Eastside Distilling (BLNE) 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 14, 2016
Document And Entity Information
Entity Registrant Name	Eastside Distilling, Inc.
Entity Central Index Key	1,534,708
Document Type	10-Q
Trading Symbol	ESDID
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,766,659
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 400,178	$ 141,317
Trade receivables	383,004	142,206
Inventories	881,652	683,824
Prepaid expenses	70,379	163,506
Total current assets	1,735,213	1,130,853
Property and equipment - net	102,378	112,005
Other assets	48,000	49,000
Total Assets	1,885,591	1,291,858
Current liabilities:
Accounts payable	805,161	1,300,532
Accrued liabilities	818,164	563,814
Deferred revenue	3,194	727
Current portion of notes payable	4,424	4,098
Related party note payable	12,500	12,500
Convertible notes payable - net of debt discounts		455,958
Total current liabilities	1,643,443	2,337,629
Notes payable - less current portion and debt discount	929,537	17,842
Total liabilities	2,572,980	2,355,471
Commitments and contingencies (Note 9)
Stockholders' deficit:
Common stock, $0.0001 par value; 45,000,000 shares authorized; 4,766,659 and 2,309,750 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	9,535	4,620
Additional paid-in capital	9,905,980	6,493,518
Accumulated deficit	(11,359,739)	(7,561,751)
Total stockholders' deficit	(687,389)	(1,063,613)
Total Liabilities and Stockholders' Deficit	1,885,591	1,291,858
8% Series A Convertible Preferred Stock [Member]
Stockholders' deficit:
Series A convertible preferred stock, $0.0001 par value; 100,000,000 shares authorized; 972 and 0 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively (liquidation value of $2,430,000 at September 30, 2016)	$ 756,835

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized	45,000,000	45,000,000
Common stock, issued	4,766,659	2,309,750
Common stock, outstanding	4,766,659	2,309,750
8% Series A Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized	100,000,000	100,000,000
Preferred stock, issued	972	0
Preferred stock, outstanding	972	0
Preferred stock, liquidation	$ 2,430,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Sales	$ 796,222	$ 492,380	$ 2,045,568	$ 1,344,881
Less excise taxes	188,375	140,299	469,936	363,316
Net sales	607,847	352,081	1,575,632	981,565
Cost of sales	370,854	167,524	895,239	518,356
Gross profit	236,993	184,557	680,393	463,209
Selling, general, and administrative expenses	1,583,553	1,587,260	3,948,010	3,431,143
Loss from operations	(1,346,560)	(1,402,703)	(3,267,617)	(2,967,934)
Other (expense) income - net	(89,889)	(9,909)	(493,012)	36,244
Loss before income taxes	(1,436,449)	(1,412,612)	(3,760,629)	(2,931,690)
Provision for income taxes
Net loss	(1,436,449)	(1,412,612)	(3,760,629)	(2,931,690)
Dividends on convertible preferred stock	(19,600)		(37,359)
Net loss available to common shareholders	$ (1,456,049)	$ (1,412,612)	$ (3,797,988)	$ (2,931,690)
Basic and diluted net loss per common share (in dollars per share)	$ (0.31)	$ (0.62)	$ (1.14)	$ (1.28)
Basic and diluted weighted average common shares outstanding (in shares)	4,761,854	2,291,489	3,320,494	2,281,548

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities
Net loss	$ (3,760,629)	$ (2,931,690)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	16,579	13,927
Amortization of debt issuance costs	116,750
Amortization of beneficial conversion feature	228,549
Issuance of common stock in exchange for services	218,970	715,871
Stock-based compensation	208,977	124,250
Gain on spin-off of subsidiary		(52,890)
Changes in operating assets and liabilities:
Trade receivables	(240,798)	74,103
Inventories	(197,828)	(436,565)
Prepaid expenses and other assets	94,127	89,704
Accounts payable	(476,158)	821,457
Accrued liabilities	657,650	338,770
Deferred revenue	2,467	1,139
Net cash used in operating activities	(3,131,344)	(1,241,924)
Cash Flows From Investing Activities
Purchases of property and equipment	(6,952)	(42,856)
Net cash used in investing activities	(6,952)	(42,856)
Cash Flows From Financing Activities
Proceeds from preferred stock, net of issuance costs of $35,920, with warrants	463,080
Proceeds from common stock with detachable warrants	2,000,000
Payments on convertible notes payable	(500,923)	(3,632)
Proceeds from notes payable with warrants issued	1,250,000
Proceeds from convertible notes payable, net of issuance costs	185,000	291,500
Net cash provided by (used in) financing activities	3,397,157	287,868
Net increase (decrease) in cash	258,861	(996,912)
Cash - beginning of period	141,317	1,082,290
Cash - end of period	400,178	85,378
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest	294,240	4,593
Cash paid during the period for income taxes
Supplemental Disclosure of Non-Cash Financing Activity
Stock issued for payment of trade debt	19,213
Series A preferred issued in exchange of compensation	423,000
Series A preferred issued in exchange of debt	50,000
Common stock issued in exchange of notes payable	196,330
Common stock issued in exchange for dividend	$ 17,759

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (unaudited) (Parenthetical) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Preferred stock, issuance costs	$ 35,920	$ 0

Description of Business and Liq

Description of Business and Liquidity	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Liquidity	1. Description of Business and Liquidity Eastside Distilling, Inc. (the “Company” or “Eastside”) was formed in 2008 and is a manufacturer, developer, producer, and marketer of hand-crafted spirits in the following beverage alcohol categories: bourbon, whiskey, rum, and vodka. The Company currently distributes its products in 22 states (California, New York, Florida, Texas, Illinois, Connecticut, Georgia, Idaho, Indiana, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, Nevada, New Jersey, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington) and is authorized to distribute its products in the province of Ontario, Canada. The Company also generates revenue from tastings, tasting room tours, private parties, and merchandise sales from its facilities in Oregon. The Company is subject to the Oregon Liquor Control Commission (OLCC) and the Alcohol and Tobacco Tax and Trade Bureau (TTB). The Company is headquartered in Portland, Oregon. The results for the three and nine months ended September 30, 2016 referred to in these condensed consolidated financial statements include the results of Eastside’s wholly-owned subsidiary Michael Williams Web Design Inc. of New York, NY (“MWWD”) (through February 3, 2015).

