| [ X ]                  |   | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 [Fee Required]For the Fiscal Year Ended December 31, 2017 |
|------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |
| [     ] |   | Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 [No Fee Required] Commission File Number 0-20791       |
|                   |   | AMARILLO BIOSCIENCES, INC.(Exact name of Registrant as specified in its charter)                                                               |
|                   |   | Texas(State of other jurisdiction of incorporation or organization)                                                                            | 75-1974352(I.R.S. Employer Identification No.) |
|                   |   |  4134 Business Park Drive, Amarillo, Texas(Address of principal executive offices)                                                        |  79110-4225(Zip Code) |
|                   |   | Issuer's telephone number, including area code:                                                                                                | (806) 376-1741 |
| Large accelerated filer [ ]                                           |   | Accelerated filer [ ]               |
|-----------------------------------------------------------------------|--------|-------------------------------------|
| Non-accelerated filer [ ] (do not check if smaller reporting company) |   | Smaller reporting company [√] |

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| ITEM 1. | BUSINESS. |
|---------|-----------|

----

----

----

| • | preclinical laboratory and animal tests;                                                                                           |
|---------|------------------------------------------------------------------------------------------------------------------------------------|
| • | submission of an investigational new drug application, or IND, which must become effective before human clinical trials may begin; |

----

----

| • | adequate and well-controlled human clinical trials to establish the safety and efficacy of the proposed drug for its intended use;                                 |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | pre-approval inspection of manufacturing facilities and selected clinical investigators;                                                                           |
| • | Submission of a New Drug Application (NDA) to the FDA; and                                                                                                         |
| • | FDA approval of an NDA, or of an NDA supplement (for subsequent indications or other modifications, including a change in location of the manufacturing facility). |

----

| ITEM 5. | MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. |
|---------|-----------------------------------------------------------------------------------------------------------------------|

|    |   | 2017   |   |   | 2016   |   |
|---------|--------|--------|--------|--------|--------|--------|
| Quarter |   | $ High |   |   | $ Low  |   |   | $ High |   |   | $ Low |   |
| First   |   |   | 0.280  |   |   |   | 0.199 |   |   |   | 0.180 |   |   |   | 0.130 |   |
| Second  |   |   | 0.300  |   |   |   | 0.160 |   |   |   | 0.300 |   |   |   | 0.100 |   |
| Third   |   |   | 0.290  |   |   |   | 0.240 |   |   |   | 0.299 |   |   |   | 0.120 |   |
| Fourth  |   |   | 0.290  |   |   |   | 0.233 |   |   |   | 0.300 |   |   |   | 0.150 |   |

----

| Common Stock Issued in 2017                                     |   | Shares |      |   | Issue Price |   |    | Net Price |   |
|-----------------------------------------------------------------|--------|--------|-----------|--------|-------------|--------|---------|-----------|--------|
| Private placements – cash                                 |   |   | 770,000   |   |        | $      | 0.1875- |      |   | $ | 144,375 |   |
| Finder Fees – shares paid                                 |   |   | 57,000    |   |        | $      | 0.1875- |      |   | $ | 10,688 |   |
| Stock Grant – compensation                                |   |   | 413,420   |   |        | $      | 0.2572  | 2    |   | $ | 106,250 |   |
|      Total Common Stock Issued in 2017 |   |   | 1,240,420 |   |        | $      | 0.2107  | 3    |   | $ | 261,313 |   |
| Common Stock Issued in 2016                                     |   | Shares |      |   | Issue Price |   |   | Net Price |   |
|-----------------------------------------------------------------|--------|--------|-----------|--------|-------------|--------|--------|-----------|--------|
| Private placements – cash                                 |   |   | 1,771,333 |   |        | $      | 0.1875 |      |   | $ | 332,125 |   |
|      Total Common Stock Issued in 2016 |   |   | 1,771,333 |   |        | $      | 0.1875 |      |   | $ | 332,125 |   |

