Reed's (REED) 10-Q 9 Nov 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	001-32501
Entity Registrant Name	REED'S, INC.
Entity Central Index Key	0001140215
Entity Tax Identification Number	35-2177773
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	201 Merritt 7
Entity Address, City or Town	Norwalk
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06851
City Area Code	(800)
Local Phone Number	997-3337
Title of 12(b) Security	Common Stock
Trading Symbol	REED
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,967,570

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Current assets:
Cash	$ 875		$ 875		$ 913
Accounts receivable, net of allowance for doubtful accounts and returns and discounts of $194 and $375, respectively	4,647		4,647		2,099
Receivable from related party	391		391		356
Inventory, net of reserve for obsolescence of $224 and $646, respectively	9,436		9,436		10,508
Prepaid expenses and other current assets	704		704		420
Total current assets	16,053		16,053		14,296
Property and equipment, net of accumulated depreciation of $316 and $482, respectively	984		984		1,053
Equipment held for sale, net of impairment reserves of $96 and $96, respectively	67		67		67
Intangible assets	613		613		576
Total assets	17,717		17,717		15,992
Current liabilities:
Accounts payable	5,441		5,441		5,539
Accrued expenses	835		835		646
Revolving line of credit	4,272		4,272		3,177
Current portion of note payable	470		470
Convertible note to a related party	5,128		5,128
Current portion of leases payable	114		114		49
Total current liabilities	16,260		16,260		9,411
Leases payable, less current portion	592		592		737
Convertible note to a related party					4,689
Note payable	300		300
Warrant liability	7		7		8
Total liabilities	17,159		17,159		14,845
Stockholders’ equity:
Series A Convertible Preferred stock, $10 par value, 500,000 shares authorized, 9,411 shares issued and outstanding	94		94		94
Common stock, $.0001 par value, 100,000,000 and 100,000,000 shares authorized, respectively; 62,960,570 and 47,595,206 shares issued and outstanding, respectively	6		6		5
Common stock issuable, 350,000 shares at September 30, 2020	285		285
Additional paid in capital	83,646		83,646		77,596
Accumulated deficit	(83,473)		(83,473)		(76,548)
Total stockholders’ equity	558	$ (2,208)	558	$ (2,208)	1,147
Total liabilities and stockholders’ equity	17,717		17,717		$ 15,992
Net Sales	10,562	8,740	30,938	26,669
Cost of goods sold	7,176	6,238	21,694	19,390
Gross profit	3,386	2,502	9,244	7,279
Operating expenses:
Delivery and handling expense	2,207	1,902	4,950	4,369
Selling and marketing expense	1,872	2,508	5,382	7,718
General and administrative expense	1,583	2,470	4,872	6,557
Total operating expenses	5,662	6,880	15,204	18,644
Loss from operations	(2,276)	(4,378)	(5,960)	(11,365)
Interest expense	(322)	(318)	(961)	(947)
Change in fair value of warrant liability	8	131	1	23
Net loss	(2,590)	(4,565)	(6,920)	(12,289)
Dividends on Series A Convertible Preferred Stock			(5)	(5)
Net Loss Attributable to Common Stockholders	$ (2,590)	$ (4,565)	$ (6,925)	$ (12,294)
Loss per share – basic and diluted	$ (0.04)	$ (0.14)	$ (0.12)	$ (0.38)
Weighted average number of shares outstanding – basic and diluted	62,940,091	33,716,359	56,706,141	32,179,119

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts and returns and discounts	$ 194	$ 375
Inventory Valuation Reserves	224	646
Property and equipment, accumulated depreciation	316	482
Equipment, impairment reserves	$ 96	$ 96
Series A convertible preferred stock, par value	$ 10	$ 10
Series A convertible preferred stock, shares authorized	500,000	500,000
Series A convertible preferred stock, shares issued	9,411	9,411
Series A convertible preferred stock, shares outstanding	9,411	9,411
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	62,960,570	47,595,206
Common stock, shares issued	62,960,570	47,595,206
Common stock, shares issuable	350,000

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Preferred Stock [Member]	Common Stock Issuable [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2018	$ 3	$ 94		$ 53,591	$ (60,431)	$ (6,743)
Shares, Outstanding, Beginning Balance at Dec. 31, 2018	25,729,461	9,411
Fair value of vested options				1,077		1,077
Dividends on Series A Convertible Preferred Stock					(5)	(5)
Dividends on Series A Convertible Preferred Stock, shares
Fair value of vested restricted shares granted to an officer for services				405		405
Fair value of vested restricted shares granted to officers for services, shares
Common shares issued pursuant to the rights offering, net of offering costs				14,867		14,867
Common shares issued pursuant to the rights offering, net of offering costs, shares	7,733,750
Shares granted to Directors for services				115		115
Shares granted to Directors for services, shares	33,796
Exercise of warrants				365		365
Exercise of warrants, shares	223,037
Net Loss					(12,289)	(12,289)
Ending balance, value at Sep. 30, 2019	$ 3	$ 94		70,420	(72,725)	(2,208)
Shares, Outstanding, Ending Balance at Sep. 30, 2019	33,720,044	9,411
Beginning balance, value at Jun. 30, 2019	$ 3	$ 94		70,051	(68,160)	1,988
Shares, Outstanding, Beginning Balance at Jun. 30, 2019	33,708,826	9,411
Fair value of vested options				223		223
Fair value of vested restricted shares granted to an officer for services				116		116
Shares granted to Directors for services				29		29
Shares granted to Directors for services, shares	8,072
Exercise of warrants				1		1
Exercise of warrants, shares	3,146
Net Loss					(4,565)	(4,565)
Ending balance, value at Sep. 30, 2019	$ 3	$ 94		70,420	(72,725)	(2,208)
Shares, Outstanding, Ending Balance at Sep. 30, 2019	33,720,044	9,411
Beginning balance, value at Dec. 31, 2019	$ 5	$ 94		77,596	(76,548)	1,147
Shares, Outstanding, Beginning Balance at Dec. 31, 2019	47,595,206	9,411
Fair value of vested options				722		722
Common shares issued on exercise of options				14		$ 14
Common shares issued on exercise of options, shares	27,500					27,500
Dividends on Series A Convertible Preferred Stock				5	(5)
Dividends on Series A Convertible Preferred Stock, shares	4,530
Fair value of vested restricted shares granted to an officer for services			$ 285			285
Fair value of vested restricted shares granted to officers for services, shares			350,000
Common shares issued pursuant to the rights offering, net of offering costs	$ 1			5,309		5,310
Common shares issued pursuant to the rights offering, net of offering costs, shares	15,333,334
Exercise of warrants, shares
Net Loss					(6,920)	(6,920)
Ending balance, value at Sep. 30, 2020	$ 6	$ 94	$ 285	83,646	(83,473)	558
Shares, Outstanding, Ending Balance at Sep. 30, 2020	62,960,570	9,411	350,000
Beginning balance, value at Jun. 30, 2020	$ 6	$ 94	$ 285	83,364	(80,883)	2,866
Shares, Outstanding, Beginning Balance at Jun. 30, 2020	62,928,540	9,411	350,000
Fair value of vested options				263		263
Common shares issued on exercise of options				14		14
Common shares issued on exercise of options, shares	27,500
Dividends on Series A Convertible Preferred Stock				5		5
Dividends on Series A Convertible Preferred Stock, shares	4,530
Fair value of vested restricted shares granted to officers for services, shares
Exercise of warrants
Exercise of warrants, shares
Net Loss					(2,590)	(2,590)
Ending balance, value at Sep. 30, 2020	$ 6	$ 94	$ 285	$ 83,646	$ (83,473)	$ 558
Shares, Outstanding, Ending Balance at Sep. 30, 2020	62,960,570	9,411	350,000

