Kaya (KAYS) 10-Q 19 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Alternative Fuels Americas, Inc.	'
Entity Central Index Key	'0001530746	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	75,549,325
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS:	'	'
Cash and equivalents	$29,823	$185
Deposit on inventory	4,820	'
Receivable from third party	5,000	'
Prepaid license fee	7,500	'
Total Current Assets	47,143	185
OTHER ASSETS:	'	'
Property and equipment, net	63,830	2,821
Security deposit	15,000	'
TOTAL OTHER ASSETS	78,830	2,821
Total Assets	125,973	3,006
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expense	245,335	514,926
Accounts payable and accrued expense-related parties	147,675	'
Accrued interest	4,687	'
Advance from third party	12,675	'
Convertible Notes Payable	47,300	'
Current portion of installment agreement	'	5,000
Current portion of loans payable	5,000	796,900
Total Current Liabilities	462,672	1,316,826
LONG TERM LIABILITIES:	'	'
Convertible Note Payable-related party	229,606	'
Note Payable-Related Party	260,405	'
Total Long Term Liabilities	490,011	'
Total Liabilities	952,683	1,316,826
STOCKHOLDERS' EQUITY (DEFICIT):	'	'
Convertible Preferred Stock, Series C, par value $.001; 10,000,000 shares authorized; 55,120 and 55,120 issued and outstanding at June 30, 2014 and December 31, 2013	55	55
Common stock par value $.001; 250,000,000 shares authorized; 75,549,325 shares issued as of June 30, 2014 and 68,449,325 shares issued as of December 31, 2013	75,549	68,449
Additional paid in capital	3,934,907	2,956,948
Deficit accumulated during the development stage	-4,786,188	-4,339,272
Non-controlling Interest	-51,034	'
Net Stockholders' Equity/(Deficit)	-826,710	-1,313,820
Total Liabilities and Stockholders' Equity/(Deficit)	$125,973	$3,006

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred Stock Par Value	$0.00	$0.00
Preferred Stock Shares Authorized	10,000,000	10,000,000
Preferred Stock Shares Issued	55,120	55,120
Preferred Stock Shares Outstanding	55,120	55,120
Common Stock Par Value	$0.00	$0.00
Common Stock Shares Authorized	250,000,000	250,000,000
Common Stock Shares Issued	75,549,325	68,449,325
Common Stock Shares Outstanding	75,549,325	68,449,325

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net Sales	'	'	'	'
Cost of Sales	'	'	'	'
Gross Profit	'	'	'	'
Operating Expenses:	'	'	'	'
Professional Fees	201,585	68,401	299,256	84,676
Salaries and Wages	0	6,120	0	10,185
General and Administrative	130,401	28,389	192,447	43,936
Total Operating Expenses	331,985	102,910	491,703	138,797
Operating Loss	-331,985	-102,910	-491,703	-138,797
Other Income(expense)	'	'	'	'
Interest Expense	-116,995	-15,390	-117,611	-29,554
Other income	-1,000	'	20,369	'
Forgiveness of debts	'	'	90,995	'
Total Other Income(Expense)	-117,995	-15,390	-6,247	-29,554
Net (loss) before Income Taxes	-449,980	-118,300	-497,950	-168,351
Provision for Income Taxes	'	'	'	'
Net (loss)	-449,980	-118,300	-497,950	-168,351
Net (Loss) attributed to non-controlling interest	-27,700	'	-51,034	'
Net (loss) attributed to Alternative Fuels Americas, Inc.	($422,280)	($118,300)	($446,916)	($168,351)
Basic and diluted net loss per common share	($0.01)	$0	($0.01)	$0
Weighted average number of common shares outstanding	74,218,507	68,249,325	70,764,710	68,249,325