----

----

|                      |   | 2017    |   |   | 2016   |   |
|---------------------------|--------|---------|--------|--------|--------|--------|
|                      |   | Options |   |   | Price  |   |   | Options |   |   | Price |   |
| Outstanding Beg. of Year* |   |    | -      |   |   |   | - |   |   |   | 8,568 |   |   | $ | 0.95 |   |
| Granted                   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cancelled/Expired         |   |    | -      |   |   |   | - |   |   |   | (8,568 | ) |   |   | 0.95 |   |
| Exercised                 |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Outstanding End of Year   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Exercisable End of Year   |   |    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                      |   | 2017     |   | 2016   |        |
|---------------------------|--------|----------|--------|--------|-------------|
|                      |   | Warrants |   |   | Price Range |   | Warrants |   | Price Range |   |
| Outstanding Beg. of Year* |   |     | -      |   |        |   | - |   |   |   |   |   |
| Granted                   |   |     | -      |   |        |   | - |   |   |   |   | - |   |
| Cancelled/Expired         |   |     | -      |   |        |   | - |   |   |   |   |   |   |
| Exercised                 |   |     | -      |   |        |   | - |   |   |   |   | - |   |
| Outstanding End of Year   |   |     | -      |   |        |   | - |   |   |   |   | - |   |
| Exercisable End of Year   |   |     | -      |   |        |   | - |   |   |   |   | - |   |
| Note #.                         |   | Date   | Payee      |            | Principal Amount |   | Maturity   |   | Annual Interest AFR5 |   |   | Conversion Price |   |
|---------------------------------|--------|--------|------------|-----------------|------------------|--------|------------|--------|----------------------|--------|--------|------------------|--------|
|                            | 1      |   | 1/11/2016  | Stephen T. Chen |             | $      | 144,426.00 |   | On Demand            |   |   | .75              | %      |   | $ | 0.1680 |   |
|                            | 2      |   | 3/18/2016  | Stephen T. Chen |             | $      | 262,500.00 |   | On Demand            |   |   | .65              | %      |   | $ | 0.1875 |   |
|                            | 3      |   | 6/30/2016  | Stephen T. Chen |             | $      | 384,555.00 |   | On Demand            |   |   | .64              | %      |   | $ | 0.1875 |   |
| Total Convertible Notes Payable |   | $      | 791,481.00 |            |             |   |       |   |                 |   |   |             |   |

----

----

| Note #.                              |   | Date   | Payee     |            | Principal Amount |   | Maturity  |   | Annual Interest AFR6 |   |   | Conversion Price |   |
|--------------------------------------|--------|--------|-----------|-----------------|------------------|--------|-----------|--------|----------------------|--------|--------|------------------|--------|
|                                 | 4      |   | 5/25/2017 | Stephen T. Chen |             | $      | 70,000.00 |   | On Demand7           |   |   | .86              | %      |   | $ | 0.1875 |   |
|                                 | 5      |   | 9/01/2017 | Stephen T. Chen |             | $      | 25,000.00 |   | On Demand8           |   |   | .96              | %      |   | $ | 0.1875 |   |
| Additional Convertible Notes Payable |   | $      | 95,000.00 |            |             |   |      |   |                 |   |   |             |   |
|                                            |   | December 31, 2017 |    |   | December 31, 2016 |   |
|-------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
| Convertible Note payable – related party  |   | $                 | 144,426 |   |              | $      | 144,426 |   |
| Convertible Note payable – related party  |   |              | 262,500 |   |              |   | 262,500 |   |
| Convertible Note payable – related party  |   |              | 384,555 |   |              |   | 384,555 |   |
| Convertible Note payable – related party  |   |              | 70,000  |   |              |   | - |   |
| Convertible Note payable – related party  |   |              | 25,000  |   |              |   | - |   |
| Convertible Notes payable – related party |   | $                 | 886,481 |   |              | $      | 791,481 |   |

----

----

| ITEM 7. | MANAGEMENT DISCUSSION AND ANALYSIS OR PLAN OF OPERATION: |
|---------|----------------------------------------------------------|

