10-Q

United States

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2015

Commission File Number 0-20791

AMARILLO BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

TEXAS	75-1974352
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
4134 Business Park Drive, Amarillo, Texas 79110
(Address of principal executive offices) (Zip Code)
(806) 376-1741
(Issuer’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [√ ] Yes   [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (do not check if smaller reporting company)	Smaller reporting company [√]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)[ ] Yes   [√] No

As of August 10, 2015 there were 20,144,810 shares of the issuer's common stock outstanding.

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AMARILLO BIOSCIENCES, INC.

INDEX

		PAGE NO.
PART I:	FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Balance Sheets– June 30, 2015 and December 31, 2014 (unaudited)	3
	Statements of Operations – Three and Six Months Ended June 30, 2015 and 2014 (unaudited)	4
	Condensed Statements of Cash Flows – Six Months Ended June 30, 2015 and 2014 (unaudited)	5
	Notes to Financial Statements (unaudited)	6
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk.	18
ITEM 4.	Controls and Procedures	22
PART II:	OTHER INFORMATION
ITEM 1.	Legal Proceedings	22
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	22
ITEM 3.	Defaults Upon Senior Securities	22
ITEM 4.	Mine Safety Disclosures	22
ITEM 5.	Other Information	22
ITEM 6.	Exhibits……………………………………………………………	22
	Signatures	23

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PART I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

Amarillo Biosciences, Inc.

Balance Sheets

(Unaudited)

	June 30, 2015			December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	100,064		$	318,556
Prepaid expense and other current assets		51,213			16,882
Total current assets		151,277			335,438
Patents, net		80,949			86,097
Property and equipment, net		6,459			-
Total assets	$	238,685		$	421,535
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and accrued expenses	$	98,677		$	67,159
Accrued interest - related parties		1,133			563
Notes payable – related parties		272,055			234,555
Total current liabilities		371,865			302,277
Notes payable – related party, long term		112,500			150,000
Total liabilities		484,365			452,277
Commitments and contingencies
Stockholders' deficit
Common stock, $0.01 par value:
Authorized shares - 100,000,000
Issued and outstanding shares – 20,144,810 at June 30, 2015 and December 31, 2014		201,448			201,448
Additional paid-in capital		(157,446	)		(157,446	)
Accumulated deficit		(289,682	)		(74,744	)
Total stockholders' deficit		(245,680	)		(30,742	)
Total liabilities and stockholders’ deficit	$	238,685		$	421,535

See accompanying notes to financial statements.

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Amarillo Biosciences, Inc.

Statements of Operations

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	Successor 2015			Predecessor 2014			Successor 2015			Predecessor 2014
Revenues:
Product sales	$	-		$	-		$	-		$	-
Total revenues		-			-			-			-
Cost of revenues:
Product sales		-			-			-			-
Total cost of revenues		-			-			-			-
Gross Margin		-			-			-			-
Operating expenses:
Research and development expenses		-			-			-			15,270
Selling, general and administrative expenses		102,103			186,203			213,921			345,948
Total operating expenses		102,103			186,203			213,921			361,218
Operating loss		(102,103	)		(186,203	)		(213,921	)		(361,218	)
Other income (expense)
Interest expense		(746	)		(684	)		(1,017	)		(730	)
Net loss		(102,849	)		(186,887	)		(214,938	)		(361,948	)
Preferred stock dividend		-			(8,098	)		-			(16,195	)
Net loss applicable to common shareholders	$	(102,849	)	$	(194,985	)	$	(214,938	)	$	(378,143	)
Basic and diluted net loss per share	$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Weighted average shares outstanding – basic and diluted		20,144,810			73,291,008			20,144,810			73,291,008

See accompanying notes to financial statements.

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Amarillo Biosciences, Inc.

Condensed Statements of Cash Flows

(Unaudited)

	Successor			Predecessor
	Six months ended June 30, 2015			Six months ended June 30, 2014
Net cash used in operating activities	$	(207,426	)	$	(183,690	)
Cash flows from investing activities:
Investment in equipment		(7,081	)		-
Investment in patents		(3,985	)		(7,831	)
Net cash used in investing activities		(11,066	)		(7,831	)
Cash flows from financing activities:
Proceeds from notes payable related party		-			186,472
Net cash provided by financing activities		-			186,472
Net change in cash		(218,492	)		(5,049	)
Cash and cash equivalents at beginning of period		318,556			6,539
Cash and cash equivalents at end of period	$	100,064		$	1,490
Supplemental disclosure of cash flow information
Cash paid for interest	$	-		$	-
Cash paid for income taxes	$	-		$	-

See accompanying notes to financial statements.

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Amarillo Biosciences, Inc.

Notes to Financial Statements

(Unaudited)

1.   Organization and Business.  Amarillo Biosciences, Inc. (the "Company” or “Amarillo” or “ABI”), a Texas corporation formed in 1984, is engaged in developing biologics for the treatment of human and animal diseases.  The Company’s current focus is research aimed at the treatment of human disease indications, particularly influenza, hepatitis C, thrombocytopenia, and other indications using natural human interferon alpha that is administered in a proprietary low dose oral form.  In addition to the above core technology ABI is exploring the possibility of instituting new revenue streams along with the core technology thus expanding the Company’s current focus into a diversified businessportfolio.

2.   Basis of presentation. The accompanying financial statements, which should be read in conjunction with the financial statements and footnotes included in the Company's Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission, are unaudited, but have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included.  Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015.

3.   Financial Condition.  These financial statements have been prepared in accordance with United States generally accepted accounting principles, on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has not yet achieved operating income, and its operations are funded primarily from debt and equity financings. The Company successfully reorganized under Chapter 11 of the U.S. Bankruptcy Code.  As part of the Plan of Reorganization, debt in excess of $4 million was discharged.  However, losses are anticipated in the ongoing development of its business and there can be no assurance that the Company will be able to achieve or maintain profitability.

The continuing operations of the Company and the recoverability of the carrying value of assets is dependent upon the ability of the Company to obtain necessary financing to fund its working capital requirements, and upon future profitable operations. The accompanying financial statements do not include any adjustments relative to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

There can be no assurance that capital will be available as necessary to meet the Company's working capital requirements or, if the capital is available, that it will be on terms acceptable to the Company. The issuances of additional equity securities by the Company may result in dilution in the equity interests of its current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase the Company's liabilities and future cash commitments. If the Company is unable to obtain financing in the amounts and on terms deemed acceptable, the business and future

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success may be adversely affected and the Company may cease operations. These factors raise substantial doubt regarding our ability to continue as a going concern.

4.   Current Status.  The Company exited bankruptcy on January 23, 2015 when the Final Decree was signed by Robert L. Jones, Bankruptcy Judge for the Northern District of Texas.  The Case was administratively closed on February 13, 2015.

In accordance with Accounting Standards Codification Topic 852, Reorganizations, the Company adopted fresh start accounting upon emergence from Chapter 11 bankruptcy. The recorded amounts of assets and liabilities were adjusted to reflect their estimated fair values on the Effective Date.

Upon the adoption of fresh start accounting, the Company became a new entity for financial reporting purposes. References to “Successor” or “Successor Company” relate to the financial position of the reorganized Company as of and subsequent to November 20, 2014 and results of operations for the period ended June 30, 2015. References to “Predecessor” or “Predecessor Company” refer to the financial position of the Company prior to November 20, 2014 and the results of operations for the period ended June 30, 2014. As a result of the application of fresh start accounting and the effects of the implementation of the Plan of Reorganization, the financial statements on or after November 20, 2014 are not comparable with the financial statements prior to that date.

5.   Fresh Start Accounting.  Upon the Company’s emergence from Chapter 11 bankruptcy, the Company applied the provisions of fresh start accounting to its financial statements as (i) the holders of existing voting shares of the Predecessor Company received less than 50% of the voting shares of the emerging entity and (ii) the reorganization value of the Company’s assets immediately prior to confirmation was less than the post-petition liabilities and allowed claims. The Company applied fresh start accounting as of November 20, 2014, with results of operations and cash flows in the period ending November 20, 2014 attributed to the Predecessor Company.

Upon the application of fresh start accounting, the Company allocated the reorganization value to its individual assets based on their estimated fair values. Reorganization value represents the fair value of the Successor Company’s assets before considering liabilities, and the excess of reorganization value over the fair value of identified tangible and intangible assets is reported separately on the balance sheet.

In accordance with fresh-start reporting requirements, management of ABI has reviewed its assets (excluding cash and prepaid expenses) and evaluated the estimated fair value of those assets, which includes its equipment and its patents. For equipment (which includes furniture & fixtures, computer equipment and software) management evaluated and determined that its estimated fair value immediately preceding ABI’s confirmation date was $0. Management reviewed the various types of equipment with an original book cost of approximately $46,000 and with dates acquired ranging from years between 1992 through 2008. Based on the condition and age of the equipment, management determined that any proceeds that could be received from a local auction-type sale would be minimal; therefore, management determined that $0 (which amount also represents current book carrying value) was a reasonable estimate of ABI’s equipment fair value. For patents, management evaluated and determined that its estimated fair value immediately preceding ABI confirmation date was approximately $86,000. Management reviewed the various patents with dates acquired ranging from years between 1999 and 2010. Based on the consideration of minimal revenues and cash flows from these patents over the past

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years since their inception dates, management concluded that the discounted cash flow approach was not relevant. However management did consider what it believes ABI could potentially sell such patents for to a knowledgeable third-party firm in the bio-tech industry and in an arm’s length transaction, which management determined that $86,000 (which amount also represents current book carrying value) was a reasonable estimate of ABI patents fair value.

The four-column condensed balance sheet provided below applies the effects of the Plan of Reorganization and fresh start accounting to the carrying values and classifications of assets or liabilities as of November 20, 2014. Upon adoption of fresh start accounting, the recorded amounts of assets and liabilities were adjusted to reflect their estimated fair values. Accordingly, the reported historical financial statements of the Predecessor Company prior to the adoption of fresh start accounting for periods ended on or prior to November 20, 2014 are not comparable to those of the Successor Company.

In applying fresh start accounting, the Company followed these principles:

·   The reorganization value, which represents the enterprise value and non-interest bearing liabilities, was allocated to the Successor Company's assets based on their estimated fair values. The reorganization value exceeded the sum of the fair value assigned to assets. This excess reorganization value was recorded as part of the Successor Company assets at November 20, 2014.

·   Each liability existing as of the fresh start accounting date, other than deferred taxes, has been stated at the fair value, and determined at appropriate risk adjusted interest rates.

·   Deferred taxes were reported in conformity with applicable income tax accounting standards. Deferred tax assets and liabilities have been recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities.

The adjustments set forth in the following condensed balance sheet at November 20, 2014 reflect the effect of the consummation of the transactions contemplated by the Plan of Reorganization (reflected in the column "Reorganization Adjustments") as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column "Fresh Start Adjustments").