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
OPERATING ACTIVITIES:	'	'	'
Net loss	($497,950)	($168,351)	($417,090)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation	1,336	2,518	'
Gain from restructure of stockholder loan	-76,459	'	'
Amortization of debt discount	96,465	'	'
Stock issued for services	100,000	'	'
Stock issued for interest	4,000	'	'
Stock issued as contribution	50,000	'	'
Changes in operating assets and liabilities:	'	'	'
Prepaid Expense	-7,500	'	'
Inventory Deposit	-4,820	'	'
Rent Deposit	-3,000	'	'
Security Deposit	-12,000	'	'
Accounts payable and accrued expenses	98,505	68,510	'
Net cash used in operating activities	-255,423	-97,323	'
INVESTING ACTIVITIES:	'	'	'
Purchase of property and equipment	-62,345	'	'
Proceeds for equipment	'	-1,122	'
Net cash used in investing activities	-62,345	-1,122	'
FINANCING ACTIVITIES:	'	'	'
Payments on installment agreement	-5,000	-17,500	'
Payments on related party debt	-32,595	'	'
Proceeds from related party debt	'	89,300	'
Proceeds from Convertible debt	75,000	18,000	'
Proceeds from sales of common stock	310,000	10,000	'
Net cash provided by (used in) financing activities	347,405	99,800	'
NET INCREASE IN CASH	29,637	1,355	'
CASH BEGINNING BALANCE	185	'	'
CASH ENDING BALANCE	29,822	1,355	185
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	'	'	'
Taxes paid	'	'	'
Interest paid	'	'	'
NON-CASH TRANSACTIONS AFFECTING OPERATING, INVESTING AND FINANCING ACTIVITIES:	'	'	'
Value of shares issued for convertible debt	'	1,208,583	'
Value of convetible preferred shares of subsidiary issued	96,000	'	'
Value of shares issued in merger	'	6,567	'
Value of shares issued to settle accrued expenses	$35,000	'	'

1_ORGANIZATION_AND_NATURE_OF_T

1. ORGANIZATION AND NATURE OF THE BUSINESS	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
1. ORGANIZATION AND NATURE OF THE BUSINESS	'
	NOTE 1 – ORGANIZATION AND NATURE OF THE BUSINESS
	Organization
	Alternative Fuels Americas, Inc. (“AFAI”, “Company”) is a development stage company. The Company was incorporated in 1993 and has engaged in a number of businesses. Its name was changed on May 11, 2007 to NetSpace International Holdings, Inc. (a Delaware corporation) (“NetSpace”). NetSpace acquired 100% of Alternative Fuels Americas, Inc. (a Florida corporation) in January 2010 in a stock-for-member interest transaction and issued 6,567,247 shares of common stock and 100,000 shares of Series C convertible preferred stock to existing shareholders. Certificate of Amendment to the Certificate of Incorporation was filed in October 2010 changing the Company’s name from NetSpace International Holdings, Inc. to Alternative Fuels Americas, Inc. (a Delaware corporation).
	The Company has three subsidiaries: Alternative Fuels Americas, Inc. (a Florida corporation) and Alternative Fuels Costa Rica AFA-CR, LTDA (located in Costa Rica) which are both wholly-owned, and as of 2014, Marijuana Holdings Americas, Inc. (a Florida corporation) which is a majority owned subsidiary.
	Nature of the Business
	The Company intends to establish operating partnerships for the purpose of developing and implementing “seed–to-pump” biofuels projects. Operations will include growing plants suitable for conversion into biofuels, extraction of crude oil from plant matter, refining the crude oil into international grade biodiesel, and selling the refined oil to end users in countries where the oil is produced and abroad.
	Additionally, the Company operates a subsidiary, Marijuana Holdings Americas, Inc., a Florida corporation, that intends to pursue medical and/or recreational licenses for the growing, processing and/or sale of marijuana in jurisdictions where it is legal and permissible under local laws. The subsidiary was formed in March 2014.
	In March 2014 Marijuana Holdings Americas, Inc. (through local Oregon subsidiaries) began the application process to obtain licenses to operate medical marijuana dispensaries in Oregon. On March 21, 2014 the Company received notice from the Oregon Health Authority that MJAI Oregon 1 had been granted provisional licensing approval to operate their first Medical Marijuana Dispensary in Portland, Oregon and subsequently received full licensing approval for the first “Kaya ShackTM” retail medical marijuana dispensary, which we began operating July 3, 2014.

