NutraLife BioSciences (NLBS) 10-Q 4 Sep 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document and Entity Information:
Entity Registrant Name	NUTRAFUELS INC
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,563,463
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	22,917,114
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	ntfl

NutraFuels, Inc. - Condensed Ba

NutraFuels, Inc. - Condensed Balance Sheets - USD ($)		Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash		$ 28,251	$ 25,053
Accounts receivable, net		51,362	1,679
Inventory, net		90,418	70,000
TOTAL CURRENT ASSETS		170,031	96,732
Property, Plant and Equipment, net	[1]	248,586	248,963
Total Assets		418,617	345,965
Current Liabilities:
Accounts payable		24,758	34,010
Accrued liabilities		307,863	236,280
Convertible debt	[2]	580,000	617,840
Convertible debt, related party		210,000	210,000
Notes payable	[3]	55,000	46,894
Notes payable, related party		412,500	150,000
Derivative Liability		275,000
Total Current Liabilities		1,865,121	$ 1,295,024
Long Term Liabilities
Convertible Debt	[4]	228,528
Total Long Term Liabilities		228,528
Total Liabilities		$ 2,093,649	$ 1,295,024
Shareholders' Deficit
Preferred stock	[5]
Common stock	[6]	$ 2,292	$ 2,228
Additional paid-in capital		4,182,272	3,904,936
Accumulated Deficit		(5,859,596)	(4,856,493)
TOTAL SHAREHOLDERS' DEFICIT		(1,675,032)	(949,329)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT		$ 418,617	$ 345,695
[1]	net of accumulated depreciation of $125,382 and $98,534, respectively.
[2]	net of discount of $0 and $162,160
[3]	net of discount of $0 and $8,106
[4]	net of discount of of $246,473 and $0
[5]	$0.0001 par value; Authorized 10,000; issued and outstanding 1,000 and 1,000, respectively.
[6]	$0.0001 par value; Authorized 499,990,000; issued and outstanding 22,917,114 and 22,282,114, respectively.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
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	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	499,990,000	499,990,000
Common Stock, Shares Issued	22,917,114	22,282,114
Common Stock, Shares Outstanding	22,917,114	22,282,114

NutraFuels, Inc. - Condensed St

NutraFuels, Inc. - Condensed Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement
Revenue	$ 74,578	$ 26,771	$ 76,310	$ 47,910
Cost of revenues	54,857	9,971	68,944	55,766
Gross Profit (loss)	19,721	16,800	7,366	(7,856)
Operating Expenses:
Advertising and promotion	147,582	152,851	181,296	191,247
Administrative salaries	55,500	54,000	81,500	84,000
General and administrative	234,300	246,133	462,487	362,122
Depreciation expense	13,695	13,135	26,848	26,172
TOTAL OPERATING EXPENSES	451,077	466,119	752,131	663,541
Other Income (Expense):
Income from indebtedness		7,956		7,956
Interest Income		14		14
Interest Expense	(69,450)	(96,918)	(258,338)	(154,020)
Loss Before Income Taxes	$ (500,806)	$ (538,267)	$ (1,003,103)	$ (817,447)
Income taxes
Net Loss	$ (500,806)	$ (538,267)	$ (1,003,103)	$ (817,447)
Net loss per common share- basic and diluted	$ (0.02)	$ (0.03)	$ (0.04)	$ (0.04)
Weighted average common shares outstanding- basic and diluted	22,803,534	21,288,408	22,545,467	21,457,852

NutraFuels, Inc. - Condensed S5

NutraFuels, Inc. - Condensed Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating Activities:
Net Loss	$ (1,003,103)	$ (817,447)
Adjustments to reconcile net loss to net cash used in operations:
Stock Compensation	167,400
Depreciation	26,848	26,172
Amortization of Debt Discount	198,794	111,710
Reclassification of down payment for equipment		(22,400)
Income from indebtedness	0	(7,956)
Changes in operating assets and liabilities:
Accounts receivable, increase decrease	(49,683)	(6,741)
Subscription receivable, increase decrease		25,000
Inventory, increase decrease	(20,418)	(60,920)
Accrued expenses, increase decrease	71,583	40,705
Accounts payable, increase decrease	(9,252)	(70,552)
Net Cash Used In Operating Activities	(617,831)	(782,429)
Investing Activities:
Purchase of fixed assets	(26,471)	(4,724)
Net cash used in Investing Activities	(26,471)	(4,724)
Financing Activities:
Common stock issued for cash	110,000	500,000
Borrowing on debt	275,000	370,000
Borrowings on debt- related party	262,500
Repayments of debt- related party		(25,000)
Net Cash Provided by Financing Activities	647,500	845,000
Net Cash Increase for period year	3,198	57,847
Cash, beginning of period	25,053	63,255
Cash, end of period	$ 28,251	$ 121,102
Supplemental Disclosure of Cash Flow Information:
Income taxes
Interest
Noncash investing and financing activities:
Debt discount from beneficial conversion feature	$ 275,000	$ 21,600
Shares issued for the issuance of debt		$ 25,000
Warrants issued for conversion of debt		290,000

