NutraLife BioSciences (NLBS) 10-Q 13 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2014
Document and Entity Information:	'
Entity Registrant Name	'NUTRAFUELS INC
Document Type	'10-Q
Document Period End Date	30-Jun-14
Amendment Flag	'false
Entity Central Index Key	'0001563463
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	21,788,408
Entity Public Float	$0
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'No
Entity Well-known Seasoned Issuer	'No
Document Fiscal Year Focus	'2014
Document Fiscal Period Focus	'Q2

NutraFuels_Inc_Balance_Sheets

NutraFuels, Inc. - Balance Sheets (USD $)	Jun. 30, 2014		Dec. 31, 2013
Current Assets:	'		'
Cash	$121,102		$63,255
Accounts receivable	16,809		10,068
Subscription receivable	'		25,000
Inventory	335,845		274,925
TOTAL CURRENT ASSETS	473,756		373,247
Property, Plant and Equipment, net	275,232	[1]	274,282	[1]
Total Assets	748,988		647,529
Current Liabilities:	'		'
Accounts payable	31,199		109,707
Accrued liabilities	81,803		41,099
Convertible debt	357,933	[2]	262,823	[2]
Convertible debt, related party	210,000		210,000
Notes payable	25,000		'
Notes payable, related party	95,000		95,000
Total Current Liabilities	800,935		718,629
Stockholders' Deficit	'		'
Preferred stock	'	[3]	'	[3]
Common stock	2,179	[4]	2,124	[4]
Additional paid-in capital	3,544,094		2,707,549
Retained earnings	-3,598,220		-2,780,773
SHAREHOLDERS' DEFICIT	-51,947		-71,100
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$748,988		$647,529
[1]	net of accumulated depreciation of $72,264 and $46,092, respectively.
[2]	net of discount of $312,067 and $87,177
[3]	$0.0001 par value; Authorized 10,000; issued and outstanding 1,000 and 10,000 respectively.
[4]	$0.0001 par value; Authorized 500,000,000; issued and outstanding 21,788,408 and 21,238,408 respectively.

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Shares Authorized	10,000	10,000
Preferred Stock, Shares Issued	1,000	1,000
Preferred Stock, Shares Outstanding	1,000	1,000
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares Issued	21,788,408	21,238,408
Common Stock, Shares Outstanding	21,788,408	21,238,408

NutraFuels_Inc_Statements_of_O

NutraFuels, Inc. - Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement	'	'	'	'
Revenue	$26,771	$240,405	$47,910	$287,085
Cost of revenues	9,971	82,351	55,766	93,247
Gross profit (loss)	16,800	158,054	-7,856	193,838
Operating Expenses:	'	'	'	'
Advertising and promotion	152,851	77,134	191,247	114,035
Administrative salaries	54,000	33,275	84,000	66,068
Selling, general, and administrative	246,133	967,411	362,122	1,013,059
Depreciation expense	13,135	6,457	26,172	16,133
TOTAL OPERATING EXPENSES	465,119	1,084,277	663,541	1,209,295
Other Income (Expense):	'	'	'	'
Income for Indebtedness	7,956	'	7,956	'
Interest Income	14	'	14	'
Interest Expense	-96,918	'	-154,020	'
Net Loss	($537,267)	($926,223)	($817,447)	($1,015,457)
Net loss per common share- basic and diluted	($0.03)	($0.10)	($0.04)	($0.06)
Weighted average common shares outstanding- basic and diluted	21,288,408	9,302,335	21,457,852	16,450,977

NutraFuels_Inc_Statements_of_C

NutraFuels, Inc. - Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating Activities:	'	'
Net Loss	($817,447)	($1,015,457)
Adjustments to reconcile net loss to net cash provided by operations:	'	'
Depreciation expense	26,172	16,133
Stock for services- related party	'	546,313
Stock for services	'	313,747
Amortization of Debt Discount	111,710	'
Reclassification of Down Payment for Equipment	-22,400	'
Income from Indebtedness	-7,956	'
Changes in operating assets and liabilities:	'	'
Accounts receivable, increase decrease	-6,741	-117,192
Subscription receivable, increase decrease	25,000	'
Inventory, increase decrease	-60,920	-115,815
Accrued expenses, increase decrease	40,705	-51,771
Accounts payable, increase decrease	-70,552	15,792
Net Cash Used In Operating Activities	-782,429	-408,250
Investing Activities:	'	'
Purchase of fixed assets	-4,724	-246,718
Net cash used in Investing Activities	-4,724	-246,718
Financing Activities:	'	'
Common stock issued for cash	500,000	225,000
Borrowings on debt	370,000	100,000
Repayments on debt, related party	-25,000	-160,000
Borrowings on debt, related party	'	395,000
Net Cash Provided by Financing Activities	845,000	560,000
Net increase (decrease) for the period	57,847	-94,968
Cash, beginning of period	63,255	144,750
Cash, end of period	121,102	49,782
Supplementary Cash Flow Information:	'	'
Interest paid in cash	'	'
Income tax paid in cash	'	'
Non-cash financing and investing activities:	'	'
Shares issued with the issuance of debt	25,000	'
Debt discount from beneficial conversion feature	21,600	'
Warrants issued with the issuance of debt	$290,000	'

