Reed's (REED) 10-Q 14 May 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	14-May-14
Document And Entity Information	'	'
Entity Registrant Name	'REED'S INC	'
Entity Central Index Key	'0001140215	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	13,042,952
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year Focus	'2014	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current assets:	'	'
Cash	$1,104,000	$1,104,000
Trade accounts receivable, net of allowance for doubtful accounts and returns and discounts of $310,000 and $324,000, respectively	2,561,000	2,143,000
Inventory, net of reserve for obsolescence of $181,000 and $176,000, respectively	6,076,000	6,293,000
Prepaid inventory	373,000	256,000
Prepaid and other current assets	181,000	178,000
Total Current Assets	10,295,000	9,974,000
Property and equipment, net of accumulated depreciation of $2,947,000 and $2,796,000, respectively	3,608,000	3,686,000
Brand names	1,029,000	1,029,000
Deferred financing fees, net of amortization of $58,000 and $40,000, respectively	49,000	60,000
Total assets	14,981,000	14,749,000
Current Liabilities:	'	'
Accounts payable	3,968,000	3,612,000
Accrued expenses	126,000	136,000
Line of credit	4,593,000	4,524,000
Current portion of long term financing obligation	116,000	111,000
Current portion of capital leases payable	63,000	79,000
Current portion of term loan	171,000	165,000
Total current liabilities	9,037,000	8,627,000
Long term financing obligation, less current portion, net of discount of $513,000 and $526,000, respectively	2,129,000	2,147,000
Capital leases payable, less current portion	92,000	106,000
Term loan, less current portion	437,000	482,000
Total Liabilities	11,695,000	11,362,000
Stockholders' equity:	'	'
Common stock, $.0001 par value, 19,500,000 shares authorized, 13,042,952 and 12,922,832 shares issued and outstanding, respectively	1,000	1,000
Additional paid in capital	25,395,000	25,276,000
Accumulated deficit	-22,204,000	-21,984,000
Total stockholders' equity	3,286,000	3,387,000
Total liabilities and stockholders' equity	14,981,000	14,749,000
Series A Convertible Preferred Stock [Member]	'	'
Stockholders' equity:	'	'
Series A Convertible Preferred stock, $10 par value, 500,000 shares authorized, 9,411 shares issued and outstanding	$94,000	$94,000

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Allowance for Doubtful Accounts and returns and discounts	$310,000	$324,000
Reserve for obsolescence, inventory	181,000	176,000
Accumulated Depreciation	2,947,000	2,796,000
Accumulated Amortization, deferred financing fees	58,000	40,000
Discount, long term financing obligation	$513,000	$526,000
Common stock par value	$0.00	$0.00
Common stock, shares authorized	19,500,000	19,500,000
Common stock, shares issued	13,042,952	12,922,832
Common stock, shares outstanding	13,042,952	12,922,832
Series A Convertible Preferred Stock [Member]	'	'
Preferred stock par value	$10	$10
Preferred stock shares authorized	500,000	500,000
Preferred stock shares issued	9,411	9,411
Preferred stock shares outstanding	9,411	9,411

Condensed_Statements_of_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
Sales	$8,950,000	$8,126,000
Cost of goods sold	6,047,000	5,591,000
Gross profit	2,903,000	2,535,000
Operating expenses:	'	'
Delivery and handling expenses	895,000	906,000
Selling and marketing expense	1,068,000	880,000
General and administrative expense	972,000	988,000
Total operating expenses	2,935,000	2,774,000
Loss from operations	-32,000	-239,000
Interest expense	-188,000	-164,000
Net loss	($220,000)	($403,000)
Loss per share basic and diluted	($0.02)	($0.03)
Weighted average number of shares outstanding - basic and diluted	12,965,314	12,320,516

Condensed_Statement_of_Changes

Condensed Statement of Changes in Stockholders' Equity (Unaudited) (USD $)	Common Stock [Member]	Series A Preferred Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2013	$1,000	$94,000	$25,276,000	($21,984,000)	$3,387,000
Balance, Shares at Dec. 31, 2013	12,922,832	9,411	'	'	'
Common shares issued upon exercise of stock options	'	'	20,000	'	20,000
Common shares issued upon exercise of stock options, shares	120,120	'	'	'	-178,700
Fair value vesting of options issued for bonuses and services	'	'	99,000	'	99,000
Net loss	'	'	'	-220,000	-220,000
Balance at Mar. 31, 2014	$1,000	$94,000	$25,395,000	($22,204,000)	$3,286,000
Balance, Shares at Mar. 31, 2014	13,042,952	9,411	'	'	'

