Isatori 10-Q 9 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	9-May-14
Document And Entity Information	'	'
Entity Registrant Name	'iSatori, Inc.	'
Entity Central Index Key	'0000741114	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-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?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	12,887,151
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Condensed_Balance_Sheets_Unaud

Condensed Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$1,219,678	$822,876
Accounts receivables	'	'
Trade, net of allowance for doubtful accounts	1,931,026	2,398,178
Income tax receivable	0	102,452
Note receivables - current portion	10,325	11,013
Inventories	2,287,203	1,985,764
Assets held for sale	21,824	108,228
Deferred tax asset, net	95,176	53,081
Prepaid expenses	167,008	222,466
Total current assets	5,732,240	5,704,058
Property and equipment, net of accumulated depreciation	171,070	173,636
Note receivable - net of current portion	81,714	81,714
Other assets:	'	'
Deferred tax asset, net	152,970	147,941
Deposits and other assets	41,997	61,167
Total other assets	194,967	209,108
Total assets	6,179,991	6,168,516
Current liabilities	'	'
Trade accounts payable	976,943	1,248,490
Accrued expenses	182,768	187,608
Deferred revenues	239,624	292,215
Line of credit, less debt discount	1,220,655	1,220,655
Notes payable	19,297	20,464
Total current liabilities	2,639,287	2,969,432
Long-term liabilities	'	'
Derivative liability	470,292	471,015
Commitments and contingencies	'	'
Stockholders' Equity	'	'
Convertible preferred stock	225	225
Common stock	128,797	128,797
Additional paid-in-capital	4,737,640	4,731,535
Accumulated deficit	-1,796,250	-2,132,488
Total stockholders' equity	3,070,412	2,728,069
Total liabilities and stockholders' equity	$6,179,991	$6,168,516

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Convertible preferred stock, par value per share in dollars	$0.01	$0.01
Convertible preferred stock, shares authorized	750,000	750,000
Convertible preferred stock, shares issued	22,500	22,500
Convertible preferred stock, shares outstanding	22,500	22,500
Convertible preferred stock, liquidation value	$450,000	$450,000
Common stock, par value in dollars	$0.01	$0.01
Common stock, shares authorized	56,250,000	56,250,000
Common stock, shares issued	12,879,651	12,879,651
Common stock, shares outstanding	12,879,651	12,879,651

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenue:	'	'
Product revenue (net of returns and discounts)	$3,219,244	$2,203,856
Royalty revenue	32,627	32,710
Other revenue	9,396	19,800
Total revenue	3,261,267	2,256,366
Cost of sales	1,243,797	1,045,113
Gross profit	2,017,470	1,211,253
Operating Expenses:	'	'
Selling and marketing	782,687	316,175
Salaries and labor related expenses	647,413	534,328
Administration	213,978	416,447
Depreciation and amortization	19,129	25,016
Total operating expenses	1,663,207	1,291,966
Income (loss) from operations	354,263	-80,713
Other income (expense)	30,199	-124,359
Financing expense	-21,353	-46,761
Interest expense	-11,048	-1,152
Income (loss) before income taxes	352,061	-252,985
Income tax expense	-15,823	-10,134
Net income (loss)	$336,238	($263,119)
Net income/(loss) per common share, Basic	$0.03	($0.02)
Net income/(loss) per common share, Diluted	$0.02	($0.02)
Weighted average shares outstanding, Basic	12,879,651	12,622,756
Weighted average shares outstanding, Diluted	14,546,736	12,622,756

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net income/(loss)	$336,238	($263,119)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	19,129	25,016
Amortization of debt discount	0	1,875
Share based compensation expense	6,105	50,777
Change in value of assets held for sale	-1,439	0
Change in fair value of derivative instruments	-723	178,844
Provision for (benefit from) deferred income taxes	9,880	0
Change in assets and liabilities:	'	'
Accounts receivable	467,152	63,098
Income tax receivable	45,448	0
Notes receivable	688	0
Inventory	-301,439	-68,624
Prepaid expenses	55,458	36,810
Deposits and other assets	15,966	1,041
Trade accounts payable	-271,547	237,372
Accrued expenses	-4,840	-133,533
Deferred revenues	-52,591	0
Net cash provided by operating activities	323,485	129,557
Cash flows from investing activities:	'	'
Purchase of property and equipment	-13,359	-64,462
Proceeds from the sale of assets held for sale	87,843	-54,485
Sale of investments	0	965,886
Net cash provided by investing activities	74,484	846,939
Cash flows from financing activities:	'	'
Proceeds from notes payable	0	23,888
Payment of notes payable	-1,167	0
Net cash (used in) provided by financing activities	-1,167	23,888
Net increase in cash	396,802	1,000,384
Cash and cash equivalents, beginning of year	822,876	1,655,453
Cash and cash equivalents, end of year	1,219,678	2,655,837
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid for interest	13,638	11,929
Cash paid for taxes	$2,640	$0