2_LIQUIDITY_AND_GOING_CONCERN

2. LIQUIDITY AND GOING CONCERN	6 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
2. LIQUIDITY AND GOING CONCERN	'
	NOTE 2 - LIQUIDITY AND GOING CONCERN
	The Company’s consolidated financial statements as of June 30, 2014 and for the three months and six months ended June 30, 2014 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company incurred a net loss of $417,090 for the year ended December 31, 2013 and $497,950 for the six months ended June 30, 2014. At June 30, 2014 the Company has a working capital deficiency of $363,229 and is totally dependent on its ability to raise capital. The Company acknowledges that its Plan of Operations may not result in generating positive working capital in the near future. Although management believes that it will be able to successfully execute its business plan, which includes third-party financing and capital issuance, and meet the Company’s future liquidity needs, there can be no assurances in that regard. These matters raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this material uncertainty.
	Management recognizes that the Company must generate additional funds to successfully develop its operations and activities in both the biofuels and legal recreational/medical marijuana sectors. Management plans include
	•	The creation of Special Purpose Vehicles/Entities through which to establish partnerships for the development of commercial biofuels projects.
	•	the sale of additional equity and debt securities;
	•	alliances and/or partnerships with entities interested in and having the resources to support the further development of the Company’s business plan;
	•	other business transactions to assure continuation of the Company’s development and operations; and development of the “Kaya ShackTM” brand and the pursuit of licenses to operate recreational and medical marijuana facilities under this brand name in jurisdictions where legal under local and state laws.

3_SUMMARY_OF_SIGNIFICANT_ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION	'
	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended December 31, 2013 filed with the SEC on April 15, 2014.
	The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2013. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.
	Re-Classifications
	Certain amounts in 2013 were reclassified to conform to the 2014 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.

4_DEBT_AND_INSTALLMENT_AGREEME

4. DEBT AND INSTALLMENT AGREEMENT	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
4. DEBT AND INSTALLMENT AGREEMENT	'
	NOTE 4 – DEBT AND INSTALLMENT AGREEMENT
		June 30,		December 31,
		2014		2013
		$	250,000	$	737,100
	Loan payable-Stockholder, 8%, Due December 31, 2015, unsecured (4)
	Convertible note-related party, Due December 31, 2015 unsecured (4)		500,000		-0-
	Loan payable-Stockholder, due on Nov 1, 2014, unsecured (2)		5,000		10,000
	Loan payable-Stockholder, unsecured (3)		-0-		24,800
	Convertible note-10% due June 9, 2015 (5)		50,000		-0-
	Convertible note-10% due June 13, 2015 (5)		25,000		-0-
	Convertible note - stockholder, 10%, due April 30, 2013,unsecured (1)		25,000		25,000
		$	855,000	$	796,900
	-1	At the option of the holder the convertible note may be converted into shares of the Company’s common stock at the lesser of $0.40 or 20% discount to the market price, as defined, of the Company’s common stock. The Company is currently in discussions with the lender on a payment schedule this is the no change from the period 10Q .
	-2	On July 1, 2013 the company received $10,000 loan from a shareholder. In consideration for Payee making the loan to AFAI, AFAI extended to Payee an option (the “Option”) to purchase Five Hundred Thousand (500,000) shares of common stock in AFAI for a price of $.10 per share (the “Exercise Price”) for a period of three (3) years from the date of this note (the “Option Life”). In the event that AFAI completes a sale of stock at a price lower than $.10 per share during the Option Life (whether via a bona fide public offering, or a sale of restricted stock pursuant to rule 504 or any other form of exemption available to the company) then the Exercise Price of the option shall be adjusted to that price for the duration of the term of the Option Life. On October 31, 2013 the maturity date of the note was extended to November 31, 2014 with four quarterly payments of $2,500 due March 31, 2014, June 30, 2014, September 30, 2014 and November 30, 2014. Additionally, the option was surrendered to the company in exchange for 100,000 shares of AFAI stock as full payment for all interest due through November 30, 2014.
	-3	In 3rd Qtr. of 2013 a stockholder of the company agree to loan the company up to $25,000 for expenses on an as needed, non-interest bearing basis.
	-4	At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2015. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Company’s preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of a financing transaction and contain a beneficial conversion feature valued at $367,859 to be amortized over the life of the debt. Total amortization for the six months ended June 30, 2014 was $91,965. As of June 30, 2014, the balance of the debt was $500,000. The net balance reflected on the balance sheet is 229,606. The remaining $250,000 is not convertible. The company has imputed interest on both the convertible debt and the non-convertible debt. The company used an interest rate of 10% for calculation purposes. The net balance of $260,405 of the non-convertible portion is reflected on the balance sheet
	-5	On June 9 and June 15, 2014, the Company received a total of $75,000 from an accredited investor in exchange for one year notes in the aggregate amount of $75,000, convertible into the Company’s common stock at a conversion rate of $0.04 per share. The market value of the stock at the date of issuance of the debt was $0.06 and $0.09. The debt issued is a result of a financing transaction and contain a beneficial conversion feature. As of June 30, 2014, the balance was $75,000. With a net balance reflected of $22,300   The beneficial conversion feature in the amount of $57,500 is being expensed as interest over the term of the note. At June 30, 2014 the Company has recorded interest expense in the amount of $4,500.

