<PAGE>
                                  United States
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB


[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934


For the quarterly period ended         MARCH 31, 2002
                               --------------------------------


[ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934

                         Commission File Number 0-20791


                           AMARILLO BIOSCIENCES, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)

            TEXAS                                       75-1974352
--------------------------------------------------------------------------------
(State or other jurisdiction of              (IRS Employer Identification No.)
incorporation or organization)

 800 West Ninth, Amarillo, Texas                          79101
--------------------------------------------------------------------------------
(Address of principal executive offices)                (Zip Code)

     806-376-1741                                    FAX 806-376-9301
--------------------------------------------------------------------------------
(Issuer's telephone number, including area code)


         Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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[X] No[ ].

As of March 31, 2002 there were 8,912,405 shares of the issuer's common stock
outstanding.



                                       1
<PAGE>

                           AMARILLO BIOSCIENCES, INC.


                                      INDEX


<TABLE>
<CAPTION>
                                                                                PAGE NO.
                                                                                --------
<S>                                                                             <C>
PART I:    FINANCIAL INFORMATION
ITEM 1.    Financial Statements
           Consolidated Balance Sheet - March 31, 2002........................     3
           Consolidated Statements of Operations - Three Months Ended
           March 31, 2002 and March 31, 2001..................................     4
           Condensed Consolidated Statements of Cash Flows - Three
           Months Ended March 31, 2002 and 2001...............................     5
           Notes to Consolidated Financial Statements.........................     6

ITEM 2.    Management's Plan of Operations....................................     6

PART II:   OTHER INFORMATION

ITEM 2.    Changes in Securities and Use of Proceeds..........................    10

ITEM 6.    Exhibits and Reports on Form 8-K...................................    10

Signatures ...................................................................    11
</TABLE>



                                       2


<PAGE>




                         PART I - FINANCIAL INFORMATION

ITEM 1.      FINANCIAL STATEMENTS

                   Amarillo Biosciences, Inc. and Subsidiaries
                           Consolidated Balance Sheets
                                 March 31, 2002


<TABLE>
<S>                                                                <C>
ASSETS
Current assets:
  Cash                                                             $    224,125
  Inventory                                                              48,639
  Other current assets                                                   30,669
                                                                   ------------
Total current assets                                                    303,433

Property and equipment, net                                              78,688
Patents, net of accumulated amortization of $123,368                    136,457
                                                                   ------------
Total assets                                                       $    518,578
                                                                   ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                                                 $    812,810
  Accrued interest expense                                              198,543
  Other accrued expense                                                     641
  Current maturities of mortgage payable                                  5,949
                                                                   ------------
Total current liabilities                                             1,017,943

Mortgage payable, net of current maturities                              79,962
Notes payable to stockholder                                          2,000,000
                                                                   ------------
Total liabilities                                                     3,097,905

Commitments and contingencies

Stockholders' deficit
  Preferred stock, $.01 par value:
     Authorized shares - 10,000,000
     Issued shares - none                                                    --
  Common stock, $.01 par value:
     Authorized shares - 20,000,000
     Issued shares - 8,912,405                                           89,124
  Additional paid-in capital                                         18,944,599
  Accumulated deficit                                               (21,613,050)
                                                                   ------------
Total stockholders' deficit                                          (2,579,327)
                                                                   ------------
Total liabilities and stockholders' deficit                        $    518,578
                                                                   ============
</TABLE>

See accompanying summary of significant accounting policies and notes to
consolidated financial statements.


                                       3
<PAGE>




                   Amarillo Biosciences, Inc. and Subsidiaries
                      Consolidated Statements of Operations


<TABLE>
<CAPTION>
                                                   THREE MONTHS ENDED MARCH 31,
                                                      2002             2001
                                                   -----------      -----------
<S>                                                <C>              <C>
Revenues:
  Dietary supplement sales                         $       561      $    33,600
  Interest income                                        1,090            1,280
  Federal research grants                                8,360               --
  Other                                                  1,766             (169)
                                                   -----------      -----------
                                                        11,777           34,711
Expenses:
  Research and development expenses                    179,765          114,223
  Selling, general and administrative
     expenses                                           47,425          119,131
  Interest expense                                      23,826           22,192
                                                   -----------      -----------
                                                       251,016          255,546
                                                   -----------      -----------

Net loss                                           $  (239,239)     $  (220,835)
                                                   ===========      ===========

Basic and diluted net loss per share               $     (0.03)     $     (0.03)
                                                   ===========      ===========

Weighted average shares outstanding                  8,843,912        7,807,357
                                                   ===========      ===========
</TABLE>


See accompanying summary of significant accounting policies and notes to
consolidated financial statements.