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (6,920)	$ (12,289)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	56	12
(Gain)/loss on sale of property & equipment		(30)
(Gain)/loss on termination of leases	(6)	2
Amortization of debt discount	290	225
Amortization of right of use assets	89	96
Fair value of vested options	722	1,077
Fair value of vested restricted shares granted to officers	285	520
Decrease in allowance for doubtful accounts	(181)	(400)
Decrease (increase) in inventory reserve	(422)	325
Change in fair value of warrant liability	(1)	(23)
Accrual of interest on convertible note to a related party	439	390
Lease liability	(18)	(10)
Changes in operating assets and liabilities:
Accounts receivable	(2,367)	(1,121)
Inventory	1,495	(2,520)
Prepaid expenses and other assets	(318)	(339)
Accounts payable	(100)	(196)
Accrued expenses	189	(347)
Net cash used in operating activities	(6,768)	(14,628)
Cash flows from investing activities:
Trademark costs	(37)
Proceeds from sale of property and equipment		30
Purchase of property and equipment	(121)	(273)
Net cash used in investing activities	(158)	(243)
Cash flows from financing activities:
Borrowings on line of credit	34,645	42,179
Repayments of line of credit	(33,710)	(42,175)
Capitalization of financing costs	(130)	(130)
Proceeds from note payable	770
Repayment of amounts due to/from officers		195
Principal repayments on capital lease obligation	(11)	(38)
Exercise of options	14
Exercise of warrants		365
Proceeds from sale of common stock	5,310	14,867
Net cash provided by financing activities	6,888	15,263
Net increase in cash	(38)	392
Cash at beginning of period	913	624
Cash at end of period	875	1,016
Supplemental disclosures of cash flow information:
Cash paid for interest	231	408
Non Cash Investing and Financing Activities
Dividends on Series A Convertible Preferred Stock	$ 5	$ 5