Note 1 - Description of Busines

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
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, Inc. (“We”, or the “Company”) is the producer and distributor 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 accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, the accompanying unaudited financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the financial statements and the footnotes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission. Certain reclassifications have been made to the comparative period condensed financial statements in order to conform to the current period classifications.

Note 2 - Going Concern

Note 2 - Going Concern	6 Months Ended
	Jun. 30, 2015
Notes
Note 2 - Going Concern	NOTE 2 – GOING CONCERN These accompanying condensed financial statements have been prepared assuming that we will continue as a going concern. As shown in the accompanying condensed financial statements, we have sustained losses from inception, including a net loss of approximately $1,003,103 for the six month period ended June 30, 2015, and we have working capital and accumulated deficits that raise substantial doubt about our ability to continue as a going concern. In response to these conditions, we seek to raise additional capital through the sale of debt or equity securities, or through borrowings from financial institutions or individuals. The condensed financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.

Note 3 - Convertible Debt & Not

Note 3 - Convertible Debt & Notes Payable	6 Months Ended
	Jun. 30, 2015
Notes
Note 3 - Convertible Debt & Notes Payable	NOTE 3 – CONVERTIBLE DEBT & NOTES PAYABLE In February 2015, we sold 25,000 units to an investor in exchange for $25,000. The 25,000 units consist of: (i) 25,000 shares of our common stock; (ii) 2-year options to purchase 25,000 shares of our common stock at $0.20, and (iii) a 2-year convertible promissory note in the amount of $25,000. The note is non-interest bearing and is convertible into shares of our common stock at the higher of (a) twenty five cents ($.25) or (b) fifty percent (50%) of the average closing price of our shares as reported by the OTC Markets for the 10 trading days prior to the day of conversion. The conversion rights embedded in the note are accounted for as a derivative financial instrument because of the beneficial conversion feature embedded therein. The beneficial conversion feature was valued and recorded at the date of issuance at fair value, and recorded as a debt discount. The proceeds received were allocated first to the derivative liability, with the residual allocated between the shares and options issued based on their relative fair values, as follows: Residual value of shares $ 0 Residual fair value of options $ 0 Fair value of BCF (derivative) $ 25,000 The note was recorded net of a full discount in the amount of $25,000, which is being amortized over the initial term of the note. At June 30, 2015, the unamortized balance of the debt discount is $20,446. In April 2015, we sold 250,000 units to an investor in exchange for $250,000. The 250,000 units consist of: (i) 250,000 shares of our common stock; (ii) 2-year options to purchase 250,000 shares of our common stock at $0.20, and (iii) a 2-year convertible promissory note in the amount of $250,000. The note bears 10% interest and is convertible into shares of our common stock at the higher of (a) twenty five cents ($.25) or (b) fifty percent (50%) of the average closing price of our shares as reported by the OTC Markets for the 10 trading days prior to the day of conversion. The conversion rights embedded in the note are accounted for as a derivative financial instrument because of the beneficial conversion feature embedded therein. The beneficial conversion feature was valued and recorded at the date of issuance at fair value, and recorded as a debt discount. The proceeds received were allocated first to the derivative liability, with the residual allocated between the shares and options issued based on their relative fair values, as follows: Residual value of shares Residual value of options $ 0 $ 0 Fair value of BCF (derivative) $ 250,000 The note was recorded net of a full discount in the amount of $250,000, which is being amortized over the initial term of the note. At June 30, 2015, the unamortized balance of the debt discount is $226,027. During the second quarter of 2015, we received $122,500 in net proceeds from related party loans. Scheduled principal maturities for debt issuances at June 30, 2015 is as follows: Year ended December 31, 2015 (6 months) $ 210,000 Year ended December 31, 2016 835,000 Year ended December 31, 2017 275,000 Total 1,320,000 Less Unamortized Debt Discount (246,472) Plus General Operating Loans 412,500 Balance as of June 30, 2015 $ 1,486,028