Note_1_Description_of_Business

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies	'
	NOTE 1 – DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Description of Business
	Nutrafuels is the producer of nutritional supplements that uses micro molecular formulae and a utilization of an oral spray to provide faster and more efficient absorption.
	Basis of presentation
	The financial statements have been prepared by Nutrafuels, Inc. in accordance with accounting principles generally accepted in the United States. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the financial position and operating results for the respective periods.
	Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Company’s most recent annual report on Form 10-K, have been omitted.

Note_2_Going_Concern

Note 2 - Going Concern	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 2 - Going Concern	'
	NOTE 2 – GOING CONCERN
	As shown in the accompanying financial statements, we have incurred losses from inception, including net losses of $817,447 for the six months ended June 30, 2014. In response to these conditions, we may raise additional capital through the sale of equity securities, through an offering of debt securities or through borrowings from financial institutions or individuals. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Note_3_Notes_Payable

Note 3 - Notes Payable	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 3 - Notes Payable	'
	NOTE 3 – NOTES PAYABLE
	During February 2014, an investor loaned the Company $50,000.  The loan was due by May 1, 2014 and an informal extension was granted by the investor for the balance of $25,000.  The investor also received 50,000 shares of common stock in conjunction with the loan.  The proceeds were allocated using relative fair value to the stock and loan as follows:
	Relative fair value of stock	$	25,000
	Relative fair value of note payable	$	25,000
	The discount on the note, $25,000, will be recognized as additional interest over the life of the note.  As of June 30, 2014, the note’s discount has been fully amortized.

Note_4_Convertible_Debt

Note 4 - Convertible Debt	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 4 - Convertible Debt	'
	NOTE 4 – CONVERTIBLE DEBT
	On March 26, 2014, the Company borrowed $290,000 under a convertible note agreement with an investor.  The note bears an interest rate of 10%, matures on March 26, 2015, and is convertible at $1.00 per share.  The investor received warrants to purchase 500,000 shares of common stock at $0.50 per share with a two year exercise term.
	We evaluated the warrants for derivative accounting consideration under ASC Topic 815-40, Derivatives and Hedging – Contracts in Entity’s own stock. We concluded that the warrants meet the criteria for classification in stockholders' equity. Therefore, derivative accounting is not applicable for the warrants.  Accordingly, we allocated the proceeds from the transaction to the debt, stock, and warrants based on their relative fair value.  We determined the fair value of the warrants using a Black-Sholes option pricing model with the following inputs:
	Risk-free interest rate	0.45%
	Dividend yield	-%
	Volatility factor	145%
	Expected life (years)	2
	The volatility was determined by referring to the average historical volatility of a peer group of public companies because we do not have a trading history from which to determine historical volatility.
	The fair value of the investment was allocated between the note and warrant as follows:
	Relative fair value of warrants	167,477
	Relative fair value of note payable	$   122,553
	Because the price for recent sales of common stock exceeded the effective conversion price, we also recognized a beneficial conversion feature of $122,553.  The total discount on the note, $290,000, will be recognized as additional interest over the life of the note.  As of June 30, 2014, the remaining amount of the discount is $254,611.
	On June 23, 2014, the Company borrowed $30,000 under a convertible note agreement with an investor.  The note bears an interest rate of 10%, matures on June 23, 2015, and is convertible at $1.00 per share. Because the market price for our common stock on the date of the note exceeded the note’s conversion price, $1.00 per share, we recognized a beneficial conversion feature of $21,600 as a discount on the note.  The discount will be recognized as additional interest over the life of the note.  As of June 30, 2014, the remaining amount of the discount is $21,600.
	We evaluated the conversion features embedded in the two notes payable described above for derivative accounting in accordance with ASC 815-40, Derivatives and Hedging embedded in the modified notes payable for derivative accounting in accordance with the criteria for classification in stockholders' equity. Therefore, derivative accounting is not applicable.

Note_5_Shareholders_Equity

Note 5 - Shareholders' Equity	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 5 - Shareholders' Equity	'
	NOTE 5 – SHAREHOLDERS’ EQUITY
	During April 2014, an investor purchased 500,000 shares for $1.00 per share.  The investor also received warrants to purchase 500,000 shares at exercise price of $0.50 per share.  The warrants have a one-year term.