Basis of Presentation and Liqui

Basis of Presentation and Liquidity	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Liquidity	1. Basis of Presentation and Liquidity The accompanying interim condensed financial statements of Reed’s, Inc. (the “Company”, “we”, “us”, or “our”), are unaudited, but in the opinion of management contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position at September 30, 2020, the results of operations for the three and nine months ended September 30, 2020 and 2019, and cash flows for the nine months ended September 30, 2020 and 2019. The balance sheet as of December 31, 2019 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 regarding interim financial reporting. We believe 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 for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission on March 18, 2020 and amended on April 8, 2020. The results of operations for the nine months ended September 30, 2020 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020. COVID-19 Considerations In the quarter ended September 30, 2020, the COVID-19 pandemic did not have a material net impact on our operating results. In the future, the pandemic may cause reduced demand for our products if, for example, the pandemic results in a recessionary economic environment which negatively effects the consumers who purchase our products. Based on the recent increase in demand for our products, we believe that over the long term, there will continue to be strong demand for our products. Our ability to operate without significant negative operational impact from the COVID-19 pandemic will in part depend on our ability to protect our employees and our supply chain. The Company has endeavored to follow the recommended actions of government and health authorities to protect our employees. For the six months ended September 30, 2020, we maintained the consistency of our operations during the onset of the COVID-19 pandemic. We will continue to innovate in managing our business, coordinating with our employees and suppliers to do our part in the infection prevention and remain flexible in responding to our customers and suppliers. However, the uncertainty resulting from the pandemic could result in an unforeseen disruption to our workforce and supply chain (for example an inability of a key supplier or transportation supplier to source and transport materials) that could negatively impact our operations. Through September 30, 2020, the COVID-19 pandemic has not negatively impacted the Company’s liquidity position as of such date. Shipments to customers in the third quarter of 2020 were up 14% from the first quarter of 2020, and down slightly (2%) from the second quarter of 2020 with fluctuations consistent with historical seasonal patterns. Through September 30, 2020, we continue to generate cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets. We have also not observed any material impairments of our assets or a significant change in the fair value of our assets due to the COVID-19 pandemic. For additional information on risk factors related to the pandemic or other risks that could impact our results, please refer to “Risk Factors” in Part II, Item 1A of this Form 10-Q. Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the nine months ended September 30, 2020, the Company recorded a net loss of $ 6,920 and used cash in operations of $ 6,768 . As of September 30, 2020, we had a cash balance of $ 875 with borrowing capacity of $ 3,037 , a stockholder’s equity of $ 558 and a negative working capital of $ 207 , compared to a cash balance of $ 913 with borrowing capacity of $ 3,235 , stockholders’ equity of $ 1,147 and a working capital of $ 4,885 at December 31, 2019. Historically, we have financed our operations through public and private sales of common stock, issuance of preferred and common stock, convertible debt instruments, term loans and credit lines from financial institutions, and cash generated from operations. We have taken decisive action to improve our margins, including fully outsourcing our manufacturing process, streamlining our product portfolio, negotiating improved vendor contracts, and restructuring our selling prices.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	2. Significant Accounting Policies Use of estimates 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 expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, depreciable lives of property and equipment, analysis of impairments of recorded long-term tangible and intangible assets, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s performance obligations are satisfied at that time. All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis. Loss per Common Share Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income applicable to common stockholders 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. For the periods ended September 30, 2020 and 2019, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have had an anti-dilutive effect. The potentially dilutive securities consisted of the following: Schedule of Potentially Dilutive Securities September 30, 2020 September 30, 2019 Convertible note to a related party 2,266,667 2,266,667 Warrants 6,413,782 6,413,782 Common stock equivalent of Series A Convertible Preferred stock 37,644 37,644 Common stock issuable 350,000 - Unvested restricted common stock 244,740 610,609 Options 4,716,357 4,373,566 Total 14,029,190 13,702,268 The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4. Stock Compensation Expense The Company periodically issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, Compensation-Stock Compensation The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods. Advertising Costs Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs for the three months ended September 30, 2020 and 2019, aggregated $ 536 661 1,141 2,194 Concentrations Sales. 24 12 25 13 15 12 23 13 10 Accounts receivable. 23 14 10 Purchases from vendors. 13 11 11 11 13 11 10 12 10 10 Accounts payable. 18 11 19 15 14 10 Fair Value of Financial Instruments The Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring basis. Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure their fair value. ASC 820 defines the following levels of subjectivity associated with the inputs: 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 carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, short-term bank loans, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of capital lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates. As of September 30, 2020, and December 31, 2019, the Company’s balance sheets included Level 2 liabilities comprised of the fair value of warrant liabilities aggregating $ 7 8 Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “ Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2020
Inventory Disclosure [Abstract]
Inventory	3. Inventory Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands): Schedule of Inventory September 30, December 31, Raw materials and packaging $ 6,354 $ 4,261 Finished products 3,082 6,247 Total $ 9,436 $ 10,508 The Company has recorded a reserve for slow moving and potentially obsolete inventory. The reserve at September 30, 2020, and December 31, 2019, was $ 224 and $ 646 , respectively.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	4. Property and Equipment Property and equipment is comprised of the following (in thousands): Schedule of Property and Equipment September 30, December 31, Right-of-use assets under operating leases $ 730 $ 730 Right-of-use assets under finance leases 67 179 Computer hardware and software 400 543 Machinery and equipment 103 83 Total cost 1,300 1,535 Accumulated depreciation and amortization (316 ) (482 ) Net book value $ 984 $ 1,053 Depreciation expense for the three months ended September 30, 2020 and 2019 was $ 35 8 56 12 45 51 6 Equipment held for sale consists of the following (in thousands): Schedule of Equipment Held for Sale September 30, December 31, Equipment held for sale $ 163 $ 163 Reserve (96 ) (96 ) Net book value $ 67 $ 67 The balance as of September 30, 2020, and December 31, 2019, consists of residual manufacturing equipment, at estimated net realizable value, which management anticipates selling during 2020.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	5. Intangible Assets Intangible assets are comprised of brand names acquired, specifically Virgil’s, and costs related to trademarks. They have been assigned an indefinite life, as we currently anticipate that they will contribute cash flows to the Company perpetually. These indefinite-lived intangible assets are not amortized but are assessed for impairment annually and evaluated annually to determine whether the indefinite useful life remains appropriate. We first assess qualitative factors to determine whether it is more likely than not that the asset is impaired. If further testing is necessary, we compare the estimated fair value of our asset with its book value. If the carrying amount of the asset exceeds its fair value, as determined by the discounted cash flows expected to be generated by the asset, an impairment loss is recognized in an amount equal to that excess. Based on management’s measurement, there were no Intangible assets consist of the following (in thousands): Summary of Intangible Assets September 30, 2020 December 31, 2019 Brand names $ 576 $ 576 Trademarks 37 - Total $ 613 $ 576

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Line of Credit	6. Line of Credit Amounts outstanding under the Company’s credit facilities are as follows (in thousands): Schedule of Amount Outstanding Under Credit Facilities September 30, December 31, Line of Credit $ 4,596 $ 3,661 Capitalized finance costs (324 ) (484 ) Net balance $ 4,272 $ 3,177 On October 4, 2018, the Company entered into a financing agreement with Rosenthal & Rosenthal, Inc. The financing agreement provides a maximum borrowing capacity of $ 13,000 4,000 3,037 March 30, 2021 Borrowings under the Rosenthal financing agreement bear interest at the greater of prime or 4.75 2.0 3.5 7.2 4 The line of credit is secured by substantially all of the assets excluding intellectual property of the Company. The over-advance is secured by all of Reed’s intellectual property collateral. Additionally, any over-advance is guaranteed by an irrevocable stand-by letter of credit in the amount of $ 1,500 , issued by Daniel J. Doherty III and the Daniel J. Doherty, III 2002 Family Trust, affiliates of Raptor/Harbor Reeds SPV LLC (“Raptor”). As of September 30, 2020, Raptor beneficially owns 11.5 % of the Company’s outstanding common stock and Mr. Doherty is a member of the Company’s Board of Directors. In the event of a default under the financing agreement, Raptor has a put option to purchase from Rosenthal the entire amount of any outstanding over-advance plus accrued interest, prior to Rosenthal declaring an event of default under the financing agreement. The financing agreement with Rosenthal includes customary restrictions that limit our ability to engage in certain types of transactions, including our ability to utilize tangible and intangible assets as collateral for other indebtedness. Additionally, the agreement contains a financial covenant that requires us to meet certain minimum working capital and tangible net worth thresholds as of the end of each quarter. We were in compliance with the terms of our agreement with Rosenthal as of September 30, 2020. The Company annually incurs an additional $ 130 1 0.5 1.5 290 225