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Going Concern	2. Going Concern Our financial statements have been prepared assuming that we will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have incurred a loss of $3,797,988 and have an accumulated deficit of $11,359,739 for the nine months ended September 30, 2016, and expect to incur further losses in the development of our business. We have been dependent on funding operations through the issuance of debt, convertible debt and private sale of equity securities. These conditions raise substantial doubt about our ability to continue as a going concern. Management’s plans include continuing to finance operations through the private or public placement of debt and/or equity securities and the reduction of expenses. The financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. During the nine months ended September 30, 2016, the Company completed equity and debt financings totaling approximately $3.9 million in net cash proceeds. Management believes that its successful efforts to raise capital and increases in revenues will provide the opportunity for the Company to continue as a going concern. The Company's ultimate success depends on its ability to achieve profitable operations and generate positive cash flow from operations. There can be no assurance that the Company will achieve profitable operations or raise additional capital or financing at acceptable terms.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements for Eastside Distilling, Inc. and Subsidiary were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments which are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 31, 2016. The condensed consolidated financial statements include the accounts of Eastside Distilling, Inc.’s wholly-owned subsidiary MWWD (through February 3, 2015). All intercompany balances and transactions have been eliminated in consolidation. Segment Reporting The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity, marketing and distributing hand-crafted spirits, and operates as one segment. The Company's chief operating decision makers, its chief executive officer and chief financial officer, review the Company's operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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. Revenue Recognition The Company records revenue when all four of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company recognizes sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of a consignment sale). For consignment sales, the Company recognizes sales upon the consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of shipment or purchase by customers at a retail location. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than customary rights of return. The Company excludes sales tax collected and remitted to various states from sales and cost of sales. Sales from items sold through the Company’s retail locations are recognized at the time of sale. Revenue received from online merchants who sell discounted gift certificates for the Company's merchandise and tastings is deferred until the customer has redeemed the discounted gift certificate or the gift certificate has expired, whichever occurs earlier. Cost of Sales Cost of sales consists of the costs of ingredients utilized in the production of spirits, manufacturing labor and overhead, warehousing rent, packaging, and in-bound freight charges. Ingredients account for the largest portion of the cost of sales, followed by contract production fees and packaging. Shipping and Fulfillment Costs Freight costs incurred related to shipment of merchandise from the Company’s distribution facilities to customers are recorded in cost of sales. Cash and Cash Equivalents Cash equivalents are considered to be highly liquid investments with maturities of three months or less at the time of the purchase. The Company had no cash equivalents at September 30, 2016 and December 31, 2015. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. At September 30, 2016 and 2015, two distributors accounted for trade receivables greater than 10% of the total trade receivables at an aggregate of 77% and 85%, respectively. For the nine months ended September 30, 2016, sales to three distributors exceeded 10% of the total consolidated revenues at an aggregate of 57%. For the nine months ended September 30, 2015, sales to one distributor exceeded 10% of the total consolidated revenues at 35%. Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. GAAP permits an entity to choose to measure many financial instruments and certain other items at fair value and contains financial statement presentation and disclosure requirements for assets and liabilities for which the fair value option is elected. At September 30, 2016 and December 31, 2015, management has not elected to report any of the Company's assets or liabilities at fair value under the "fair value option" provided by GAAP. The hierarchy of fair value valuation techniques under GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under GAAP's fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management's own assumptions regarding the applicable asset or liability. None of the Company's assets or liabilities were measured at fair value at September 30, 2016 and December 31, 2015. However, GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of trade receivables, accounts payable, accrued liabilities, note payable, and convertible note payable. The estimated fair value of trade receivables, accounts payable, and accrued liabilities approximates their carrying value due to the short period of time to their maturities. At September 30, 2016 and December 31, 2015, the Company’s note payable and convertible notes payable are at fixed rates and their carrying value approximates fair value. Inventories Inventories primarily consist of bulk and bottled liquor and merchandise and are stated at the lower of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out (FIFO) method. A portion of inventory is held by the OLCC on consignment until it is sold to a third party. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory. The Company has recorded no write-downs of inventory for the nine months ended September 30, 2016 and 2015. