NUTRALIFE BIOSCIENCES, INC filed 10-Q/A on May 17

NUTRALIFE BIOSCIENCES, INC revealed 10-Q/A form on Friday, May 17.

In March 2019, the Company received proceeds of $200,000 from a shareholder, pursuant to a short-term promissory note payable, bearing interest at an annual rate of 3%, due April 20, 2019. The note and accrued interest was satisfied by subsequently converting to 2,389,470 shares common stock at $.17 per share.

In June 2017, the Company entered into a lease for an additional facility located in Deerfield Beach, Florida under a non-cancelable operating lease. The term of the lease is for 86 months beginning on January 1, 2018 and calls for yearly 3% increases to base rent, with monthly payments that commenced in March 2018.

In the March 31, 2019 condensed consolidated balance sheet, the Company has recorded right-of-use assets of approximately $742,000 and a lease liability of $782,000, of which $122,000 is reported as a current liability. The weighted average remaining lease term is 71 months and weighted average discount rate used is 10%.

In connection with the acquisition agreement discussed in Note 7, the Company entered into an agreement with the seller, whereby the seller has accepted the appointment to represent the Company to sell the products related to the above patent and intellectual property and receive a commission of 20% of the net sales from this product.

We had sales of $720,799 and $722,905 for the three months ended March 31, 2019 and 2018, respectively, or .3 % decrease from the first quarter of 2018.

Cost of sales was $631,565 compared to $355,685 for the three months ended March 31, 2019 and 2018, respectively, or a seventy-seven-point six percent (77.6%) increase. This increase is directly related to the reclassification of certain labor expenses from general and administrative costs to production costs. The Company also, significantly increased its production labor force.

Gross margin was $89,234 and $367,220 for the three months ended March 31, 2019 and 2018, respectively, or a seventy-five-point seven percent (75.7%) decrease. This is the result of the increase of the cost of goods sold.

General and administrative expenses were $901,167 compared to $418,422 for the three months ended March 31, 2019 and 2018, respectively, an increase of one-hundred-fifteen-point four percent (115.4%). This increase is primarily due to the increase in the Company’s payroll.

Stock based compensation was $160,581 and $511,902 for the three months ended March 31, 2019 and 2018, respectively, or a sixty-eight-point six percent (68.6%) decrease.

On July 25, 2018, we entered into an agreement with Breadfruit Tree DBA NFSkin, a Florida corporation where by we agreed to pay them 15% of their net sales of our product. The 15% is payable in up to 3,000,000 shares of our common stock which the number of shares will be calculated based on a value of $.20 per share. On September 10, 2018, we issued 514,549 of the shares issuable under the agreement.

On October 11, 2018, we entered into a convertible note agreement in the principal amount of $37,500 with FMG Holding LLC, a Florida limited liability company controlled by Michael Farr. The note bears interest at the rate of 10% and has a maturity date of November 30, 2018. The principal and interest due under the note are convertible into our common shares at the rate of $.20 in whole or in part at any time until maturity. Mr. Farr received warrants to purchase 1,000,000 of our common shares at the price of $.21 per share at any time until October 31, 2021 as additional consideration for the note.

On October 11, 2018, we entered into a convertible note agreement in the principal amount of $37,500 with Forage Complete, LLC, an Idaho limited liability company controlled by Cory Jenkins. The note bears interest at the rate of 10% and has a maturity date of November 30, 2018. The principal and interest due under the note are convertible into our common shares at the rate of $.20 in whole or in part at any time until maturity. Mr. Farr received warrants to purchase 1,000,000 of our common shares at the price of $.21 per share at any time until October 31, 2021 as additional consideration for the note..

On November 7, 2018, we entered into a convertible note agreement, as amended, on March 20, 2019 with Paul R. Botts, in the principal amount of $25,000. The note bears interest at the rate of 10% and has a maturity date of April 22, 2019. The principal and interest due under the note are convertible into our common shares at the rate of $.20 in whole or in part at any time until maturity. On March 19, 2019, we issued 100,000 common shares to Mr. Botts as additional consideration for the amended note.

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