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Note 1 - Summary of Significant Accounting Policies
	Organization and Nature of Business, and Basis of Presentation
	iSatori, Inc (the “Company”) was incorporated under the laws of the state of Delaware on June 29, 2012 as the renamed and surviving entity of a “short form” merger under §253 of the Delaware General Corporation Law. Prior, non-public operating companies date back to their initial founding in the state of Colorado in 2004. Effective for periods following consummation of the “short form” merger, the Company’s financial statements reflect the accounts of the surviving entity only, and as such are no longer “consolidated” for purposes of presentation in this Form 10-Q. The trading symbol of the Company on OTCBB is “IFIT”.
	The Company is engaged in researching, designing, developing, contracting for the manufacture, marketing, selling and distributing of various nutritional and dietary supplement products for the general nutrition market. The “general nutrition market” may include such activities as body-building, physique enhancement (increase of lean body mass and decrease in fat mass) and enhanced athletic performance through increased strength and/or endurance and proper nutrition.
	The Company does engage from time to time in funding of clinical studies with the objective of discovering and/or validating claims of new, efficacious products for the Company’s relevant market as well as providing necessary and appropriate substantiation for any claims which the Company may use in its marketing and advertising. The Company markets products which are under its control and which are in some way proprietary to the Company. Some of the Company’s products are the subject of trademarks owned by the Company.
	Unaudited Interim Financial Information
	The accompanying interim condensed financial statements have been prepared in accordance with our accounting practices described in our audited financial statements for the year ended December 31, 2013, and are unaudited. The unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2013. The accompanying interim condensed financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”) with respect to annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals that are considered necessary for a fair presentation of the interim financial information, have been included. However, operating results for the periods presented are not necessarily indicative of the results that may be expected for a full year.
	Financial Instruments
	The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Accordingly, cash and cash equivalents consist of petty cash, checking accounts and money market funds.
	At March 31, 2014 and December 31, 2013, the financial instruments of the Company consisted principally of cash and cash equivalents, receivables, accounts payable, certain accrued liabilities and long-term debt. The carrying amount of cash and cash equivalents, receivables, accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. The actual and estimated fair values, respectively, of the Company’s financial instruments are as follows:
		31-Mar-14				31-Dec-13
		Carrying		Fair Value		Carrying		Fair Value
		Amount				Amount
	Cash and cash equivalents	$	1,219,678	$	1,219,678	$	822,876	$	822,876
	Receivables	$	1,931,026	$	1,931,026	$	2,398,178	$	2,398,178
	Accounts Payable	$	976,943	$	976,943	$	1,248,490	$	1,248,490
	Derivative Liability	$	470,292	$	470,292	$	471,015	$	471,015
	Trade Receivables and Credit Policy
	Trade receivables are uncollateralized customer obligations due under normal trade terms requiring payment generally within 10-60 days from the invoice date. Accounts are considered delinquent when outstanding for more than 7 days past due date. The Company does not have a policy of accruing interest on past due accounts. Payments on trade receivables are applied as instructed per the customer, or to the earliest unpaid invoices. The allowance for doubtful accounts represents an estimate of amounts considered uncollectible and is determined based on management’s historical collection experience, adverse situations that may affect the customer’s ability to repay, and prevailing economic conditions. Specific accounts deemed uncollectible are written off periodically with subsequent receipts on previously written off accounts credited to bad debt expense. The allowance for doubtful accounts is $0 for each of the periods ended March 31, 2014 and December 31, 2013. Receivables at each of the below respective periods consisted of the following:
		March 31,		December 31,
		2014		2013
	Trade Receivables	$	1,891,269	$	2,323,522
	Other	$	39,757	$	74,656
	Allowance for doubtful accounts	$	0	$	0
	Totals	$	1,931,026	$	2,398,178
	In addition, the Company has recorded an allowance for customer returns in the amount of approximately $70,000 at March 31, 2014 and December 31, 2013 in accrued expenses.
	Inventory Valuation
	Inventories of nutritional and dietary supplements are stated at lower of cost or market on a first-in, first-out (FIFO) basis as noted below:
		March 31,		December 31,
		2014		2013
	Labels and packaging	$	166,196	$	120,057
	Raw materials	$	110,612	$	207,320
	Finished goods	$	2,010,395	$	1,658,387
	Totals	$	2,287,203	$	1,985,764
	Note Receivable
	The predecessor company disposed of a dormant product line of vitamins in December 2010. As part of the consideration in this divestiture, the Company received from the purchaser of this product line an unsecured note in the amount of $170,000. The original note was due to be repaid on or before March 2014, where interest accrued principally at an annual rate of 5%, based upon the initial $170,000 principal and was payable monthly. As of March 31, 2013, the note was novated and a new promissory note was issued to reflect a modification in the payment terms, which includes no interest. The total note receivable balance at March 31, 2014 was $92,040, and is due to be repaid on or before May 1, 2017.
	Revenue Recognition
	The Company operates predominantly as a distributor of its dietary supplement products through traditional large retailers and electronic intermediaries. Revenue from product sales is recognized upon transfer of title to the Company’s product to its customers. Net sales represent product sales less actual returns, allowances, discounts, and promotions. Sales to direct customers have an unconditional money back guarantee for thirty to sixty days after the date of purchase. Sales to several of the retail customers carry a “Sale or Return” Purchase agreement per contract, where if minimum sales thresholds are not met within required timeframe, the inventory will be returned to the Company for full credit. Other retail customers receive a percentage discount from invoice to cover any customer returns or damages they may incur. Returns, allowances and discounts, and promotions were $510,734 and $715,030 for the three month period ended March 31, 2014 and 2013, respectively.
	In addition, the Company provides allowances for sales returns based upon estimated and known returns. Product returns are recorded as a reduction of net revenues and as a reduction of the accounts receivable balance.