	Predecessor Company		Reorganization Adjustments				Fresh-Start Adjustments		Successor Company
Assets
Current assets:
Cash and cash equivalents	$	261,147	$	113,220		(a)	$	-	$	374,367
Prepaid expense and other current assets		24,063		-				-		24,063
Total current assets		285,210		113,220				-		398,430
Patents, net		86,355		-				-		86,355
Total assets		371,565		113,220				-		484,785
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and accrued expenses		347,236		(291,009	)	(b)		-		56,227
Accrued interest – related parties		1,051,093		(1,051,093	)	(c)		-		-

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		Predecessor Company			Reorganization Adjustments				Fresh-Start Adjustments				Successor Company
Accrued expenses – related party		78,360			(78,360	)	(d)		-				-
Notes payable – related parties		4,214,935			(3,830,380	)	(e)		-				384,555
Total current liabilities		5,691,624			(5,250,842	)			-				440,782
Total liabilities		5,691,624			(5,250,842	)			-				440,782
Stockholders' deficit
Preferred stock (Predecessor)		33			(33	)	(f)		-				-
Common stock (Predecessor)		732,910			(732,910	)	(g)		-				-
Additional paid-in capital (Predecessor)		31,968,516			732,910		(g)		(32,701,426	)	(j)		-
Preferred stock (Successor)		-			-				-				-
Common stock (Successor)		-			201,448		(h)		-				201,448
Additional paid-in capital (Successor)		-			1,739,797		(h)		(1,897,242	)	(j)		(157,445	)
Accumulated deficit		(38,021,518	)		3,422,850		(i)		34,598,668		(j)		-
Total stockholders' deficit		(5,320,059	)		5,364,062				-				44,003
Total liabilities and stockholders’ deficit	$	371,565		$	113,220			$	-			$	484,785

Reorganization Adjustments

(a) The cash payments recorded on the Effective Date from implementation of the Plan of Reorganization include the following:

Proceeds from Yang Group	$	322,500
Less: Payments of Class Four claims		(207,110	)
Less: Payments of Class Five claims		(2,170	)
Net increase in cash	$	113,220

(b) Pursuant to the Plan of Reorganization, General Unsecured Creditors were given a settlement of six percent (6%) of the amount of the allowed claim.  Administrative Convenience Creditors were given the opportunity to receive the lesser of $500 or 100% of their claim and receive payment within twenty-eight (28) days after the twenty-eight day objection period expired.  The Effective Date was November 20, 2014.  Creditors had twenty-eight days from the Effective Date to object to the amount of their particular claim. The objection period was from November 21, 2014, through December 18, 2014.  Administrative Convenience Claims were paid beginning December 19, 2014 and payments to this class were completed no later than January 16, 2015.  Creditors in the following general ledger accounts received six percent (6%) payout in full and final settlement of all outstanding debts.  The balance of the debts for both classes was discharged after the settlement payments were tendered.

General Ledger Account	Amount Paid in Settlement		Amount Discharged
Deferred Revenue	$	225	$	1,557
Accounts Payable		8,029		161,167
Accrued Payroll – P. Mueller*		*-		*30,590
Accrued Payroll – B. Cohen		793		12,428
Notes Payable		1,111		17,266
Accrued Dividends		3,471		54,372
Total	$	13,629	$	277,380

*There was no settlement payout for this creditor.  The debt was beyond the Statute of Limitations and, therefore, not an allowed debt.

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(c) Pursuant to the Plan of Reorganization, Accrued Interest for Related Parties was classified as General Unsecured Creditors.  These Creditors received six percent (6%) of the allowed claim in full and final settlement of all outstanding debts.  The balance of the debt was discharged after the settlement payment was tendered.

Description	Amount
Tibbits payout of interest on $200,000 loan; write off of unpaid & discharged interest debt.	$	43,123
Adjustment to interest for The Yang Group.		1,933
Sub-Total		45,056
Accrued Yang interest post-bankruptcy		(163	)
Accrued Yang interest post-bankruptcy		(53	)
Sub-Total Yang interest		(216	)
Net Sub-Total		44,840
Write off HBL accrued interest discharged.		1,006,253
Total Adjustment	$	1,051,093

(d) Write off licensing fees due Hayashibara Biochemical Laboratories, Inc. (HBL) which originated through sales of Bimron, and interferon product.

(e) The total amount of cash received by ABI from the Yang Group was $2,324,185.  The amount of debt exchanged for equity with Yang was $1,939,630 leaving $384,555 of cash not converted to debt and still owed to The Yang Group.  This cash was for the purpose of financing future, post-bankruptcy operations.  The Notes Payable – Related Parties consisted of the following:

Creditor	Amount
Tibbits	$	200,000
Martin Cummins		13,250
Allowed Unsecured Debt to Yang		1,939,630
Hayashibara Biochemical Laboratories		2,000,000
Total Discharged		4,152,880
Yang Cash for future operations		(322,500	)
Total Adjustment	$	3,830,380

The amount of remaining debt to Yang, $384,555 was reclassified pursuant to the Plan of Reorganization in that ABI has a secured debt to Yang in the amount of $150,000 and an unsecured note payable to Yang for $234,555.

(f) Convert Preferred Stock at Par to Common Stock pursuant to Implementation of Plan of Reorganization – 32.62 shares of Preferred stock at $0.01 par to 3,262,000 Common shares at par $0.01.

(g) Adjust Common Stock at par value of $0.01 for 20,144,810 Common Shares following 1-for-19 reverse stock split pursuant to Plan of Reorganization.

(h) Adjust Common Stock at par of $0.01 and Additional Paid in Capital for conversion of Yang debt to (New) ABI Common Equity.

(i) Adjust Accumulated Deficit for debt forgiveness/debt discharge pursuant to the Plan of Reorganization.

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Fresh Start Adjustments

(j) Adjust Paid in Capital – Predecessor, Paid in Capital – Successor, and Accumulated Deficit for Fresh Start Reporting.

6.   Common Stock.  The shareholders have authorized 100,000,000 shares of voting common shares for issuance. On June 30, 2015, a total of 20,279,167 shares of common stock were either outstanding (20,144,810) or reserved for issuance upon exercise of options and warrants (134,357). No common stock was issued in the six months ending June 30, 2015.

7.   Common Stock Options and Warrants.  As of June 30, 2015 there were 52,631 shares reserved as unexercised warrants and 81,726 shares reserved as unexercised options. No warrants or options expired in the first six months of 2015.

A summary of the Company’s stock option activity and related information for the period ended June 30, 2015 is as follows:

	Options		Price Range
Outstanding December 31, 2014		81,726	$	0.760-1.235
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		81,726		0.760-1.235
Exercisable June 30, 2015		81,726	$	0.760-1.235

A summary of the Company’s stock warrant activity and related information for the period ended June 30, 2015

	Warrants		Price Range
Outstanding December 31, 2014		52,631	$	0.57
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		52,631		0.57
Exercisable June 30, 2015		52,631	$	0.57

8.   Notes Payable – Related Party.  On the Effective Date of the Plan of Reorganization, the Class Three Secured Claim of Yang was deemed allowed in the amount of $150,000, secured by the same assets that secured Yang’s prepetition secured claim (See Texas Financing Statement No. 13-0029795076). This claim bears interest at the Applicable Federal Rate, will be fully amortized and paid as follows: four (4) consecutive equal annual installments of combined principal and interest, beginning September 1, 2015, and continuing on the same date of each succeeding year until September 1, 2018, when the obligation is due and payable in full.

Subsequent to consummation of the Plan, The Yang Group has provided $234,555 for post-reorganization financing.  This is unsecured and draws interest at the short term Applicable Federal Rate.

9.   Subsequent Events.  At a Special Shareholders Meeting held July 10, 2015, the Company’s Certificate of Formation and Bylaws were materially modified, in a manner affecting the Company’s voting common stock (the only class of the Company’s securities of which shares are currently issued and outstanding); and also affecting the

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Company’s authorized shares of preferred stock, issuable in series, of which no shares or series are currently issued and outstanding.  The general effect of such modifications was as follows:

a.   Stockholder supermajority vote requirements were changed from 2/3 of the issued and outstanding shares entitled to vote on a matter, to 51% of the issued and outstanding shares entitled to vote on such matter, with such change additionally applying to each voting class or series where a class or series of shares is entitled to vote separately on a matter.  This change would apply to all existing or future supermajority vote requirements under Texas law, including without limitation, votes on Fundamental Business Transactions, and/or Fundamental Actions, as such are defined in the Texas Business Organizations Code.

b.   Requirements for action by written consent of Stockholders in lieu of a meeting were changed, to permit actions to be taken by the written consent of Stockholders having at least the minimum number of votes that would be necessary to take the action that is the subject of the consent at a meeting, in which each holder entitled to vote on the action is present and votes, in lieu of requiring that the written consent be unanimous, as at present.

c.   The requirement for notice to directors of Special Directors Meetings was changed from 24 hours to 4 hours.

Additionally, at the Special Shareholder Meeting which took place on July 10, 2015, a new Board of Directors was elected.  The Board now consists of:  Stephen T. Chen, Paul Tibbits, Yasushi Chikagami, Dan Fisher, and Nick Moren.  The Yang Group is expected to distribute 11,453,334 of its shares to its constituent members within approximately thirty days, leaving The Yang Group with 4,662,514 shares, and within four business days of such distribution, the Company will file an 8-K identifying any new major shareholders (5% and 10% owners) of the Company.  There is expected to be no continuing arrangement or understanding among the members or former members of The Yang Group and their associates with respect to the election of directors, or other matters, although the shares to be retained by The Yang Group will continue to be voted by Stephen T. Chen, President and CEO of the Company, until such time as they are distributed.

The Company filed a Form 8-K on July 13, 2015 describing in detail the amendments made to the Company’s Certificate of Formation and the amendments to the Company’s Bylaws. This can be accessed through the Company’s website under Company/SEC Filings or directly through the Securities Exchange Commission (SEC) website.

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ITEM 2.                      Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our financial statements and the notes thereto which appear elsewhere in this report.  The results shown herein are not necessarily indicative of the results to be expected in any future periods.  This discussion contains forward-looking statements based on current expectations, which involve uncertainties.  Actual results and the timing of events could differ materially from the forward-looking statements as a result of a number of factors.  Readers should also carefully review factors set forth in other reports or documents that we file from time to time with the Securities and Exchange Commission.

Overview. ABI has been (and is) engaged in the business of biopharmaceutical research and development. Its primary focus historically has been the development of low-dose, orally administered interferon. ABI holds or licenses various patents; it also is the developer of Maxisal®, a dietary supplement to treat dry-mouth symptoms.

Having reorganized and exited bankruptcy, the Company’s goal is to expand the reach of its research, development, and marketing of biopharmaceutical, biotechnical, health and life science related products.  ABI will continue to leverage its core technology going forward by using its thirty years of scientific and clinical data to establish interferon-alpha lozenges as a therapeutic agent for conditions such as influenza, hepatitis C, and various causes of thrombocytopenia just to name a few.  The Company is committed to expanding its business operations from the currently narrow focus to encompass a wide variety of licensing, partnerships, and development opportunities in the aforementioned sectors. This commitment extends not only to the U.S., but to Taiwan, China, and other Asian Countries.