Note 4 - Shareholders' Equity

Note 4 - Shareholders' Equity	6 Months Ended
	Jun. 30, 2015
Notes
Note 4 - Shareholders' Equity	NOTE 4 – SHAREHOLDERS’ EQUITY During February 2015, we issued 25,000 shares of our common stock and warrants to purchase 25,000 shares of our common stock in connection with the sale of 25,000 units. (see Note 3). During March 2015, we issued 60,000 shares of our common stock for consulting services rendered to us. We valued these shares at $1.94 per share, the closing stock price on the date of issuance. During April 2015, we issued 100,000 shares of our common stock for consulting services rendered to us. We value these shares at $0.51 per share, the closing stock price on the date of issuance. During April 2015, we issued 250,000 shares of our common stock and warrants to purchase 250,000 shares of our common stock in connection with the sale of 250,000 units (see Note 3). During June 2015, we issued 200,000 shares of our common stock and warrants to purchase 200,000 shares of our common stock in connection with the sale of 200,000 units.

Note 5 - Commitments & Continge

Note 5 - Commitments & Contingencies	6 Months Ended
	Jun. 30, 2015
Notes
Note 5 - Commitments & Contingencies	NOTE 5 – 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 were required to pay a royalty fee to Nutra Evolution of 12.5% of net sales. The agreement provided 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 had the option to extend the license for three (3) consecutive three (3) year terms. The agreement originally required us 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. Subsequent to March 31 2015, we terminated the license agreement and no longer are obligated to pay the minimum royalties. In late April 2014, we entered into an agreement with Sullivan Media Group, a Nevada corporation, to conduct market research in promotion of our NutraFuels brand. Through the second quarter of 2015 we have paid Sullivan Media Group a total of $155,000 to begin Phase 2 of our agreement, which will finalize the rebranding, repackaging, and re-launch of our NutraFuels product line. In February 2015, we entered into an agreement with GenCap Securities, LLC (“GenCap”), to serve as our exclusive placement agent, on a best efforts basis, in connection with a proposed securities offering of up to $10,000,000.The agreement terminates upon the earlier of: (i) 90 days after execution, or (ii) consummation of an offering. After 90 days, this agreement may be terminated by either party upon 15 days notice. We are obligated to pay to GenCap: (i) a monthly retainer fee in the amount of $15,000, payable upon a financing facilitated by GenCap; and (ii) a placement fee ranging from 5.5% to 12.0% of the funds raised, based on the type of security sold. To date, GenCap has not secured funding for us, and no payments have been made. On April 14, 2015, we entered into a consulting agreement with Benchmark Advisory Partners, LLC. In consideration for future consulting services, we agreed to pay a fixed fee of three hundred thousand restricted shares of our stock, payable in one hundred thousand share installments on April 14, 2015, June 14, 2015, and August 14, 2015. We paid the initial installment. The agreement was terminated in June 2015.

Note 6 - Subsequent Events

Note 6 - Subsequent Events	6 Months Ended
	Jun. 30, 2015
Notes
Note 6 - Subsequent Events	NOTE 6 – SUBSEQUENT EVENTS Subsequent to June 30, 2015, we received $55,000 of additional related party loans. In August 2015, we received $70,000 via issuance of convertible notes. On July 18, 2015, we entered into a consulting agreement with WT Consulting Group, LLC. For consulting services rendered, we will pay $2,000 per month retainer for services as well as 25,000 restricted shares per month. The above compensation for consulting services under this agreement will begin July 18, 2015. In July 2015, we entered into an amendment to our agreement with Sullivan Media Group, Inc., a Nevada Corporation (“SMG”). In connection with the amendment, we agree to issue warrants to acquire approximately 4,500,000shares of our common stock, which were issued in August, 2015. In August 2015, we extended the maturity of our $100,000 promissory note to August 26, 2016.

Note 1 - Description of Busin12

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies: Description of Business (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Description of Business	Description of Business NutraFuels, Inc. (“We”, or the “Company”) is the producer and distributor 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 Busin13

Note 1 - Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies: Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2015
Policies
Basis of Presentation	Basis of presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion, the accompanying unaudited financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the financial statements and the footnotes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission. Certain reclassifications have been made to the comparative period condensed financial statements in order to conform to the current period classifications.

