Note 4 - Convertible Notes Payable - Related Party

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Debt Disclosure [Text Block]

4.

Convertible Notes Payable – Related Party

As of

December 31, 2018

and

2017,

the amount of convertible debt of the Company’s balance sheet was

$513,356

and

$886,481,

respectively. This amount consisted of the following convertible promissory notes payable to Dr. Stephen T. Chen, Chairman, CEO, and President, as shown in the table below.

	December 31, 2018		December 31, 2017
Convertible Note payable – related party	$	144,426	$	144,426
Convertible Note payable – related party		262,500		262,500
Convertible Note payable – related party		106,430		384,555
Convertible Note payable – related party		-		70,000
Convertible Note payable – related party		-		25,000
Convertible Notes payable – related party	$	513,356	$	886,481

On

January 8, 2018,

Dr. Chen demanded repayment in full of the

$25,000

convertible promissory note. He was paid the principal of the note,

$25,000,

and accrued interest in the amount of

$84.

On

March 8, 2018,

Dr. Chen demanded repayment in full of the

$70,000

convertible promissory note. He was paid the principal of the note,

$70,000,

and accrued interest in the amount of

$474.

On

March 9, 2018,

Dr. Chen demanded a partial repayment of the convertible promissory note for

$384,555.

He demanded payment in the amount of

$100,000

and was paid that amount of principal of the note,

$100,000,

and accrued interest in the amount of

$3,260.

On

April 1, 2018,

Dr. Chen executed and presented a Promissory Note Conversion Notice exercising his option to convert

$178,125

principal amount of the Note bearing a balance of

$284,555

into ABI Common Stock shares in accordance with the terms of the Note. On

April 2, 2018

and

April 6, 2018,

550,000

shares and

400,000

shares, respectively, were issued pursuant to Dr. Chen’s instructions. The shares were issued at

$0.1875

per share, the Conversion Price stated in the Note. After the conversion, the new balance of the Note was

$106,430.

As of

December 31, 2018,

the Company has the following Convertible Notes Payable outstanding to Dr. Stephen T. Chen, Chairman, CEO, and President.

Note #.	Date	Payee	Principal Amount	Maturity	Annual Interest AFR 2	Conversion Price
1	1/11/2016	Stephen T.Chen	$144,426	On Demand	0.75%	$0.1680
2	3/18/2016	Stephen T. Chen	$262,500	On Demand	0.65%	$0.1875
3	6/30/2016	Stephen T. Chen	$106,430	On Demand	0.64%	$0.1875
Total Convertible Notes Payable			$513,356

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.

Other restrictions might apply.