Bankruptcy.  On October 31, 2013, ABI filed for relief under Chapter 11 of the U.S. Bankruptcy Code. Effective November 20, 2014, the Company consummated the Plan and has completed the following actions reducing the Company’s debt from $4,787,127 to $452,277 as of December 31, 2014:  Administrative debts have been paid and are now current, the unsecured debt to The Yang Group has been exchanged for common equity in ABI, general unsecured and administrative convenience creditors have been paid according to the Plan, the Company’s preferred stock has been converted to common stock, and the 1-for-19 reverse stock split has been successfully implemented.  On January 23, 2015, the Final Decree was signed by Robert L. Jones, Bankruptcy Judge for the Northern District of Texas and the Case (Number 13-20393rlj) was administratively closed on February 13, 2015.

Assets, Liquidity, and Capital.  ABI holds various patents and related intellectual property, which are described earlier in this document. Most, if not all, of ABI’s assets secure Yang’s collateralized debt pursuant to Loan Documents.1

 

1ABI also owns office furniture and equipment, which has been fully depreciated and has little resale value.

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At June 30, 2015, we had available cash of $100,064 whereas we had a cash position of $1,490 as of June 30, 2014.  The Company had a working capital deficit of $5,253,231 at June 30, 2014.  For 2015, the working capital deficit was $220,588.  Historically the burn rate was between $50,000 and $60,000 per month.  It is difficult to estimate the burn rate at this point insomuch as the new budgets are still being developed.  One of the Company’s main goals is to return to the status of a going concern by having reduced operating losses and subsequently becoming profitable.  As indicated throughout this document, two other major goals of ABI are to (1) leverage the core technology, low-dose oral interferon, and (2) diversify Company operations to incorporate additional lines of business which will extend the reach of ABI into additional economic sectors such as biotech / bio-pharmaceutical / health care products and life sciences business.  The Yang Group has indicated the willingness to assist in future financing of operations as ABI seeks to monetize its existing (and potentially newly developed) intellectual property. ABI estimates its post-reorganization financing needs to be between $1,000,000 and $1,600,000.

The Yang Group Controls The Reorganized Company.  In return for forgiveness of the Allowed Unsecured Claim of Yang and other Cash Consideration, Yang received newly issued stock and effectively owns eighty percent (80%) of the ownership interest of ABI, post-reorganization. The existing Common Equity Security Holders underwent a reverse stock split on the basis of one (1) ABI common share received for every nineteen (19) ABI common shares held pre-split, as of a record date which was set by the Directors of ABI pursuant to Section 6.101(b) of the Texas Business Organizations Code. The Code indicated that the date shall be no more than 60 days prior to the implementation of the reverse stock split. The ABI common shares received pursuant to the reverse split were not in addition to, but replaced, the ABI common shares held pre-split, and such ABI common shares were returned to the status of authorized, but unissued common shares, with the result that the Common Equity Security Holders now held, post-reorganization, common stock constituting approximately twenty percent (20%) of the issued and outstanding common stock in the reorganized company.  ABI will continue to compete in the biotech / bio-pharmaceutical / health care products and life sciences business.

Dr. Chen and the present management team will continue to operate ABI.  This does not, however, preclude Yang from exercising its voting rights as a stockholder in ABI.

Pending Litigation

To the best of management’s knowledge, the Company does not believe that there is any pending litigation against ABI.

Risk Factors

The most significant asset is the Debtor’s intellectual property consisting of five patents, one pending patent, and one trademark. Two of the patents expire in less than seven months and three of the patents expire in a range of four to seven years. These five patents and the single pending patent employ the Company’s core technology, which is the oral, low dosage use of (human) interferon. These patents will not have significant value unless commercialized, which will require adequate funding, time, effort, and expertise in biologics.  As stated earlier, ABI’s sole source of human interferon discontinued production, which negatively impacted ABI’s ability to obtain source product. The anticipated location and development time required for a new source of human interferon along with the requisite testing and FDA approval time could exceed the life span of the all of the patents, and even if it does not, would leave relatively little time to derive revenues from the patent protections, prior to patent expiration. The sixth patent, a product

14

promoting oral health, also is the victim of supply-chain interruption because the supplier of the raw material for the product (anhydrous crystalline maltose, or “ACM”) has substantially increased its purchase price. The price increase and other actions have rendered the manufacture and sale of the product less attractive.

ABI will operate subject to the oversight by its 80% owner, Yang. Yang has recognized the necessity of additional capital infusion to return ABI to profitable operations post-reorganization. This will likely include the advance of debt financing or infusion of additional capital by Yang, although Yang is not obligated to do so, and will consider economic and market factors before making such determination. It is anticipated that ABI will attempt to monetize and commercialize its existing intellectual property, which would necessitate identification and acquisition of new source product (e.g., Interferon), conducting new trials, and additional protection of intellectual property. It is estimated this may require additional funding (including general administrative cost and professional fees) of between $500,000 and $800,000. Similarly,

ABI may explore with Yang the acquisition and development of new product lines to which Yang may have access. The cost to commercialize any such development could likely require a similar funding level, resulting in aggregate funding requirements between $1 million and $1.6 million. These activities, even if undertaken, would not be expected to produce meaningful revenue before the last calendar quarter of 2016, or possibly later.2

Tax Consequences

ABI’s most recent tax return and financial statements reflect tax attributes that may or may not be obtainable. Some of these tax attributes (e.g., net operating loss carry forwards (“NOL”), if any) are for the benefit of ABI. According to the Company’s most recent federal income tax return, the face amount of the NOL was $22,240,816. ABI has not independently verified or otherwise confirmed the favorable nature of such tax attributes or the extent to which any of the NOL can still be used. It is the Company’s belief that obtaining the value of such tax attributes may be difficult and directly dependent upon many factors outside of our control, including, but not limited to, changes in the legal and regulatory framework and the operational and corporate structure of ABI and shareholders, or sales or transfers of stock by or among shareholders. For example, if ABI has experienced a change of control as defined in the relevant provisions of the IRC,3 the use of any existing tax attributes could be severely limited. ABI does not believe the reorganization has or will impair any tax attributes; however, obtaining value from the tax attributes is a function of the Company’s return to profitable operations and the timeframe of that return. While we believe it is possible, there is no assurance that ABI will return to profitability in the future.4

 

2 Yang has not expressly committed to these funding levels.

3 See 26 U.S.C. § 382 (known as Section 382 of the IRC) and related regulations.

4As noted above, the extent to which these NOLs may be used by ABI to offset future income may be affected by the passage of time, transactions among shareholders, and other factors. During the bankruptcy, ABI had sought to limit certain trading activities by separate motion. See e.g., Debtor’s Motion for Immediate Entry of Order Establishing Procedures for Certain Transfers of Debtor’s Common Stock (Doc. No. 94) and the Interim Order Establishing Procedures for Certain Transfers of Debtor’s Common Stock (Doc. No. 96). Under the Plan, similar limitations may be imposed post-confirmation.

15

Equity Funding.  There have been no sales of stock in the six months ending June 30, 2015.

Results of Operations for Quarters Ended June 30, 2015 and 2014:

Factors Affecting Comparability.  We adopted fresh start accounting and reporting effective November 20, 2014 (the “Fresh Start Reporting Date”). The financial statements as of the Fresh Start Reporting Date report the results of the Successor Company with no beginning retained earnings or accumulated deficit. Any financial statement presentation of the Successor Company represents the financial position and results of operations of a new reporting entity and is not comparable to prior periods presented by the Predecessor Company. The financial statements for periods ended prior to the Fresh Start Reporting Date do not include the effect of any changes in the Predecessor Company’s capital structure or changes in the fair value of assets and liabilities as a result of fresh start accounting. Accordingly, the financial statements on or prior to November 20, 2014 are not comparable with the financial statements for periods after November 20, 2014. Operating activities between January 1, 2014 and November 20, 2014 were insignificant.

Revenues.  During the quarters ended June 30, 2015, and June 30, 2014 there were no sales of dietary supplements. During the quarters ended June 30, 2015, and June 30, 2014 there were no ACM sales.

Research and Development Expenses. Research and development expenses have not been incurred for the quarter ended June 30, 2015, nor were any research and development expenses incurred in the quarter ended June 30, 2014.  No R&D reclassification of any expenses have been made since the first quarter of 2014.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses of $102,103 were incurred for the second quarter in 2015, compared to $186,203 for the second quarter of 2014, a decrease of $84,100 (45%).  This decrease is mostly due to less salary expense, less professional fees, and less reorganization expenses in 2015.

Operating Loss.  In the three-month period ended June 30, 2015, the Company's operating loss was $102,103 compared to an operating loss for the three-month period ended June 30, 2014 of $186,203, a $84,100 decrease. There were less expenses overall during the second quarter of 2015, reduction in reorganization expense related to the bankruptcy filing and reduction in professional fees were significant factors in the decrease of expense.

Interest Expense.  During the three-month period ended June 30, 2015, interest expense was $746, compared to $684 for the three-month period ended June 30, 2014.  The interest expense recognized in the second quarter of 2015 is mostly due to accrued interest for our secured and unsecured loans with The Yang Group.

Net Loss. In the three-month period ended June 30, 2015, the Company's net loss was $102,849 compared to a net loss for the three-month period ended June 30, 2014, of $186,887 an $84,038 (45%) decrease. This decrease was mainly due to decreased reorganization and professional fee expenses.

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Results of Operations for the Six Months Ended June 30, 2015 and 2014:

Revenues.  During the six months ended June 30, 2015 and June 30, 2014 there were no sales of dietary supplements.  During the six months ended June 30, 2015, and June 30, 2014 there were no ACM sales.

Research and Development Expenses. Research and development expenses of $0 were incurred for the six month period ended June 30, 2015, compared to $15,270 for the six month period ended June 30, 2014, a decrease of $15,270 (100%).  The amount was lower in 2015 than 2014 because all R&D expenses ceased and beginning in April 2014 all R&D expense reclassification stopped until R&D resumes.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses of $213,921 were incurred for the first six months of 2015, compared to $345,948 for the first six months of 2014, a decrease of $132,027 (38%).  This decrease is mostly due to less salary expense, less professional fees, and less reorganization expenses in 2015.

Net Operating Loss.  In the six month period ended June 30, 2015, the Company's operating loss was $213,921 compared to an operating loss for the six month period ended June 30, 2014 of $361,218, a $147,297 (41%) increase.

Interest Expense.  During the six-month period ended June 30, 2015, interest expense was $1,017, compared to $730 for the six-month period ended June 30, 2014, an increase of $287 (39%). The interest expense recognized in the six-month period ended June 30, 2015 is mostly due to accrued interest for our secured and unsecured loans with The Yang Group.

Net Loss. In the six months ended June 30, 2015, the Company's net loss was $214,938 compared to a net loss for the six months ended June 30, 2014 of $361,948 a $147,009 (41%) decrease.