Note_6_Commitments_Contingenci

Note 6 - Commitments & Contingencies	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 6 - Commitments & Contingencies	'
	NOTE 6 – COMMITMENTS & CONTINGENCIES
	During January 2014, we were granted a license to market nutritional supplements under the TapouT XT name to retail locations worldwide. Under the license agreement, we are required to pay a royalty fee to Nutra Evolution of 12.5% of net sales. The agreement provides us with an initial test period of four years, until January 31, 2018, to distribute the product. We paid $85,000 in conjunction with the license. At the expiration of this four year period, we may extend the license for three (3) consecutive three (3) year terms. We are required to pay minimum royalties of $400,000 during the first contract year; $750,000 during the second contract year and $1,000,000 each year thereafter.
	In late April 2014, the Company entered into an agreement with Sullivan Media Group, a Nevada corporation, to conduct market research in regards to promotion of the NutraFuels brand at a cost of $104,500.
	On May 26, 2014, we entered into an agreement with SRC Sales Inc., a Massachusetts corporation (“SRC Sales”) to be the exclusive distributor of our products to certain retailers (the “Retailer Accounts”) in the United States and Canada.  We agreed to pay 7% of sales derived from any Retailer Account obtained from the efforts of SRC Sales.  The agreement has a term of 36 months.  We agreed to issue 50,000 restricted shares of our common stock to SRC Sales for each Retailer Account, and 50,000 shares for each order of $500,000.    For purposes of the agreement, Retailer Account means a retailer with more than 200 locations.  The terms of the Agreement do not apply to any of our prior or existing customers.

Note_7_Notes_Payable_Related_P

Note 7 - Notes Payable - Related Party	6 Months Ended
	Jun. 30, 2014
Notes	'
Note 7 - Notes Payable - Related Party	'
	NOTE 7 – NOTES PAYABLE - RELATED PARTY
	As of June 30 2014, the Company is indebted to Neil Catania, vice president, for $305,000.  From time to time, Mr. Catania has advanced funds to the Company with no formal note agreement.  During 2013, Mr. Catania advanced $405,000 to the Company and the Company repaid $310,000, resulting a net balance due to him of $95,000.  The remaining $210,000 relates to two convertible notes payable, which are described below.
	On November 15, 2012, the Company borrowed $135,000 under a convertible note agreement with Neil Catania, vice president. Under the original terms of the note, it was convertible at the most recent price of shares sold in an offering registered with SEC. The note bears interest at 10% and is due on November 15, 2014.  As of December 31, 2012, $160,000 in principal was outstanding. During September 2013, the note was modified to establish a set conversion price of $1.00 per share. Because no registered offering of our common stock has occurred, the notes did not have an effective conversion feature before the modification occurred and thus derivative treatment could not be determined.  Additionally, there was no beneficial conversion feature associated with the notes prior to their modification.
	We evaluated the modification using the criteria set forth in ASC Topic 470-50, Debt – Modifications and Extinguishments and we determined that the modification was an extinguishment because there was a substantial modification of terms.  However, we did not experience a gain or loss on extinguishment because the fair value of the extinguished note was the same as the fair value of the modified note.  There was no beneficial conversion feature associated with the modified note because the conversion price equaled or exceeded the cash sales prices of common stock ($.35 per share) that had occurred before the modification.
	On February 15, 2013 Mr. Catania lent the Company an additional $50,000.  The note is convertible into common stock at a price of $1.00 per share.  The note bears interest at 10% and is due on May 15, 2014.  The conversion feature was not beneficial at the time of issuance because the conversion price equaled or exceeded the cash sales prices of common stock ($.35 per share) that had occurred before the modification.
	We evaluated the conversion features embedded in the modified November Note and the February Note for derivative accounting in accordance with ASC 815-40, Derivatives and Hedging – Contracts in Entity’s own stock and concluded that the conversion features meet the criteria for classification in stockholders' equity. Therefore, derivative accounting is not applicable.

Note_1_Description_of_Business1

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies: Description of Business (Policies)	6 Months Ended
	Jun. 30, 2014
Policies	'
Description of Business	'
	Description of Business
	Nutrafuels is the producer of nutritional supplements that uses micro molecular formulae and a utilization of an oral spray to provide faster and more efficient absorption.

Note_1_Description_of_Business2

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies: Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2014
Policies	'
Basis of Presentation	'
	Basis of presentation
	The financial statements have been prepared by Nutrafuels, Inc. in accordance with accounting principles generally accepted in the United States. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments), which are, in the opinion of management, necessary to fairly present the financial position and operating results for the respective periods.
	Notes to the financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the most recent fiscal period, as reported in the Company’s most recent annual report on Form 10-K, have been omitted.