----

|  | Stephen T. Chen: | Dr. Chen was named Chairman of the Board in February 2012, and he has been a director of the Company since February 1996. He currently executes the management functions as not only Chairman, but Chief Executive Officer (CEO), President, and Chief Operating Officer. He has been President and Chief Executive Officer of STC International, Inc., a health care investment firm, since May 1992. Dr. Chen has over thirty years of international business experience, including an extensive background in pharmaceutical product acquisition and licensing, development of joint venture agreements, execution of business strategy, and leadership of start-up companies in the pharmaceutical, biotechnology and nutraceutical industries. Dr. Chen has held executive positions in R&D and business development at several major pharmaceutical companies, including Borroughs Wellcome (presently GlaxoSmithKline), Miles Pharmaceuticals (presently Bayer), ICI America (presently AstraZeneca), and Ciba-Geigy (presently Novartis). He received a Ph.D. in Industrial & Physical Pharmacy from Purdue University in 1977. |
|--|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Bernard Cohen: | Chief Financial Officer (CFO). Mr. Cohen holds BBA and MPA degrees from West Texas A&M University. He is a long time Amarillo resident with over thirty years of management experience. Mr. Cohen has been with ABI since October 2009. Mr. Cohen works with Ms. Shelton and provides reporting necessary for ABI's various SEC filings, and he also provides ordinary-course internal bookkeeping and accounting services. |
|--|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Chrystal Shelton: | Office manager and administrative support. Ms. Shelton has been with ABI since 1987. In addition to handling routine office administration, Ms. Shelton is familiar with the form and format of SEC filings and interacts with outside professionals who assist ABI in its various compliance measures.  She is an integral part of the reporting process. |
|--|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Edward L. Morris: | JD, Secretary and General Counsel. Mr. Morris practiced law in Amarillo, Texas, prior to his retirement from full time practice in 2011. His practice included substantial time devoted to corporate and securities law, including services for ABI. Mr. Morris was graduated from Yale College before obtaining his law degree from Harvard Law School. |
|--|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | Maggie Wang: | Asian markets branch manager and Business Development Director.  Ms. Wang has an extensive background in business development and marketing of consumer products in Asian countries. Ms. Wang coordinates information between the ABI office and the Asian Operations Center. |
|--|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|  Name                                                                                 |  Age |  Position                                                                                 |
|--------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------------------|
| Stephen Chen, PhD (1)                                                                      | 68   | Chairman of the Board, Chief Executive Officer President, Chief Operating Officer and Director |
| Bernard Cohen                                                                         | 64        | Vice President and Chief Financial Officer                                                     |
| Yasushi Chikagami                                                                     | 78        | Director                                                                                       |
| Daniel Fisher................................. | 73        | Director                                                                                       |
| Nicholas Moren..............................       | 71        | Director                                                                                       |

| (1) | Member of the Executive Committee. |
|-----|------------------------------------|

----

----

| Name and Principal Position                                                        | Number of Late Reports | Known Failures to File a Required Form |
|------------------------------------------------------------------------------------|------------------------|----------------------------------------|
| Dr. Stephen T. Chen, Chairman of the Board, President, and Chief Executive Officer | 2                      | 0                                      |
| Bernard Cohen, Vice President and Chief Financial Officer                          | 0                      | 0                                      |
| Paul Tibbits, Director                                                             | 0                      | 0                                      |
| Yasushi Chikagami, Director                                                        | 0                      | 0                                      |
| Daniel Fisher, Director                                                            | 0                      | 0                                      |
| Nicholas Moren, Director                                                           | 0                      | 0                                      |

----

| Summary Compensation Table                                                                                           |
|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |   |   |   | Annual Compensation | Long Term Compensation |
| Name and Principal Position                                                                                          |   | Year |   | Salary |   | Bonus |   |        Other Compensation |   | Securities Underlying Options* |
| Dr. Stephen T. Chen,**  Chairman of the Board,  President and Chief  Executive Officer |   | 2017 |   | $    86,250 |   | $ 93,750 |   | $          - |   | - |