	The Company receives other revenues which include but are not limited to shipping and handling charges billed to customers.
	The Company has recorded $239,624 as of March 31, 2014 in deferred revenue as a liability pertaining to inventory sold under consignment terms, but has been paid for by the customer.
	Cost of Sales
	The Company purchases its products directly from third party manufacturers. The Company’s cost of sales include product costs, cost of warehousing and distribution. Included in the cost of sales are shipping and handling costs that are incurred by the Company.
	Income Taxes
	The Company utilizes the asset and liability method of accounting for income taxes. Under this asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. See Note 4, “Income Taxes”.
	Since 2012 was the Company’s initial tax year, there are no prior federal or state tax returns subject to examination. Accordingly, the only taxable periods subject to examination by federal and state taxing authorities are the periods ended December 31, 2013 and 2012. Federal and state tax returns for the Company prior to the short form merger are open for the period ended December 31, 2011.
	Leases
	The Company leases its headquarters facility, comprising approximately 10,044 square feet, in Golden (metropolitan Denver), Colorado. The total rent expense for each of the three month periods ended March 31, 2014 and 2013, was $20,716. The lease term expires January 31, 2017 and requires equal monthly payments over the remaining term. Future payments under the lease total $234,779. The Company also leases miscellaneous office and warehouse equipment. In most cases, management expects that in the normal course of business these leases will be renewed or replaced by other leases as applicable.
	Fair Value Measurements
	ASC 820-10 establishes a framework for measuring the fair value of assets and liabilities and requires additional disclosure about fair value measurements. ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal (or most advantageous market) for the asset or liability in an orderly transaction between market participants at the measure date.
	The Company has a number of financial instruments, including cash, receivables, inventory, payables and debt obligations. The Company has issued warrants which are measured at fair value on a recurring basis. The Company estimates that the fair value of these financial instruments does not materially differ from the respective reported balance sheet amounts.
	Marketing
	The Company expenses all production costs related to advertising costs as they are incurred, including print and television when the advertisement has been broadcast or otherwise distributed. The Company records website costs related to its direct-to-consumer advertisements in accordance with FASB ASC 340-20 “Capitalized Advertising Costs”. In accordance with FASB ASC 340-20, direct response advertising costs incurred should be reported as assets and should be amortized over the estimated period of the benefits, based on the proportion of current period revenue from the advertisements to probable future revenue. As of March 31, 2014 and December 31, 2013, the Company had deferred $3,060 and $7,651 respectively, related to such advertising costs. This amount is included in Deposits and other assets and is being amortized over a one year period, the estimated time frame to which the existing commercial will be used. For the three month period ended March 31, 2014 and 2013, marketing expenses totaled $627,423 and $145,733, respectively.
	Research and Development Costs
	Research and development costs are expensed when incurred. Research and development costs of $6,424 and $59,810 for the three month period ended March 31, 2014 and 2013, respectively, are included in selling and marketing expense.
	Distribution, Shipping and Handling Costs
	Shipping costs on purchases and shipping and handling fees related to sales charged to customers are both included in cost of sales. As mentioned in Revenue Recognition, shipping and handling revenue billed customers are reflected in other revenues.
	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist principally of temporary cash investments and trade accounts receivables. Concentrations of credit with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer bases and their dispersion across different geographic locations.
	The Company maintains cash balances at one financial institution located in Colorado and one in California. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account. At times during the year, the Company’s bank balances have exceeded the FDIC limit. Management believes the risk of loss at such institutions to be minimal.
	During the three month period ended March 31, 2014, sales to three customers made up 67% of total product revenue, with each customer representing greater than 10% of product revenue on an individual basis. These customers’ combined accounts receivable balances were 77% of total accounts receivable at March 31, 2014. During the three month period ended March 31, 2013, sales to four customers made up 70% of total product revenue, with each customer representing greater than 10% of product revenue on an individual basis. These customers’ combined accounts receivable balances were 73% of total accounts receivable as of March 31, 2013. During the three month period ended March 31, 2014, purchases from three vendors made up 69% of total inventory purchases. These vendors’ combined accounts payable balances were 71% of total accounts payable as of March 31, 2014. During the three month period ended March 31, 2013, purchases from two vendors made up 83% of total inventory purchases. These vendors’ combined accounts payable balances were 38% of total accounts payable as of March 31, 2013.
	Use of Estimates
	The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include but are not limited to the fair value determination of derivative instruments, the valuation allowance with respect to estimated utilization of net operating losses, estimated allowances for sales returns and collectability of notes receivable.
Earnings (Loss) Per Share
Net earnings (loss) per share is computed by dividing net income (loss) less preferred dividends for the period by the weighted average number of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) less preferred dividends for the period by the weighted average number of common stock, common stock equivalents and potentially dilutive securities outstanding during each period.
Since the Company reflected a net loss for the three month period ended March 31 2013, the effect of considering any common stock equivalents, if exercisable, would have been anti-dilutive.
The Company has the following common stock equivalents as of March 31, 2014 and 2013:
		2014	2013
Stock options (exercise price – $0.573-$2.50/share)		713,479	754,696
Warrants (exercise price – $0.001-$2.25/share)		1,544,204	602,513
Total common stock equivalents		14,546,736	13,735,804