Note_3_Notes_Payable_Schedule_

Note 3 - Notes Payable: Schedule Fair Value Stock and Loan (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule Fair Value Stock and Loan	'
	Relative fair value of stock	$	25,000
	Relative fair value of note payable	$	25,000

Note_4_Convertible_Debt_Schedu

Note 4 - Convertible Debt: Schedule of Derivative Liabilities at Fair Value (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule of Derivative Liabilities at Fair Value	'
	Risk-free interest rate	0.45%
	Dividend yield	-%
	Volatility factor	145%
	Expected life (years)	2

Note_4_Convertible_Debt_Schedu1

Note 4 - Convertible Debt: Schedule Fair Value Note and Warrant (Tables)	6 Months Ended
	Jun. 30, 2014
Tables/Schedules	'
Schedule Fair Value Note and Warrant	'
	Relative fair value of warrants	167,477
	Relative fair value of note payable	$   122,553

Note_3_Notes_Payable_Details

Note 3 - Notes Payable (Details) (USD $)	Feb. 28, 2014
Details	'
Loans Payable	$50,000
Due to Affiliate, Current	$25,000
Shares, Issued	50,000

Note_3_Notes_Payable_Schedule_1

Note 3 - Notes Payable: Schedule Fair Value Stock and Loan (Details) (Stock and Loan, USD $)	12 Months Ended
	Dec. 31, 2013
Stock and Loan	'
Relative Fair Value Stock	$25,000
Relative Fair Value Note Payable	$25,000

Note_4_Convertible_Debt_Detail

Note 4 - Convertible Debt (Details) (USD $)	Jun. 30, 2014	Jun. 23, 2014	Apr. 30, 2014	Mar. 26, 2014	Dec. 31, 2013
Details	'	'	'	'	'
Subscription receivable	'	'	'	$290,000	$25,000
Short-term Debt, Percentage Bearing Fixed Interest Rate	'	'	'	10.00%	'
Debt Conversion Converted Instrument Warrants or Options Issued	'	'	500,000	500,000	'
Common Stock, Par Value	$0.00	$1	$1	$0.50	$0.00
Beneficial Conversion Feature	122,553	21,600	'	'	'
Debt Instrument, Unamortized Discount	254,611	21,600	'	'	'
Notes and Loans Payable	'	$30,000	'	'	'
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	'	10.00%	'	'	'

Note_4_Convertible_Debt_Schedu2

Note 4 - Convertible Debt: Schedule of Derivative Liabilities at Fair Value (Details)	3 Months Ended
	Jun. 30, 2014
Details	'
Derivative, Variable Interest Rate	0.45%
Fair Value Assumptions, Expected Volatility Rate	145.00%
Remaining Contractual Term	2

Note_4_Convertible_Debt_Schedu3

Note 4 - Convertible Debt: Schedule Fair Value Note and Warrant (Details) (Note and Warrants, USD $)	3 Months Ended
	Jun. 30, 2014
Note and Warrants	'
Relative Fair Value Warrants	$167,477
Relative Fair Value Note Payable	$122,553

Note_5_Shareholders_Equity_Det

Note 5 - Shareholders' Equity (Details) (USD $)	4 Months Ended
	Apr. 30, 2014	Jun. 30, 2014	Jun. 23, 2014	Mar. 26, 2014	Dec. 31, 2013
Details	'	'	'	'	'
Common Stock Shares Purchased	500,000	'	'	'	'
Common Stock, Par Value	$1	$0.00	$1	$0.50	$0.00
Debt Conversion Converted Instrument Warrants or Options Issued	500,000	'	'	500,000	'

Note_6_Commitments_Contingenci1

Note 6 - Commitments & Contingencies (Details) (USD $)	1 Months Ended
	Jan. 31, 2014	Apr. 30, 2014
		Sullivan Media Group
Proceeds from License Fees Received	$85,000	'
Marketing Expense	'	$104,500

Note_7_Notes_Payable_Related_P1

Note 7 - Notes Payable - Related Party (Details) (USD $)	Jun. 30, 2014	Jun. 23, 2014	Apr. 30, 2014	Mar. 26, 2014	Dec. 31, 2013	Jun. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Feb. 15, 2013	Dec. 31, 2012	Nov. 15, 2012
						Neil Catania	Neil Catania	Neil Catania	Neil Catania	Neil Catania	Neil Catania
Due to Related Parties, Current	'	'	'	'	'	$305,000	$405,000	'	'	'	$135,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	'	10.00%	'	'	'	'	'	'	'	'	10.00%
Debt Instrument Principal Outstanding	'	'	'	'	'	'	'	'	'	160,000	'
Debt Instrument Convertible Conversion Price	'	'	'	'	'	'	'	$1	'	'	'
Loans Payable, Current	'	'	'	'	'	'	'	'	$50,000	'	'
Common Stock, Par Value	$0.00	$1	$1	$0.50	$0.00	'	'	'	$1	'	'
Accounts Payable, Interest-bearing, Interest Rate	'	'	'	'	'	'	'	'	10.00%	'	'