Liquidity Needs.At June 30, 2015, we had available cash of $100,064 whereas we had a cash position of $1,490 as of June 30, 2014.  The Company had a working capital deficit of $5,253,231 at the end of June 30, 2014.  For 2015, the working capital deficit was $220,588.  Historically the burn rate was between $50,000 and $60,000 per month.  It is difficult to estimate the burn rate at this point insomuch as the new budgets are still being developed.  One of the Company’s main goals is to return to the status of a going concern by having reduced operating losses and subsequently becoming profitable.  As indicated throughout this document,  Two other major goals of ABI are to (1) leverage the core technology, low-dose oral interferon, and (2) diversify Company operations to incorporate additional lines of business which will extend the reach of ABI into additional economic sectors such as biotech / bio-pharmaceutical / health care products and life sciences business.  The Yang Group has indicated the willingness to assist in future financing of operations as ABI seeks to monetize its existing (and potentially newly developed) intellectual property. ABI estimates its post-reorganization financing needs to be between $1,000,000 and $1,600,000.

There can be no assurance that we will be successful in our efforts to operate the reorganized Company.  If we are not successful in our efforts to operate the Company, we could be forced to cease operations.

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Forward-Looking Statements. Certain statements made throughout this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance, achievements, costs or expenses and may contain words such as "believe," "anticipate," "expect," "estimate," "project," "budget," or words or phrases of similar meaning.  Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from those projected in the forward-looking statements.  Such risks and uncertainties are detailed from time to time in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-Q and 10-K and include among others the following: promulgation and implementation of regulations by the U.S. Food and Drug Administration ("FDA"); promulgation and implementation of regulations by foreign governmental instrumentalities with functions similar to those of the FDA; costs of research and development and clinical trials, including without limitation, costs of clinical supplies, packaging and inserts, patient recruitment, trial monitoring, trial evaluation and publication; and possible difficulties in enrolling a sufficient number of qualified patients for certain clinical trials.  The Company is also dependent upon a broad range of general economic and financial risks, such as possible increases in the costs of employing and/or retaining qualified personnel and consultants and possible inflation which might affect the Company's ability to remain within its budget forecasts. The principal uncertainties to which the Company is presently subject are its inability to ensure that the results of trials performed by the Company will be sufficiently favorable to ensure eventual regulatory approval for commercial sales, its inability to accurately budget at this time the possible costs associated with hiring and retaining of additional personnel, uncertainties regarding the terms and timing of one or more commercial partner agreements and its ability to continue as a going concern.

The risks cited here are not exhaustive. Other sections of this report may include additional factors which could adversely impact the Company's business and future operations. Moreover, the Company is engaged in a very competitive and rapidly changing industry.

New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those projected in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future events.

ITEM 3.                      Quantitative and Qualitative Disclosures About Market Risk.

We may not be able to adequately protect and maintain our intellectual property. The most significant asset is the Company’s intellectual property consisting of five patents, one pending patent, and one trademark. Two of the patents expire in less than seven months and three of the patents expire in a range of four to seven years. These five patents and the single pending patent employ the Company’s core technology, which is the oral, low dosage use of (human) interferon. These patents will not have significant value unless commercialized, which will require adequate funding, time, effort, and expertise in biologics.  As stated earlier, ABI’s sole source of human interferon discontinued production, which negatively impacted ABI’s ability to obtain source product. The anticipated location and development time required for a new source of human interferon along with the requisite testing and FDA approval time could exceed the life span of the all of the patents, and even if it does not, would leave relatively little time to derive revenues from the patent protections, prior to patent expiration. The sixth patent, a product promoting oral

18

health, also is the victim of supply-chain interruption because the supplier of the raw material for the product (anhydrous crystalline maltose, or “ACM”) has substantially increased its purchase price. The price increase and other actions have rendered the manufacture and sale of the product less attractive.

ABI will operate subject to the oversight by its 80% owner, Yang. Yang has recognized the necessity of additional capital infusion to return ABI to profitable operations post-reorganization. This will likely include the advance of debt financing or infusion of additional capital by Yang, although Yang is not obligated to do so, and will consider economic and market factors before making such determination. It is anticipated that ABI will attempt to monetize and commercialize its existing intellectual property, which would necessitate identification and acquisition of new source product (e.g., Interferon), conducting new trials, and additional protection of intellectual property. It is estimated this may require additional funding (including general administrative cost and professional fees) of between $500,000 and $800,000. Similarly, New ABI may explore with Yang the acquisition and development of new product lines to which Yang may have access. The cost to commercialize any such development could likely require a similar funding level, resulting in aggregate funding requirements between $1 million and $1.6 million. These activities, even if undertaken, would not be expected to produce meaningful revenue before the last calendar quarter of 2016, or possibly later.5

We rely on third parties for the supply, manufacture and distribution of our products.  Third parties manufacture and distribute all of our products. Our historical reliance on third parties has left us without a source of natural human interferon which seriously jeopardizes our ability to leverage our core technology.  The Company has been forced to diligently search for a new supply of interferon. Developing a new source of interferon will be very costly and time consuming which will have a profoundly negative impact on the Company’s continuing operations. We do not currently have manufacturing facilities or personnel to independently manufacture our products; therefore, third parties would have to manufacture and distribute all of our products.  Licensed distributors located in the United States and internationally, would be required to distribute the products.  Except for any contractual rights and remedies that we might have with potential manufacturers and distributors, we would have no control over the availability of our products, their quality or cost or the actual distribution of our products. If for any reason we were unable to obtain or retain third-party manufacturers and distributors on commercially acceptable terms, we would not be able to produce and distribute our products as planned.  If delays or difficulties were encountered with contract manufacturers in producing or packaging products or with a distributor in distributing our products, the production, distribution, marketing and subsequent sales of these products would be adversely affected, and we would then have to seek alternative sources of supply or distribution or abandon or sell product lines on unsatisfactory terms or even discontinue sales entirely. We may not be able to enter into alternative supply, production or distribution arrangements on commercially acceptable terms, if at all. There can be no assurance that the manufacturer that we have engaged will be able to provide sufficient quantities of these products or that the products supplied will meet our specifications or that our distributor will be able to distribute our products in accordance with our requirements.

 

5 Yang has not expressly committed to these funding levels.

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Sales revenue, sublicense fees and royalty income are currently nonexistent.  Historically, the Company’s primary focus has been to achieve FDA approval of oral interferon for one or more disease indications.  We do not expect any significant sales or royalty revenue in the next several years. We operate at a net loss and current liabilities exceed current assets by $220,588 as of June 30, 2015.

We are dependent on certain key existing and future personnel.  Our ability to continue operations will depend, to a large degree, upon the efforts and abilities of our officers and key management employees such as Stephen T. Chen, President, Chairman and Chief Executive Officer, Bernard Cohen, our Vice President and Chief Financial Officer, and Edward Morris, our Corporate Secretary and General Counsel. The loss of the services of one or more of our key employees would have a material adverse effect on our operations. We do not currently maintain key man life insurance on any of our key employees. In addition, as our business plan is implemented, we will need to recruit and retain additional management and key employees in virtually all phases of our operations. We cannot offer assurance that we will be able to successfully attract and retain key personnel. From time to time we contract consultants to advise on certain projects.

If we do not successfully develop, acquire or license new drugs we will not be able to continue operations.  We must invest substantial time, resources and capital in identifying and developing new drugs, dosage and delivery systems, either on our own or by acquiring and licensing such products from third parties. Our growth depends, in part, on our success in such process.  If we are unable to either develop new products on our own or acquire licenses for new products from third parties, our ability to grow revenues and market share will be adversely affected. In addition, we will not be able to recover our investment in the development of new drugs, given that projects may be interrupted, unsuccessful, not as profitable as initially contemplated or we were not be able to obtain necessary financing for such development. Similarly, there is no assurance that we can successfully secure such rights from third parties on an economically feasible basis.

Our competitors are much larger and more experienced than we are and, even if we complete the development of our drugs, we may not be able to successfully compete with them.  The pharmaceutical industry is highly competitive.  Our biologics and low-dose oral interferon alpha applications compete with high dose injectable interferon manufactured by Roche, InterMune, Serano, Biogen, Berlex, Hemispherx and others.  High dose injectable interferon has been widely accepted by the medical community for many years.  Companies who manufacture injectable interferon alpha applications are more established than we are and have far greater financial, technical, research and development, sales and marketing, administrative and other resources than we do.  Even if we successfully complete the development of our tests, we may not be able to compete effectively with these much larger companies and their more established products.

We have been the subject of a going concern opinion by our independent auditors who have raised substantial doubt as to our ability to continue as a going concern.  Our Independent Registered Public Accounting Firm has added an explanatory paragraph to their audit opinion issued in connection with our financial statements which states that our recurring losses from operations and the need to raise additional financing in order to execute our business plan raise substantial doubt about our ability to continue as a going concern.  We incurred a net loss of $241,938 for the six months ended June 30, 2015 and a net loss of $361,948 for the six months ended June 30, 2014.  The operating loss for the six months ended June 30, 2015 was $213,921.  

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In addition, as of June 30, 2015 we had an accumulated deficit of $289,682. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustment that might result from the outcome of this uncertainty. Assurances cannot be given that adequate financing can be obtained to meet our capital needs. We have already significantly curtailed operations, and if we are not successful in our efforts to operate the reorganized Company, we will be forced to cease operations.

Risks Related to our Common Stock.  There is only a limited market for our common stock and the price of our common stock may be affected by factors that are unrelated to the performance of our business.  If any of the risks described in these Risk Factors or other unseen risks are realized, the market price of our common stock could be materially adversely affected.  Additionally, market prices for securities of biotechnology and diagnostic companies have historically been very volatile. 

The market for these securities has from time to time experienced significant price and volume fluctuations for reasons that are unrelated to the operating performance of any one company.  In particular, and in addition to the other risks described elsewhere in these Risk Factors, the following factors can adversely affect the market price of our common stock:

· announcements of technological innovation or improved or new diagnostic products by others;

· general market conditions;

· changes in government regulation or patent decisions;

· changes in insurance reimbursement practices or policies for diagnostic products.

Our common shares have traded on the Over the Counter Bulletin Board at prices below $5.00 for several years. As a result, our shares are characterized as “penny stocks” which could adversely affect the market liquidity of our common stock.  The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure relating to the market for penny stocks in connection with trades in any stock defined as a penny stock. Securities and Exchange Commission regulations generally define a penny stock to be an equity security that has a market price of less than $5.00 per share, subject to certain exceptions. Such exceptions include any equity security listed on NASDAQ or a national securities exchange and any equity security issued by an issuer that has:

· net tangible assets in excess of $2,000,000, if such issuer has been in continuous operation for three years;

· net tangible assets in excess of $5,000,000, if such issuer has been in continuous operation for less than three years; or

· average revenue of at least $6,000,000, for the last three years.

Unless an exception is available, the regulations require, prior to any transaction involving a penny stock that a disclosure schedule explaining the penny stock market and the risks associated therewith is delivered to a prospective purchaser of the penny stock. We currently do not qualify for an exception, and, therefore, our common stock is considered to be penny stock and is subject to these requirements.  The penny stock regulations adversely affect the market liquidity of our common shares by limiting the ability of broker/dealers to trade the shares and the ability of purchasers of our common shares to sell in the secondary market.  In addition, certain institutions and investors will not invest in penny stocks.