5_STOCKHOLDERS_EQUITY

5. STOCKHOLDERS EQUITY	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
5. STOCKHOLDERS EQUITY	'
	NOTE 5 – STOCKHOLDERS’ EQUITY
	The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001, of which 100,000 shares have been designated as Series C convertible preferred stock (“Series C” or “Series C preferred stock”). The Board has the authority to issue the shares in one or more series and to fix the designations, preferences, powers and other rights, as it deems appropriate.
	Each share of Series C has 433.9297 votes on any matters submitted to a vote of the stockholders of the Company and is entitled to dividends equal to the dividends of 433.9297 shares of common stock. Each share of Series C preferred stock is convertible at any time at the option of the holder into 433.9297 shares of common stock.
	The Company has 250,000,000 shares of common stock authorized with a par value of $0.001. Each share of common stock has one vote per share for the election of directors and all other items submitted to a vote of stockholders. The common stock does not have cumulative voting rights, preemptive, redemption or conversion rights.
	In January 2014 the Company issued 2,400,000 shares of common stock to consultants. The shares were valued at $96,000, the fair value of the stock at the time. Also during January, 2014 Marijuana Holdings Americas, Inc. agreed to issue 55 shares of Convertible Preferred shares to the Company, and 15 shares each to the Company's president and BMN Consultants, a company controlled by a shareholder. These shares are convertible to a number of shares which once issued will provide the shareholder an ownership interest in the outstanding common shares of 55%, 15% and 15%, for the Company, its president and a shareholder, respectively. Although none of the preferred shares have been converted at the date of this filing, the Company maintains effective majority control over the subsidiary.
	In the second quarter of 2014, the Company raised funds $310,000 from the sale of units comprised of shares of the Company’s stock and shares of its majority owned subsidiary, Marijuana Holdings Americas, Inc (MJAI). Total issuances of 3,100,000 shares of common stock of AFAI and 3,100,000 shares of common stock of MJAI.
	Also in the second quarter of 2014, the company issued 100,000 shares of common stock valued at $0.04 per share for a total value of $4,000 due a shareholder per loan modification agreement reached October 31, 2013 as detailed in Note 4, Item 2 above.
	Also in the company issued a charitable organization, 500,000 shares of common stock valued at $0.10 per share for a total value given of $50,000 and agreed to issue a consultant, 1,000,000 shares of common stock valued at $0.10 per share for a total value of $100,000 in settlement of all fees and compensation for management services rendered due through June 30, 2014. The shares have a three year restriction.

6_LEASES

6. LEASES	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
6. LEASES	'
	NOTE 6 – LEASES
	The Company is obligated under operating lease agreements for its corporate office in Fort Lauderdale, which expires March 2016. The Company concluded an agreement in March 2014 terminating its obligations for leases held for land in Tempate, Costa Rica. The Company concluded the term of its lease agreement for offices maintained in Hollywood, Florida. The Company signed 2 new leases that started in May 2014 and June 2014.
	Minimum future lease commitments are:
		Year	Amount
		2015	56,880
		2016	36,396
		2017	30,360
		2018	31,584
	Rent expense was $21,526 for the three months ended June 30, 2014, and $17,900 for the year ended December 31, 2013, respectively.
	In April, 2014 MJAI, through its wholly owned subsidiary, MJAI Oregon 1, LLC (MJAI Oregon 1) Oregon company, entered into a lease for space to operate their first medical marijuana dispensary in Portland, Oregon. The five-year lease requires MJAI Oregon 1to pay a monthly rental fee of $2,255 the first year with annual lease payment escalations of 4% and a security deposit of $12,000. The dispensary is located are located at 1719 SE Hawthorne Boulevard, Portland, Oregon and will operate under the proprietary brand name of “Kaya Shack “TM.