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2014
Loss Contingency [Abstract]	'
Contingencies	'
	Note 2 - Contingencies
	In accordance with the standards on contingencies, the Company accrues a loss contingency if it is probable and can reasonably be estimated or a liability has been incurred at the date of the financial statements. If both of these conditions are not met, or if an exposure to loss exists in excess of the amount accrued, disclosure of the contingency shall be made when there is at least a reasonable possibility that a loss or an additional loss may have been incurred. The Company is exposed to legal claims encountered in the normal course of business. See Note 3, “Litigation”. Management believes that the ultimate resolution of these matters will not have a material adverse effect on the operating results or the financial position of the Company.

Litigation

Litigation	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Litigation	'
	Note 3 - Litigation
	The Company is engaged in various legal actions, claims and proceedings arising in the normal course of business, including claims related to breach of contracts, product liabilities and intellectual property matters resulting from the Company’s business activities. As with most actions such as these, an estimation of any possible and/or ultimate liability cannot always be determined. The following summaries highlight the current status of certain material commercial litigation in which the Company is involved.
	On May 17, 2013 and on January 31, 2014 the Company received demand letters from the Environmental Research Corporation, “ERC” requesting substantiation of compliance with the State of California’s Proposition 65 regulations for ten of its products. In October, while the Company was awaiting the results of the compliance testing, ERC contacted the Company again requesting settlement to their initial demand letter. And in February 2014, before compliance testing or any other demand letter validation was completed, ERC contacted the Company again requesting settlement to their second demand letter. The Company is in communication with ERC and expects prompt resolution to this issue. The Company believes that there is a reasonable possibility, as defined by FASB ASC 450-20, of an unfavorable outcome. However, the range of any possible loss cannot be reasonably estimated as of the date of the financial statements.
	On March 24, 2014 the Company received a summons in a civil action filed by Wise Sports Nutrition, LLC claiming alleged trademark infringement for iSatori’s Garcinia Trim product. Company counsel has made contact with the plaintiff’s attorney and is currently developing a response to this claim and expects prompt resolution to this issue. The Company believes that there is a reasonable possibility, as defined by FASB ASC 450-20, of an unfavorable outcome. However the range of any possible loss cannot be reasonably estimated as of the date of the financial statements.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Note 4 - Income Taxes
	For the three months ended March 31, 2014 and 2013, the Company recognized income tax expense of $15,823 and expense of $10,134, respectively.
	The difference between the three months ended March 31, 2014 effective rate of 4.5% and the Federal statutory rate of 35.0% is primarily due to state income taxes (net of federal benefit), change in the valuation allowance, and an adjustment to the income tax receivable.
	At March 31, 2014 management believes there are no uncertain tax liabilities.