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 (loss)	($220,000)	($403,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	181,000	145,000
Fair value of stock options issued to employees	99,000	119,000
Fair value of common stock issued for services and bonus	'	5,000
(Decrease) increase in allowance for doubtful accounts	-14,000	40,000
Changes in assets and liabilities:	'	'
Accounts receivable	-404,000	-307,000
Inventory	217,000	-507,000
Prepaid expenses and inventory and other current assets	-120,000	-28,000
Accounts payable	356,000	28,000
Accrued expenses	-10,000	-24,000
Net cash provided by (used in) operating activities	85,000	-932,000
Cash flows from investing activities:	'	'
Purchase of property and equipment	-73,000	-98,000
Net cash used in investing activities	-73,000	-98,000
Cash flows from financing activities:	'	'
Proceeds from stock option exercises	20,000	30,000
Payment of deferred financing fees	-7,000	'
Principal repayments on long term financing obligation	-25,000	-21,000
Principal repayments on capital lease obligation	-30,000	-16,000
Principal repayments on term loan	-39,000	-42,000
Net draw down (repayment) on line of credit	69,000	642,000
Net cash (used) provided by financing activities	-12,000	593,000
Net (decrease) increase in cash	'	-437,000
Cash at beginning of period	1,104,000	1,163,000
Cash at end of period	1,104,000	726,000
Cash paid during the period for:	'	'
Interest	188,000	164,000
Non cash investing and financing activities:	'	'
Series B Preferred stock converted to common stock	'	456,000
Common stock issued in settlement of Series A and B preferred stock dividend	'	$74,000

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Basis of Presentation	'
	1.   Basis of Presentation
	The accompanying interim condensed financial statements are unaudited, but in the opinion of management of Reed’s, Inc. (the "Company"), contain all adjustments, which include normal recurring adjustments necessary to present fairly the financial position at March 31, 2014 and the results of operations and cash flows for the three months ended March 31, 2014 and 2013. The balance sheet as of December 31, 2013 is derived from the Company’s audited financial statements.
	Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although management of the Company believes that the disclosures contained in these condensed financial statements are adequate to make the information presented herein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission on March 25, 2014.
	The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2014.
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expense during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, analysis of impairments of recorded intangibles, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.
	Income (Loss) per Common Share
	Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stock holders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing the net income applicable to common stock holders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive.
	The Company had potentially dilutive securities that consisted of:
		March 31,	March 31,
		2014	2013
	Warrants	101,963	317,253
	Series A Preferred Stock	37,644	41,644
	Options	440,635	839,669
	Total	580,242	1,198,566
	Recent Accounting Pronouncements
	There are recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the "SEC"), such pronouncements are not believed by management to have a material impact on the Company's present or future financial statements.
	Concentrations
	The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company had cash balances in excess of the guarantee during the three months ended March 31, 2014.
	During the three months ended March 31, 2014 and 2013, the Company had two customers which accounted for approximately 34% and 12% of sales in 2014, and 35% and 10% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either year. As of March 31, 2014, the Company had accounts receivable due from a customer who comprised $1,057,000 (37%) of its total accounts receivable and as of December 31, 2013 the Company had accounts receivable due from two customers who comprised $571,000 (23%), and $424,000 (17%), respectively, of its total accounts receivable.
	During the three months ended March 31, 2014, the Company had one vendor which accounted for approximately 25% of all purchases, and in the three months ended March 31, 2013 one vendor who accounted for approximately 28% of all purchases. No other vendor accounted for more than 10% of all purchases in either period. As of March 31, 2014, the Company had two vendors which accounted for approximately 11% and 10% of total accounts payable and as of December 31, 2013 the Company had accounts payable due to one vendor who comprised 23% of its total. No other account was in excess of 10% of the balance of accounts payable as of March 31, 2014 and December 31, 2013.
	Advertising
	Advertising costs are expensed as incurred. For the three months ended March 31, 2014 and 2013, advertising costs were $70,000 and $21,000, respectively.
	Comprehensive Income
	For the three months ended March 31, 2014 and 2013, the Company had no items of comprehensive income.
	Fair Value of Financial Instruments
	The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the FASB defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets:
	Level 1—Quoted prices in active markets for identical assets or liabilities.
	Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
	Level 3—Unobservable inputs based on the Company's assumptions.
	The Company had no such assets or liabilities recorded to be valued on the basis above at March 31, 2014 or December 31, 2013.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventory	'
	2. Inventory
	Inventory is valued at the lower of cost (first-in, first-out or market) and, net of reserves, is comprised of the following as of:
		31-Mar-14		31-Dec-13
	Raw Materials and packaging	$	2,885,000	$	3,118,000
	Finished Goods		3,191,000		3,175,000
		$	6,076,000	$	6,293,000

Property_and_Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
Property and Equipment	'
	3. Property and Equipment
	Property and equipment are comprised of the following as of:
		March 31,	December 31,
		2014	2013
	Land	$       1,108,000	$       1,108,000
	Building	1,832,000	1,829,000
	Vehicles	337,000	338,000
	Machinery and equipment	2,830,000	2,763,000
	Office equipment	448,000	444,000
		6,555,000	6,482,000
	Accumulated depreciation	-2,947,000	-2,796,000
		$3,608,000	$3,686,000
	Depreciation expense for the three months ended March 31, 2014 and 2013 was $151,000 and $121,000, respectively.
	Machinery and equipment at March 31, 2014 and December 31, 2013 includes equipment held under capital leases of $415,000. Accumulated depreciation on equipment held under capital leases was $254,000 on March 31, 2014 and $231,000 on December 31, 2013.