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from two to seven years. Amortization of leasehold improvements is computed using the straight-line method over the life of the lease or the useful lives of the assets, whichever is shorter. The cost and related accumulated depreciation and amortization of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is reported as current period income or expense. The costs of repairs and maintenance are expensed as incurred. Long-lived Assets The Company accounts for long-lived assets, including property and equipment, at amortized cost. Management reviews long-lived assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount of the asset, an impairment loss would be recognized to write down the asset to its estimated fair value. Income Taxes The provision for income taxes is based on income and expenses as reported for financial statement purposes using the "asset and liability method" for accounting for deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. At September 30, 2016 and December 31, 2015, the Company established valuation allowances against its net deferred tax assets. Income tax positions that meet the "more-likely-than-not" recognition threshold are measured at the largest amount of income tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized income tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized income tax benefits would be classified as additional income taxes in the accompanying condensed consolidated statements of operations. There were no unrecognized income tax benefits, nor any interest and penalties associated with unrecognized income tax benefits, accrued or expensed at and for the nine months ended September 30, 2016 and 2015. The Company files federal income tax returns in the U.S. and various state income tax returns. The Company is no longer subject to examinations by the related tax authorities for the Company's U.S. federal and state income tax returns for years prior to 2012 and 2011, respectively. Advertising Advertising costs are expensed as incurred. Advertising expense was approximately $170,000 and $240,000 for the nine months ended September 30, 2016 and 2015, respectively, and is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations. Comprehensive Income Comprehensive (loss) income consists of net (loss) income and other comprehensive income. The Company does not have any reconciling other comprehensive income items for the nine months ended September 30, 2016 and 2015. Excise Taxes The Company is responsible for compliance with the TTB regulations, which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units produced and on its understanding of the applicable excise tax laws. Stock-Based Compensation The Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments at the end of each reporting period and as the underlying stock-based awards vest. Accounts Receivable Factoring Program During 2016, we utilized a receivable factoring program to help improve our liquidity. Under the program, we have the option to sell customer receivables in advance of payment for 75% of the amount due. When the customer remits payment, we then receive the remaining 25%. We are charged interest on the advanced 75% payment at a rate of 2.15% per month. During the nine months ended September 30, 2016, we factored invoices totaling $560,172 and received total proceeds of $420,129. At September 30, 2016, we had $184,875 in open factored invoices. We incurred interest expense associated with the factoring program of $21,500 during the nine month period ended September 30, 2016. Comparatively, during the nine months ended September 30, 2015, we factored invoices totaling $94,293 and received total proceeds of $70,720. At September 30, 2015, we had $27,560 in open factored invoices. We incurred interest expense associated with the factoring program of $1,085 during the nine months ended September 30, 2015. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standard Boards (the “FASB”) issued Accounting Standard Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not plan to early adopt. We are currently evaluating the impact ASU 2015-11 will have on the Company's condensed consolidated financial statements. In February 2016, the FASB issued AUS No. 2016-02 —Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: - A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and - A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We are currently evaluating the impact ASU 2016-02 will have on the Company's condensed consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company does not plan to early adopt. We are currently evaluating the impact ASU 2014-09 will have on the Company's condensed consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern ("ASU 2014-15"). The new guidance explicitly requires that management assess an entity's ability to continue as a going concern and may require additional detailed disclosures. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Though permitted, the Company does not plan to early adopt. The Company does not believe that this standard will have a significant impact on its condensed consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, simplifying the Measurement of Inventory ("ASU 2015-11"), which requires entities to measure most inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual and interim periods beginning after December 15, 2016. Though permitted, the Company does not plan to early adopt. We are currently evaluating the impact ASU 2015-11 will have on the Company's condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, simplifying the presentation of debt issuance costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. We have early adopted as of December 31, 2015. Reclassifications Certain prior period amounts have been reclassified to conform to the September 30, 2016 presentation with no changes to net loss or total stockholders' deficit) previously reported.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Raw materials $ 589,921 $ 415,953 Finished goods 291,358 248,713 Other 373 19,158 Total $ 881,652 $ 683,824

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment	5. Property and Equipment Property and equipment consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Furniture and fixtures $ 67,890 $ 64,288 Leasehold improvements 8,607 8,607 Vehicles 38,831 38,831 Construction In-progress 34,603 31,253 Total cost 149,931 142,979 Less accumulated depreciation and amortization (47,553 ) (30,974 ) Property and equipment - net $ 102,378 $ 112,005 Depreciation and amortization expense totaled $16,579 and $13,927 for the nine months ended September 30, 2016 and 2015, respectively.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2016
Notes Payable [Abstract]
Note Payable	6. Notes Payable Notes payable consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Note payable bearing interest at 7.99%. The note is payable in monthly principal plus interest payments of $472 through December, 2020. The note is secured by a vehicle. $ 18,007 $ 21,940 Notes payable bearing interest at 8%. The notes have a 2-year maturity and are due at various dates between June 30, 2018 – September 19, 2018, and pay interest only on a monthly basis 1,250,000 - Total notes payable 1,268,007 21,940 Less current portion (4,424 ) (4,098 ) Less debt discount for detachable warrant (334,046 ) - Long-term portion of notes payable $ 929,537 $ 17,842 Maturities on notes payable as of September 30, 2016, are as follows: Year ending December 31: 2016 $ 1,364 2017 5,737 2018 1,256,217 2019 4,689 2020 - Thereafter - $ 1,268,007

