Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements

Organization and Basis of Presentation

1.  Organization and Basis of Presentation

The condensed consolidated financial statements include NEW LEAF BRANDS, INC. (“the Company”) and its wholly-owned subsidiaries, Baywood New Leaf Acquisition, Inc. and Nutritional Specialties. Nutritional Specialties was acquired by the Company in March 2007 and sold in July 2009.

The Company develops, markets and distributes healthy and functional ready-to-drink (“RTD”) beverages. The Company distributes its products through independent distributors both internationally and domestically.

The Company was incorporated in Nevada on June 13, 1986 as Baywood Financial, Inc. In March 1992, the Company changed its name from Baywood Financial, Inc. to Baywood International, Inc. In March 2007, Baywood International, Inc. created the acquisition subsidiary Baywood Acquisition Inc. to acquire Nutritional Specialties. Baywood Acquisition Inc. changed its name to Nutritional Specialties Inc. In September 2008, Baywood International, Inc. created the acquisition subsidiary Baywood New Leaf Acquisition, Inc. to acquire Skae Beverage International. In October 2009, Baywood International, Inc. changed its name to New Leaf Brands, Inc.

The accompanying condensed consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, considered necessary for a fair presentation of the results for the periods presented. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2010. The results of operations for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year.