Line_of_Credit

Line of Credit	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Line of Credit	'
	4. Line of Credit
	On November 9, 2011, the Company entered into a Loan and Security Agreement with PMC Financial Services Group, LLC (PMC) which provides a $4,500,000 revolving line of credit and a $750,000 term loan (see Note 7). On September 20, 2013, the line of credit was increased to $4,800,000 effective September 1, 2013 to May 31, 2014, after which it will be $4,500,000.
	At March 31, 2014 and December 31, 2013, the aggregate amount outstanding under the line of credit was $4,593,000 and $4,524,000 respectively. The line of credit is based on 85% of eligible accounts receivable and 50% of eligible inventory, expires on November 7, 2014, and is secured by substantially all of the Company’s assets. The interest rate is at the prime rate plus 3.75% (7% at December 31, 2013). There is an early termination fee of 1% of the maximum revolver amount during 2014. Also on September 20, 2013, the Company was granted an over-advance on its revolving line of credit calculation of $500,000 effective September 1, 2013 to May 31, 2014, after which it will be $200,000.
	The revolving line of credit agreement includes a financial covenant debt service coverage ratio that is effective only if the credit availability under the revolving line of credit falls below $100,000 and a financial covenant that the Company will not make capital expenditures in excess of $500,000 in any fiscal year. At March 31, 2014, the credit availability under the revolving line of credit was below $100,000. Accordingly at March 31, 2014, the Company was in default under the loan agreement with PMC. This default was waived on May 12, 2014. This revolving line of credit matures on November 8, 2014.

Term_Loan

Term Loan	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Term Loan	'
	5. Term Loan
	On May 1, 2013 the term loan was increased to $750,000. Other terms of the term loan remain the same. The term loan bears interest at the prime rate plus 11.6%, which shall not be below 14.85%, is secured by all of the unencumbered assets of the Company, and is to be repaid in 48 equal installments of principal and interest of $21,000.
		31-Mar-14			31-Dec-13
	Term loan	$	608,000		$	647,000
	Less current portion		(171,000	)		(165,000	)
	Long term debt	$	437,000		$	482,000

Longterm_Financing_Obligation

Long-term Financing Obligation	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Long-term Financing Obligation	'
	6. Long-term Financing Obligation
	In 2009 the Company sold two buildings and its brewery equipment and concurrently entered into a long-term lease agreement for the same property and equipment. In connection with the lease the Company has the option to repurchase the buildings and brewery equipment from 12 months after the commencement date to the end of the lease term at the greater of the fair market value or an agreed upon amount. Since the lease contains a buyback provision and other related terms, the Company determined it had continuing involvement that did not warrant the recognition of a sale; therefore, the transaction has been accounted for as a long-term financing. The proceeds from the sale, net of transaction costs, have been recorded as a financing obligation in the amount of $3,056,000. Monthly payments under the financing agreement are recorded as interest expense and a reduction in the financing obligation at an implicit rate of 9.9%. The financing obligation is personally guaranteed up to a limit of $150,000 by the principal shareholder and Chief Executive Officer.
	In connection with the financing obligation, the Company issued an aggregate of 400,000 warrants to purchase its common stock at $1.20 per share for five years. The 400,000 warrants were valued at $752,000 and reflected as a debt discount, using the Black Scholes option pricing model. The following assumptions were utilized in valuing the 400,000 warrants: strike price of $2.10 to $2.25; term of 5 years; volatility of 91.36% to 110.9%; expected dividends 0%; and discount rate of 2.15% to 2.20%. The 400,000 warrants were recorded as valuation discount and are being amortized over 15 years, the term of the purchase option.
	Long term financing obligation is comprised of the following as of:
		31-Mar-14			31-Dec-13
	Financing obligation	$	2,758,000		$	2,784,000
	Valuation discount		(513,000	)		(526,000	)
			2,245,000			2,258,000
	Less current portion		(116,000	)		(111,000	)
	Long term financing obligation	$	2,129,000		$	2,147,000