Convertible Notes Payable

Convertible Notes Payable	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Convertible Note Payable	7. Convertible Notes Payable There were no convertible notes payable outstanding at September 30, 2016. At December 31, 2015, convertible notes payable consisted of three separate notes: September 30, 2016 December 31, 2015 Convertible note bearing interest at 5% per annum in the principal amount of $150,000. The original maturity date of June 13, 2015 was extended to April 1, 2016 during the period ended December 31, 2015 and was further extended to July 1, 2016. The note was convertible into shares of the Company's common stock at a fixed conversion price of $8.00 per share. On July 1, 2016, the Company paid the outstanding amount under this Note, including interest in full. $ - $ 150,000 Secured Convertible promissory note, bearing interest at 14% per annum in the principal amount of $275,000 (the “Note”), payable in six installments (“Amortization Payments”) as set forth in an Amortization Schedule beginning the 30 th - 272,708 Convertible note bearing interest at 0% per annum. The note was converted into Company's preferred equity financing on April 4, 2016. - 50,000 Totals - 472,708 Less: discount on convertible debt - 16,750 Current convertible notes payable – net of debt discounts $ - $ 455,958 (1) On April 14, 2016, this note (the “Initial Note”) was transferred to MR Group I, LLC (“Investor”). In addition, on April 14, 2016, the Company issued and sold to Investor a convertible promissory note dated April 18, 2016, bearing interest at 14% per annum in the principal amount of $300,000 (the “Additional Note”, together with the Initial Note, the “Notes”). The Additional Note had a maturity date of January 18, 2017 and an original issue discount of $100,000. On May 13, 2016, the Company entered into Exchange Agreement (the “Exchange Agreement”) with the Investor pursuant to which the Company (i) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $219,200 with an August 31, 2016 maturity date (the “Note”) in exchange for a previously issued 14% secured convertible promissory note dated September 10, 2015 in the original principal amount of $275,000 (with current outstanding principal and interest of $197,208 and $21,992, respectively) with a May 10, 2016 maturity date held by Investor and (ii) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $302,647 with an April 30, 2017 maturity date (the “Second Note”, together with the Note, the “Exchange Notes”) in exchange for a previously issued 14% secured convertible promissory note dated April 18, 2016 in the original principal amount of $300,000 (with current outstanding principal and interest of $300,000 and $2,647, respectively) with a May 10, 2016 maturity date held by Investor. During the June period, $196,330 of the note was converted into common shares. On June 6, 2016, the Company paid the remaining outstanding amount under this Note ($100,000) in full, and on June 28, 2016, the Company paid the outstanding amount under the Second Note ($306,378) in full. Amortization of the debt discount and beneficial conversion feature of the convertible notes totaled $14,388 and $359,688 for the three and nine months ended September 30, 2016 respectively and $0 for the three and nine months ended September 30, 2015 respectively and was recorded as other expense in the consolidated statement of operations.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	8 Income Taxes The provision for income taxes results in effective tax rates which are different than the federal income tax statutory rate. The nature of the differences for the nine months ended September 30, 2016 and 2015 were as follows: 2016 2015 Expected federal income tax benefit $ (1,278,614 ) $ (996,775 ) Expected State income tax benefits (248,201 ) (193,492 ) Change in valuation allowance 1,526,815 1,190,266 Total provision for income taxes $ - $ - The components of the net deferred tax assets and liabilities at September 30, 2016 and December 31, 2015 consisted of the following: 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 3,040,866 1,582,317 Stock-based compensation 145,895 61,050 Total deferred tax assets 3,186,761 1,643,367 Deferred tax liabilities: Depreciation and amortization (78,467 ) (61,888 ) Total deferred tax liabilities (78,467 ) (61,888 ) Valuation allowance (3,108,294 ) (1,581,479 ) Net deferred tax assets $ - - At September 30, 2016, the Company had a cumulative net operating loss carryforward (NOL) of approximately $7.5 million, to offset against future income for federal and state tax purposes. These federal and state NOLs can be carried forward for 20 and 15 years, respectively. The federal NOLs begin to expire in 2034, and the state NOLs begin to expire in 2029. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generation of future taxable income during the periods in which those temporary differences become deductible. Due to the uncertainty of the realizability of the deferred tax assets, management has determined a full valuation allowance is appropriate.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Operating Leases The Company leases its warehouse, kiosks, and tasting room space under operating lease agreements, which expire through October 2020. Monthly lease payments range from $1,300 to $24,000 over the terms of the leases. For operating leases which contain fixed escalations in rental payments, the Company records the total rent expense on a straight-line basis over the lease term. The difference between the expense computed on a straight-line basis and actual payments for rent represents deferred rent which is included within accrued liabilities on the accompanying consolidated balance sheets. Retail spaces under lease are subject to monthly percentage rent adjustments when gross sales exceed certain minimums. At September 30, 2016, future minimum lease payments required under the operating leases were approximately as follows: Remainder of 2016 $ 80,000 2017 297,000 2018 272,000 2019 278,000 2020 240,000 Total $ 1,167,000 Total rent expense was approximately $304,000 and $290,000 for the nine months ended September 30, 2016 and 2015, respectively. Legal Matters The Company is involved in certain legal matters arising from the ordinary course of business. Management does not believe that the outcome of these matters will have a significant effect on the Company's consolidated financial position or results of operations.