Convertible Note to a Related P

Convertible Note to a Related Party	9 Months Ended
	Sep. 30, 2020
Convertible Note To Related Party
Convertible Note to a Related Party	7. Convertible Note to a Related Party The Convertible Note to a Related Party consists of the following (in thousands): Schedule of Convertible Notes September 30, December 31, 12% Convertible Note Payable $ 3,400 $ 3,400 Accrued Interest 1,728 1,289 Total obligation $ 5,128 $ 4,689 On April 21, 2017, the Company issued a secured, convertible, subordinated, non-redeemable note in the principal amount of $ 3,400 and warrants to purchase 1,416,667 shares of common stock to Raptor. Raptor beneficially owned approximately 11.5 % and 14.9 % of the Company’s common stock at September 30, 2020 and December 31, 2019, respectively. The Raptor Note bears interest at a rate of 12 April 21, 2021 1.50 The warrants expire on April 21, 2022 1.50

Note Payable

Note Payable	9 Months Ended
	Sep. 30, 2020
Note Payable
Note Payable	8. Note Payable On April 20, 2020, the Company was granted a loan (the “PPP loan”) from City National Bank in the aggregate amount of $ 770 The PPP loan agreement is dated April 20, 2020, matures on April 20, 2022 1 Debt 770 470

Leases Payable

Leases Payable	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases Payable	9. Leases Payable The Company adopted ASC 842, Leases The Company leases its headquarters , and certain office equipment and automobiles. The Company analyzes all leases at inception to determine if a right-of-use asset and lease liability should be recognized. Leases with an initial term of 12 months or less are not included on the condensed consolidated balance sheets. The lease liability is measured at the present value of future lease payments as of the lease commencement date. ASC 842 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. During the three and nine months ended September 30, 2020 and 2019, lease costs totaled $ 45 and $ 51 , and $ 135 and $134 , respectively. As of December 31, 2019, the Company’s lease liabilities totaled $ 786 89 697 51 11 18 706, 27 679. As of September 30, 2020, the weighted average remaining lease terms for operating lease and finance lease are 4.25 0.39 12.6 10.39 Future minimum lease payments under the leases are as follows (in thousands): Schedule of Future Minimum Lease Payments Years Ending December 31, Sep, 30 Remainder of 2020 $ 67 2021 221 2022 222 2023 226 2024 221 Total payments 957 Less: Amount representing interest (251 ) Present value of net minimum lease payments 706 Less: Current portion (114 ) Non-current portion $ 592

Warrant Liability

Warrant Liability	9 Months Ended
	Sep. 30, 2020
Warrant Liability
Warrant Liability	10. Warrant Liability Various sales of common stock made by the Company to finance operations have been accompanied by the issuance of warrants. Some of these warrant agreements contain fundamental transaction provisions which may give rise to an obligation of the Company to pay cash to the warrant holders. For accounting purposes, in accordance with ASC 480, Distinguishing Liabilities from Equity The fair value of the warrant liability was determined using the Black-Scholes-Merton option pricing model at September 30, 2020 and December 31, 2019, using the following assumptions: Schedule of Warrant Liability Using Assumptions September 30, 2020 December 31, 2019 Stock Price $ 0.93 $ 0.91 Risk free interest rate 0.80 % 1.95 % Expected volatility 119.51 % 83.36 % Expected life in years 0.67 1.42 Expected dividend yield 0 % 0 % Number of Warrants containing fundamental transaction provisions 138,762 138,762 Fair Value of Warrants $ 7 $ 8 The risk-free interest rate is based on rates established by the Federal Reserve Bank. The Company uses the historical volatility of its common stock to estimate its future volatility. The expected life of the warrant is based upon its remaining contractual life. The expected dividend yield reflects that the Company has not paid dividends to its common stockholders in the past and does not expect to do so in the foreseeable future. The following table sets forth a summary of the changes in the estimated fair value of the warrant liability during the nine months ended September 30, 2020 and 2019: Schedule of Warrant Liability September 30, September 30, Beginning Balance $ 8 $ 38 Change in fair value (1 ) (23 ) Ending balance $ 7 $ 15

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders’ Equity	11. Stockholders’ Equity Series A Convertible Preferred Stock On July 2, 2020, the Company paid dividends on the Preferred Stock through the issuance of 4,530 5 1.04 Common stock issuance In April 2020, the Company conducted a public offering of 15,333,334 0.375 5,310 During the nine months ended September 30, 2020, the Company received proceeds of $ 14 27,500

Share-based payments

Share-based payments	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Share-based payments	12. Share-based payments Restricted common stock The following table summarizes restricted stock activity during the nine months ended September 30, 2020: Summary of Non-vested Restricted Stock Activity Unvested Issuable Fair Value Weighted Balance, December 31, 2019 - - $ - - Granted 594,740 - 508 0.85 Vested (350,000 ) 350,000 (285 ) - Issued - - - - Balance, September 30, 2020 244,740 350,000 $ 223 $ 0.85 During the nine months ended September 30, 2020, the Company issued 594,740 350,000 94,740 47,370 75,000 18,750 four years 508 0.81 0.95 $285 477 223 Stock options Schedule of Stock Option Activity The following table summarizes stock option activity during the nine months ended September 30, 2020: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2019 3,265,580 $ 2.19 7.09 $ 6 Granted 2,067,800 $ 0.67 Exercised (34,500 ) $ 0.50 Unvested forfeited or expired (394,480 ) $ 1.93 Vested forfeited or expired (188,043 ) $ 4.20 Outstanding at September 30, 2020 4,716,357 $ 1.48 8.17 $ 505 Exercisable at September 30, 2020 2,169,690 $ 1.47 7.46 $ 338 During the nine months ended September 30, 2020, the Company approved options exercisable into 2,067,800 1,732,800 582,800 575,000 four-year vesting period 575,000 335,000 The stock options are exercisable at a price ranging from $ 0.44 0.89 ten years 1,168 seven years 120 0 0.56 1.63 May 20, 2024 During the nine months ended September 30, 2020 and 2019, the Company recognized $ 722 1,077 1,594 As of September 30, 2020, the outstanding options have an intrinsic value of $ 338 0.93