Stockholders_Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2014
Equity [Abstract]	'
Stockholders' Equity	'
	7. Stockholders’ Equity
	Preferred Stock
	Series A Preferred stock consists of 500,000 shares $10.00 par value, 5% non-cumulative, participating, preferred stock. As of March 31, 2014 and December 31, 2013, there were 9,411 shares outstanding with a liquidation preference of $10.00 per share.
	The Series A Preferred shares have a 5% pro-rata annual non-cumulative dividend. The dividend can be paid in cash or, in the sole and absolute discretion of our board of directors, in shares of common stock based on its then fair market value. We cannot declare or pay any dividend on shares of our securities ranking junior to the preferred stock until the holders of our preferred stock have received the full non-cumulative dividend to which they are entitled. In addition, the holders of our preferred stock are entitled to receive pro rata distributions of dividends on an “as converted” basis with the holders of our common stock. There were no dividends accrued or paid for the three months ended March 31, 2014.
	In the event of any liquidation, dissolution or winding up of the Company, or if there is a change of control event, then, subject to the rights of the holders of our more senior securities, if any, the holders of our Series A preferred stock are entitled to receive, prior to the holders of any of our junior securities, $10.00 per share plus all accrued and unpaid dividends. Thereafter, all remaining assets shall be distributed pro rata among all of our security holders. Since June 30, 2008, we have the right, but not the obligation, to redeem all or any portion of the Series A preferred stock by paying the holders thereof the sum of the original purchase price per share, which was $10.00, plus all accrued and unpaid dividends.
	The Series A preferred stock may be converted, at the option of the holder, at any time after issuance and prior to the date such stock is redeemed, into four shares of common stock, subject to adjustment in the event of stock splits, reverse stock splits, stock dividends, recapitalization, reclassification and similar transactions. We are obligated to reserve out of our authorized but unissued shares of common stock a sufficient number of such shares to effect the conversion of all outstanding shares of Series A preferred stock.
	Except as provided by law, the holders of our Series A preferred stock do not have the right to vote on any matters, including, without limitation, the election of directors. However, so long as any shares of Series A preferred stock are outstanding, we shall not, without first obtaining the approval of at least a majority of the holders of the Series A preferred stock, authorize or issue any equity security having a preference over the Series A preferred stock with respect to dividends, liquidation, redemption or voting, including any other security convertible into or exercisable for any equity security other than any senior preferred stock.
	Common Stock
	Common stock consists of $.0001 par value, 19,500,000 shares authorized, 13,042,952 shares issued and outstanding as of March 31, 2014 and 12,922,832 shares issued and outstanding as of December 31, 2013.

Stock_Based_Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2014
Stock Based Compensation	'
Stock Based Compensation	'
	8. Stock Based Compensation
	Stock Options
	Total stock-based compensation recognized on the Company’s statement of operations for the three months ended March 31, 2014 and 2013 was $99,000 and $119,000, respectively. As of March 31, 2014, the aggregate value of unvested options was $473,290, which will vest over an average period of three to four years. There were 178,700 stock options exercised in the three months ended March 31, 2014 at exercise prices between $1.14 and $4.00. The Company received $20,000 for 5,000 of such exercises and allowed cash-less exercise of 180,367 of such options, issuing 120,836 shares of common stock for a total of 120,120 shares issued relative to stock options in the three months ended March 31, 2014.
	Stock options granted under our equity incentive plans generally vest over 3 years from the date of grant, at 33% per year, and expire 5 years from the date of grant. The following table summarizes stock option activity for the three months ended March 31, 2014:
			Shares		Weighted-Average		Weighted-Average	Aggregate
					Exercise Price		Remaining	Intrinsic
							Contractual	Value
							Terms (Years)
	Outstanding at January 1, 2014		639,334		$3.18
	Granted		-		-
	Exercised		-178,700		2.7
	Forfeited or expired		-20,000		4
	Outstanding at March 31, 2014		440,634		$3.35		3.5	$1,037,000
	Exercisable at March 31, 2014		209,785		$3.20		3.1	$    671,000
	The aggregate intrinsic value was calculated as the difference between the market price, which was $5.69, and the exercise price of the Company’s common stock as of March 31, 2014.
	The following table summarizes information about stock options at March 31, 2014:
		Options Outstanding at March 31, 2014			Options Exercisable at
					31-Mar-14
	Range of Exercise Price	Number of Shares	Weighted Average	Weighted Average Exercise Price	Number	Weighted
		Outstanding	Remaining		of Shares	Average
			Contractual Life (years)		Exercisable	Exercise Price
	$0.01 - $1.99	124,500	2.7	$1.28	95,851	$1.23
	$2.00 - $4.99	296,134	3.7	$3.98	113,934	$3.55
	$5.00 - $6.99	20,000	4.6	$6.70	-	-
		440,634			209,785
	Stock Warrants
	During the three months ended March 31, 2014, no warrants were either granted or exercised. The following table summarizes stock warrant activity for the three months ended March 31, 2014:
			Shares		Weighted-Average		Weighted-Average	Aggregate
					Exercise Price		Remaining	Intrinsic
							Contractual	Value
							Terms (Years)
	Outstanding at December 31, 2013		101,963		$2.30
	Granted		-		-
	Exercised		-		-
	Forfeited or expired		-		-
	Outstanding at March 31, 2014		101,963		$2.30		1.1	$  345,417
	Exercisable at March 31, 2014		101,963		$2.30		1.1	$  345,417
	The intrinsic value was calculated as the difference between the market price, which was $5.69, and the exercise price of the Company’s common stock, as of March 31, 2014.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	9. Income Taxes
	For the three months ended March 31, 2014 and 2013, net (loss) was $(220,000) and $(403,000), respectively. Consequently, our provision for income taxes was zero.
	In accordance with Accounting Standards Codification (“ASC”) 740-10, Income Taxes, the Company evaluates its deferred tax assets to determine if a valuation allowance is required based on the consideration of all available evidence using a “more likely than not” standard, with significant weight being given to evidence that can be objectively verified. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability; the length of statutory carryover periods for operating losses and tax credit carryovers; and available tax planning alternatives. Our deferred tax assets are composed primarily of U.S. federal net operating loss carryforwards. Based on available objective evidence, management believes it is more likely than not that these deferred tax assets are not recognizable and will not be recognizable until its determined that we have sufficient taxable income. Under ASC 740-10, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC 740-10 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods, and disclosures. As of March 31, 2014 or 2013 the Company did not have a liability for unrecognized tax uncertainties.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	10. Subsequent Events
	On April 10, 2014, a total of 257,500 stock options were granted to employees and consultants.  These options vest between three and four years and have a strike price of $5.05 per share.  These options were valued at $629,000 using the Black-Scholes pricing model and will be expensed to the Company’s income statement as they vest.