----

|                                                                             |   | 2016 |   | $    40,000 |   | $ 60,500                              |   | $          -   |   | - |
|----------------------------------------------------------------------------------|--------|------|--------|-----------------------|--------|---------------------------------------|--------|-----------------------------------------|--------|---|
|                                                                             |   | 2015 |   | $    34,842 |   | $          - |   | $          -   |   | - |
| Mr. Bernard Cohen,*** Vice President and Chief  Financial Officer |   | 2017 |   | $    62,292 |   | $ 12,500                              |   | $          -   |   | - |
|                                                                             |   | 2016 |   | $    40,000 |   | $ 17,500                              |   | $          -   |   | - |
|                                                                             |   | 2015 |   | $    38,729 |   | $          - |   | $          793 |   | - |
| Name and Address                                                                                           |   | Amount and Nature of Beneficial Ownership |   | Percent of Class Owned(1) |
|------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|---------------------------|
| Anxon International, Inc.9F.-3, No.32, Sec. 1,ChengGong Rd., NanGang Dist.Taipei City 115, Taiwan (R.O.C.) |   | 2,133,333                                 |   | 7.77%                     |
| Ching Lam Carmen CheungFlat AI, 4/F, Tower A, Wilshire Towers200 Tin HauTemple Rd.Hong Kong                |   | 1,766,667                                 |   | 6.43%                     |

----

| Kairos Capital Co., Ltd.6F., No. 285, Sec. 4,Zhongxiao E. Rd., Da'an Dist.,Taipei City 106, Taiwan (R.O.C.) |   | 1,611,585 |   | 5.87% |
|-------------------------------------------------------------------------------------------------------------|--------|-----------|--------|-------|
| Name and Address of Owner                                                                            |   | Amount and Nature of Beneficial Ownership |   | Percent of Class Owned1 |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|-------------------------|
| Stephen T. Chen31 Service DriveWellesley, MA 02482                                                   |   | 9,044,0672                                |   | 39.06%                  |
| Bernard Cohen2803 S. Travis St.Amarillo, TX 79109                                                    |   | 48,637                                    |   | 0.21%                   |
| Paul Tibbits2371 Blueball RoadRineyville, KY 40162                                                   |   | 667,553                                   |   | 2.88%                   |
| Daniel Fisher36 Marlee RoadPleasant Hill, CA 94523                                                   |   | -                                         |   | -                       |
| Yasushi Chikagami9F, No. 29, Ln. 107, Sec. 2Heping E. Rod., Da'an Dist.Taipei City 106, Taiwan (ROC) |   | 206,140                                   |   | 0.89%                   |
| Nicholas MorenPO Box 6873Incline Village, NV 89450                                                   |   | -                                         |   | -                       |
| Total Group (all directors and executive officers – 6 persons)                                 |   | 9,966,3773                                |   | 43.04%                  |

----

| Stock Plans *             | Issue Date Range         | Total Shares Authorized | Shares Issued | Shares Remaining |
|---------------------------|--------------------------|-------------------------|---------------|------------------|
| 2008 Stock Incentive Plan | 5/23/08 – 10/11/11 | 600,000                 | 463,420       | 136,580          |
|                           | 2017    | 2016    |
|--------------------------------|---------|---------|
| LBB & Associates Ltd., LLP | $32,250 | $32,300 |

----

| 3(i)     |   | Restated Certificate of Formation of the Company, dated and filed July 27, 2015.                                                             |
|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
| 3(ii)    |   | Bylaws of the Company, as amended July 10, 2015.                                                                                             |
| 4.1*     |   | Specimen Common Stock Certificate.                                                                                                           |
| 4.2*     |   | Form of Underwriter's Warrant.                                                                                                               |
| 10.1(11) |   | 2008 Stock Incentive Plan dated May 20, 2008.                                                                                                |
| 10.2*    |   | License Agreement dated as of March 22, 1988 between the Company and The Texas A&M University System.                                    |
| 10.30*** |   | Amendment No. 1 dated September 28, 1998 to License Agreement of March 22, 1988 between The Texas A&M University System and the Company. |
| 10.71    |   | License and Supply Agreement dated January 7, 2010, between the Company and Intas Pharmaceuticals, Ltd.                                      |