Stock Warrants

Stock Warrants	9 Months Ended
	Sep. 30, 2020
Stock Warrants
Stock Warrants	13. Stock Warrants As of September 30, 2020, the Company has issued warrants to purchase an aggregate of 6,413,782 Schedule of Warrant Activity Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 6,413,782 $ 2.06 1.52 $ - Exercised - - Forfeited or expired - - Outstanding at September 30, 2020 6,413,782 $ 2.06 0.77 $ - Exercisable at September 30, 2020 6,413,782 $ 2.06 0.77 $ - There were no no 0.93

Related Party Activities

Related Party Activities	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Activities	14. Related Party Activities On December 31, 2018, the Company completed the sale of its Los Angeles manufacturing plant to California Custom Beverage, LLC (“CCB”), an entity owned by Christopher J. Reed, a related party, and CCB assumed the monthly payments on our lease obligation for the Los Angeles manufacturing plant. Our release from the obligation by the lessor, however, is dependent upon CCB’s deposit of $ 1,200 800 363,000 338 Beginning in 2019, we are to receive a 5 5 26 14 At December 31, 2019, the Company had royalty revenue receivable from CCB of $ 128 228 356 26 138 129 391 At September 30, 2020 and December 31, 2019, the Company had accounts payable due to CCB of $ 211 182

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	15. Subsequent Events Subsequent to September 30, 2020, the Company issued 7,000

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Use of estimates	Use of estimates 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 expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, depreciable lives of property and equipment, analysis of impairments of recorded long-term tangible and intangible assets, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s performance obligations are satisfied at that time. All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis.
Loss per Common Share	Loss per Common Share Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income applicable to common stockholders 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. For the periods ended September 30, 2020 and 2019, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have had an anti-dilutive effect. The potentially dilutive securities consisted of the following: Schedule of Potentially Dilutive Securities September 30, 2020 September 30, 2019 Convertible note to a related party 2,266,667 2,266,667 Warrants 6,413,782 6,413,782 Common stock equivalent of Series A Convertible Preferred stock 37,644 37,644 Common stock issuable 350,000 - Unvested restricted common stock 244,740 610,609 Options 4,716,357 4,373,566 Total 14,029,190 13,702,268 The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.
Stock Compensation Expense	Stock Compensation Expense The Company periodically issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, Compensation-Stock Compensation The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs for the three months ended September 30, 2020 and 2019, aggregated $ 536 661 1,141 2,194
Concentrations	Concentrations Sales. 24 12 25 13 15 12 23 13 10 Accounts receivable. 23 14 10 Purchases from vendors. 13 11 11 11 13 11 10 12 10 10 Accounts payable. 18 11 19 15 14 10
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring basis. Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure their fair value. ASC 820 defines the following levels of subjectivity associated with the inputs: 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 carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, short-term bank loans, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of capital lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates. As of September 30, 2020, and December 31, 2019, the Company’s balance sheets included Level 2 liabilities comprised of the fair value of warrant liabilities aggregating $ 7 8
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “ Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of Potentially Dilutive Securities	For the periods ended September 30, 2020 and 2019, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have had an anti-dilutive effect. The potentially dilutive securities consisted of the following: Schedule of Potentially Dilutive Securities September 30, 2020 September 30, 2019 Convertible note to a related party 2,266,667 2,266,667 Warrants 6,413,782 6,413,782 Common stock equivalent of Series A Convertible Preferred stock 37,644 37,644 Common stock issuable 350,000 - Unvested restricted common stock 244,740 610,609 Options 4,716,357 4,373,566 Total 14,029,190 13,702,268

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2020
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands): Schedule of Inventory September 30, December 31, Raw materials and packaging $ 6,354 $ 4,261 Finished products 3,082 6,247 Total $ 9,436 $ 10,508

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment is comprised of the following (in thousands): Schedule of Property and Equipment September 30, December 31, Right-of-use assets under operating leases $ 730 $ 730 Right-of-use assets under finance leases 67 179 Computer hardware and software 400 543 Machinery and equipment 103 83 Total cost 1,300 1,535 Accumulated depreciation and amortization (316 ) (482 ) Net book value $ 984 $ 1,053
Schedule of Equipment Held for Sale	Equipment held for sale consists of the following (in thousands): Schedule of Equipment Held for Sale September 30, December 31, Equipment held for sale $ 163 $ 163 Reserve (96 ) (96 ) Net book value $ 67 $ 67

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets consist of the following (in thousands): Summary of Intangible Assets September 30, 2020 December 31, 2019 Brand names $ 576 $ 576 Trademarks 37 - Total $ 613 $ 576

Line of Credit (Tables)

Line of Credit (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Amount Outstanding Under Credit Facilities	Amounts outstanding under the Company’s credit facilities are as follows (in thousands): Schedule of Amount Outstanding Under Credit Facilities September 30, December 31, Line of Credit $ 4,596 $ 3,661 Capitalized finance costs (324 ) (484 ) Net balance $ 4,272 $ 3,177

Convertible Note to a Related_2

Convertible Note to a Related Party (Tables)	9 Months Ended
	Sep. 30, 2020
Convertible Note To Related Party
Schedule of Convertible Notes	The Convertible Note to a Related Party consists of the following (in thousands): Schedule of Convertible Notes September 30, December 31, 12% Convertible Note Payable $ 3,400 $ 3,400 Accrued Interest 1,728 1,289 Total obligation $ 5,128 $ 4,689

Leases Payable (Tables)

Leases Payable (Tables)	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of Future Minimum Lease Payments	Future minimum lease payments under the leases are as follows (in thousands): Schedule of Future Minimum Lease Payments Years Ending December 31, Sep, 30 Remainder of 2020 $ 67 2021 221 2022 222 2023 226 2024 221 Total payments 957 Less: Amount representing interest (251 ) Present value of net minimum lease payments 706 Less: Current portion (114 ) Non-current portion $ 592

Warrant Liability (Tables)