Basis_of_Presentation_Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Income (Loss) per Common Share	'
	Income (Loss) per Common Share
	Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stock holders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing the net income applicable to common stock holders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive.
	The Company had potentially dilutive securities that consisted of:
		March 31,	March 31,
		2014	2013
	Warrants	101,963	317,253
	Series A Preferred Stock	37,644	41,644
	Options	440,635	839,669
	Total	580,242	1,198,566
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	There are recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the Securities Exchange Commission (the “SEC”), such pronouncements are not believed by management to have a material impact on the Company’s present or future financial statements.
Concentrations	'
	Concentrations
	The Company’s cash balances on deposit with banks are guaranteed by the Federal Deposit Insurance Corporation up to $250,000. The Company may be exposed to risk for the amounts of funds held in one bank in excess of the insurance limit. In assessing the risk, the Company’s policy is to maintain cash balances with high quality financial institutions. The Company had cash balances in excess of the guarantee during the three months ended March 31, 2014.
	During the three months ended March 31, 2014 and 2013, the Company had two customers which accounted for approximately 34% and 12% of sales in 2014, and 35% and 10% of sales in 2013, respectively. No other customers accounted for more than 10% of sales in either year. As of March 31, 2014, the Company had accounts receivable due from a customer who comprised $1,057,000 (37%) of its total accounts receivable and as of December 31, 2013 the Company had accounts receivable due from two customers who comprised $571,000 (23%), and $424,000 (17%), respectively, of its total accounts receivable.
	During the three months ended March 31, 2014, the Company had one vendor which accounted for approximately 25% of all purchases, and in the three months ended March 31, 2013 one vendor who accounted for approximately 28% of all purchases. No other vendor accounted for more than 10% of all purchases in either period. As of March 31, 2014, the Company had two vendors which accounted for approximately 11% and 10% of total accounts payable and as of December 31, 2013 the Company had accounts payable due to one vendor who comprised 23% of its total. No other account was in excess of 10% of the balance of accounts payable as of March 31, 2014 and December 31, 2013.
Advertising	'
	Advertising
	Advertising costs are expensed as incurred. For the three months ended March 31, 2014 and 2013, advertising costs were $70,000 and $21,000, respectively.
Comprehensive Income	'
	Comprehensive Income
	For the three months ended March 31, 2014 and 2013, the Company had no items of comprehensive income.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	The Company uses various inputs in determining the fair value of its investments and measures these assets on a recurring basis. Financial assets recorded at fair value in the balance sheets are categorized by the level of objectivity associated with the inputs used to measure their fair value. Authoritative guidance provided by the FASB defines the following levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets:
	Level 1—Quoted prices in active markets for identical assets or liabilities.
	Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.
	Level 3—Unobservable inputs based on the Company’s assumptions.
	The Company had no such assets or liabilities recorded to be valued on the basis above at March 31, 2014 or December 31, 2013.

Basis_of_Presentation_Tables

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Schedule of Potentially Dilutive Securities	'
	The Company had potentially dilutive securities that consisted of:
		March 31,	March 31,
		2014	2013
	Warrants	101,963	317,253
	Series A Preferred Stock	37,644	41,644
	Options	440,635	839,669
	Total	580,242	1,198,566

Inventory_Tables

Inventory (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory	'
	Inventory is valued at the lower of cost (first-in, first-out or market and, net of reserves, is comprised of the following as of:
		31-Mar-14		31-Dec-13
	Raw Materials and packaging	$	2,885,000	$	3,118,000
	Finished Goods		3,191,000		3,175,000
		$	6,076,000	$	6,293,000

Property_and_Equipment_Tables

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2014
Property, Plant and Equipment [Abstract]	'
Schedule of Property and equipment	'
	Property and equipment are comprised of the following as of:
		31-Mar-14			31-Dec-13
	Land	$	1,108,000		$	1,108,000
	Building		1,832,000			1,829,000
	Vehicles		337,000			338,000
	Machinery and equipment		2,830,000			2,763,000
	Office equipment		448,000			444,000
			6,555,000			6,482,000
	Accumulated depreciation		(2,947,000	)		(2,796,000	)
		$	3,608,000		$	3,686,000

