Subsequent Events

As stated earlier, stock compensation was accrued for the second, third, and

fourth

quarters of

2019

for Dr. Stephen T. Chen, Bernard Cohen, Dr. Celee Spidel, and

i2China

Management Group, LLC. Those shares were

not

issued as of

December 31, 2019.

It is anticipated that the shares will be issued in

2020.

Stockholder	Quarter	2nd		3rd		4th		Total Shares
Stockholder	Share Price		0.3499		0.4183		0.3043	Issued
Dr. Stephen T. Chen	$25,000/quarter		71,459		59,766		82,165		213,390
Bernard Cohen	$ 3,000/quarter		8,575		7,172		9,860		25,607
Dr. Celee Spidel	$ 1,500/quarter		4,288		2,021		-		6,309
i2China Management Group, LLC	$ 6,000/quarter		17,150		14,344		19,720		51,214
Total Compensation Shares Issued			101,472		83,303		111,745		296,520

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.

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

AFR1

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.

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

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.

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

AFR1

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 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.

Following is a complete list of Convertible Notes Payable issued by the Company as of

December 31, 2019,

and subsequent to that Balance Sheet Date.

Note #.	Date	Payee	Principal Amount		Balance as of March 30, 2020		Maturity	Annual Interest AFR Rate 1		Conversion Price
1	1/11/2016	Stephen T. Chen	$	144,426	$	114,026	On Demand		0.75%		$0.1680
2	3/18/2016	Stephen T. Chen	$	262,500	$	262,500	On Demand		0.65%		$0.1875
3.19	9/1/2019	Stephen T. Chen	$	72,200	$	39,620	9/1/2020 or On Demand		1.85%		$0.2500
4.19	12/1/2019	Stephen T. Chen	$	12,435	$	12,435	12/31/2020 or On Demand		1.61%		$0.2500
5.19	9/1/2019	i2China Mgt. Group LLC	$	16,000	$	16,000	9/1/2020 or On Demand		1.85%		$0.2500
6.20	1/1/2020	Stephen T. Chen	$	216,600	$	18,050	1/1/2021 or On Demand		1.85%		$0.2500
7.20	1/1/2020	Stephen T. Chen	$	30,000		-	1/2/2021 or On Demand		1.60%		$0.2500
8.20	1/1/2020	i2China Mgt. Group LLC	$	48,000	$	8,000	1/1/2021 or On Demand		1.85%		$0.2500
Total Convertible Notes Payable					$	470,631

The Short-Term Applicable Federal Rate