Warrant Liability (Tables)	9 Months Ended
	Sep. 30, 2020
Warrant Liability
Schedule of Warrant Liability Using Assumptions	The fair value of the warrant liability was determined using the Black-Scholes-Merton option pricing model at September 30, 2020 and December 31, 2019, using the following assumptions: Schedule of Warrant Liability Using Assumptions September 30, 2020 December 31, 2019 Stock Price $ 0.93 $ 0.91 Risk free interest rate 0.80 % 1.95 % Expected volatility 119.51 % 83.36 % Expected life in years 0.67 1.42 Expected dividend yield 0 % 0 % Number of Warrants containing fundamental transaction provisions 138,762 138,762 Fair Value of Warrants $ 7 $ 8
Schedule of Warrant Liability	The following table sets forth a summary of the changes in the estimated fair value of the warrant liability during the nine months ended September 30, 2020 and 2019: Schedule of Warrant Liability September 30, September 30, Beginning Balance $ 8 $ 38 Change in fair value (1 ) (23 ) Ending balance $ 7 $ 15

Share-based payments (Tables)

Share-based payments (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Summary of Non-vested Restricted Stock Activity	The following table summarizes restricted stock activity during the nine months ended September 30, 2020: Summary of Non-vested Restricted Stock Activity Unvested Issuable Fair Value Weighted Balance, December 31, 2019 - - $ - - Granted 594,740 - 508 0.85 Vested (350,000 ) 350,000 (285 ) - Issued - - - - Balance, September 30, 2020 244,740 350,000 $ 223 $ 0.85
Schedule of Stock Option Activity	Schedule of Stock Option Activity The following table summarizes stock option activity during the nine months ended September 30, 2020: Shares Weighted- Weighted- Aggregate Outstanding at December 31, 2019 3,265,580 $ 2.19 7.09 $ 6 Granted 2,067,800 $ 0.67 Exercised (34,500 ) $ 0.50 Unvested forfeited or expired (394,480 ) $ 1.93 Vested forfeited or expired (188,043 ) $ 4.20 Outstanding at September 30, 2020 4,716,357 $ 1.48 8.17 $ 505 Exercisable at September 30, 2020 2,169,690 $ 1.47 7.46 $ 338

Stock Warrants (Tables)

Stock Warrants (Tables)	9 Months Ended
	Sep. 30, 2020
Stock Warrants
Schedule of Warrant Activity	Schedule of Warrant Activity Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Terms (Years) Aggregate Intrinsic Value Outstanding at December 31, 2019 6,413,782 $ 2.06 1.52 $ - Exercised - - Forfeited or expired - - Outstanding at September 30, 2020 6,413,782 $ 2.06 0.77 $ - Exercisable at September 30, 2020 6,413,782 $ 2.06 0.77 $ -

Basis of Presentation and Liq_2

Basis of Presentation and Liquidity (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net Income (Loss) Attributable to Parent	$ 2,590	$ 4,565	$ 6,920	$ 12,289
Net Cash Provided by (Used in) Operating Activities			6,768	14,628
Cash	875		875			$ 913
Line of Credit Facility, Current Borrowing Capacity	3,037		3,037			3,235
Stockholders' Equity Attributable to Parent	558	$ (2,208)	558	$ (2,208)	$ 2,866	1,147	$ 1,988	$ (6,743)
Working capital	$ 207		$ 207			$ 4,885

Schedule of Potentially Dilutiv

Schedule of Potentially Dilutive Securities (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	14,029,190	13,702,268
Convertible Note to a Related Party [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	2,266,667	2,266,667
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,413,782	6,413,782
Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	37,644	37,644
Common Stock Issuable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	350,000
Unvested Restricted Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	244,740	610,609
Equity Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,716,357	4,373,566

Significant Accounting Polici_4

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Product Information [Line Items]
Advertising costs	$ 536	$ 661	$ 1,141	$ 2,194
Warrant liabilities	$ 7		$ 7		$ 8
Revenue Benchmark [Member] | Maximum [Member]
Product Information [Line Items]
Percentage of sale accounted to customer			10.00%
Customer One [Member] | Revenue Benchmark [Member]
Product Information [Line Items]
Percentage of sale accounted to customer	24.00%	15.00%	25.00%	23.00%
Customer One [Member] | Accounts Receivable [Member]
Product Information [Line Items]
Percentage of sale accounted to customer			23.00%		14.00%
Customer Two [Member] | Revenue Benchmark [Member]
Product Information [Line Items]
Percentage of sale accounted to customer	12.00%	12.00%	13.00%	13.00%
Vendor [Member] | Maximum [Member]
Product Information [Line Items]
Percentage of sale accounted to customer	10.00%		10.00%
Vendor [Member] | Accounts Payable [Member]
Product Information [Line Items]
Percentage of sale accounted to customer					10.00%
Vendor One [Member]
Product Information [Line Items]
Percentage of sale accounted to customer	13.00%	13.00%	11.00%	12.00%
Vendor One [Member] | Accounts Payable [Member]
Product Information [Line Items]
Percentage of sale accounted to customer			18.00%		19.00%
Vendor Two [Member]
Product Information [Line Items]
Percentage of sale accounted to customer	11.00%	11.00%	11.00%	10.00%
Vendor Two [Member] | Accounts Payable [Member]
Product Information [Line Items]
Percentage of sale accounted to customer			11.00%		15.00%
Vendor Three [Member]
Product Information [Line Items]
Percentage of sale accounted to customer		10.00%
Vendor Three [Member] | Accounts Payable [Member]
Product Information [Line Items]
Percentage of sale accounted to customer					14.00%

Schedule of Inventory (Details)

Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials and packaging	$ 6,354	$ 4,261
Finished products	3,082	6,247
Total	$ 9,436	$ 10,508

Inventory (Details Narrative)

Inventory (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory Valuation Reserves	$ 224	$ 646

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total cost	$ 1,300	$ 1,535
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(316)	(482)
Net book value	984	1,053
Right-of-use Assets Under Operating Leases [Member]
Property, Plant and Equipment [Line Items]
Total cost	730	730
Right-of-use Assets Under Finance Leases [Member]
Property, Plant and Equipment [Line Items]
Total cost	67	179
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	400	543
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 103	$ 83

Schedule of Equipment Held for

Schedule of Equipment Held for Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Equipment held for sale	$ 163	$ 163
Reserve	(96)	(96)
Net book value	$ 67	$ 67