Term_Loan_Tables

Term Loan (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of Term Loan	'
		31-Mar-14			31-Dec-13
	Term loan	$	608,000		$	647,000
	Less current portion		(171,000	)		(165,000	)
	Long term debt	$	437,000		$	482,000

Longterm_Financing_Obligation_

Long-term Financing Obligation (Tables)	3 Months Ended
	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of Long-term Financing Obligation	'
	Long term financing obligation is comprised of the following as of:
		31-Mar-14			31-Dec-13
	Financing obligation	$	2,758,000		$	2,784,000
	Valuation discount		(513,000	)		(526,000	)
			2,245,000			2,258,000
	Less current portion		(116,000	)		(111,000	)
	Long term financing obligation	$	2,129,000		$	2,147,000

Stock_Based_Compensation_Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Stock Based Compensation Tables	'
Schedule of Stock Option Activity	'
	The following table summarizes stock option activity for the three months ended March 31, 2014:
			Shares		Weighted-Average		Weighted-Average		Aggregate
					Exercise Price		Remaining		Intrinsic
							Contractual		Value
							Terms (Years)
	Outstanding at January 1, 2014		639,334		$3.18
	Granted		-		-
	Exercised		-178,700		2.7
	Forfeited or expired		-20,000		4
	Outstanding at March 31, 2014		440,634		$3.35		3.5		$1,037,000
	Exercisable at March 31, 2014		209,785		$3.20		3.1		$    671,000
Schedule of Information Regarding Stock Options	'
	The following table summarizes information about stock options at March 31, 2014:
		Options Outstanding at March 31, 2014			Options Exercisable at
					31-Mar-14
	Range of Exercise Price	Number of Shares	Weighted Average	Weighted Average Exercise Price	Number	Weighted
		Outstanding	Remaining		of Shares	Average
			Contractual Life (years)		Exercisable	Exercise Price
	$0.01 - $1.99	124,500	2.7	$1.28	95,851	$1.23
	$2.00 - $4.99	296,134	3.7	$3.98	113,934	$3.55
	$5.00 - $6.99	20,000	4.6	$6.70	-	-
		440,634			209,785
Schedule of Stock Warrants Activity	'
	The following table summarizes stock warrant activity for the three months ended March 31, 2014:
			Shares				Weighted-Average			Weighted-Average		Aggregate
							Exercise Price			Remaining		Intrinsic
										Contractual		Value
										Terms (Years)
	Outstanding at December 31, 2013			101,963			$	2.3
	Granted			-				-
	Exercised			-				-
	Forfeited or expired			-				-
	Outstanding at March 31, 2014			101,963			$	2.3			1.1	$	345,417
	Exercisable at March 31, 2014			101,963			$	2.3			1.1	$	345,417

Basis_of_Presentation_Details_

Basis of Presentation (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Maximum cash deposit guaranteed by federal deposit insurance corporation	$250,000	'	'
Maximum percentage of sales incurred by each customer	10.00%	'	'
Percentage of amount due to vendor for purchase	25.00%	28.00%	'
Maximum percentage of purchase incurred by each vendor	10.00%	'	'
Percentage of accounts payable due to vendor	11.00%	'	23.00%
Percentage of accounts payable by two vendor	11.00%	'	10.00%
Percentage of account excess for accounts payable during period	10.00%	'	10.00%
Advertising costs	70,000	21,000	'
Customer One	'	'	'
Percentage of sale accounted to customer	34.00%	35.00%	'
Account receivables from customer	1,057,000	'	571,000
Percentage of receivables from customer to net receivables	37.00%	'	23.00%
Customer Two	'	'	'
Percentage of sale accounted to customer	12.00%	10.00%	'
Account receivables from customer	'	'	424,000
Percentage of receivables from customer to net receivables	'	'	17.00%

Operations_and_Summary_of_Sign

Operations and Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Securities (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Potentially dilutive securities	580,242	1,198,566
Warrant [Member]	'	'
Potentially dilutive securities	101,963	317,253
Series A Preferred Stock [Member]	'	'
Potentially dilutive securities	37,644	41,644
Stock Options [Member]	'	'
Potentially dilutive securities	440,635	839,669

Inventory_Schedule_of_Inventor

Inventory - Schedule of Inventory (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'
Raw Materials and Packaging	$2,885,000	$3,118,000
Finished Goods	3,191,000	3,175,000
Inventory, total	$6,076,000	$6,293,000

Property_and_Equipment_Details

Property and Equipment (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'	'	'
Equipment held under capital leases	$415,000	'	$415,000
Accumulated depreciation for assets held under capital lease	254,000	'	231,000
Depreciation expense	$151,000	$121,000	'

Property_and_Equipment_Schedul

Property and Equipment - Schedule of Property and Equipment (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'	'
Land	$1,108,000	$1,108,000
Building	1,832,000	1,829,000
Vehicles	337,000	338,000
Machinery and equipment	2,830,000	2,763,000
Office equipment	448,000	444,000
Property and equipment, gross	6,555,000	6,482,000
Accumulated depreciation	-2,947,000	-2,796,000
Property and equipment, net	$3,608,000	$3,686,000