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Stockholders' Equity	'
	Note 5- Stockholders’ Equity
	At March 31, 2014, there were 12,879,651 shares of common stock, par value $.01 per share, outstanding for the Company.
	On July 15, 2011 the Company also issued warrants to purchase 3% of fully diluted shares of the common stock of the Company to Breakwater Structured Growth Opportunity Fund, L.P., with an imputed exercise price equal to approximately one-hundredth of a dollar in connection with a $1.025 million subordinated mezzanine loan arrangement. These warrants are fully vested and expire on June 15, 2016. In accordance with the terms of the merger, the total number of warrants to purchase such shares was increased from 328,411 shares to 420,549 and the per share exercise price remained the same.
	Included in the aforementioned Breakwater warrant, was an obligation by the Company to, among other things, honor an irrevocable put right through which the Company agreed to purchase up to the 3% of fully diluted shares of its common stock underlying the warrant, which expires on July 15, 2016. Upon completion of the merger, the irrevocable put right was removed.
	The Company used a lattice model in developing a fair value for the Breakwater warrant obligation at March 31, 2014, using a quoted stock value of $1.13 per share, which represents a discount of 50% from the closing stock price. This reduction was based on the application of a discount for lack of liquidity. Other assumptions used in the above valuations include (a) risk-free interest rate of .44% based on duration, (b) weighted average expected term years of 2.29 (c) weighted average expected stock volatility of 37.08% (e) expected dividends of 0%, (f) stock price movements ranging from 1.05276571 to 0.94987896 and (g) risk neutral probabilities ranging from 0.48797016 to 0.51202984.
	This valuation resulted in net income of $723 in the Statement of Operations for the three month period ended March 31, 2014.
	2012 Performance Incentive Plan
	On September 27, 2012, the Company’s Board of Directors approved the 2012 Performance Incentive Plan (the Plan”). The Plan allows the Company to promote the success of the Corporation and to increase stockholder value by providing an additional means through the grant of awards to attract, motivate, retain and reward selected employees and other eligible persons. Any stock option granted in the form of an incentive stock option will be intended to comply with the requirements of Section 422 of the Code. Only stock options granted to employees qualify for incentive stock option treatment. A stock option may be exercised in whole or in installments, which may be cumulative. Shares of common stock purchased upon the exercise of a stock option must be paid for in full at the time of the exercise in cash or such other consideration determined by the compensation committee. Payment may include tendering shares of common stock or surrendering of a stock award, or a combination of methods.
	The Plan is administered by the Plan Administrator, being the Board or one or more committees appointed by the Board or another committee (within its delegated authority) to administer all or certain aspects of this Plan. The Administrator has full and exclusive power within the limitations set forth in the Plan to make all decisions and determinations regarding the selection of participants and the granting of awards; establishing the terms and conditions relating to each award; adopting rules, regulations and guidelines; and interpreting the Plan.
	On January 2, 2014, the Company issued options to purchase 10,000 shares of the Company’s common stock to an employee with an exercise price of $2.50 per share and which contain three year vesting schedules of 1/3 each year through October 2016. These options are due to expire on October 15, 2023.
	On February 10, 2014, the Company issued options to purchase 6,000 shares of the Company’s common stock to an employee with an exercise price of $2.22 per share and which contain three year vesting schedules of 1/3 each year through February 2017. These options are due to expire on February 10, 2024.
	The Company, in developing a fair value for the employee options used a current stock price of $1.11-1.25, which represents a discount of 50% from the quoted stock price for lack of marketability. Other assumptions used in the above valuations include (a) risk-free interest rate of 2.13-2.41% based on duration, (b) weighted average expected terms ranging from 6.08 to 6.33 years; (c) weighted average expected stock volatility of 35.22 % and (e) expected dividends of 0%.
	These valuations resulted in an net expense of $368 in the Statement of Operations for the three month period ended March 31, 2014. Total stock compensation expense for the aforementioned period was $6,105.

Revolving_Line_of_Credit_and_R

Revolving Line of Credit and Related Interest	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Revolving Line of Credit and Related Interest	'
	Note 6- Revolving Line of Credit and Related Interest
	The Company entered into a Credit Agreement with Colorado Business Bank West of Denver, Colorado on July 16, 2012, which was renewed effective October 16, 2013. Borrowings under this agreement are used to provide ongoing working capital and for other general corporate purposes of the Company.
	The agreement provides a revolving commitment to the Company of $1,500,000. Amounts outstanding under the agreement are reflected in a promissory note with a principal balance of $1,500,000 and maturity date of November 16, 2014 (the “Promissory Note”). The principal balance on the Promissory Note will bear interest at the one month USD LIBOR rate measured not more often than once per month (the “Index”). Interest on any unpaid balance under the promissory note will bear interest at the Index plus 3.750% with a minimum interest rate of 4.000% per annum.
	The outstanding balance on the revolving line of credit as of March 31, 2014 and December 31, 2013 was $1,220,655.

Fair_Value_Measurements_and_Di

Fair Value Measurements and Disclosures	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Fair Value Measurements and Disclosures	'
	Note 7 - Fair Value Measurements and Disclosures
	The Company follows ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for using fair value to measure assets and liabilities, and expands disclosures about fair value measurements. The statement establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows:
	Level 1: Quoted prices are available in active markets for identical assets or liabilities.
	Level 2: Quoted prices in active markets for similar assets and liabilities that are observable for the asset or liability; or
	Level 3: Unobservable pricing inputs that are generally less observable from objective sources, such as discounted cash flow models or valuations.
	ASC 820 requires financial assets and liabilities to be classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.
	For the purposes of marketable securities where there is a an active market, the Company uses the quoted prices available for the identical asset or liability. As of March 31, 2014, the Company had $21,824 assets held for sale valued using the Level 1 mark-to-market approach. As of December 31, 2013, the Company had $108,228 assets held for sale valued using the Level 1 mark-to-market approach.
	The inputs used in the fair value measurements categorized within Level 3 include the stock price at the valuation date, the exercise price of the warrant, the expected period of time the warrant will be outstanding, the annual volatility of the underlying stock price, the annual yield rate of quarterly dividends, and the risk free rate of interest relevant to the expected time period the warrant will be outstanding.
	The following table represents the Company’s warrant derivative liabilities that were accounted for at fair value on a recurring basis by level within the fair value hierarchy:
		31-Mar-14						31-Dec-13
		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	Warrant Derivative Liability	$	0	$	0	$	470,292	$	0	$	0	$	471,015
	Beginning of Period		-		-		471,015		-		-		701,852
	Deletions		-		-		-		-		-		-87,755
	Revisions		-		-		-723		-		-		-143,082
	End of Period	$	0	$	0	$	470,292	$	0	$	0	$	471,015

