$13,000

to the bank to minimize currency translation risk and to cover all necessary fees deducted from the transfer leaving the minimum amount required to open such an account in Taiwan for foreign branch operations.