Note 4 - Convertible Notes Payable - Related Party

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Debt Disclosure [Text Block]

4.

Convertible

Notes

Payable

– Related Party

During the fiscal year ended

December 31, 2016,

a payable in the amount of

$144,426

to Dr. Stephen T. Chen, Chairman, CEO and President of the Company, was exchanged for a convertible promissory note. On

March 18, 2016,

Dr. Chen purchased a Convertible Promissory Note in the amount of

$262,500

through the Company’s Private Placement Convertible Note Security Offering entitled Private Placement

2016

-

1

(previously approved by the ABI Board of Directors on

March 10, 2016)

.On

June 30, 2016,

a Convertible Promissory Note in the amount of

$384,555

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

two

existing Notes Payable – Related Party.

All of the Notes are unsecured. The Notes are convertible into ABI Common Voting Shares which are issued as restricted stock pursuant to SEC Rule

144.

The shares must be held for a minimum of

six

(

6

) months before they can be sold or otherwise traded. Other restrictions might apply.

On

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.

On

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.

A discount of

$28,200

related to the beneficial conversion feature was recorded and fully amortized in

2017

as interest expense.

The total principal and accrued interest outstanding on

December 31, 2017,

was

$895,434.

 

As of

December 31, 2017,

the following notes issued to Dr. Chen were outstanding:

	December 31, 2017		December 31, 2016
Interest .75%, $0.168 conversion price	$	144,426	$	144,426
Interest .65%, $0.1875 conversion price		262,500		262,500
Interest .64%, $0.1875 conversion price		384,555		384,555
Interest .86%, $0.1875 conversion price		70,000		-
Interest .96%, $0.1875 conversion price		25,000		-
	$	886,481	$	791,481

Subsequent to

December 31, 2017,

the Company paid the

$70,000

and

$25,000

notes in full along with accrued interest. In addition, the Company paid

$100,000

of the

$384,555

note along with related accrued interest.