Accounting_Policies_Policies

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Organization and Nature of Business	'
	Organization and Nature of Business, and Basis of Presentation
	iSatori, Inc (the “Company”) was incorporated under the laws of the state of Delaware on June 29, 2012 as the renamed and surviving entity of a “short form” merger under §253 of the Delaware General Corporation Law. Prior, non-public operating companies date back to their initial founding in the state of Colorado in 2004. Effective for periods following consummation of the “short form” merger, the Company’s financial statements reflect the accounts of the surviving entity only, and as such are no longer “consolidated” for purposes of presentation in this Form 10-Q. The trading symbol of the Company on OTCBB is “IFIT”.
	The Company is engaged in researching, designing, developing, contracting for the manufacture, marketing, selling and distributing of various nutritional and dietary supplement products for the general nutrition market. The “general nutrition market” may include such activities as body-building, physique enhancement (increase of lean body mass and decrease in fat mass) and enhanced athletic performance through increased strength and/or endurance and proper nutrition.
	The Company does engage from time to time in funding of clinical studies with the objective of discovering and/or validating claims of new, efficacious products for the Company’s relevant market as well as providing necessary and appropriate substantiation for any claims which the Company may use in its marketing and advertising. The Company markets products which are under its control and which are in some way proprietary to the Company. Some of the Company’s products are the subject of trademarks owned by the Company.
	Unaudited Interim Financial Information
	The accompanying interim condensed financial statements have been prepared in accordance with our accounting practices described in our audited financial statements for the year ended December 31, 2013, and are unaudited. The unaudited interim condensed financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2013. The accompanying interim condensed financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission and, accordingly, do not include all the disclosures required by generally accepted accounting principles in the United States (“U.S. GAAP”) with respect to annual financial statements. In the opinion of management, all adjustments, consisting of normal recurring accruals that are considered necessary for a fair presentation of the interim financial information, have been included. However, operating results for the periods presented are not necessarily indicative of the results that may be expected for a full year.
Financial Instruments	'
	Financial Instruments
	The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. Accordingly, cash and cash equivalents consist of petty cash, checking accounts and money market funds.
Trade Receivables and Credit Policy	'
	Trade Receivables and Credit Policy
	Trade receivables are uncollateralized customer obligations due under normal trade terms requiring payment generally within 10-60 days from the invoice date. Accounts are considered delinquent when outstanding for more than 7 days past due date. The Company does not have a policy of accruing interest on past due accounts. Payments on trade receivables are applied as instructed per the customer, or to the earliest unpaid invoices. The allowance for doubtful accounts represents an estimate of amounts considered uncollectible and is determined based on management’s historical collection experience, adverse situations that may affect the customer’s ability to repay, and prevailing economic conditions. Specific accounts deemed uncollectible are written off periodically with subsequent receipts on previously written off accounts credited to bad debt expense.
Inventory Valuation	'
	Inventory Valuation
	Inventories of nutritional and dietary supplements are stated at lower of cost or market on a first-in, first-out (FIFO) basis.
Revenue Recognition	'
	Revenue Recognition
	The Company operates predominantly as a distributor of its dietary supplement products through traditional large retailers and electronic intermediaries. Revenue from product sales is recognized upon transfer of title to the Company’s product to its customers. Net sales represent product sales less actual returns, allowances, discounts, and promotions. Sales to direct customers have an unconditional money back guarantee for thirty to sixty days after the date of purchase. Sales to several of the retail customers carry a “Sale or Return” Purchase agreement per contract, where if minimum sales thresholds are not met within required timeframe, the inventory will be returned to the Company for full credit. Other retail customers receive a percentage discount from invoice to cover any customer returns or damages they may incur.
	In addition, the Company provides allowances for sales returns based upon estimated and known returns. Product returns are recorded as a reduction of net revenues and as a reduction of the accounts receivable balance.
	The Company receives other revenues which include but are not limited to shipping and handling charges billed to customers.
Cost of Sales	'
	Cost of Sales
	The Company purchases its products directly from third party manufacturers. The Company’s cost of sales include product costs, cost of warehousing and distribution. Included in the cost of sales are shipping and handling costs that are incurred by the Company.
Income Taxes	'
	Income Taxes
	The Company utilizes the asset and liability method of accounting for income taxes. Under this asset and liability method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. See Note 4, “Income Taxes”.
	Since 2012 was the Company’s initial tax year, there are no prior federal or state tax returns subject to examination. Accordingly, the only taxable periods subject to examination by federal and state taxing authorities are the periods ended December 31, 2013 and 2012. Federal and state tax returns for the Company prior to the short form merger are open for the period ended December 31, 2011.
Fair Value Measurements	'
	Fair Value Measurements
	ASC 820-10 establishes a framework for measuring the fair value of assets and liabilities and requires additional disclosure about fair value measurements. ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal (or most advantageous market) for the asset or liability in an orderly transaction between market participants at the measure date.
	The Company has a number of financial instruments, including cash, receivables, inventory, payables and debt obligations. The Company has issued warrants which are measured at fair value on a recurring basis. The Company estimates that the fair value of these financial instruments does not materially differ from the respective reported balance sheet amounts.
Marketing	'
	Marketing
	The Company expenses all production costs related to advertising costs as they are incurred, including print and television when the advertisement has been broadcast or otherwise distributed. The Company records website costs related to its direct-to-consumer advertisements in accordance with FASB ASC 340-20 “Capitalized Advertising Costs”. In accordance with FASB ASC 340-20, direct response advertising costs incurred should be reported as assets and should be amortized over the estimated period of the benefits, based on the proportion of current period revenue from the advertisements to probable future revenue.
Research and Development Costs	'
	Research and Development Costs
	Research and development costs are expensed when incurred.
Distribution, Shipping and Handling Costs	'
	Distribution, Shipping and Handling Costs
	Shipping costs on purchases and shipping and handling fees related to sales charged to customers are both included in cost of sales. As mentioned in Revenue Recognition, shipping and handling revenue billed customers are reflected in other revenues.
Concentration of Credit Risk	'
	Concentration of Credit Risk
	Financial instruments that potentially subject the Company to concentration of credit risk consist principally of temporary cash investments and trade accounts receivables. Concentrations of credit with respect to trade receivables are limited due to the large number of customers comprising the Company’s customer bases and their dispersion across different geographic locations.
	The Company maintains cash balances at one financial institution located in Colorado and one in California. Accounts at these institutions are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account. At times during the year, the Company’s bank balances have exceeded the FDIC limit. Management believes the risk of loss at such institutions to be minimal.
Use of Estimates	'
	Use of Estimates
	The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include but are not limited to the fair value determination of derivative instruments, the valuation allowance with respect to estimated utilization of net operating losses, estimated allowances for sales returns and collectability of notes receivable.
Earnings (Loss) Per Share	'
	Earnings (Loss) Per Share
	Net earnings (loss) per share is computed by dividing net income (loss) less preferred dividends for the period by the weighted average number of common stock outstanding during each period. Diluted earnings (loss) per share is computed by dividing net income (loss) less preferred dividends for the period by the weighted average number of common stock, common stock equivalents and potentially dilutive securities outstanding during each period.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Estimated Fair Value of Financial Instruments	'
		31-Mar-14				31-Dec-13
		Carrying		Fair Value		Carrying		Fair Value
		Amount				Amount
	Cash and cash equivalents	$	1,219,678	$	1,219,678	$	822,876	$	822,876
	Receivables	$	1,931,026	$	1,931,026	$	2,398,178	$	2,398,178
	Accounts Payable	$	976,943	$	976,943	$	1,248,490	$	1,248,490
	Derivative Liability	$	470,292	$	470,292	$	471,015	$	471,015
Trade Receivables and Credit Policy	'
		March 31,		December 31,
		2014		2013
	Trade Receivables	$	1,891,269	$	2,323,522
	Other	$	39,757	$	74,656
	Allowance for doubtful accounts	$	0	$	0
	Totals	$	1,931,026	$	2,398,178
Inventory Valuation	'
		March 31,		December 31,
		2014		2013
	Labels and packaging	$	166,196	$	120,057
	Raw materials	$	110,612	$	207,320
	Finished goods	$	2,010,395	$	1,658,387
	Totals	$	2,287,203	$	1,985,764
Earnings (Loss) Per Share	'
			2014	2013
	Stock options (exercise price – $0.573-$2.50/share)		713,479	754,696
	Warrants (exercise price – $0.001-$2.25/share)		1,544,204	602,513
	Total common stock equivalents		14,546,736	13,735,804