Line_of_Credit_Details_Narrati

Line of Credit (Details Narrative) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended	0 Months Ended			3 Months Ended
	Sep. 20, 2013	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014	Sep. 20, 2013	1-May-13	Nov. 09, 2011	Mar. 31, 2014
				Maximum [Member]	PMC Financial Services Group, LLC [Member]	PMC Financial Services Group, LLC [Member]	PMC Financial Services Group, LLC [Member]	PMC Financial Services Group, LLC [Member]
Line of credit current	'	$4,593,000	$4,524,000	'	'	'	$4,500,000	'
Term loan amount	'	217,000	'	'	'	750,000	750,000	'
Revolving Line of credit increased	'	'	'	'	4,800,000	'	'	'
Revolving Line of credit facility outstanding	200,000	4,524,000	3,023,000	'	4,500,000	'	'	'
Percentage of line of credit facility eligible to accounts receivable	'	85.00%	'	'	'	'	'	'
Percentage of line of credit facility eligible to inventory	'	50.00%	'	'	'	'	'	'
Line of credit expiration date	'	7-Nov-14	'	'	'	'	'	8-Nov-14
Line of credit interest rate	'	3.75%	7.00%	'	'	11.60%	'	'
Percentage of termination fee for revolving amount	'	'	'	1.00%	'	'	'	'
Revolving line of credit granted over advance	500,000	'	'	'	'	'	'	'
Debt service coverage ratio under credit availability amount	'	100,000	'	'	'	'	'	'
Revolving line of credit capital expenditure excess amount	'	500,000	'	'	'	'	'	'
Maximum credit availability under revolving line of credit	'	$100,000	'	'	'	'	'	'

Term_Loan_Details_Narrative

Term Loan (Details Narrative) (USD $)	3 Months Ended	12 Months Ended	0 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	1-May-13	Nov. 09, 2011
			PMC Financial Services Group, LLC [Member]	PMC Financial Services Group, LLC [Member]
Term loan amount	$217,000	'	$750,000	$750,000
Loan bears interest, description	'	'	'	'
			The term loan bears interest at the prime rate plus 11.6%, which shall not be below 14.85%, is secured by all of the unencumbered assets of the Company, and is to be repaid in 48 equal installments of principal and interest of $21,000.
Line of credit interest rate	3.75%	7.00%	11.60%	'
Maximum limit of line of credit interest rate	'	'	14.85%	'
Payment of principle and interest amount for loan	'	'	$21,000	'

Term_Loan_Schedule_of_Term_Loa

Term Loan - Schedule of Term Loan (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Term loan	$608,000	$647,000
Less current portion	-171,000	-165,000
Long term debt	$437,000	$482,000

Longterm_Financing_Obligation_1

Long-term Financing Obligation (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014
Proceeds from sale of transaction cost	$3,056,000
Percentage of interest expense and reduction in the financing obligation at implicit rate	9.90%
Number of warrants issued to purchase of common stock	400,000
Issuance of warrants price per share	$1.20
Warrants issued during period value	752,000
Warrants term	'5 years
Warrants expected dividends	0.00%
Valuation discount amortized term	'15 years
Minimum [Member]	'
Warrants strike price	$2.10
Warrants volatility rate	91.36%
Warrants discount rate	2.15%
Maximum [Member]	'
Warrants strike price	$2.25
Warrants volatility rate	110.90%
Warrants discount rate	2.20%
Chief Executive Officer [Member]	'
Proceeds financial obligation limit guaranteed by related party	$150,000

Longterm_Financing_Obligation_2

Long-term Financing Obligation - Schedule of Long-term Financing Obligation (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'
Financing obligation	$2,758,000	$2,784,000
Valuation discount	-513,000	-526,000
Financing obligation, net of discount	2,245,000	2,258,000
Less current portion	-116,000	-111,000
Long term financing obligation	$2,129,000	$2,147,000

Stockholders_Equity_Details_Na

Stockholders' Equity (Details Narrative) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Common stock, authorized	19,500,000	19,500,000
Common stock, par value	$0.00	$0.00
Common stock, issued	13,042,952	12,922,832
Common stock, outstanding	13,042,952	12,922,832
Series A Preferred Stock [Member]	'	'
Preferred stock, shares authorized	500,000	500,000
Preferred stock, par value	$10	$10
Percentage of non cumulative preferred stock	5.00%	5.00%
Preferred stock, shares outstanding	9,411	9,411
Preferred stock shares, liquidation preference	$10	$10
Percentage of prorate annual non cumulative dividend	5.00%	'
Preferred stock holders rights to receive at price per share	$10	'