----

|                             |     AMARILLO BIOSCIENCES, INC.                                                                             |
|----------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| Date:   April 17, 2018 |    By:_/s/ Stephen Chen___________________Stephen Chen, Chairman of the Board,and Chief Executive Officer  |
| Date:   April 17, 2018 |    By:_/s/ Bernard Cohen__   ______________Bernard Cohen, Vice President,Chief Financial Officer      |
|                             |                                                                                                                           |
|  Signature   |  Title                                               |  Date     |
|-----------------------------|-----------------------------------------------------------|----------------|
| /s/ Stephen Chen            | Chairman of the Board,Director andChief Executive Officer | April 17, 2018 |
| Stephen Chen                |                                                      |
|                        |                                                      |
| /s/ Yasushi Chikagami       |   Director                                      | April 17, 2018 |
| Yasushi Chikagami           |                                                      |           |
| /s/ Daniel Fisher           |   Director                                      | April 17, 2018 |
| Daniel Fisher               |                                                      |           |
| /s/ Nicholas Moren          |   Director                                      | April 17, 2018 |
| Nicholas Moren              |                                                      |           |
|                        |                                                      |           |

----

|                                                          |
|---------------------------------------------------------------|
| Contents                                                      |
|                                                          |
|                                                          |
| Report of Independent Registered Public Accounting Firm  | F-1 |
|                                                          |
| Balance Sheets                                           | F-2 |
|                                                          |
| Statements of Operations                                 | F-3 |
|                                                          |
| Statements of Stockholders' Equity (Deficit)             | F-4 |
|                                                          |
| Statements of Cash Flows                                 | F-5 |
|                                                          |
| Notes to Financial Statements                            | F-6 |

----

| /s/LBB & Associates Ltd., LLP                   |
|-----------------------------------------------------|
|                                                |   |
| We have served as the Company's auditor since 2006. |
|                                                |   |
| Houston, Texas                                      |
|                                                |   |
| April 17, 2018                                      |   |
|                                                |   |

----

|                                                                                                        | December 31,2017 |       | December 31,2016 |
|-------------------------------------------------------------------------------------------------------------|------------------|------------|------------------|
| Assets                                                                                                      |             |       |             |
| Current assets:                                                                                             |             |       |             |
|    Cash and cash equivalents                                                                 | $                | 1,980,015  |             |   | $ | 134,125 |   |
|    Inventory                                                                                 |             | 22,666     |             |   |   | 14,700 |   |
|    Advance to related party                                                                  |             | 58,135     |             |   |   | 37,835 |   |
|    Prepaid expense and other current assets                                                  |             | 23,635     |             |   |   | 75,739 |   |
| Total current assets                                                                                        |             | 2,084,451  |             |   |   | 262,399 |   |
| Patents, net                                                                                                |             | 182,386    |             |   |   | 156,063 |   |
| Property and equipment, net                                                                                 |             | 26,997     |             |   |   | 44,214 |   |
| Total assets                                                                                                | $                | 2,293,834  |             |   | $ | 462,676 |   |
|                                                                                                        |             |       |             |   |   |   |   |
| Liabilities and Stockholders' Deficit                                                                       |             |       |             |   |   |   |   |
| Current liabilities:                                                                                        |             |       |             |   |   |   |   |
|    Accounts payable and accrued expenses                                                     | $                | 159,300    |             |   | $ | 168,761 |   |
|    Advances from investors                                                                   |             | 777,258    |             |   |   | 187,500 |   |
|    Customer deposits – related party                                                   |             | -          |             |   |   | 124,833 |   |
|    Convertible notes payable – related party                                           |             | 886,481    |             |   |   | 791,481 |   |
| Total current liabilities                                                                                   |             | 1,823,039  |             |   |   | 1,272,575 |   |
| Total liabilities                                                                                           |             | 1,823,039  |             |   |   | 1,272,575 |   |
|                                                                                                        |             |       |             |   |   |   |   |
| Commitments and contingencies                                                                               |             |       |             |   |   |   |   |
|                                                                                                        |             |       |             |   |   |   |   |
| Stockholders' equity (deficit)                                                                              |             |       |             |   |   |   |   |
|    Preferred stock, $0.01 par value:                                                         |             |       |             |   |   |   |   |
|      Authorized shares - 10,000,000,                                               |             |       |             |   |   |   |   |
| Issued and outstanding shares – 0 at December 31, 2017 and December 31, 2016                          |             | -          |             |   |   | - |   |
|    Common stock, $0.01 par value:                                                            |             |       |             |   |   |   |   |
|      Authorized shares - 100,000,000,                                              |             |       |             |   |   |   |   |
| Issued and outstanding shares – 23,156,563 and 21,916,143 at December 31, 2017 and 2016, respectively |             | 231,565    |             |   |   | 219,161 |   |
|    Additional paid-in capital                                                                |             | 2,123,205  |             |   |   | 237,540 |   |
|    Accumulated deficit                                                                       |             | (1,883,975 | )                |   |   | (1,266,600 | ) |
| Total stockholders' equity (deficit)                                                                        |             | 470,795    |             |   |   | (809,899 | ) |
| Total liabilities and stockholders' equity (deficit)                                                        | $                | 2,293,834  |             |   | $ | 462,676 |   |