                                       4
<PAGE>

                   Amarillo Biosciences, Inc. and Subsidiaries
                 Condensed Consolidated Statements of Cash Flows


<TABLE>
<CAPTION>
                                                           Three months ended
                                                                March 31,
                                                         ----------------------
                                                            2002         2001
                                                         ---------    ---------
<S>                                                      <C>          <C>
Net cash used in operating activities                    $(337,415)   $(302,473)
                                                         ---------    ---------

Cash provided by (used in) investing activities:            (5,381)          --
  Repayments of notes payable                               (1,397)          --
  Issuance of common stock                                 500,000           --
                                                         ---------    ---------
     Net cash provided by financing activities             498,603           --
                                                         ---------    ---------
Net increase (decrease) in cash and cash equivalents       155,807     (302,473)
                                                         ---------    ---------
Cash and cash equivalents at beginning of period            68,318      341,983
                                                         ---------    ---------
Cash and cash equivalents at end of period               $ 224,125    $  39,510
                                                         =========    =========
Supplemental Disclosure of Cash Flow Information
Cash paid for income taxes                               $      --    $      --
                                                         =========    =========

Cash paid for interest                                   $   2,171    $      --
                                                         =========    =========
</TABLE>

See accompanying summary of significant accounting policies and notes to
consolidated financial statements.



                                       5
<PAGE>


                   AMARILLO BIOSCIENCES, INC. AND SUBSIDIARIES


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    Basis of presentation. The accompanying consolidated financial statements,
      which should be read in conjunction with the consolidated financial
      statements and footnotes included in the Company's Form 10-KSB for the
      year ended December 31, 2001 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 three months ended March 31, 2002 are not
      necessarily indicative of the results that may be expected for the full
      year ending December 31, 2002.

2.    Loss per share. Loss per share is computed based on the weighted average
      number of common shares outstanding.

3.    Private placement. The Company completed a private placement in January
      2002 pursuant to which it sold 1,000,000 shares of its voting common stock
      at $.50 per share, for a total of $500,000. After deducting selling
      commission of $45,000 paid to First Island Capital, Inc., and other
      offering costs of $5,000, the net amount available to the Company was
      $450,000.

ITEM 2.         MANAGEMENT'S PLAN OF OPERATIONS

The Company's Management has developed a Plan of Operations for 2002. The
Company continues to engage in research and development activities focused on
developing biologics for the treatment of human and animal diseases. The Company
has not commenced any significant product commercialization and, until such time
as it does, will not generate significant product revenues. The Company's
accumulated deficit has continued to grow, from $21,373,811 at December 31, 2001
to $21,613,050 at March 31, 2002. Operating losses are expected to continue for
the foreseeable future and until such time as the Company is able to attain
sales levels sufficient to support its operations.

As of March 31, 2002, the Company had current assets of $303,433, including cash
in the amount of $224,125. The Company will need to raise additional capital in
order to implement its plan of operations.

During the next 12 months the Company will continue its research and development
activities, as well as the activities necessary to develop commercial
partnerships



                                       6
<PAGE>

and licenses and to continue nutraceutical sales. The Company's expenditure of
financial resources during this period will fall principally into five broad
categories, as follows: Research and Development; Personnel; Consulting and
Professional (other than legal and accounting); Legal and Accounting; and Public
Relations, Investor Relations and Shareholder Relations. The Company's
expectations and goals with respect to these categories are addressed separately
below, by category.

REVENUES FROM SALES OF DIETARY SUPPLEMENT: The Company had sales of anhydrous
crystalline maltose (ACM), marketed locally as Maxisal(TM), generating $561 in
the first quarter of 2002.

REVENUES FROM INTERFERON SALES: There have been no interferon sales in the first
quarter of 2002.

RESEARCH AND DEVELOPMENT: Until it achieves commercial product sales, the
Company's business is research and development, and this is the area in which
the Company's principal efforts will be expended during 2002. The Company has
budgeted approximately $346,235 for expenditure for the balance of the year on
research and development, the expenditure of this amount will be subject to
raising additional funds. The Company expended $179,765 in the first quarter of
2002 for specific research and development, projects; such amount does not
include general administrative costs, or expenditures described under other
categories below.

PERSONNEL: In addition to its intellectual property, the Company's principal
assets are its personnel. The Company has been successful in controlling its
personnel costs, both by maintaining its principal location in Amarillo, Texas,
and by ensuring maximum efficiency and utilization of existing personnel. The
Company has budgeted approximately $525,000 for personnel expenses during 2002,
including salaries, payroll taxes, directors' and officers' general liability
insurance, and group life, health, and liability insurance. The projected amount
includes adding 2 full-time employees and 1 part-time employee over the course
of the year bringing the potential staff total to 7 employees. Also, in lieu of
cash compensation, the Company may issue stock options or other equity
instruments to selected employees in fiscal 2002. The Company expended $110,622
for personnel in the first quarter of 2002.

At the present time, the President and CEO of the Company, Joseph M. Cummins, is
also serving as the Company's Chief Financial Officer (CFO).