7_STOCK_OPTION_PLAN

7. STOCK OPTION PLAN	6 Months Ended
	Jun. 30, 2014
Equity [Abstract]	'
7. STOCK OPTION PLAN	'
	NOTE 7 – STOCK OPTION PLAN
	In 2011 the Alternative Fuels America, Inc. 2011 Incentive Stock Plan (the “Plan”), which provides for equity incentives to be granted to the Company’s employees, executive officers or directors or to key advisers or consultants. Equity incentives may be in the form of stock options with an exercise price not less than the fair market value of the underlying shares as determined pursuant to the 2011 Incentive Stock Plan, restricted stock awards, other stock based awards, or any combination of the foregoing. The 2011 Incentive Stock Plan is administered by the board of directors. 2,500,000 shares of our common stock are reserved for issuance pursuant to the exercise of awards under the 2011 Incentive Stock Plan. In January, 2014 the Company’s board of directors approved the issuance of 2,400,000 shares of our common stock to consultants of the company.

8_RELATED_PARTY_TRANSACTIONS

8. RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2014
Related Party Transactions [Abstract]	'
8. RELATED PARTY TRANSACTIONS	'
	NOTE 8 – RELATED PARTY TRANSACTIONS
	The Company has agreements covering certain of its management personnel. Such agreements provide for minimum compensation levels and are subject to annual adjustment.
	The Company’s Chief Executive Officer holds 50,000 shares of its Series C preferred stock. These shares can be converted into 21,696,485 shares of the Company’s common stock at his option.
	The Company’s largest stockholder has from time to time provided unsecured loans to the Company, which is due on demand and bear interest at 10%. See Note 4 for the detail of the convertible and non-convertible debt with a face value of $750,000

9_INCOME_TAXES

9. INCOME TAXES	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
9. INCOME TAXES	'
	NOTE 9 – INCOME TAXES
	The Company has a deferred tax asset as shown in the following:
	Tax loss carry-forward	$	1,509,625		$	1,169,000
	Valuation allowance		(1,509,625	)		(1,169,000	)
		$	—		$
	A valuation allowance has been recognized to offset the deferred tax assets because realization of such assets is uncertain.  The Company has net operating loss carry-forwards of approximately $4,264,300 at December 31, 2013 that expire beginning in 2025. However, utilization of these losses may be limited pursuant to Section 382 of the Internal Revenue Code due to a recapitalization in 2007 and subsequent stock issuances.

10_SUBSEQUENT_EVENTS

10. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
10. SUBSEQUENT EVENTS	'
	NOTE 10– SUBSEQUENT EVENTS
	On July 11, 2014 the Company received a total of $160,000 from an accredited investor in exchange for one year note in the aggregate amount of $160,000, convertible into the Company’s common stock at a conversion rate of $0.04 per share. The market value of the stock at the date of issuance of the debt was $0.15. The debt issued is a result of a financing transaction and contain a beneficial conversion feature
	Effective July 1, 2014 Dr. Sam Stern resigned as company Chief Operating Officer to pursue other opportunities. AFAI thanks Dr. Stern for his years of service and leadership and wishes him success in his future endeavors.
	Effective August 10, 2014 Ronen Ben Harush resigned as company Chief Financial Officer to focus on building his growing private practice. AFAI thanks Mr. Ben Harush for his service and wishes him success in his future endeavors

3_SUMMARY_OF_SIGNIFICANT_ACCOU1

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of the Company and the notes thereto have been prepared in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). The December 31, 2013 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited financial statements and the notes thereto that are included in the Company’s Annual Report on form 10-K for the year ended December 31, 2013 filed with the SEC on April 15, 2014.
	The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2013. The quarterly information presented should be read in conjunction with the annual report filed on Form 10-K with the Securities and Exchange Commission.
Re-Classifications	'
	Re-Classifications
	Certain amounts in 2013 were reclassified to conform to the 2014 presentation. These reclassifications had no effect on consolidated net loss for the periods presented.