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ITEM 4. Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, we have carried out an evaluation of the effectiveness of the design and operation of our company’s disclosure controls and procedures as of the end of the period covered by this quarterly report, being June 30, 2015. This evaluation was carried out under the supervision and with the participation of our company’s management, including our company’s chairman of the board and chief executive officer, Dr. Stephen T. Chen and chief financial officer, Bernard Cohen. Our company’s disclosure controls and procedures are effective as at the end of the period covered by this report. There have been no significant changes in our company’s internal controls or in other factors, which could significantly affect internal controls subsequent to the date we carried out our evaluation.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our company’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our company’s reports filed under the Exchange Act is accumulated and communicated to management, including our company’s president and chief executive officer as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in internal controls over financial reporting during 2015.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. As of the date of this report, we were not aware of any such legal proceedings or claims against us.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In the six months ended June 30, 2015, there were no sales of stock.

ITEM 3. Defaults Upon Senior Securities.

None

ITEM 4. Mine Safety Disclosures.

Not applicable

ITEM.5. Other Information.

None

ITEM 6. Exhibits.

None

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SIGNATURES

Pursuant to the requirements of Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AMARILLO BIOSCIENCES, INC.
Date:   August 10, 2015	By:   /s/ Stephen T. Chen Stephen T. Chen, Chairman of the Board, and Chief Executive Officer
Date:   August 10, 2015	By:   /s/ Bernard Cohen Bernard Cohen, Vice President, Chief Financial Officer

23

EX-31.1A

EXHIBIT 31.1a

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, Stephen T. Chen, certify that:

1.           I have reviewed this report on Form 10-Q of Amarillo Biosciences, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)           Disclosed in this  report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 10, 2015	/s/ Stephen T. Chen
	Name:  Stephen T. Chen Title: Chairman and Chief Executive Officer

EX-31.1B

EXHIBIT 31.1b

FORM OF CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATION

I, Bernard Cohen, certify that

1.           I have reviewed this report on Form 10-Q of Amarillo Biosciences, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the periods covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)           Disclosed in this  report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  August 10, 2015	/s/ Bernard Cohen
	Name:  Bernard Cohen Title: Vice President, Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Amarillo Biosciences, Inc. on Form 10-Q for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

1.           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

	AMARILLO BIOSCIENCES, INC.
Date:   August 10, 2015	By:    /s/ Stephen T. Chen Stephen T. Chen, Chairman of the Board, and Chief Executive Officer
Date:   August 10, 2015	By:    /s/ Bernard Cohen Bernard Cohen, Vice President, Chief Financial Officer

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Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties - Nov. 20, 2014 - USD ($)	Total
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Yang Cash for future operations	$ (322,500)
Paul Tibbits [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	200,000
Martin Cummins [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	13,250
The Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	384,555
The Yang Group [Member] | Debt Exchanged for Equity [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	1,939,630
Hayashibara Biochemical Laboratories, Inc. [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	2,000,000
Total Related Party Note Payable Discharged [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	4,152,880
Total Adjustment [Member]
Note 5 - Fresh Start Accounting (Details) - Notes Payable - Related Parties [Line Items]
Note payable - related party	$ 3,830,380

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Note 4 - Current Status

6 Months Ended

Jun. 30, 2015

Reorganizations [Abstract]

Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block]

4. Current Status. The Company exited bankruptcy on January 23, 2015 when the Final Decree was signed by Robert L. Jones, Bankruptcy Judge for the Northern District of Texas. The Case was administratively closed on February 13, 2015.

In accordance with Accounting Standards Codification Topic 852, Reorganizations, the Company adopted fresh start accounting upon emergence from Chapter 11 bankruptcy. The recorded amounts of assets and liabilities were adjusted to reflect their estimated fair values on the Effective Date.

Upon the adoption of fresh start accounting, the Company became a new entity for financial reporting purposes. References to “Successor” or “Successor Company” relate to the financial position of the reorganized Company as of and subsequent to November 20, 2014 and results of operations for the period ended June 30, 2015. References to “Predecessor” or “Predecessor Company” refer to the financial position of the Company prior to November 20, 2014 and the results of operations for the period ended June 30, 2014. As a result of the application of fresh start accounting and the effects of the implementation of the Plan of Reorganization, the financial statements on or after November 20, 2014 are not comparable with the financial statements prior to that date.

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Note 7 - Common Stock Options and Warrants (Details) - Stock Warrant Activity - 6 months ended Jun. 30, 2015 - $ / shares	Total
Note 7 - Common Stock Options and Warrants (Details) - Stock Warrant Activity [Line Items]
Outstanding December 31, 2014	52,631
Granted	0
Cancelled/Expired	0
Exercised	0
Outstanding June 30, 2015	52,631
Exercisable June 30, 2015	52,631
Weighted Average [Member]
Note 7 - Common Stock Options and Warrants (Details) - Stock Warrant Activity [Line Items]
Outstanding December 31, 2014	$ 0.57
Granted	0
Cancelled/Expired	0
Exercised	0
Outstanding June 30, 2015	0.57
ShareBasedCompensationAwardsOtherThanOptionsExercisablePriceRange1	$ 0.57

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Note 7 - Common Stock Options and Warrants (Details) - Stock Option Activity - Jun. 30, 2015 - $ / shares	Total
Note 7 - Common Stock Options and Warrants (Details) - Stock Option Activity [Line Items]
Outstanding December 31, 2014 (in Shares)	81,726
Granted (in Shares)	0
Granted	$ 0
Cancelled/Expired (in Shares)	0
Cancelled/Expired	$ 0
Exercised (in Shares)	0
Exercised	$ 0
Outstanding June 30, 2015 (in Shares)	81,726
Exercisable June 30, 2015 (in Shares)	81,726
Minimum [Member]
Note 7 - Common Stock Options and Warrants (Details) - Stock Option Activity [Line Items]
Outstanding December 31, 2014	$ 0.760
Outstanding June 30, 2015	0.760
Exercisable June 30, 2015	0.760
Maximum [Member]
Note 7 - Common Stock Options and Warrants (Details) - Stock Option Activity [Line Items]
Outstanding December 31, 2014	1.235
Outstanding June 30, 2015	1.235
Exercisable June 30, 2015	$ 1.235

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Note 8 - Notes Payable - Related Party (Details)			6 Months Ended
	Nov. 21, 2014 USD ($)	Nov. 20, 2014 USD ($)	Jun. 30, 2015
Note 8 - Notes Payable - Related Party (Details) [Line Items]
Proceeds from Related Party Debt		$ 2,324,185
Chief Executive Officer [Member]
Note 8 - Notes Payable - Related Party (Details) [Line Items]
Number of Installments			4
Proceeds from Related Party Debt	$ 234,555
Chief Executive Officer [Member] | Secured Debt [Member]
Note 8 - Notes Payable - Related Party (Details) [Line Items]
Debt Instrument, Face Amount		$ 150,000

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Note 9 - Subsequent Events (Details) - shares		1 Months Ended	6 Months Ended
	Jul. 10, 2015	Aug. 10, 2015	Jun. 30, 2015	Dec. 31, 2014
Note 9 - Subsequent Events (Details) [Line Items]
Preferred Stock, Shares Outstanding			0
Requirement for Notice to Directors of Special Directors Meeting, Time Period			24 hours
Common Stock, Shares, Outstanding			20,144,810	20,144,810
Subsequent Event [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Supermajority Voting Rights, Percentage of Issued and Outstanding Shares	51.00%
Requirement for Notice to Directors of Special Directors Meeting, Time Period	4 hours
Subsequent Event [Member] | The Yang Group [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Number of Shares Expected to be Distributed to Consituent Members		11,453,334
Subsequent Event [Member] | The Yang Group [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Common Stock, Shares, Outstanding	4,662,514
Subsequent Event [Member] | Shareholders 1 [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Major Shareholders, Ownership Percentage	5.00%
Subsequent Event [Member] | Shareholders 2 [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Major Shareholders, Ownership Percentage	10.00%
Maximum [Member] | Subsequent Event [Member]
Note 9 - Subsequent Events (Details) [Line Items]
Number of Business Days to File 8-K With the SEC	4 days

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Note 3 - Financial Condition

6 Months Ended

Jun. 30, 2015

Financial Condition [Abstract]

Financial Condition [Text Block]

3. Financial Condition. These financial statements have been prepared in accordance with United States generally accepted accounting principles, on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has not yet achieved operating income, and its operations are funded primarily from debt and equity financings. The Company successfully reorganized under Chapter 11 of the U.S. Bankruptcy Code. As part of the Plan of Reorganization, debt in excess of $4 million was discharged. However, losses are anticipated in the ongoing development of its business and there can be no assurance that the Company will be able to achieve or maintain profitability.

The continuing operations of the Company and the recoverability of the carrying value of assets is dependent upon the ability of the Company to obtain necessary financing to fund its working capital requirements, and upon future profitable operations. The accompanying financial statements do not include any adjustments relative to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

There can be no assurance that capital will be available as necessary to meet the Company's working capital requirements or, if the capital is available, that it will be on terms acceptable to the Company. The issuances of additional equity securities by the Company may result in dilution in the equity interests of its current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase the Company's liabilities and future cash commitments. If the Company is unable to obtain financing in the amounts and on terms deemed acceptable, the business and future

success may be adversely affected and the Company may cease operations. These factors raise substantial doubt regarding our ability to continue as a going concern.

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Balance Sheets (Unaudited) - Scenario, Unspecified [Domain] - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 100,064	$ 318,556
Prepaid expense and other current assets	51,213	16,882
Total current assets	151,277	335,438
Patents, net	80,949	86,097
Property and equipment, net	6,459
Total assets	238,685	421,535
Current liabilities:
Accounts payable and accrued expenses	98,677	67,159
Accrued interest - related parties	1,133	563
Notes payable – related parties	272,055	234,555
Total current liabilities	371,865	302,277
Notes payable – related party, long term	112,500	150,000
Total liabilities	$ 484,365	$ 452,277
Commitments and contingencies
Authorized shares - 100,000,000
Issued and outstanding shares – 20,144,810 at June 30, 2015 and December 31, 2014	$ 201,448	$ 201,448
Additional paid-in capital	(157,446)	(157,446)
Accumulated deficit	(289,682)	(74,744)
Total stockholders' deficit	(245,680)	(30,742)
Total liabilities and stockholders’ deficit	$ 238,685	$ 421,535

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Note 1 - Organization and Business

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

1. Organization and Business. Amarillo Biosciences, Inc. (the "Company” or “Amarillo” or “ABI”), a Texas corporation formed in 1984, is engaged in developing biologics for the treatment of human and animal diseases. The Company’s current focus is research aimed at the treatment of human disease indications, particularly influenza, hepatitis C, thrombocytopenia, and other indications using natural human interferon alpha that is administered in a proprietary low dose oral form. In addition to the above core technology ABI is exploring the possibility of instituting new revenue streams along with the core technology thus expanding the Company’s current focus into a diversified businessportfolio.