Note 3 - Convertible Debt & N14

Note 3 - Convertible Debt & Notes Payable: Schedule of Fair Value Warrants Table Text Block (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Fair Value Warrants Table Text Block	Residual value of shares $ 0 Residual fair value of options $ 0 Fair value of BCF (derivative) $ 25,000

Note 3 - Convertible Debt & N15

Note 3 - Convertible Debt & Notes Payable: Schedule of Shares and Options Issued Table Text Block (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Shares and Options Issued Table Text Block	Residual value of shares Residual value of options $ 0 $ 0 Fair value of BCF (derivative) $ 250,000

Note 3 - Convertible Debt & N16

Note 3 - Convertible Debt & Notes Payable: Schedule of Principal Maturities Table Text Block (Tables)	6 Months Ended
	Jun. 30, 2015
Tables/Schedules
Schedule of Principal Maturities Table Text Block	Year ended December 31, 2015 (6 months) $ 210,000 Year ended December 31, 2016 835,000 Year ended December 31, 2017 275,000 Total 1,320,000 Less Unamortized Debt Discount (246,472) Plus General Operating Loans 412,500 Balance as of June 30, 2015 $ 1,486,028

Note 2 - Going Concern (Details

Note 2 - Going Concern (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Details
Net Loss	$ 500,806	$ 538,267	$ 1,003,103	$ 817,447

Note 3 - Convertible Debt & N18

Note 3 - Convertible Debt & Notes Payable (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Aug. 31, 2015	Apr. 30, 2015	Feb. 28, 2015
Details
Convertible Notes Payable		$ 70,000	$ 250,000	$ 25,000
Debt Instrument, Unamortized Discount (Premium), Net	$ 20,446
Proceeds from Loans	$ 122,500

Note 3 - Convertible Debt & N19

Note 3 - Convertible Debt & Notes Payable: Schedule of Fair Value Warrants Table Text Block (Details) - NotesCommonStockAndWarrantsMember	6 Months Ended
	Jun. 30, 2015USD ($)
Relative Fair Value of Shares	$ 0
Residual Value of Warrants	0
Fair Value of Conversion Feature	$ 25,000

Note 3 - Convertible Debt & N20

Note 3 - Convertible Debt & Notes Payable: Schedule of Shares and Options Issued Table Text Block (Details) - Shares and Options Issued	6 Months Ended
	Jun. 30, 2015USD ($)
Relative Fair Value of Shares	$ 0
Residual Value of Warrants	0
Fair Value of Conversion Feature	$ 250,000

Note 3 - Convertible Debt & N21

Note 3 - Convertible Debt & Notes Payable: Schedule of Principal Maturities Table Text Block (Details) - USD ($)		Jun. 30, 2015	Dec. 31, 2014
Convertible Debt	[1]	$ 228,528
Debt Instrument, Unamortized Discount		(246,472)
Other Loans Payable		412,500
2015 (6 Months)
Convertible Debt		210,000
2,016
Convertible Debt		835,000
2,017
Convertible Debt		275,000
Total
Convertible Debt		1,320,000
Balance, June 30, 2015
Convertible Debt		$ 1,486,028
[1]	net of discount of of $246,473 and $0

Note 4 - Shareholders' Equity (

Note 4 - Shareholders' Equity (Details) - $ / shares	1 Months Ended
	Jun. 30, 2015	Apr. 30, 2015	Mar. 31, 2015	Mar. 30, 2105	Feb. 28, 2015	Dec. 31, 2014
Common Stock, Shares Issued	22,917,114					22,282,114
Common Stock, Par Value	$ 0.0001					$ 0.0001
February 2,015
Common Stock, Shares Issued					25,000
March 2,015
Shares issued for services, Shares			60,000
Common Stock, Par Value				$ 1.94
April 2,015
Shares issued for services, Shares		100,000
Common Stock, Par Value		$ 0.51
April 2015 (2)
Shares issued for services, Shares		250,000
June 2,015
Shares issued for services, Shares	200,000

Note 5 - Commitments & Contin23

Note 5 - Commitments & Contingencies (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 28, 2015	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
License Costs		$ 85,000
Advertising and promotion			$ 147,582	$ 152,851	$ 181,296	$ 191,247
First Contract Year
Payments for Royalties							$ 400,000
Second Contract Year
Payments for Royalties							750,000
Each Contract Year Thereafter
Payments for Royalties							$ 1,000,000
Sullivan Media Group
Advertising and promotion			$ 155,000
GenCap
Noninterest Expense Offering Cost	$ 10,000,000
Retainage Deposit	$ 15,000
Placement Fee	12.00%

Note 6 - Subsequent Events (Det

Note 6 - Subsequent Events (Details) - USD ($)	1 Months Ended	3 Months Ended
	Aug. 18, 2015	Mar. 31, 2015	Aug. 31, 2015	Aug. 01, 2015	Apr. 30, 2015	Feb. 28, 2015
Proceeds from Related Party Debt		$ 55,000
Convertible Notes Payable			$ 70,000		$ 250,000	$ 25,000
Shares, Issued				4,500,000
WT Consulting Group, LLC.
Payments For Consulting Services	$ 2,000
Shares issued for services, Shares	25,000