CONSULTING AND PROFESSIONAL (EXCEPT LEGAL AND ACCOUNTING): The Company has
budgeted approximately $71,000 for expenditure on professional consultants in
2002. Consulting fees are expected to be paid to a number of independent
consultants in connection with the operation of the Company and to certain
directors who perform specific consulting tasks at the Company's request. The
Company will continue to use the services of consultants to complement the
Company's small full-time staff, where such is a more efficient utilization of
the Company's resources. The Company expended $52,560 in


                                       7
<PAGE>

the first quarter of 2002 for consulting and professional fees, including
$50,000 in connection with the private placement.

LEGAL AND ACCOUNTING: Although the Company is not involved in litigation, it has
budgeted legal expenses of approximately $120,000 in 2002. Approximately 20% of
the Company's legal expenditures will be for preparation and filing of patents
and for maintenance of existing patents in a number of countries. Other legal
expenses will be related to compliance with laws and regulations affecting
public companies, licensing and contracting and general corporate matters. The
Company does not presently have an in-house legal staff, nor does it intend to
put such a staff in place in 2002. The Company has budgeted $22,000 for
accounting expense in 2002 and expects to use Malone & Bailey, PLLC as its
independent auditors. The Company incurred $9,264 for legal and $8,021 for
accounting fees in the first quarter of 2002.

PUBLIC RELATIONS, INVESTOR RELATIONS AND SHAREHOLDER RELATIONS: The Company has
budgeted approximately $15,845 for public relations, investor relations and
shareholder relations during 2002. The Company has also budgeted sufficient
amounts to maintain its comprehensive web site (www.amarbio.com).

LIQUIDITY NEEDS: The principal budget items discussed above, along with other
miscellaneous costs and expenses, will cause the Company to expend approximately
$1.5 million in 2002. At March 31, 2002, the Company had available cash of
approximately $224,124. The Company's continued losses and lack of liquidity
indicate that the Company may not be able to continue as a going concern for a
reasonable period of time. The Company's ability to continue as a going concern
is dependent upon several factors including, but not limited to, the Company's
ability to generate sufficient cash flow to meet its obligations on a timely
basis, obtain additional financing and continue to obtain supplies and services
from its vendors. The Company completed a private placement in January 2002
pursuant to which it raised $450,000, net of offering costs; however, the
Company will need to raise additional funds in order to fully execute its 2002
Plan. The Company is presently negotiating with human health and animal health
commercial development partners in various regions of the world including the
United States, Canada, Europe and the Middle East. The Company believes that one
or more of these agreements will be executed during 2002. These agreements could
generally include provisions for the commercial partner to pay ABI a technology
access fee, could include payments for a portion of the clinical trial expenses,
could include payment obligations to ABI upon the accomplishment of certain
defined tasks and/or could provide for payments relating to the future sales of
commercial product. These agreements could be an important source of funds for
ABI. Management believes the fact that it has concluded an agreement with Atrix
Laboratories, Inc. significantly enhances its ability to successfully raise
additional funds from its commercial partnering activities and from private
investors. However, there can be no assurance that the Company will be
successful in obtaining additional funding from either human health and animal
health commercial development partners or private investors. If the Company is
not successful in raising additional funds, it will need to significantly
curtail clinical trial expenditures and to further reduce staff and
administrative expenses and may be forced to cease operations.


                                       8
<PAGE>

FORWARD-LOOKING STATEMENTS

Certain statements made in this Plan of Operations and elsewhere in this report
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-QSB and
10-KSB 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 the
Sjogren's syndrome Phase III trial, or any other 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 prospects. 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.



                                       9

<PAGE>
                           PART II - OTHER INFORMATION

ITEM 2.         CHANGES IN SECURITIES AND USE OF PROCEEDS.

The Company's common stock is currently traded on the Over the Counter Bulletin
Board. The Company sold 1,000,000 shares of its voting common stock on January
25, 2002, raising an aggregate of $500,000, as follows:


<TABLE>
<CAPTION>
     DATE                         NUMBER OF                 PROCEEDS TO
                                 SHARES SOLD                 COMPANY
<S>                            <C>                         <C>
January 25, 2002                 1,000,000                   $450,000
</TABLE>


There was no principal underwriter for the offering. The offering was limited to
accredited investors within the meaning of Section 4(6) of the Securities Act of
1933 (the "Act"), and within the meaning of Regulation D promulgated under the
Act. The offering was not registered, in reliance upon the exemption afforded by
Rule 506 of Regulation D, promulgated under the Act, and a notice on Form D was
timely filed with the Securities and Exchange Commission. The total offering
price of the securities sold was $500,000, after deducting selling commission of
$45,000 paid to First Island Capital, Inc., and other offering costs of $5,000,
the net amount available to the Company was $450,000.

ITEM 6.         EXHIBITS AND REPORTS ON FORM 8-K.

      No reports on Form 8-K were filed during the quarter ended March 31, 2002.




                                       10
<PAGE>

                                   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: May 14, 2002                  By: /s/ JOSEPH M. CUMMINS
                                       ------------------------------------
                                            Joseph M. Cummins
                                            President, Chief Executive Officer
                                            and Chief Financial Officer






                                       11