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Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged		Nov. 20, 2014 USD ($)
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		$ 13,629
Amount Discharged		277,380
Deferred Revenue [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		225
Amount Discharged		1,557
Accounts Payable and Accrued Liabilities [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		8,029
Amount Discharged		161,167
Accrued Payroll - Mueller [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement	[1]	0
Amount Discharged	[1]	30,590
Accrued Payroll - Cohen [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		793
Amount Discharged		12,428
Notes Payable [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		1,111
Amount Discharged		17,266
Accrued Dividends [Member]
Note 5 - Fresh Start Accounting (Details) - Amount Paid in Settlement and Amount Discharged [Line Items]
Amount Paid in Settlement		3,471
Amount Discharged		$ 54,372

[1] There was no settlement payout for this creditor. The debt was beyond the Statute of Limitations and, therefore, not an allowed debt.

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Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties (Parentheticals)	Nov. 20, 2014 USD ($)
Paul Tibbits [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties (Parentheticals) [Line Items]
Loan	$ 200,000

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Note 2 - Basis of Presentation

6 Months Ended

Jun. 30, 2015

Disclosure Text Block [Abstract]

Basis of Accounting [Text Block]

2. Basis of presentation. The accompanying financial statements, which should be read in conjunction with the financial statements and footnotes included in the Company's Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission, are unaudited, but have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015.

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Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	20,144,810	20,144,810
Common stock, shares outstanding	20,144,810	20,144,810

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Note 3 - Financial Condition (Details) $ in Millions	6 Months Ended
	Jun. 30, 2015 USD ($)
Financial Condition [Abstract]
Debtor Reorganization Items, Debts Discharged in Excess of Amount	$ 4

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	AMARILLO BIOSCIENCES INC
Trading Symbol	AMAR
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		20,144,810
Amendment Flag	false
Entity Central Index Key	0001014763
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Note 4 - Current Status (Details)	Feb. 13, 2015	Jan. 23, 2015	Nov. 20, 2014
Reorganizations [Abstract]
Date Chapter 11 Bankruptcy Case Exited		Jan. 23, 2015
Date Chapter 11 Bankruptcy Case Administratively Closed	Feb. 13, 2015
Plan of Reorganization, Date Plan is Effective			Nov. 20, 2014

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Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Successor [Member]
Revenues:
Product sales	$ 0		$ 0
Total revenues	0		0
Cost of revenues:
Product sales	0		0
Total cost of revenues	0		0
Gross Margin	0		0
Operating expenses:
Research and development expenses	0		0
Selling, general and administrative expenses	102,103		213,921
Total operating expenses	102,103		213,921
Operating loss	(102,103)		(213,921)
Other income (expense)
Interest expense	(746)		(1,017)
Net loss	(102,849)		(214,938)
Preferred stock dividend	0		0
Net loss applicable to common shareholders	$ (102,849)		$ (214,938)
Basic and diluted net loss per share (in Dollars per share)	$ (0.01)		$ (0.01)
Weighted average shares outstanding – basic and diluted (in Shares)	20,144,810		20,144,810
Predecessor [Member]
Revenues:
Product sales		$ 0		$ 0
Total revenues		0		0
Cost of revenues:
Product sales		0		0
Total cost of revenues		0		0
Gross Margin		0		0
Operating expenses:
Research and development expenses		0		15,270
Selling, general and administrative expenses		186,203		345,948
Total operating expenses		186,203		361,218
Operating loss		(186,203)		(361,218)
Other income (expense)
Interest expense		(684)		(730)
Net loss		(186,887)		(361,948)
Preferred stock dividend		(8,098)		(16,195)
Net loss applicable to common shareholders		$ (194,985)		$ (378,143)
Basic and diluted net loss per share (in Dollars per share)		$ 0.00		$ (0.01)
Weighted average shares outstanding – basic and diluted (in Shares)		73,291,008		73,291,008

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Note 7 - Common Stock Options and Warrants

6 Months Ended

Jun. 30, 2015

Stock Option And Warrants [Abstract]

Stock Option And Warrants [Text Block]

7. Common Stock Options and Warrants. As of June 30, 2015 there were 52,631 shares reserved as unexercised warrants and 81,726 shares reserved as unexercised options. No warrants or options expired in the first six months of 2015.

A summary of the Company’s stock option activity and related information for the period ended June 30, 2015 is as follows:

	Options		Price Range
Outstanding December 31, 2014		81,726	$	0.760-1.235
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		81,726		0.760-1.235
Exercisable June 30, 2015		81,726	$	0.760-1.235

A summary of the Company’s stock warrant activity and related information for the period ended June 30, 2015

	Warrants		Price Range
Outstanding December 31, 2014		52,631	$	0.57
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		52,631		0.57
Exercisable June 30, 2015		52,631	$	0.57

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Note 6 - Common Stock

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

6. Common Stock. The shareholders have authorized 100,000,000 shares of voting common shares for issuance. On June 30, 2015, a total of 20,279,167 shares of common stock were either outstanding (20,144,810) or reserved for issuance upon exercise of options and warrants (134,357). No common stock was issued in the six months ending June 30, 2015.

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Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties - Nov. 20, 2014 - USD ($)	Total
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Write off HBL accrued interest discharged.	$ 277,380
Paul Tibbits [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Accrued interest for related party	43,123
Adjustment to Interest for Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Accrued interest for related party	1,933
Sub-Total after Adjustment for Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Accrued interest for related party	45,056
Yang 1 [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Yang interest post-bankruptcy	(163)
Yang 2 [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Yang interest post-bankruptcy	(53)
Sub-Total Yang Interest [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Yang interest post-bankruptcy	(216)
Net Sub-Total [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Accrued interest for related party	44,840
Hayashibara Biochemical Laboratories, Inc. [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Write off HBL accrued interest discharged.	1,006,253
Total Adjustment [Member]
Note 5 - Fresh Start Accounting (Details) - Accrued Interest for Related Parties [Line Items]
Accrued interest for related party	$ 1,051,093

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Note 5 - Fresh Start Accounting (Details) - USD ($)	Nov. 20, 2014	Jun. 30, 2015	Dec. 31, 2014
Note 5 - Fresh Start Accounting (Details) [Line Items]
Predecessor Shareholders, Percentage of Voting Shares of the Successor Company	50.00%
Preconfirmation, Assets	$ 0
Preconfirmation, Equipment	46,000
Postconfirmation, Equipment	0
Preconfirmation, Amortizable Intangible Assets, Net	86,000
Postconfirmation, Amortizable Intangible Assets	$ 86,000
Reorganization Settlement Rate	6.00%
Reorganization Settlement Claim Payment Option	$ 500
Reorganization Settlement Percent of Claim	100.00%
Proceeds from Related Party Debt	$ 2,324,185
Conversion of Stock, Shares Converted (in Shares)	32.62
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)	3,262,000
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.01	$ 0.01	$ 0.01
Reorganization Shares of Common Shares Adjusted at Par (in Shares)	20,144,810
The Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) [Line Items]
Notes Payable, Related Parties	$ 384,555
Debt Exchanged for Equity [Member] | The Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) [Line Items]
Notes Payable, Related Parties	1,939,630
Secured Related Party Debt [Member] | The Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) [Line Items]
Notes Payable, Related Parties	150,000
Unsecured Related Party Debt [Member] | The Yang Group [Member]
Note 5 - Fresh Start Accounting (Details) [Line Items]
Notes Payable, Related Parties	$ 234,555

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Note 5 - Fresh Start Accounting (Tables)

6 Months Ended

Jun. 30, 2015

Fresh Start Accounting [Abstract]

Schedule of Fresh-Start Adjustments [Table Text Block]

	Predecessor Company			Reorganization Adjustments				Fresh-Start Adjustments				Successor Company
Assets
Current assets:
Cash and cash equivalents	$	261,147		$	113,220		(a)	$	-			$	374,367
Prepaid expense and other current assets		24,063			-				-				24,063
Total current assets		285,210			113,220				-				398,430
Patents, net		86,355			-				-				86,355
Total assets		371,565			113,220				-				484,785
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and accrued expenses		347,236			(291,009	)	(b)		-				56,227
Accrued interest – related parties		1,051,093			(1,051,093	)	(c)		-				-
Accrued expenses – related party		78,360			(78,360	)	(d)		-				-
Notes payable – related parties		4,214,935			(3,830,380	)	(e)		-				384,555
Total current liabilities		5,691,624			(5,250,842	)			-				440,782
Total liabilities		5,691,624			(5,250,842	)			-				440,782
Stockholders' deficit
Preferred stock (Predecessor)		33			(33	)	(f)		-				-
Common stock (Predecessor)		732,910			(732,910	)	(g)		-				-
Additional paid-in capital (Predecessor)		31,968,516			732,910		(g)		(32,701,426	)	(j)		-
Preferred stock (Successor)		-			-				-				-
Common stock (Successor)		-			201,448		(h)		-				201,448
Additional paid-in capital (Successor)		-			1,739,797		(h)		(1,897,242	)	(j)		(157,445	)
Accumulated deficit		(38,021,518	)		3,422,850		(i)		34,598,668		(j)		-
Total stockholders' deficit		(5,320,059	)		5,364,062				-				44,003
Total liabilities and stockholders’ deficit	$	371,565		$	113,220			$	-			$	484,785

Reorganization Adjustments [Table Text Block]

Proceeds from Yang Group	$	322,500
Less: Payments of Class Four claims		(207,110	)
Less: Payments of Class Five claims		(2,170	)
Net increase in cash	$	113,220

Schedule of Debt [Table Text Block]

General Ledger Account	Amount Paid in Settlement			Amount Discharged
Deferred Revenue	$	225		$	1,557
Accounts Payable		8,029			161,167
Accrued Payroll – P. Mueller*		-	*		30,590	*
Accrued Payroll – B. Cohen		793			12,428
Notes Payable		1,111			17,266
Accrued Dividends		3,471			54,372
Total	$	13,629		$	277,380

Accrued Interest for Related Parties [Table Text Block]

Description	Amount
Tibbits payout of interest on $200,000 loan; write off of unpaid & discharged interest debt.	$	43,123
Adjustment to interest for The Yang Group.		1,933
Sub-Total		45,056
Accrued Yang interest post-bankruptcy		(163	)
Accrued Yang interest post-bankruptcy		(53	)
Sub-Total Yang interest		(216	)
Net Sub-Total		44,840
Write off HBL accrued interest discharged.		1,006,253
Total Adjustment	$	1,051,093

Related Parties Note Payable [Table Text Block]

Creditor	Amount
Tibbits	$	200,000
Martin Cummins		13,250
Allowed Unsecured Debt to Yang		1,939,630
Hayashibara Biochemical Laboratories		2,000,000
Total Discharged		4,152,880
Yang Cash for future operations		(322,500	)
Total Adjustment	$	3,830,380

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Note 8 - Notes Payable - Related Party

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

8. Notes Payable – Related Party. On the Effective Date of the Plan of Reorganization, the Class Three Secured Claim of Yang was deemed allowed in the amount of $150,000, secured by the same assets that secured Yang’s prepetition secured claim (See Texas Financing Statement No. 13-0029795076). This claim bears interest at the Applicable Federal Rate, will be fully amortized and paid as follows: four (4) consecutive equal annual installments of combined principal and interest, beginning September 1, 2015, and continuing on the same date of each succeeding year until September 1, 2018, when the obligation is due and payable in full.