Net Loss per Common Share

Net Loss per Common Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Loss per Common Share	10. Net Loss per Common Share Basic loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Diluted net loss per common share is computed by dividing net loss by the sum of the weighted average number of common shares outstanding and the potential number of any dilutive common shares outstanding during the period. Potentially dilutive securities consist of the incremental common stock issuable upon exercise of stock options and convertible notes. Potentially dilutive securities are excluded from the computation if their effective is anti-dilutive. There were no dilutive common shares outstanding at September 30, 2016 and 2015. The numerators and denominators used in computing basic and diluted net loss per common share in 2016 and 2015 were as follows: Three months ended 2016 2015 Net loss (numerator) $ (1,436,449 ) $ (1,412,612 ) Weighted average shares (denominator) 4,761,854 2,291,489 Basic and diluted net loss per common share $ (0.31 ) $ (0.62 ) Nine months ended 2016 2015 Net loss (numerator) $ (3,760,629 ) $ (2,931,690 ) Weighted average shares (denominator) 3,320,494 2,281,548 Basic and diluted net loss per common share $ (1.14 ) $ (1.28 )

Stockholder's Deficit

Stockholder's Deficit	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholder's Deficit	11. Stockholder’s Deficit Convertible Series A Total Preferred Stock Common Stock Paid-in Accumulated Stockholders’ Shares Amount Shares Amount Capital Deficit Deficit Balance, December 31, 2015 - $ - 2,309,750 $ 4,620 $ 6,493,518 $ (7,561,751 ) $ (1,063,613 ) Issuance of common stock with detachable warrants - - 2,000,000 $ 4,000 1,996,000 - $ 2,000,000 Issuance of common stock for services rendered - - 81,434 $ 163 218,807 - $ 218,970 Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants 972 756,835 - $ - 179,145 - $ 935,980 Stock-based compensation - - 10,050 $ 20 208,957 - $ 208,977 Issuance of common stock for note payable - - 343,873 $ 688 195,642 - $ 196,330 Issuance of detachable warrants on notes payable - - - $ - 348,434 - $ 348,434 Issuance of common stock for Series A preferred dividend - - 12,802 $ 26 17,733 (17,759 ) $ 0 Issuance of cash for Series A preferred dividend - - - $ - - (19,600 ) $ (19,600 ) Beneficial conversion feature of convertible debt - - - $ - 228,550 - $ 228,550 Shares Issued for payoff of trade debt - - 8,750 $ 18 19,194 - $ 19,212 Net loss - - - - - (3,760,629 ) $ (3,760,629 ) Balance, September 30, 2016 972 $ 756,835 4,766,659 $ 9,535 $ 9,905,980 $ (11,359,739 ) $ (687,389 ) Issuance of Common Stock In January 2016, the Company issued 10,050 shares of common stock to employees for stock-based compensation of $54,270. Additionally, the Company had $154,707 of stock-based compensation expense related to stock options granted to employees and vested during the nine months ended September 30, 2016. From April 20, 2016 to June 3, 2016, the Company issued 343,873 shares of its common stock upon conversion of a 14% convertible promissory note. The aggregate principal amount of this note that was converted was $196,330. From June 4, 2016 to June 22, 2016, the Company issued 2,000,000 shares of its common stock for $2,000,000, including 2,000,000 warrants for common stock. In the nine months ended September 30, 2016, the Company issued 81,434 shares of common stock to six third-party consultants in exchange for services rendered totaling $218,970. On July 7, 2016, the Company issued 12,802 shares of its common stock in consideration of $17,759 in accrued and unpaid dividends due at June 30, 2016 for its outstanding Series A Preferred. All shares were fully vested upon issuance. Issuance of Convertible Preferred Stock From April 4, 2016 to June 17, 2016, the Company sold 972 shares of its series A convertible preferred stock (“Series A Preferred”) for an aggregate purchase price of $972,000, of which (i) 499 Units were purchased for $499,000 in cash (ii) 423 Units were purchased by certain of our officers in consideration of $423,000 accrued and unpaid salary and (iii) 50 Units were purchased in consideration of cancellation of $50,000 of outstanding indebtedness net of issuance costs of $35,920. Each share of Series A Convertible Preferred has a stated value of $1,000, which is convertible into shares of the Company’s common stock (the “Common Stock”) at a fixed conversion price equal to $1.50 per share. The Series A Convertible Preferred accrue dividends at a rate of 8% per annum, cumulative. Dividends are payable quarterly in arrears at the Company’s option either in cash or “in kind” in shares of Common Stock; provided, however that dividends may only be paid in cash following the fiscal year in which the Company has net income (as shown in its audited financial statements contained in its Annual Report on Form 10-K for such year) of at least $500,000, to the extent permitted under applicable law out of funds legally available therefore.. For ‘in-kind” dividends, holders will receive that number of shares of Common Stock equal to (i) the amount of the dividend payment due such stockholder divided by (ii) 90% of the average of the per share market values during the twenty (20) trading days immediately preceding a dividend date. In the event of any voluntary or involuntary liquidation, dissolution or winding up, or sale of the Company, each holder of Series A Preferred shall be entitled to receive its pro rata portion of an aggregate payment equal to: (i) $1,000 multiplied by (ii) the total number of shares of Series A Preferred Stock issued under the Series A Certificate of Designation multiplied by (iii) 2.5. For all matters submitted to a vote of the Company’s stockholders, the holders of the Series A Preferred as a class shall have an aggregate number of votes equal to the product of (x) the number of shares of Common Stock (rounded to the nearest whole number) into which the total shares of Series A Preferred Stock issued under the Series A Certificate of Designation on such date of determination are convertible multiplied by (y) 2.5 (the “Total Series A Votes”), with each holder of Series A Preferred entitled to vote its pro rata portion of the Total Series A Votes. Holders of Common Stock do not have cumulative voting rights. In addition, the holders of Series A Preferred shall vote separately a class to change any of the rights, preferences and privileges of the Series A Preferred. Shares Number of shares Shares Issued and Net Conversion of common stock Liquidation Liquidation Authorized Outstanding Proceeds Price/Share Equivalents Preference Value/Share Series A 3,000 972 $ 935,980 $ 1.50 648,000 $ 2,430,000 $ 2,500 Beneficial conversion feature The Company evaluated the convertible note and determined that a portion of the note should be allocated to additional paid-in capital as a beneficial conversion feature, since the conversion price on the note as of March 10, 2016 was set at a discount to the fair market value of the underlying stock. As a result, a discount of $228,550 was attributed to the beneficial conversion feature of the note, which amount was then amortized fully during the six months ended June 30, 2016. Stock-Based Compensation On January 29, 2015, the Company adopted the 2015 Stock Incentive Plan (the 2015 Plan). The total number of shares available for the grant of either stock options or compensation stock under the 2015 Plan is 150,000 shares, subject