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Note 6 - Convertible Notes Payable - Related Party
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Debt Disclosure [Text Block]
6.
Convertible Notes Payable
–
Related Party.
As of
December 31, 2019,
the amount of convertible debt, including principal and accrued interest, on the Company’s balance sheet was
$452,040.
The total balance of the principal and accrued interest for convertible promissory notes as of
March 31, 2020,
is
$521,115.
This amount consisted of the following convertible promissory notes payable to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, and
i2China,
a consultant, as shown in the table below.
 
Note #.
  
Conversion Rate
    
Interest Rate
    
March 31, 2020
    
December 31, 2019
  
Note 1 - Chen
    
$0.1680
      
0.75%
     $
117,644
     $
117,433
  
Note 2 - Chen
    
$0.1875
      
0.65%
     $
266,702
     $
266,281
  
Note 3.19 - Chen
    
$0.2500
      
1.85%
     $
39,801
     $
39,620
  
Note 4.19 - Chen
    
$0.2500
      
1.61%
     $
12,502
     $
12,453
  
Note 5.19 – i2China
    
$0.2500
      
1.85%
     $
16,326
     $
16,253
  
Note 6.20 - Chen
    
$0.2500
      
1.85%
     $
54,315
     $
-
  
Note 7.20 - Chen
    
$0.2500
      
1.60%
      
1,789
     $
-
  
Note 8.20 – i2China
    
$0.2500
      
1.85%
     $
12,036
     $
-
  
Total Convertible Notes – Related Party
     $
521,115
     $
452,040
  
 
 
As previously stated, Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, and
i2China
Management Group, LLC, the Company’s management consultant, elected to defer cash compensation during a period of development and fundraising.
 
 
On
January 1, 2020,
the Company issued Note
#6.20
for deferred compensation to Dr. Stephen T. Chen, Chairman, CEO, President, and CFO, in the amount of
$216,600,
the maximum amount of cash compensation that could be deferred for
2020.
The Note is payable on
January 1, 2021,
or on demand and bears interest at the AFR
1
short-term rate of
1.85%.
The note is an advancing note with a maximum limit of
$216,600
whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. ABI
may
request and the payee shall advance up to
$9,025
on the
15th
and last day of each month until the note matures. The Note
may
be convertible in whole or in part at a conversion price of
$0.25
per share into Amarillo Biosciences, Inc., Common voting stock. All shares issued are to be restricted subject to Rule
144
promulgated under the U.S. Securities Act of
1933.
The Company
may
prepay the Note in whole or in part at any time without penalty.
 
1
Applicable Federal Rate
 
 
On
January 1, 2020,
the Company issued Note
#7.20
to Dr. Stephen T. Chen for deferred reimbursement of expenses advanced on behalf of ABI for
$30,000,
the maximum amount of reimbursable expense that could be deferred. The Note is payable on
January 1, 2021,
or on demand and bears interest at the AFR
1
short-term rate of
1.85%.
The note is an advancing note with a maximum limit of
$30,000
whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. ABI
may
request and the payee shall advance against the Note, until Maturity, the amount submitted on a completed and approved reimbursement form along with documentation of the amount to be advanced. The Note
may
be convertible in whole or in part at a conversion price of
$0.25
per share into Amarillo Biosciences, Inc., Common voting stock. All shares issued are to be restricted subject to Rule
144
promulgated under the U.S. Securities Act of
1933.
The Company
may
prepay the Note in whole or in part at any time without penalty.
 
 
On
January 1, 2020,
the Company issued Note
#8.20
for deferred compensation to
i2China
Management Group, LLC in the amount of
$48,000,
the maximum amount of cash compensation that could be deferred in
2020.
The Note is payable on
January 1, 2021,
or on demand and bears interest at the AFR
1
short-term rate of
1.85%.
The note is an advancing note with a maximum limit of
$48,000
whereby the Company promises to repay the aggregate Principal Amount advanced to date up to the stated maximum amount at Maturity. ABI
may
request and the payee shall advance up to
$4,000
on the last day of each month until the note matures. The Note
may
be convertible in whole or in part at a conversion price of
$0.25
per share.
 
 
The notes are unsecured and are due on demand. All shares issued on conversion are to be restricted subject to Rule
144
promulgated under the U.S. Securities Act of
1933.
The Company
may
prepay the notes in whole or in part at any time without penalty. The convertible notes due to Dr. Chen are related party notes.