----

|                                                                          | Years ended December 31, |
|-------------------------------------------------------------------------------|--------------------------|
|                                                                          | 2017                     | 2016 |
|                                                                          |                     |   |
| Revenues                                                                      | $                        | 250,928 | $ | - |
| Cost of revenues                                                              | (60,316)                 | - |
| Gross margin                                                                  | 190,612                  | - |
|                                                                          |                     |   |
| Operating expenses:                                                           |                     |   |
|   Research and development expenses                                 | -                        | - |
|   Selling, general and administrative expenses                      | 770,375                  | 667,111 |
|      Total operating expenses                        | 579,763                  | 667,111 |
|                                                                          |                     |   |
| Operating loss                                                                | (579,763)                | (667,111) |
|                                                                          |                     |   |
| Other income (expense):                                                       |                     |   |
|   Interest expense                                                  | (37,612)                 | (2,871) |
| Net loss                                                                      | $                        | (617,375) | $ | (669,982) |
|                                                                          |                     |   |
| Basic and diluted net loss per average share available to common shareholders | $                        | (0.03) | $ | (0.03) |
|                                                                          |                     |   |
| Weighted average common shares outstanding – basic and diluted          | 22,663,476               | 20,144,810 |

----

|                                             |                                                                                              |                                                                                                                                              |                                                                                                            |                                                                                                          |  Additional                                                                                  |                                                            |  Total                                                                             |
|--------------------------------------------------|---------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                             | Preferred Stock                                                                                   | Common Stock                                                                                                                                      |  Paid in                                                                                                   |  Accumulated                                                                                             |  Stockholders'                                                                               |
|                                             | Shares                                                                                            |  Amount                                                                                                                                      | Shares                                                                                                          |  Amount                                                                                                  |  Capital                                                                                     |  Deficit                                                   |  Equity (Deficit)                                                                  |
| Balance at December 31, 2015                     |                 - |                   -                                     | 20,144,810                                                                                                      |  201,448                                                                                                 |      (76,872)                                                            |          (596,618) | (472,042)                                                                               |
| Issuance of stock for cash in private placements |                 - |                   -                                     |                  1,771,333 | 17,713                                                                                                        | 314,412                                                                                           | -                                                               | 332,125                                                                                 |
| Net loss for the year ended December 31, 2016    |                 - |                   -                                     |                 -               |                   - |                 - | (669,982)                                                       |              (669,982) |
| Balance at December 31, 2016                     |                 - |                   $          - | 21,916,143                                                                                                      |  $  219,161                                                                                         |  $        237,540                                                        |  $         (1,266,600)            |  $          (809,899)                                     |
| Issuance of stock for cash in private placements |                                                                                              |                                                                                                                                              | 770,000                                                                                                         | 7,700                                                                                                         | 136,657                                                                                           | -                                                               | 144,357                                                                                 |
| Issuance of stock for service                    |                 - |                   -                                     | 57,000                                                                                                          | 570                                                                                                           | 10,118                                                                                            | -                                                               | 10,688                                                                                  |
| Issuance of stock for compensation bonus         |                 - |                   -                                     | 413,420                                                                                                         | 4,134                                                                                                         | 102,116                                                                                           | -                                                               | 106,250                                                                                 |