to adjustment. The exercise price per share of each stock option shall not be less than 20 percent of the fair market value of the Company's common stock on the date of grant. At September 30, 2016, there were 53,750 options issued under the Plan outstanding, which options vest at the rate of at least 25 percent in the first year, starting 6-months after the grant date, and 75% in year two. On September 8, 2016, the Company adopted the 2016 Equity Incentive Plan (the 2016 Plan). The total number of shares available for the grant of either stock options or compensation stock under the Plan is 500,000 shares, subject to adjustment. The exercise price per share of each stock option shall not be less than 100 percent of the fair market value of the Company's common stock on the date of grant. At September 30, 2016, there were 105,000 options issued under the Plan outstanding, which options vest in a series of twelve (12) successive equal quarterly installments measured from the grant date. The Company also issues, from time to time, options which are not registered under a formal option plan. At September 30, 2016, there were 50,000 options outstanding that were not issued under the 2015 Plan. A summary of all stock option activity at and for the nine months ended September 30, 2016 is presented below: # of Options Weighted- Average Exercise Price Outstanding at December 31, 2015 110,000 (1) $ 12.80 Options granted 105,000 1.60 Options exercised - - Options canceled (6,250 ) 35.00 Outstanding at September 30, 2016 208,750 $ 6.60 Exercisable at September 30, 2016 68,281 $ 11.40 (1) 60,000 options granted under 2015 Stock Incentive Plan (of which 6,250 options were cancelled in the nine months ended September 30, 2016); 50,000 non-plan options were granted. The aggregate intrinsic value of options outstanding at September 30, 2016 was $42,000. At September 30, 2016, there were 140,469 unvested options with an aggregate grant date fair value of $328,275. The unvested options will vest in accordance with the vesting schedule in each respective option agreement, which is generally over a period of 6 to 36 months. The aggregate intrinsic value of unvested options at September 30, 2016 was $42,000. During the nine months ended September 30, 2016, 15,677 options became vested. The Company uses the Black-Scholes valuation model to measure the grant-date fair value of stock options. The grant-date fair value of stock options issued to employees is recognized on a straight-line basis over the requisite service period. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments as the underlying stock-based awards vest. To determine the fair value of stock options using the Black-Scholes valuation model, the calculation takes into consideration the effect of the following: • Exercise price of the option • Fair value of the Company's common stock on the date of grant • Expected term of the option • Expected volatility over the expected term of the option • Risk-free interest rate for the expected term of the option The calculation includes several assumptions that require management's judgment. The expected term of the options is calculated using the simplified method described in GAAP. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is derived from volatility calculated using historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the options. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the options. The following weighted-average assumptions were used in the Black-Scholes valuation model for options granted during the nine months ended September 30, 2016: Risk-free interest rate 0.92 % Expected term (in years) 6.25 Dividend yield - Expected volatility 75 % The following weighted-average assumptions were used in the Black-Scholes valuation model for options granted during the year ended December 31, 2015: Risk-free interest rate 0.84 % Expected term (in years) 2.46 Dividend yield - Expected volatility 74 % The weighted-average grant-date fair value per share of stock options granted during the nine months ended September 30, 2016 was $1.06. The weighted-average grant-date fair value per share of stock options granted during the nine months ended September 30, 2015 was $14.20. For the nine months ended September 30, 2016 and 2015, total stock option expense related to stock options was $154,707 and $124,250 respectively. At September 30, 2016, the total compensation cost related to stock options not yet recognized was approximately $194,263, which is expected to be recognized over a weighted-average period of approximately 2.46 years. Warrants During the three months ended September 30, 2016, the Company issued detachable warrants in connection to notes payable to purchase 525,000 shares of common stock. The Company has determined the Warrants are classified as equity on the condensed consolidated balance sheet as of September 30, 2016. No warrants were exercised during the quarter ended September 30, 2016. The estimated fair value of the warrants after relative fair value allocation at issuance was $282,662, based on the Black-Scholes option-pricing model using the weighted-average assumptions below: Volatility 75 % Risk-free interest rate 0.89 % Expected term (in years) 3.0 Expected dividend yield - Fair value of common stock $ 1,050,000 A summary of activity in warrants is as follows: Warrants Weighted Weighted Aggregate Outstanding at December 31, 2015 — — $ — $ — Nine months ended September 30, 2016: Granted 3,281,915 2.74 years $ 2.00 $ 0 Exercised - Forfeited and cancelled - - - - Outstanding at September 30, 2016 3,281,915 2.74 years $ 2.00 $ 0

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions During the nine months ended September 30, 2016 and 2015, the Company's chief executive officer paid expenses on behalf of the Company on his personal credit card. These related party advances do not bear interest and are payable on demand. At September 30, 2016 and December 31, 2015, the balance due to the chief executive officer was approximately $7,720 and $27,075, respectively, and is included in accrued liabilities on the accompanying condensed consolidated balance sheets. The Company also has a note payable due its chief executive officer in the amount of $12,500 at September 30, 2016. During the nine months ended September 30, 2016, the following officers purchased an aggregate of 423 Units, with each Units consisting of 1 share of our Series A Preferred and a 3-year warrant to purchase 667 shares of the Company’s common stock at an exercise price of $2.00 per share: (i) the Company’s president and chief executive officer, purchased 185 Units in consideration of $185,000 in accrued and unpaid salary; (ii) the Company’s chief financial officer purchased 97 Units in consideration of $97,000 in accrued and unpaid salary; (iii) the Company’s chief marketing officer and secretary purchased 58 Units in consideration of $58,000 in accrued and unpaid salary and (iv) the Company’s chief branding officer and wife of the Company’s chief executive officer purchased 83 Units in consideration of $83,000 in accrued and unpaid salary.