Fair_Value_Measurements_and_Di1

Fair Value Measurements and Disclosures (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis	'
		31-Mar-14						31-Dec-13
		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	Warrant Derivative Liability	$	0	$	0	$	470,292	$	0	$	0	$	471,015
	Beginning of Period		-		-		471,015		-		-		701,852
	Deletions		-		-		-		-		-		-87,755
	Revisions		-		-		-723		-		-		-143,082
	End of Period	$	0	$	0	$	470,292	$	0	$	0	$	471,015

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Details 1) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Financial Instruments [Line Items]	'	'
Cash and cash equivalents	$1,219,678	$822,876
Receivables	1,931,026	2,398,178
Accounts Payable	976,943	1,248,490
Carrying Amount	'	'
Financial Instruments [Line Items]	'	'
Cash and cash equivalents	1,219,678	822,876
Receivables	1,931,026	2,398,178
Accounts Payable	976,943	1,248,490
Derivative Liability	470,292	471,015
Fair Value	'	'
Financial Instruments [Line Items]	'	'
Cash and cash equivalents	1,219,678	822,876
Receivables	1,931,026	2,398,178
Accounts Payable	976,943	1,248,490
Derivative Liability	$470,292	$471,015

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details 2) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Trade Receivables	'	'
Trade Receivables	$1,891,269	$2,323,522
Other	39,757	74,656
Allowance for doubtful accounts	0	0
Total trade receivables, net	$1,931,026	$2,398,178

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details 3) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Inventory Valuation	'	'
Labels and packaging	$166,196	$120,057
Raw materials	110,612	207,320
Finished goods	2,010,395	1,658,387
Total inventories	$2,287,203	$1,985,764