Stock_Based_Compensation_Detai

Stock Based Compensation (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock based compensation	$99,000	$119,000
Aggregate value of unvested options	473,290	'
Stock options exercise shares	178,700	'
Stock option market exercise price	$2.70	'
Proceeds From Stock Options Exercised	$20,000	$30,000
Exercise of stock options issued during the period	'	10,000
Percentage of stock options granted under equity incentive plan	33.00%	'
Option exercise price per share	$5.69	'
Minimum [Member]	'	'
Stock option market exercise price	$1.14	'
Share based compensation cost amortized option vest period	'3 years	'
Maximum [Member]	'	'
Stock option market exercise price	$4	'
Share based compensation cost amortized option vest period	'5 years	'
Exercises Stock Option Plan One [Member]	'	'
Stock options exercise shares	-5,000	'
Exercises Stock Option Plan Two [Member]	'	'
Stock options exercise shares	-180,367	'
Stock Options [Member]	'	'
Stock options exercise shares	-120,120	'
Exercise of stock options issued during the period	120,836	'
Warrant [Member]	'	'
Warrant exercise price per share	$5.69	'

Stock_Based_Compensation_Sched

Stock Based Compensation - Schedule of Stock Option Activity (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Based Compensation - Schedule Of Stock Option Activity Details	'	'
Shares Outstanding, Beginning balance	639,334	'
Shares, Granted	'	10,000
Shares, Exercised	-178,700	'
Shares, Forfeited Or Expired	-20,000	'
Shares Outstanding, Ending balance	440,634	'
Shares Exercisable	209,785	'
Weighted Average Exercise Price, Outstanding, Beginning	$3.18	'
Weighted Average Exercise Price, Granted	'	'
Weighted Average Exercise Price, Exercised	$2.70	'
Weighted Average Exercise Price, Forfeited Or Expired	$4	'
Weighted Average Exercise Price, Outstanding, Ending	$3.35	'
Weighted Average Exercise Price, Exercisable	$3.20	'
Weighted Average Remaining Contractual Terms (Years), Outstanding	'3 years 6 months	'
Weighted Average Remaining Contractual Terms (Years), Exercisable	'3 years 1 month 6 days	'
Aggregate Intrinsic Value, Share Outstanding	$1,037,000	'
Aggregate Intrinsic Value, Share Exercisable	$671,000	'

Stock_Based_Compensation_Sched1

Stock Based Compensation - Schedule of Information Regarding Stock Options (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Number of Shares Outstanding	440,634
Weighted Average Remaining Contractual Life (years)	'3 years 6 months
Number of Shares Exercisable	209,785
Range One [Member]	'
Range of Exercise Price Lower Limit	0.01
Range of Exercise Price Upper limit	1.99
Number of Shares Outstanding	124,500
Weighted Average Remaining Contractual Life (years)	'2 years 8 months 12 days
Weighted Average Exercise Price	1.28
Number of Shares Exercisable	95,851
Weighted Average Exercise Price	1.23
Range Two [Member]	'
Range of Exercise Price Lower Limit	2
Range of Exercise Price Upper limit	4.99
Number of Shares Outstanding	296,134
Weighted Average Remaining Contractual Life (years)	'3 years 8 months 12 days
Weighted Average Exercise Price	3.98
Number of Shares Exercisable	113,934
Weighted Average Exercise Price	3.55
Range Three [Member]	'
Range of Exercise Price Lower Limit	5
Range of Exercise Price Upper limit	6.99
Number of Shares Outstanding	20,000
Weighted Average Remaining Contractual Life (years)	'4 years 7 months 6 days
Weighted Average Exercise Price	6.7
Number of Shares Exercisable	'
Weighted Average Exercise Price	'

Stock_Based_Compensation_Sched2

Stock Based Compensation - Schedule of Stock Warrants Activity (Details) (Warrant [Member], USD $)	3 Months Ended
	Mar. 31, 2014
Warrant [Member]	'
Shares Outstanding, Beginning Balance	101,963
Shares Granted	'
Shares Exercised	'
Shares Forfeited Or Expired	'
Shares Outstanding, Ending Balance	101,963
Warrants Exercisable	101,963
Weighted Average Exercise Price, Outstanding, Beginning	$2.30
Weighted Average Exercise Price, Granted	'
Weighted Average Exercise Price, Exercised	'
Weighted Average Exercise Price, Forfeited Or Expired	'
Weighted Average Exercise Price, Outstanding, Ending	$2.30
Weighted Average Exercise Price, Exercisable	$2.30
Weighted Average Remaining Contractual Terms (Years), Outstanding	'1 year 1 month 6 days
Weighted Average Remaining Contractual Terms (Years), Exercisable	'1 year 1 month 6 days
Aggregate Intrinsic Value, Outstanding	$345,417
Aggregate Intrinsic Value, Exercisable	$345,417

Income_Taxes_Details_Narrative

Income Taxes (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]	'	'
Net (loss)	($220,000)	($403,000)
Provision of income taxes	$0	'

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative) (USD $)	3 Months Ended		0 Months Ended		1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Apr. 10, 2014	Apr. 10, 2014	Apr. 30, 2014
			Subsequent Event [Member]	Subsequent Event [Member]	Subsequent Event [Member]
				Minimum [Member]	Maximum [Member]
Number of option granted for employees and consultants	'	10,000	257,500	'	'
Fair value expected term	'	'	'	'3 years	'4 years
Number of option exercised price per share	'	'	$5.05	'	'
Value of stock option	'	'	$629,000	'	'