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events From October 1, 2016 to November 14, 2016, the Company issued $300,000 of principal amount of 8% promissory notes and warrants to purchase shares of our common stock to accredited investors. The aggregate gross proceeds from the sale of the notes and warrants were $300,000. The notes have 2-year maturity dates and bear interest at the rate of eight percent (8%) per annum. The notes were issued with warrants to purchase up to 150,000 shares of our common stock at an exercise price of $2.00 per share. On October 13, 2016, the board approved a non-qualified option grant totaling 35,000 shares with an exercise price of $1.80 to each of the independent directors, messrs Wickersham, Davis, Flemming, and Hirson. On October 10, 2016, the Board of Directors approved a 20 to 1 reverse split of the Company's outstanding common stock from 95,333,180 shares to 4,766,659 shares, and a proportional decrease in the Company's authorized common stock from 900 million shares to 45 million shares. The record date for the reverse split was October 17, 2016 and the effective date for the reverse split was October 18, 2016. All of the share and per share amounts in these consolidated financial statements and footnotes have been adjusted to reflect the 20 to 1 reverse stock split. Effective November 4, 2016, the Company entered into an Agreement with Steven Earles, the Company’s President and Chief Executive Officer, pursuant to which Mr. Earles agreed to convert 185 shares of the Company’s Series A Convertible Preferred Stock into 123,333 shares of the Company’s Common Stock and to cancel his warrant to purchase 123,321 shares of the Company’s Common Stock. Effective November 4, 2016, the Company entered into an Agreement with Steven Shum, the Company’s Chief Financial Officer, pursuant to which Mr. Shum agreed to convert 97 shares of the Company’s Series A Convertible Preferred Stock into 64,667 shares of the Company’s Common Stock and to cancel his warrant to purchase 64,660.2 shares of the Company’s Common Stock. Effective November 4, 2016, the Company entered into a Second Amendment to Employment Agreement (the “Earles Amendment”) with Steven Earles, the Company’s President and Chief Executive Officer. Under the Earles Amendment, Mr. Earles’s base salary was decreased to $120,000 per annum. In addition, Mr. Earles agreed to waive prior accrued and unpaid salary totaling $182,027. He was also granted a restricted stock unit of shares of Common Stock pursuant to the Company’s 2016 Equity Incentive Plan, equal to the quotient obtained by dividing $30,000 by the closing price of the Common Stock on the effective date of the Earles Amendment, which the Company deemed to be the fair market value of such shares as of the date of the Earles Amendment. The shares of Common Stock subject to the restricted stock unit shall vest in four equal amounts on each of November 4, 2016, January 1, 2017, April 1, 2017 and July 1, 2017. The Company also agreed to indemnify Mr. Earles to the fullest extent allowed by the Company’s Articles of Incorporation, as amended (the “Articles”), the Company’s Amended and Restated Bylaws (the “Bylaws”), and applicable law, and notwithstanding Section 7.14 of the Company’s Bylaws, to the extent permitted by applicable law, the rights granted pursuant to the Earles Amendment shall apply to acts and actions occurring since October 31, 2014. Effective November 4, 2016, the Company entered into a First Amendment to Employment Agreement (the “Shum Amendment”) with Steven Shum, the Company’s Chief Financial Officer. Under the Shum Amendment, Mr. Shum’s base salary was decreased to $135,000 per annum. In addition, Mr. Shum is entitled to quarterly bonuses based on individual and Company performance at the discretion of the Company’s Board of Directors as well as quarterly bonuses based on the achievement by the Company of certain quarterly EBITDA targets. The Company agreed to pay Mr. Shum $4,250 for accrued and unpaid salary, which shall be paid on the earlier of a qualified equity financing by the Company or six months from the effective date of the Shum Amendment. The Company also agreed to indemnify Mr. Shum to the fullest extent allowed by the Articles, the Bylaws, and applicable law, and notwithstanding Section 7.14 of the Company’s Bylaws, to the extent permitted by applicable law, the rights granted pursuant to the Shum Amendment shall apply to acts and actions occurring since October 31, 2014. On November 8, 2016, S. Jay Harkins resigned as a director of the Company and as Executive Vice President of Sales of the Company. There are no disagreements as contemplated by Item 5.02(a) of Form 8-K, and thus the Company is disclosing this information pursuant to Item 5.02(b) of Form 8-K.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements for Eastside Distilling, Inc. and Subsidiary were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with GAAP. However, all adjustments which are, in the opinion of management, necessary for a fair presentation of the interim condensed consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the entire fiscal year ending December 31, 2016. The condensed consolidated financial statements include the accounts of Eastside Distilling, Inc.’s wholly-owned subsidiary MWWD (through February 3, 2015). All intercompany balances and transactions have been eliminated in consolidation.
Segment Reporting	Segment Reporting The Company determined its operating segment on the same basis that it uses to evaluate its performance internally. The Company has one business activity, marketing and distributing hand-crafted spirits, and operates as one segment. The Company's chief operating decision makers, its chief executive officer and chief financial officer, review the Company's operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 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.
Revenue Recognition	Revenue Recognition The Company records revenue when all four of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery of the products and/or services has occurred; (iii) the selling price is fixed or determinable; and (iv) collectability is reasonably assured. The Company recognizes sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of a consignment sale). For consignment sales, the Company recognizes sales upon the consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of shipment or purchase by customers at a retail location. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than customary rights of return. The Company excludes sales tax collected and remitted to various states from sales and cost of sales. Sales from items sold through the Company’s retail locations are recognized at the time of sale. Revenue received from online merchants who sell discounted gift certificates for the Company's merchandise and tastings is deferred until the customer has redeemed the discounted gift certificate or the gift certificate has expired, whichever occurs earlier.
Cost of Sales	Cost of Sales Cost of sales consists of the costs of ingredients utilized in the production of spirits, manufacturing labor and overhead, warehousing rent, packaging, and in-bound freight charges. Ingredients account for the largest portion of the cost of sales, followed by contract production fees and packaging.
Shipping and Fulfillment Costs	Shipping and Fulfillment Costs Freight costs incurred related to shipment of merchandise from the Company’s distribution facilities to customers are recorded in cost of sales.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash equivalents are considered to be highly liquid investments with maturities of three months or less at the time of the purchase. The Company had no cash equivalents at September 30, 2016 and December 31, 2015.