Summary_of_Significant_Account5

Summary of Significant Accounting Policies (Details 4)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Options (exercise price - $0.573-$2.50/share)	'	'
Antidilutive Securities Excluded From Earnings Per Share [Line Items]	'	'
Antidilutive securities excluded from earnings per share calculation	713,479	754,696
Warrants - Exercise Price $0.001-$2.25/Share	'	'
Antidilutive Securities Excluded From Earnings Per Share [Line Items]	'	'
Antidilutive securities excluded from earnings per share calculation	1,544,204	602,513
Common Stock Equivalents	'	'
Antidilutive Securities Excluded From Earnings Per Share [Line Items]	'	'
Antidilutive securities excluded from earnings per share calculation	14,546,736	13,735,804

Summary_of_Significant_Account6

Summary of Significant Accounting Policies (Details Narrative 1) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2010
Sales Returns and Allowances	'	'	'	'
Allowance for customer returns	$70,000	'	$70,000	'
Receivables	'	'	'	'
Note receivable	92,040	'	'	170,000
Note receivable, maturity date	'	'	'	1-May-17
Revenue Recognition	'	'	'	'
Revenue recognition, returns, allowances and discounts	510,734	715,030	'	'
Leases	'	'	'	'
Leases, rent expense	20,716	20,716	'	'
Leases, term	31-Jan-17	'	'	'
Leases, future payments	234,779	'	'	'
Marketing	'	'	'	'
Marketing, deferred advertising costs	3,060	'	7,651	'
Marketing, expense	627,423	145,733	'	'
Research and Development Expense	'	'	'	'
Research and development costs	$6,424	$59,810	'	'

Summary_of_Significant_Account7

Summary of Significant Accounting Policies (Details Narrative 2) (Concentration Risk Exceeding 10%)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Concentration Risk Exceeding 10%	'	'
Concentration of Credit Risk	'	'
Customer, percent of revenues	67.00%	70.00%
Customer, percent of accounts receivable	77.00%	73.00%
Vendor, percent of purchases	69.00%	83.00%
Vendor, percent of accounts payable	71.00%	38.00%

Stockholders_Equity_Details_Na

Stockholders' Equity (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2011
Warrant Grants - Breakwater Structured Growth Opportunity Fund	'	'
Equity [Line Items]	'	'
Stock warrants granted	'	420,549
Irrevocable put right	'	'The company is obligated to honor an irrevocable put right which the company agreed to purchase up to the 3% of fully diluted shares of its common stock underlying the warrant which expires on July 15, 2016.
Stock options and warrants granted expiration date	'	15-Jun-16
Stock options and warrants vesting period	'	'Fully vested
Discount assumption	50.00%	'
Risk free interest rate, minimum	0.44%	'
Stock price	$1.13	'
Stock price, range	'1.05276571 to 0.94987896	'
Risk neutral probabilities, range	'0.48797016 to 0.51202984	'
Weighted average expected terms	'2.29 years	'
Expected volatility	37.08%	'
Valuation expenses recognized	$723	'
Option Grant #1 - Company Employees	'	'
Equity [Line Items]	'	'
Stock options issued	10,000	'
Stock options exercise price	$2.50	'
Stock options and warrants granted expiration date	15-Oct-23	'
Stock options and warrants vesting period	'Three year vesting schedules of 1/3 each year through October 2016.	'
Risk free interest rate, minimum	2.13%	'
Risk free interest rate, maximum	2.41%	'
Stock price, range	'$1.11-1.25	'
Weighted average expected terms	'6.08 to 6.33 years	'
Expected volatility	35.22%	'
Valuation expenses recognized	$368	'
Option Grant #2 - Company Employees	'	'
Equity [Line Items]	'	'
Stock options issued	6,000	'
Stock options exercise price	$2.22	'
Stock options and warrants granted expiration date	10-Feb-24	'
Stock options and warrants vesting period	'Three year vesting schedules of 1/3 each year through February 2017.	'
Risk free interest rate, minimum	2.13%	'
Risk free interest rate, maximum	2.41%	'
Stock price, range	'$1.11-1.25	'
Weighted average expected terms	'6.08 to 6.33 years	'
Expected volatility	35.22%	'

Revolving_Line_of_Credit_and_R1

Revolving Line of Credit and Related Interest (Details Narrative) (USD $)	1 Months Ended
	Jul. 31, 2012	Mar. 31, 2014	Dec. 31, 2013	Jul. 16, 2012
Line Of Credit Facility	'	'	'	'
Line of Credit	'	'	'	$1,500,000
Line of Credit, maturity date	16-Nov-14	'	'	'
Line of Credit, interest rate description	'The principal balance will note bear interest at the one month USD LIBOR rate measured not more often than once per month (the "Index"). Interest on any unpaid balance will bear interest at the Index plus 3.750% with a minimum interest rate of 4.000% per annum..	'	'	'
Line of Credit, balance outstanding	'	$1,220,655	$1,220,655	'

Fair_Value_Measurements_and_Di2

Fair Value Measurements and Disclosures (Details) (Fair Value Inputs Level 3, USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair Value Inputs Level 3	'	'
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]	'	'
Marketable Securities and Warrant derivative liability at beginning of year	$471,015	$701,852
Marketable Securities and Warrant derivative liability, deletions	0	-87,755
Marketable Securities and Warrant derivative liability, revisions	-723	-143,082
Marketable Securities and Warrant derivative liability at end of year	$470,292	$471,015