Subsequent to consummation of the Plan, The Yang Group has provided $234,555 for post-reorganization financing. This is unsecured and draws interest at the short term Applicable Federal Rate.

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Note 9 - Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events [Text Block]

9. Subsequent Events. At a Special Shareholders Meeting held July 10, 2015, the Company’s Certificate of Formation and Bylaws were materially modified, in a manner affecting the Company’s voting common stock (the only class of the Company’s securities of which shares are currently issued and outstanding); and also affecting the Company’s authorized shares of preferred stock, issuable in series, of which no shares or series are currently issued and outstanding. The general effect of such modifications was as follows:

a. Stockholder supermajority vote requirements were changed from 2/3 of the issued and outstanding shares entitled to vote on a matter, to 51% of the issued and outstanding shares entitled to vote on such matter, with such change additionally applying to each voting class or series where a class or series of shares is entitled to vote separately on a matter. This change would apply to all existing or future supermajority vote requirements under Texas law, including without limitation, votes on Fundamental Business Transactions, and/or Fundamental Actions, as such are defined in the Texas Business Organizations Code.

b. Requirements for action by written consent of Stockholders in lieu of a meeting were changed, to permit actions to be taken by the written consent of Stockholders having at least the minimum number of votes that would be necessary to take the action that is the subject of the consent at a meeting, in which each holder entitled to vote on the action is present and votes, in lieu of requiring that the written consent be unanimous, as at present.

c. The requirement for notice to directors of Special Directors Meetings was changed from 24 hours to 4 hours.

Additionally, at the Special Shareholder Meeting which took place on July 10, 2015, a new Board of Directors was elected. The Board now consists of: Stephen T. Chen, Paul Tibbits, Yasushi Chikagami, Dan Fisher, and Nick Moren. The Yang Group is expected to distribute 11,453,334 of its shares to its constituent members within approximately thirty days, leaving The Yang Group with 4,662,514 shares, and within four business days of such distribution, the Company will file an 8-K identifying any new major shareholders (5% and 10% owners) of the Company. There is expected to be no continuing arrangement or understanding among the members or former members of The Yang Group and their associates with respect to the election of directors, or other matters, although the shares to be retained by The Yang Group will continue to be voted by Stephen T. Chen, President and CEO of the Company, until such time as they are distributed.

The Company filed a Form 8-K on July 13, 2015 describing in detail the amendments made to the Company’s Certificate of Formation and the amendments to the Company’s Bylaws. This can be accessed through the Company’s website under Company/SEC Filings or directly through the Securities Exchange Commission (SEC) website.

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Note 7 - Common Stock Options and Warrants (Tables)

6 Months Ended

Jun. 30, 2015

Employee Stock Option [Member]

Note 7 - Common Stock Options and Warrants (Tables) [Line Items]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Options		Price Range
Outstanding December 31, 2014		81,726	$	0.760-1.235
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		81,726		0.760-1.235
Exercisable June 30, 2015		81,726	$	0.760-1.235

Stock Warrant [Member]

Note 7 - Common Stock Options and Warrants (Tables) [Line Items]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

	Warrants		Price Range
Outstanding December 31, 2014		52,631	$	0.57
Granted		-		-
Cancelled/Expired		-		-
Exercised		-		-
Outstanding June 30, 2015		52,631		0.57
Exercisable June 30, 2015		52,631	$	0.57

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Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments	Nov. 20, 2014 USD ($)
Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments [Line Items]
Proceeds from Yang Group	$ 2,324,185
Less: Payments of debt	(13,629)
Reorganization Adjustments [Member]
Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments [Line Items]
Net increase in cash	113,220
Class Four Claims [Member] | Reorganization Adjustments [Member]
Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments [Line Items]
Less: Payments of debt	(207,110)
Class Five Claims [Member] | Reorganization Adjustments [Member]
Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments [Line Items]
Less: Payments of debt	(2,170)
The Yang Group [Member] | Reorganization Adjustments [Member]
Note 5 - Fresh Start Accounting (Details) - Reorganization Adjustments [Line Items]
Proceeds from Yang Group	$ 322,500

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Note 6 - Common Stock (Details) - shares	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock Outstanding or Reserved for Future Issuance	20,279,167
Common Stock, Shares, Outstanding	20,144,810	20,144,810
Common Stock, Capital Shares Reserved for Future Issuance	134,357
Stock Issued During Period, Shares, New Issues	0

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Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	$ 318,556
Cash and cash equivalents at end of period	100,064
Successor [Member]
Net cash used in operating activities	(207,426)
Cash flows from investing activities:
Investment in equipment	(7,081)
Investment in patents	(3,985)
Net cash used in investing activities	(11,066)
Cash flows from financing activities:
Proceeds from notes payable related party	0
Net cash provided by financing activities	0
Net change in cash	(218,492)
Cash and cash equivalents at beginning of period	318,556
Cash and cash equivalents at end of period	100,064
Supplemental disclosure of cash flow information
Cash paid for interest	0
Cash paid for income taxes	$ 0
Predecessor [Member]
Net cash used in operating activities		$ (183,690)
Cash flows from investing activities:
Investment in equipment		0
Investment in patents		(7,831)
Net cash used in investing activities		(7,831)
Cash flows from financing activities:
Proceeds from notes payable related party		186,472
Net cash provided by financing activities		186,472
Net change in cash		(5,049)
Cash and cash equivalents at beginning of period		6,539
Cash and cash equivalents at end of period		1,490
Supplemental disclosure of cash flow information
Cash paid for interest		0
Cash paid for income taxes		$ 0

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Note 5 - Fresh Start Accounting

6 Months Ended

Jun. 30, 2015

Fresh Start Accounting [Abstract]

Fresh Start Accounting [Text Block]

5. Fresh Start Accounting. Upon the Company’s emergence from Chapter 11 bankruptcy, the Company applied the provisions of fresh start accounting to its financial statements as (i) the holders of existing voting shares of the Predecessor Company received less than 50% of the voting shares of the emerging entity and (ii) the reorganization value of the Company’s assets immediately prior to confirmation was less than the post-petition liabilities and allowed claims. The Company applied fresh start accounting as of November 20, 2014, with results of operations and cash flows in the period ending November 20, 2014 attributed to the Predecessor Company.

Upon the application of fresh start accounting, the Company allocated the reorganization value to its individual assets based on their estimated fair values. Reorganization value represents the fair value of the Successor Company’s assets before considering liabilities, and the excess of reorganization value over the fair value of identified tangible and intangible assets is reported separately on the balance sheet.

In accordance with fresh-start reporting requirements, management of ABI has reviewed its assets (excluding cash and prepaid expenses) and evaluated the estimated fair value of those assets, which includes its equipment and its patents. For equipment (which includes furniture & fixtures, computer equipment and software) management evaluated and determined that its estimated fair value immediately preceding ABI’s confirmation date was $0. Management reviewed the various types of equipment with an original book cost of approximately $46,000 and with dates acquired ranging from years between 1992 through 2008. Based on the condition and age of the equipment, management determined that any proceeds that could be received from a local auction-type sale would be minimal; therefore, management determined that $0 (which amount also represents current book carrying value) was a reasonable estimate of ABI’s equipment fair value. For patents, management evaluated and determined that its estimated fair value immediately preceding ABI confirmation date was approximately $86,000. Management reviewed the various patents with dates acquired ranging from years between 1999 and 2010. Based on the consideration of minimal revenues and cash flows from these patents over the past years since their inception dates, management concluded that the discounted cash flow approach was not relevant. However management did consider what it believes ABI could potentially sell such patents for to a knowledgeable third-party firm in the bio-tech industry and in an arm’s length transaction, which management determined that $86,000 (which amount also represents current book carrying value) was a reasonable estimate of ABI patents fair value.

The four-column condensed balance sheet provided below applies the effects of the Plan of Reorganization and fresh start accounting to the carrying values and classifications of assets or liabilities as of November 20, 2014. Upon adoption of fresh start accounting, the recorded amounts of assets and liabilities were adjusted to reflect their estimated fair values. Accordingly, the reported historical financial statements of the Predecessor Company prior to the adoption of fresh start accounting for periods ended on or prior to November 20, 2014 are not comparable to those of the Successor Company.

In applying fresh start accounting, the Company followed these principles:

● The reorganization value, which represents the enterprise value and non-interest bearing liabilities, was allocated to the Successor Company's assets based on their estimated fair values. The reorganization value exceeded the sum of the fair value assigned to assets. This excess reorganization value was recorded as part of the Successor Company assets at November 20, 2014.

● Each liability existing as of the fresh start accounting date, other than deferred taxes, has been stated at the fair value, and determined at appropriate risk adjusted interest rates.

● Deferred taxes were reported in conformity with applicable income tax accounting standards. Deferred tax assets and liabilities have been recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities.

The adjustments set forth in the following condensed balance sheet at November 20, 2014 reflect the effect of the consummation of the transactions contemplated by the Plan of Reorganization (reflected in the column "Reorganization Adjustments") as well as fair value adjustments as a result of the adoption of fresh start accounting (reflected in the column "Fresh Start Adjustments").

	Predecessor Company			Reorganization Adjustments				Fresh-Start Adjustments				Successor Company
Assets
Current assets:
Cash and cash equivalents	$	261,147		$	113,220		(a)	$	-			$	374,367
Prepaid expense and other current assets		24,063			-				-				24,063
Total current assets		285,210			113,220				-				398,430
Patents, net		86,355			-				-				86,355
Total assets		371,565			113,220				-				484,785
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable and accrued expenses		347,236			(291,009	)	(b)		-				56,227
Accrued interest – related parties		1,051,093			(1,051,093	)	(c)		-				-
Accrued expenses – related party		78,360			(78,360	)	(d)		-				-
Notes payable – related parties		4,214,935			(3,830,380	)	(e)		-				384,555
Total current liabilities		5,691,624			(5,250,842	)			-				440,782
Total liabilities		5,691,624			(5,250,842	)			-				440,782
Stockholders' deficit
Preferred stock (Predecessor)		33			(33	)	(f)		-				-
Common stock (Predecessor)		732,910			(732,910	)	(g)		-				-
Additional paid-in capital (Predecessor)		31,968,516			732,910		(g)		(32,701,426	)	(j)		-
Preferred stock (Successor)		-			-				-				-
Common stock (Successor)		-			201,448		(h)		-				201,448
Additional paid-in capital (Successor)		-			1,739,797		(h)		(1,897,242	)	(j)		(157,445	)
Accumulated deficit		(38,021,518	)		3,422,850		(i)		34,598,668		(j)		-
Total stockholders' deficit		(5,320,059	)		5,364,062				-				44,003
Total liabilities and stockholders’ deficit	$	371,565		$	113,220			$	-			$	484,785

Reorganization Adjustments

(a) The cash payments recorded on the Effective Date from implementation of the Plan of Reorganization include the following:

Proceeds from Yang Group	$	322,500
Less: Payments of Class Four claims		(207,110	)
Less: Payments of Class Five claims		(2,170	)
Net increase in cash	$	113,220

(b) Pursuant to the Plan of Reorganization, General Unsecured Creditors were given a settlement of six percent (6%) of the amount of the allowed claim. Administrative Convenience Creditors were given the opportunity to receive the lesser of $500 or 100% of their claim and receive payment within twenty-eight (28) days after the twenty-eight day objection period expired. The Effective Date was November 20, 2014. Creditors had twenty-eight days from the Effective Date to object to the amount of their particular claim. The objection period was from November 21, 2014, through      December 18, 2014. Administrative Convenience Claims were paid beginning December 19, 2014 and payments to this class were completed no later than January 16, 2015. Creditors in the following general ledger accounts received six percent (6%) payout in full and final settlement of all outstanding debts. The balance of the debts for both classes was discharged after the settlement payments were tendered.