| BCF on Chen demand note                          |      -                                                                   |             -                                                                         | -                                                                                                               | -                                                                                                             | 28,200                                                                                            | -                                                               | 28,200                                                                                  |
| Stock subscription                               |                 - |                   -                                     | -                                                                                                               | -                                                                                                             | 1,608,574                                                                                         | -                                                               | 1,608,574                                                                               |
| Net loss for the year ended December 31, 2017    |                 - |                   -                                     | -                                                                                                               | -                                                                                                             | -                                                                                                 | (617,375)                                                       | (617,375)                                                                               |
| Balance at December 31, 2017                     |                 - |                   $          - | 23,156,563                                                                                                      |  $  231,565                                                                                         | $      2,123,205                                                                   |  $         (1,883,975)            |  $           470,795                                 |
|                                             |                                                                                              |                                                                                                                                              |                                                                                                            |                                                                                                          |                                                                                              |                                                            |                                                                                    |

----

|                                                                                             | Year Ended December 31, 2016 |      | Year Ended December 31, 2015 |   |
|--------------------------------------------------------------------------------------------------|------------------------------|-----------|------------------------------|--------|
| Cash flows from Operating Activities                                                             |                         |      |                         |   |
| Net loss                                                                                         | $                            | (617,375  | )                            | $      | (669,982 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                      |                         |      |                         |   |
| Depreciation and amortization                                                                    | 39,990                       |      | 25,956                       |   |
|      Stock issued for services                                          | 10,688                       |      | -                            |   |
|      Stock compensation                                                 | 106,250                      |      | -                            |   |
| Amortization of debt discount                                                                    | 28,200                       |      |                         |   |
| Changes in operating assets and liabilities:                                                     |                         |      |                         |   |
|      Inventory                                                          | (7,966                       | )         | (14,700                      | )      |
| Prepaid expense and other current assets                                                         | 31,804                       |      | (95,420                      | )      |
| Accounts payable and accrued expenses                                                            | (9,461                       | )         | 108,505                      |   |
|      Customer deposits                                                  | (124,833                     | )         | 124,833                      |   |
| Net cash used in operating activities                                                            | (542,703                     | )         | (520,808                     | )      |
| Cash flows from Investing Activities                                                             |                         |      |                         |   |
| Investment in patents                                                                            | (49,096                      | )         | (100,644                     | )      |
| Capital expenditures                                                                             | -                            |      | (47,686                      | )      |
| Net cash used in investing activities                                                            | (49,096                      | )         | (148,330                     | )      |
| Cash flows from Financing Activities                                                             |                         |      |                         |   |
| Cash received from stock subscription                                                            | 1,421,074                    |      | -                            |   |
|      Proceeds from private placement offering                           | 144,357                      |      | 332,125                      |   |
|      Advances from investors                                            | 777,258                      |      | 187,500                      |   |
| Proceeds from convertible note payable - related party                                           | 95,000                       |      | 262,500                      |   |
| Net cash provided by financing activities                                                        | 2,437,689                    |      | 782,125                      |   |
| Net change in cash                                                                               | 1,845,890                    |      | 112,987                      |   |
| Cash and cash equivalents at beginning of period                                                 | 134,125                      |      | 21,138                       |   |
| Cash and cash equivalents at end of period                                                       | $                            | 1,980,015 |                         | $      | 134,125 |   |
| Supplemental Cash Flow Information                                                               |                         |      |                         |   |
|   Cash paid for interest                                                               | $                            | 29,318    |                         | $      | 1,318 |   |
|   Cash paid for income taxes                                                           | $                            | -         |                         | $      | - |   |
| Non-Cash Transactions                                                                            |                         |      |                         |   |
| Conversion of accounts payable - related party to convertible note payable – related party | $                            | -         |                         | $      | 144,426 |   |
| Conversion of notes payable - related party to convertible note payable – related party    | $                            | -         |                         | $      | 384,555 |   |
| Transfer of advance from investor to stock subscriptions                                         | $                            | 187,500   |                         | $      | - |   |