4_DEBT_AND_INSTALLMENT_AGREEME1

4. DEBT AND INSTALLMENT AGREEMENT (Tables)	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Debt and Installment Agreement	'
		June 30,		December 31,
		2014		2013
		$	250,000	$	737,100
	Loan payable-Stockholder, 8%, Due December 31, 2015, unsecured (4)
	Convertible note-related party, Due December 31, 2015 unsecured (4)		500,000		-0-
	Loan payable-Stockholder, due on Nov 1, 2014, unsecured (2)		5,000		10,000
	Loan payable-Stockholder, unsecured (3)		-0-		24,800
	Convertible note-10% due June 9, 2015 (5)		50,000		-0-
	Convertible note-10% due June 13, 2015 (5)		25,000		-0-
	Convertible note - stockholder, 10%, due April 30, 2013,unsecured (1)		25,000		25,000
		$	855,000	$	796,900

6_LEASES_Tables

6. LEASES (Tables)	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Minimum Future Lease Commitments	'
		Year	Amount
		2015	56,880
		2016	36,396
		2017	30,360
		2018	31,584
		2019	31,584

9_INCOME_TAXES_Tables

9. INCOME TAXES (Tables)	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Tax loss carry-forward	$	1,509,625		$	1,169,000
	Valuation allowance		(1,509,625	)		(1,169,000	)
		$	—		$

1_ORGANIZATION_AND_NATURE_OF_T1

1. ORGANIZATION AND NATURE OF THE BUSINESS (Details Narrative)	10-May-07
Common Stock	'
Stock Issued	6,567,247
Preferred Stock - Class C	'
Stock Issued	100,000

2_LIQUIDITY_AND_GOING_CONCERN_

2. LIQUIDITY AND GOING CONCERN (Details Narrative) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'	'
Net Loss	($497,950)	($168,351)	($417,090)
Working Capital Deficiency	($363,229)	'	'

4_DEBT_AND_INSTALLMENT_AGREEME2

4. DEBT AND INSTALLMENT AGREEMENT - Debt and Installment Agreement (Details) (USD $)	Jun. 30, 2014		Dec. 31, 2013
Note Payable	$855,000		$796,900
Loan Payable 1	'		'
Note Payable	250,000	[1]	737,100	[1]
Convertible Note 1	'		'
Note Payable	500,000	[1]	'	[1]
Loan Payable 2	'		'
Note Payable	5,000	[2]	10,000	[2]
Loan Payable 3	'		'
Note Payable	'	[3]	24,800	[3]
Convertible Note 2	'		'
Note Payable	50,000	[4]	'	[4]
Convertible Note 3	'		'
Note Payable	25,000	[4]	'	[4]
Convertible Note 4	'		'
Note Payable	$25,000	[5]	$25,000	[5]
[1]	(4) At December 31, 2013 the Company was indebted to an affiliated shareholder of the Company for $840,955, which consisted of $737,100 principal and $103,895 accrued interest, with interest accruing at 10%. On January 2, 2014 the Company entered into a Debt Modification Agreement whereby the total amount of the debt was reduced to $750,000.00 and there is no accrued interest or principal due until December 31, 2015. $500,000 of the debt is convertible into 50,000 Series C Convertible Preferred Shares of AFAI, which if converted are subject to resale restrictions through December 31, 2015. The two-year note in the aggregate amount of $500,000 is convertible into the Companybs preferred stock at a conversion rate of $10.00 per share of preferred. At a conversion rate of 433.9297 common shares to 1 preferred share, this would result in a total of 21,696,485 common shares issued if all debt was converted. The market value of the stock at the date of issuance of the debt was $0.04. The debt issued is a result of
[2]	(2) On July 1, 2013 the company received $10,000 loan from a shareholder. In consideration for Payee making the loan to AFAI AFAI extended to Payee an option (the Option) to purchase Five Hundred Thousand (500,000) shares of common stock in AFAI for a price of $.10 per share (the Exercise Price) for a period of three (3) years from the date of this note (the Option Life). In the event that AFAI completes a sale of stock at a price lower than $.10 per share during the Option Life (whether via a bona fide public offering, or a sale of restricted stock pursuant to rule 504 or any other form of exemption available to the company) then the Exercise Price of the option shall be adjusted to that price for the duration of the term ofB the Option Life. On October 31, 2013 the maturity date of the note was extended to November 31, 2014 with four quarterly payments of $2,500 due March 31, 2014, June 30, 2014, September 30, 2014 and November 30, 2014. Additionally, the option was surrendered to the company in exch
[3]	(3) In 3rd Qtr. of 2013 a stockholder of the company agree to loan the company up to $25,000 for expenses on an as needed, non-interest bearing basis.
[4]	(5) On June 9 and June 15, 2014, the Company received a total of $75,000 from an accredited investor in exchange for one year notes in the aggregate amount of $75,000, convertible into the Companybs common stock at a conversion rate of $0.04 per share. The market value of the stock at the date of issuance of the debt was $0.06 and $0.09. The debt issued is a result of a financing transaction and contain a beneficial conversion feature. As of June 30, 2014, the balance was $75,000. With a net balance reflected of $22,300 B The beneficial conversion feature in the amount of $57,500 is being expensed as interest over the term of the note. At June 30, 2014 the Company has recorded interest expense in the amount of $4,500.
[5]	(1) At the option of the holder the convertible note may be converted into shares of the Companys common stock at the lesser of $0.40 or 20% discount to the market price as defined of the Companys common stock. The Company is currently in discussions with the lender on a payment schedule this is the no change from the period 10Q.