General Ledger Account	Amount Paid in Settlement			Amount Discharged
Deferred Revenue	$	225		$	1,557
Accounts Payable		8,029			161,167
Accrued Payroll – P. Mueller*		-	*		30,590	*
Accrued Payroll – B. Cohen		793			12,428
Notes Payable		1,111			17,266
Accrued Dividends		3,471			54,372
Total	$	13,629		$	277,380

*There was no settlement payout for this creditor. The debt was beyond the Statute of Limitations and, therefore, not an allowed debt.

(c) Pursuant to the Plan of Reorganization, Accrued Interest for Related Parties was classified as General Unsecured Creditors. These Creditors received six percent (6%) of the allowed claim in full and final settlement of all outstanding debts. The balance of the debt was discharged after the settlement payment was tendered.

Description	Amount
Tibbits payout of interest on $200,000 loan; write off of unpaid & discharged interest debt.	$	43,123
Adjustment to interest for The Yang Group.		1,933
Sub-Total		45,056
Accrued Yang interest post-bankruptcy		(163	)
Accrued Yang interest post-bankruptcy		(53	)
Sub-Total Yang interest		(216	)
Net Sub-Total		44,840
Write off HBL accrued interest discharged.		1,006,253
Total Adjustment	$	1,051,093

(d) Write off licensing fees due Hayashibara Biochemical Laboratories, Inc. (HBL) which originated through sales of Bimron, and interferon product.

(e) The total amount of cash received by ABI from the Yang Group was $2,324,185. The amount of debt exchanged for equity with Yang was $1,939,630 leaving $384,555 of cash not converted to debt and still owed to The Yang Group. This cash was for the purpose of financing future, post-bankruptcy operations. The Notes Payable – Related Parties consisted of the following:

Creditor	Amount
Tibbits	$	200,000
Martin Cummins		13,250
Allowed Unsecured Debt to Yang		1,939,630
Hayashibara Biochemical Laboratories		2,000,000
Total Discharged		4,152,880
Yang Cash for future operations		(322,500	)
Total Adjustment	$	3,830,380

The amount of remaining debt to Yang, $384,555 was reclassified pursuant to the Plan of Reorganization in that ABI has a secured debt to Yang in the amount of $150,000 and an unsecured note payable to Yang for $234,555.

(f) Convert Preferred Stock at Par to Common Stock pursuant to Implementation of Plan of Reorganization – 32.62 shares of Preferred stock at $0.01 par to 3,262,000 Common shares at par $0.01.

(g) Adjust Common Stock at par value of $0.01 for 20,144,810 Common Shares following 1-for-19 reverse stock split pursuant to Plan of Reorganization.

(h) Adjust Common Stock at par of $0.01 and Additional Paid in Capital for conversion of Yang debt to (New) ABI Common Equity.

(i) Adjust Accumulated Deficit for debt forgiveness/debt discharge pursuant to the Plan of Reorganization.

Fresh Start Adjustments

(j) Adjust Paid in Capital – Predecessor, Paid in Capital – Successor, and Accumulated Deficit for Fresh Start Reporting.

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Note 7 - Common Stock Options and Warrants (Details) - shares	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Note 7 - Common Stock Options and Warrants (Details) [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	52,631
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	81,726	81,726
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period	0
Warrant [Member]
Note 7 - Common Stock Options and Warrants (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Expirations	0

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Note 5 - Fresh Start Accounting (Details) - Fresh Start Adjustments - USD ($)		Jun. 30, 2015	Dec. 31, 2014	Nov. 20, 2014	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents		$ 100,064	$ 318,556	$ 374,367
Prepaid expense and other current assets		51,213	16,882	24,063
Total current assets		151,277	335,438	398,430
Patents, net				86,355
Total assets		238,685	421,535	484,785
Current liabilities:
Accounts payable and accrued expenses		98,677	67,159	56,227
Notes payable – related parties		272,055	234,555	384,555
Total current liabilities		371,865	302,277	440,782
Total liabilities		484,365	452,277	440,782
Stockholders' deficit
Common stock (Predecessor)		201,448	201,448
Additional paid-in capital (Predecessor)		(157,446)	(157,446)
Common stock (Successor)		201,448	201,448
Additional paid-in capital (Successor)		(157,446)	(157,446)
Accumulated deficit		(289,682)	(74,744)
Total stockholders' deficit		(245,680)	(30,742)	44,003
Total liabilities and stockholders’ deficit		238,685	421,535	484,785
Adjustment to Sucessor Company [Member]
Stockholders' deficit
Common stock (Predecessor)				201,448
Additional paid-in capital (Predecessor)				(157,445)
Common stock (Successor)				201,448
Additional paid-in capital (Successor)				(157,445)
Predecessor [Member]
Current assets:
Cash and cash equivalents				261,147	$ 1,490	$ 6,539
Prepaid expense and other current assets				24,063
Total current assets				285,210
Patents, net				86,355
Total assets				371,565
Current liabilities:
Accounts payable and accrued expenses				347,236
Accrued interest – related parties				1,051,093
Accrued expenses – related party				78,360
Notes payable – related parties				4,214,935
Total current liabilities				5,691,624
Total liabilities				5,691,624
Stockholders' deficit
Accumulated deficit				(38,021,518)
Total stockholders' deficit				(5,320,059)
Total liabilities and stockholders’ deficit				371,565
Predecessor [Member] | Adjustment to Predecessor Company [Member]
Stockholders' deficit
Preferred stock (Predecessor)				33
Common stock (Predecessor)				732,910
Additional paid-in capital (Predecessor)				31,968,516
Common stock (Successor)				732,910
Additional paid-in capital (Successor)				31,968,516
Reorganization Adjustments [Member]
Current assets:
Cash and cash equivalents	[1]			113,220
Total current assets				113,220
Total assets				113,220
Current liabilities:
Accounts payable and accrued expenses	[2]			(291,009)
Accrued interest – related parties	[3]			(1,051,093)
Accrued expenses – related party	[4]			(78,360)
Notes payable – related parties	[5]			(3,830,380)
Total current liabilities				(5,250,842)
Total liabilities				(5,250,842)
Stockholders' deficit
Accumulated deficit	[6]			3,422,850
Total stockholders' deficit				5,364,062
Total liabilities and stockholders’ deficit				113,220
Reorganization Adjustments [Member] | Adjustment to Predecessor Company [Member]
Stockholders' deficit
Preferred stock (Predecessor)	[7]			(33)
Common stock (Predecessor)	[8]			(732,910)
Additional paid-in capital (Predecessor)	[8]			732,910
Common stock (Successor)	[8]			(732,910)
Additional paid-in capital (Successor)	[8]			732,910
Reorganization Adjustments [Member] | Adjustment to Sucessor Company [Member]
Stockholders' deficit
Common stock (Predecessor)	[9]			201,448
Additional paid-in capital (Predecessor)	[9]			1,739,797
Common stock (Successor)	[9]			201,448
Additional paid-in capital (Successor)	[9]			1,739,797
Fresh Start Adjustment [Member]
Stockholders' deficit
Accumulated deficit	[10]			34,598,668
Fresh Start Adjustment [Member] | Adjustment to Predecessor Company [Member]
Stockholders' deficit
Additional paid-in capital (Predecessor)	[10]			(32,701,426)
Additional paid-in capital (Successor)	[10]			(32,701,426)
Fresh Start Adjustment [Member] | Adjustment to Sucessor Company [Member]
Stockholders' deficit
Additional paid-in capital (Predecessor)	[10]			(1,897,242)
Additional paid-in capital (Successor)	[10]			$ (1,897,242)
Successor [Member]
Current assets:
Cash and cash equivalents		$ 100,064	$ 318,556

[1] The cash payments recorded on the Effective Date from implementation of the Plan of Reorganization include the following:

[2] Pursuant to the Plan of Reorganization, General Unsecured Creditors were given a settlement of six percent (6%) of the amount of the allowed claim.Administrative Convenience Creditors were given the opportunity to receive the lesser of $500 or 100% of their claim and receive payment within twenty-eight(28) days after the twenty-eight day objection period expired. The Effective Date was November 20, 2014. Creditors had twenty-eight days from the EffectiveDate to object to the amount of their particular claim. The objection period was from November 21, 2014, through December 18, 2014. AdministrativeConvenience Claims were paid beginning December 19, 2014 and payments to this class were completed no later than January 16, 2015. Creditors in thefollowing general ledger accounts received six percent (6%) payout in full and final settlement of all outstanding debts. The balance of the debts for bothclasses was discharged after the settlement payments were tendered.

[3] Pursuant to the Plan of Reorganization, Accrued Interest for Related Parties was classified as General Unsecured Creditors. These Creditors received sixpercent (6%) of the allowed claim in full and final settlement of all outstanding debts. The balance of the debt was discharged after the settlement paymentwas tendered.

[4] Write off licensing fees due Hayashibara Biochemical Laboratories, Inc. (HBL) which originated through sales of Bimron, and interferon product.

[5] The total amount of cash received by ABI from the Yang Group was $2,324,185. The amount of debt exchanged for equity with Yang was $1,939,630 leaving$384,555 of cash not converted to debt and still owed to The Yang Group. This cash was for the purpose of financing future, post-bankruptcy operations. TheNotes Payable - Related Parties consisted of the following:

[6] Adjust Accumulated Deficit for debt forgiveness/debt discharge pursuant to the Plan of Reorganization.

[7] Convert Preferred Stock at Par to Common Stock pursuant to Implementation of Plan of Reorganization - 32.62 shares of Preferred stock at $0.01 par to3,262,000 Common shares at par $0.01.

[8] Adjust Common Stock at par value of $0.01 for 20,144,810 Common Shares following 1-for-19 reverse stock split pursuant to Plan of Reorganization.

[9] Adjust Common Stock at par of $0.01 and Additional Paid in Capital for conversion of Yang debt to (New) ABI Common Equity.

[10] Adjust Paid in Capital - Predecessor, Paid in Capital - Successor, and Accumulated Deficit for Fresh Start Reporting.