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|  | · | Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; |
|--|--------|----------------------------------------------------------------------------------------------------------|

|  | · | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
|--|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | · | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one more significant inputs or significant value drivers are unobservable. |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                  |                                                                    |
|---------------------------------------|-------------------------------------------------------------------------|
|                                  | 2017                                                                    | 2016 |
| Furniture and equipment               | $  92,988                                                          | $       92,988 |
| Software                              |            8,012 |            8,012 |
|                                  | 101,000                                                                 |          101,000 |
| Less:  accumulated depreciation  |        (74,003)                      |        (56,786) |
| Property, equipment and software, net | $ 26,997                                                                | $         44,214 |
|                           |           |
|--------------------------------|----------------|
|                           | 2017           | 2016 |
| Patents                        | $ 338,324 | $ 289,228 |
| Less: accumulated amortization | (155,938)      | (133,165) |
| Patents, net                   | $ 182,386 | $ 72,105 |
| 2018          | $ 21,207  |
|---------------|----------------|
| 2019          | 15,669         |
| 2020          | 13,223         |
| 2021          | 10,151         |
| 2022          | 9,626          |
| Thereafter    | 112,510        |
| Total expense | $ 182,386 |

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

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| Stock Plans *             | Issue Date Range         | Total Shares Authorized | Shares Issued | Shares Remaining |
|---------------------------|--------------------------|-------------------------|---------------|------------------|
| 2008 Stock Incentive Plan | 5/23/08 – 10/11/11 | 600,000                 | 463,420       | 136,580          |
|                     |              |
|--------------------------|-------------------|
|                     | December 31, 2017 |   | December 31, 2016 |
|                     | Options           | Price |   | Options | Price |
| Outstanding Beg. of Year |              |   | 8,568 | $     0.95 |
| Granted                  | -                 | - |   | - | - |
| Cancelled/Expired        | -                 | - |   | (8,568) | 0.95 |
| Exercised                | -                 | - |   | - | - |
| Outstanding End of Year  | -                 | $         - |   | - | $         - |
| Exercisable End of Year  | -                 | $         - |   | - | $         - |

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|                                    |   |   |   | December 31, 2017 |   | December 31, 2016 |
|-----------------------------------------|--------|--------|--------|-------------------|--------|-------------------|
| Provision (benefit) at statutory rate   |   |   |   | $ (210,000)  |   | $ (228,000)  |
| Effect of change rateon deferred assets |   |   |   | 3,010,000         |   | -                 |
| Change in valuation allowance           |   |   |   | (2,800,000)       |   | 228,000           |
|                                    |   |   |   | $ -          |   | $ -          |
|                                        |   |   |   | December 31, 2017 |   | December 31, 2016 |
|---------------------------------------------|--------|--------|--------|-------------------|--------|-------------------|
| Deferred tax assets:                        |   |   |   |              |   |              |
|   Net operating loss carryforward |   |   |   | $ 4,801,000  |   | $ 7,601,000  |
|     Deferred tax assets |   |   |   | 4,801,000         |   | 7,601,000         |
|                                        |   |   |   |              |   |              |
| Deferred tax liabilities:                   |   |   |   | -                 |   | -                 |
| Net deferred tax assets                     |   |   |   | 4,801,000         |   | 7,601,000         |
| Valuation allowance                         |   |   |   | (4,801,000)       |   | (7,601,000)       |
|                                        |   |   |   | $ -          |   | $ -          |

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