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 35	$ 8	$ 56	$ 12
Right-of-use Assets Under Finance Leases [Member]
Property, Plant and Equipment [Line Items]
Net book value of disposed right-of-use assets under finance leases			45
Amount terminated related to finance leases			51
Gain on lease termination			$ 6

Summary of Intangible Assets (D

Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Brand names	$ 576	$ 576
Trademarks	37
Total	$ 613	$ 576

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of intangible assets	$ 0

Schedule of Amount Outstanding

Schedule of Amount Outstanding Under Credit Facilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Line of Credit	$ 4,596	$ 3,661
Capitalized finance costs	(324)	(484)
Net balance	$ 4,272	$ 3,177

Line of Credit (Details Narrati

Line of Credit (Details Narrative) - USD ($) $ in Thousands	Oct. 04, 2018	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Debt Instrument [Line Items]
Annual fees		$ 130
Percentage of fees on borrowing capacity		1.00%
Period for amortization of fees		6 months		1 year 6 months
Amortization of debt discount		$ 290	$ 225
Daniel J. Doherty [Member]
Debt Instrument [Line Items]
Letter of credit	$ 1,500
Daniel J. Doherty [Member] | Reeds Inc. [Member]
Debt Instrument [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		11.50%
Financing Agreement [Member] | Rosenthal and Rosenthal, Inc. [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	13,000
Excess of permitted borrowing amount	$ 4,000
Line of Credit Facility, Remaining Borrowing Capacity		$ 3,037
Line of Credit Facility, Expiration Date	Mar. 30, 2021
Line of credit, interest rate	4.75%	7.20%
Minimum monthly fees		$ 4
Financing Agreement [Member] | Rosenthal and Rosenthal, Inc. [Member] | Minimum [Member]
Debt Instrument [Line Items]
Line of credit, interest rate	2.00%
Financing Agreement [Member] | Rosenthal and Rosenthal, Inc. [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of credit, interest rate	3.50%

Schedule of Convertible Notes (

Schedule of Convertible Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Convertible Note To Related Party
12% Convertible Note Payable	$ 3,400	$ 3,400
Accrued Interest	1,728	1,289
Total obligation	$ 5,128	$ 4,689

Convertible Note to a Related_3

Convertible Note to a Related Party (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Apr. 21, 2017	Sep. 30, 2020	Dec. 31, 2019
Schedule of Capitalization, Long-term Debt [Line Items]
Convertible Debt		$ 5,128	$ 4,689
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	1,416,667	138,762	138,762
Warrants and Rights Outstanding, Maturity Date	Apr. 21, 2022
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 1.50
Raptor/Harbor Reeds SPV LLC [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Equity Method Investment, Ownership Percentage		11.50%	14.90%
Raptor Note [Member]
Schedule of Capitalization, Long-term Debt [Line Items]
Convertible Debt	$ 3,400
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Debt Instrument, Maturity Date	Apr. 21, 2021
Debt Instrument, Convertible, Conversion Price	$ 1.50

Note Payable (Details Narrative

Note Payable (Details Narrative) - USD ($) $ in Thousands	Apr. 20, 2020	Sep. 30, 2020	Dec. 31, 2019
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Note payable		$ 770
Note payable, current		$ 470
PPP Loan Agreement [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Debt Instrument, Maturity Date	Apr. 20, 2022
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Paycheck Protection Program [Member] | City National Bank [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Aggregate amount	$ 770

Schedule of Future Minimum Leas

Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Leases [Abstract]
Remainder of 2020	$ 67
2021	221
2022	222
2023	226
2024	221
Total payments	957
Less: Amount representing interest	251
Present value of net minimum lease payments	706
Less: Current portion	(114)
Non-current portion	$ 592	$ 737

Leases Payable (Details Narrati

Leases Payable (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Leases [Abstract]
Operating Lease, Expense	$ 45	$ 135	$ 51	$ 134
Lease liabilities	706		706		$ 786
Finance leases liability	27		27		89
Operating leases liability	$ 679		679		$ 697
Finance lease terminated			51
Payments of finance lease liability			11
Payments of operating lease liability			$ 18	$ 10
Weighted average remaining lease term for operating lease	4 years 3 months		4 years 3 months
Weighted average remaining lease term for finance lease	4 months 20 days		4 months 20 days
Weighted average discount rate for operating lease	12.60%		12.60%
Weighted average discount rate for finance lease	10.39%		10.39%

Schedule of Warrant Liability U

Schedule of Warrant Liability Using Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Apr. 21, 2017
Warrant Liability
Stock Price	$ 0.93	$ 0.91
Risk free interest rate	0.80%	1.95%
Expected volatility	119.51%	83.36%
Expected life in years	8 months 1 day	1 year 5 months 1 day
Expected dividend yield	0.00%	0.00%
Number of Warrants containing fundamental transaction provisions	138,762	138,762	1,416,667
Fair Value of Warrants	$ 7	$ 8

Schedule of Warrant Liability (

Schedule of Warrant Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Warrant Liability
Beginning Balance	$ 8	$ 38
Change in fair value	(1)	(23)
Ending balance	$ 7	$ 15

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Jul. 02, 2020	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issued common stock, value	$ 5
Average market price per share	$ 1.04
Proceeds from exercise of stock options			$ 14
Common shares issued on exercise of options, shares			27,500
Public Offering [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock Issued During Period, Shares, New Issues		15,333,334
Shares Issued, Price Per Share		$ 0.375
Proceeds from Issuance Initial Public Offering		$ 5,310
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Issued common stock as dividend to preference shareholder	4,530

Summary of Non-vested Restricte

Summary of Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested Shares, Beginning balance
Number of Issuable Shares, Beginning balance
Fair Value Unvested, Beginning balance | $
Weighted Average Grant Date Fair Value, Unvested, Beginning balance | $ / shares
Unvested Shares, Granted	594,740
Number of Issuable Shares, Granted
Fair Value, Granted | $	$ 508
Weighted Average Grant Date Fair Value, Granted	0.85
Unvested Shares, Vested	(350,000)
Number of Issuable Shares, Vested	350,000
Fair Value, Vested | $	$ (285)
Weighted Average Grant Date Fair Value, Vested | $ / shares
Unvested Shares, Issued | $
Number of Issuable Shares, Issued
Fair Value, Issued | $
Weighted Average Grant Date Fair Value, Issued
Unvested Shares, Ending balance	244,740
Number of Issuable Shares, Ending balance	350,000
Fair Value, Unvested, Ending balance | $	$ 223
Weighted Average Grant Date Fair Value, Unvested, Ending balance | $ / shares	$ 0.85