5_STOCKHOLDERS_EQUITY_Details_

5. STOCKHOLDERS EQUITY (Details Narrative) (USD $)	6 Months Ended			3 Months Ended	6 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Mar. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2014
				Consultants	Consultants	Directors	Preferred Stock - Class C
Preferred Stock Par Value	$0.00	'	$0.00	'	'	'	'
Preferred Stock Shares Authorized	10,000,000	'	10,000,000	'	'	'	100,000
Common Stock Par Value	$0.00	'	$0.00	'	'	'	'
Common Stock Shares Authorized	250,000,000	'	250,000,000	'	'	'	'
Voting Rights	'	'	'	'	'	'	'433.9297
Dividend Entitlement	'	'	'	'	'	'	'433.9297
Conversion Ratio	'	'	'	'	'	21,696,485	433.9297
Issuance of stock for services, Shares	1,000,000	'	'	2,400,000	2,400,000	'	'
Issuance of stock for services, Value	$100,000	'	'	'	$96,000	'	'
Proceeds from sales of common stock	310,000	10,000	'	'	'	'	'
Shares Issued	3,100,000	'	'	'	'	'	'
Shares Issued, Loan Modification, Value	4,000	'	'	'	'	'	'
Shares Issued, Loan Modification, Shares	100,000	'	'	'	'	'	'
Shares Issued, Charity, Shares	500,000	'	'	'	'	'	'
Shares Issued, Charity, Value	$50,000	'	'	'	'	'	'

6_LEASES_Minimum_Future_Lease_

6. LEASES - Minimum Future Lease Commitments (Details) (USD $)	Jun. 30, 2014
Debt Disclosure [Abstract]	'
2015	$56,880
2016	36,396
2017	30,360
2018	31,584
2019	$31,584

6_LEASES_Details_Narrative

6. LEASES (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Rent Expense	$21,526	$17,900
Security Deposit	$12,000	'

7_STOCK_OPTION_PLAN_Details_Na

7. STOCK OPTION PLAN (Details Narrative)	3 Months Ended	6 Months Ended
	Mar. 31, 2014	Jun. 30, 2014
Shares Reserved for Issuance	2,500,000	'
Issuance of stock for services, Shares	'	1,000,000
Consultants	'	'
Issuance of stock for services, Shares	2,400,000	2,400,000

8_RELATED_PARTY_TRANSACTIONS_D

8. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Mar. 31, 2014
			Directors
Related Party Debt, Interest Rate	10.00%	'	'
Related Party Debt	$750,000	'	'
Preferred Stock Held by Officer	55,120	55,120	50,000
Preferred Stock, Common Stock Converted Into	'	'	21,696,485

9_INCOME_TAXES_Income_Taxes_De

9. INCOME TAXES - Income Taxes (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'	'
Tax loss carryforward	$1,509,625	$1,169,000
Valuation allowance	-1,509,625	-1,169,000
Deferred Tax Asset	'	'

9_INCOME_TAXES_Details_Narrati

9. INCOME TAXES (Details Narrative) (USD $)	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Net Operating Loss Carryforwards	$4,264,300

10_SUBSEQUENT_EVENTS_Details_N

10. SUBSEQUENT EVENTS (Details Narrative) (Subsequent Event [Member], USD $)	6 Months Ended
	Jun. 30, 2014	Jul. 11, 2014
Subsequent Event [Member]	'	'
Note Payable	'	$160,000
Conversion Rate	4.00%	'
Market Value of Stock	'	$0.15