Schedule of Stock Option Activi

Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2020
Summary of Investment Holdings [Line Items]
Shares, Exercised	(27,500)
Equity Option [Member]
Summary of Investment Holdings [Line Items]
Shares Outstanding, Beginning balance	3,265,580
Weighted-Average Exercise Price, Outstanding, Beginning	$ 2.19
Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance	7 years 1 month 2 days
Aggregate Intrinsic Value, Shares Outstanding, Beginning Balance	$ 6
Shares, Granted	2,067,800
Weighted-Average Exercise Price, Granted	$ 0.67
Shares, Exercised	(34,500)
Weighted-Average Exercise Price, Exercised	$ 0.50
Shares, Unvested forfeited or expired	(394,480)
Weighted-Average Exercise Price, Unvested forfeited or expired	$ 1.93
Shares, Vested forfeited or expired	(188,043)
Weighted-Average Exercise Price, Vested forfeited or expired	$ 4.20
Shares Outstanding, Ending Balance	4,716,357
Weighted-Average Exercise Price, Outstanding, Ending Balance	$ 1.48
Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance	8 years 2 months 1 day
Aggregate Intrinsic Value, Shares Outstanding, Ending Balance	$ 505
Shares Exercisable, Ending Balance	2,169,690
Weighted-Average Exercise Price, Exercisable Ending Balance	$ 1.47
Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance	7 years 5 months 15 days
Aggregate Intrinsic Value, Shares Exercisable Ending Balance	$ 338

Share-based payments (Details N

Share-based payments (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of restricted shares issued	$ 116	$ 285	$ 405
Stock price		$ 0.93		$ 0.91
Volatility		119.51%		83.36%
Dividend rate		0.00%		0.00%
Risk-free interest rate		0.80%		1.95%
2017 Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options to be issued		2,067,800
Stock options expiration period		ten years
Fair value of options granted		$ 1,168
Fair value assumptions, expected term		seven years
Volatility		120.00%
Dividend rate		0.00%
Amortized options, vesting at future date		May 20, 2024
Fair value of vested stock option		$ 722	1,077
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price		$ 0.44
Minimum [Member] | 2017 Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		0.56%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock price		$ 0.89
Maximum [Member] | 2017 Incentive Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate		1.63%
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option issued		1,732,800
Consultants Board Members and Former Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option issued		335,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested immediately		350,000
Number of shares to be vested during period		94,740
Number of options vested		350,000
Number of shares to be vested		75,000
Vesting period		four years
Value of restricted shares issued		$ 508
Number of restricted shares, value		285	$ 477
Aggregate value of unvested compensation		223
Fair value of vested stock option		$ 285
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market price per share		$ 0.81
Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Market price per share		$ 0.95
Restricted Stock [Member] | Two Months From The Date Of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options vested		47,370
Restricted Stock [Member] | Four Years from the Date of Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options vested		18,750
Restricted Stock [Member] | Director and Two Executive Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares issued		594,740
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested immediately		582,800
Number of shares to be vested during period		575,000
Number of options vested		575,000
Vesting period		four-year vesting period
Aggregate value of unvested compensation		$ 1,594
Stock price		$ 0.93
Outstanding options, intrinsic value		$ 338

Schedule of Warrant Activity (D

Schedule of Warrant Activity (Details)	9 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Outstanding, Beginning Balance	138,762
Shares Outstanding, Ending Balance	138,762
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Outstanding, Beginning Balance	6,413,782
Weighted-Average Exercise Price, Outstanding Beginning Balance | $ / shares	$ 2.06
Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance	1 year 6 months 7 days
Aggregate Intrinsic Value Shares Outstanding Beginning | $
Shares, Exercised
Weighted-Average Exercise Price, Exercised | $ / shares
Shares, Forfeited or expired
Weighted-Average Exercise Price, Forfeited or expired | $ / shares
Shares Outstanding, Ending Balance	6,413,782
Weighted-Average Exercise Price, Outstanding Ending Balance | $ / shares	$ 2.06
Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance	9 months 7 days
Aggregate Intrinsic Value Shares Outstanding Ending | $
Shares Exercisable, Ending Balance	6,413,782
Weighted-Average Exercise Price, Exercisable Ending Balance | $ / shares	$ 2.06
Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance	9 months 7 days
Aggregate Intrinsic Value Shares Exercisable Ending | $

Stock Warrants (Details Narrati

Stock Warrants (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock price	$ 0.93	$ 0.91
Warrant [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Aggregate intrinsic value	$ 0
Stock Warrants [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrant to purchase common stock	6,413,782
Number of warrants outstanding, intrinsic value	$ 0
Stock price	$ 0.93

Related Party Activities (Detai

Related Party Activities (Details Narrative) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Royalty [Member]
Entity Listings [Line Items]
Royalty revenue	$ 26	$ 14
Chris Reed [Member]
Entity Listings [Line Items]
Deposit of security with lessor	$ 800
Number of common stock value placed	363,000
Value of common stock paced	$ 338
Receivable from related party	391
Amount received from related party	129
California Custom Beverage, LLC [Member]
Entity Listings [Line Items]
Receivable from related party			$ 356
California Custom Beverage, LLC [Member] | Chris Reed [Member]
Entity Listings [Line Items]
Deposit of security with lessor				$ 1,200
Royalty percentage			5.00%
Referral fee percentage			5.00%
Royalty revenue receivable	26		$ 128
Inventory advances	138		228
Accounts payable due to related parties	$ 211		$ 182

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - shares	Nov. 16, 2020	Sep. 30, 2020
Subsequent Event [Line Items]
Common shares issued on exercise of options, shares		27,500
Subsequent Event [Member]
Subsequent Event [Line Items]
Common shares issued on exercise of options, shares	7,000