Concentrations	Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. At September 30, 2016 and 2015, two distributors accounted for trade receivables greater than 10% of the total trade receivables at an aggregate of 77% and 85%, respectively. For the nine months ended September 30, 2016, sales to three distributors exceeded 10% of the total consolidated revenues at an aggregate of 57%. For the nine months ended September 30, 2015, sales to one distributor exceeded 10% of the total consolidated revenues at 35%.
Fair Value Measurements	Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. GAAP permits an entity to choose to measure many financial instruments and certain other items at fair value and contains financial statement presentation and disclosure requirements for assets and liabilities for which the fair value option is elected. At September 30, 2016 and December 31, 2015, management has not elected to report any of the Company's assets or liabilities at fair value under the "fair value option" provided by GAAP. The hierarchy of fair value valuation techniques under GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under GAAP's fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management's own assumptions regarding the applicable asset or liability. None of the Company's assets or liabilities were measured at fair value at September 30, 2016 and December 31, 2015. However, GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of trade receivables, accounts payable, accrued liabilities, note payable, and convertible note payable. The estimated fair value of trade receivables, accounts payable, and accrued liabilities approximates their carrying value due to the short period of time to their maturities. At September 30, 2016 and December 31, 2015, the Company’s note payable and convertible notes payable are at fixed rates and their carrying value approximates fair value.
Inventories	Inventories Inventories primarily consist of bulk and bottled liquor and merchandise and are stated at the lower of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out (FIFO) method. A portion of inventory is held by the OLCC on consignment until it is sold to a third party. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory. The Company has recorded no write-downs of inventory for the nine months ended September 30, 2016 and 2015.
Property and Equipment	Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from two to seven years. Amortization of leasehold improvements is computed using the straight-line method over the life of the lease or the useful lives of the assets, whichever is shorter. The cost and related accumulated depreciation and amortization of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is reported as current period income or expense. The costs of repairs and maintenance are expensed as incurred.
Long-lived Assets	Long-lived Assets The Company accounts for long-lived assets, including property and equipment, at amortized cost. Management reviews long-lived assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount of the asset, an impairment loss would be recognized to write down the asset to its estimated fair value.
Income Taxes	Income Taxes The provision for income taxes is based on income and expenses as reported for financial statement purposes using the "asset and liability method" for accounting for deferred taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. At September 30, 2016 and December 31, 2015, the Company established valuation allowances against its net deferred tax assets. Income tax positions that meet the "more-likely-than-not" recognition threshold are measured at the largest amount of income tax benefit that is more than 50 percent likely to be realized upon settlement with the applicable taxing authority. The portion of the benefits associated with income tax positions taken that exceeds the amount measured as described above would be reflected as a liability for unrecognized income tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized income tax benefits would be classified as additional income taxes in the accompanying condensed consolidated statements of operations. There were no unrecognized income tax benefits, nor any interest and penalties associated with unrecognized income tax benefits, accrued or expensed at and for the nine months ended September 30, 2016 and 2015. The Company files federal income tax returns in the U.S. and various state income tax returns. The Company is no longer subject to examinations by the related tax authorities for the Company's U.S. federal and state income tax returns for years prior to 2012 and 2011, respectively.
Advertising	Advertising Advertising costs are expensed as incurred. Advertising expense was approximately $170,000 and $240,000 for the nine months ended September 30, 2016 and 2015, respectively, and is included in selling, general and administrative expenses in the accompanying condensed consolidated statements of operations.
Comprehensive Income	Comprehensive Income Comprehensive (loss) income consists of net (loss) income and other comprehensive income. The Company does not have any reconciling other comprehensive income items for the nine months ended September 30, 2016 and 2015.
Excise Taxes	Excise Taxes The Company is responsible for compliance with the TTB regulations, which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcohol beverages in varying amounts. The Company calculates its excise tax expense based upon units produced and on its understanding of the applicable excise tax laws.
Stock-Based Compensation	Stock-Based Compensation The Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments at the end of each reporting period and as the underlying stock-based awards vest.
Accounts Receivable Factoring Program	Accounts Receivable Factoring Program During 2016, we utilized a receivable factoring program to help improve our liquidity. Under the program, we have the option to sell customer receivables in advance of payment for 75% of the amount due. When the customer remits payment, we then receive the remaining 25%. We are charged interest on the advanced 75% payment at a rate of 2.15% per month. During the nine months ended September 30, 2016, we factored invoices totaling $560,172 and received total proceeds of $420,129. At September 30, 2016, we had $184,875 in open factored invoices. We incurred interest expense associated with the factoring program of $21,500 during the nine month period ended September 30, 2016. Comparatively, during the nine months ended September 30, 2015, we factored invoices totaling $94,293 and received total proceeds of $70,720. At September 30, 2015, we had $27,560 in open factored invoices. We incurred interest expense associated with the factoring program of $1,085 during the nine months ended September 30, 2015.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In March 2016, the Financial Accounting Standard Boards (the “FASB”) issued Accounting Standard Update (“ASU”) No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” ("ASU 2016-09"), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company does not plan to early adopt. We are currently evaluating the impact ASU 2015-11 will have on the Company's condensed consolidated financial statements. In February 2016, the FASB issued AUS No. 2016-02 —Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: - A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and - A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We are currently evaluating the impact ASU 2016-02 will have on the Company's condensed consolidated financial statements. In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for annual and interim reporting periods beginning after December 15, 2016. The Company does not plan to early adopt. We are currently evaluating the impact ASU 2014-09 will have on the Company's condensed consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern ("ASU 2014-15"). The new guidance explicitly requires that management assess an entity's ability to continue as a going concern and may require additional detailed disclosures. ASU 2014-15 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Though permitted, the Company does not plan to early adopt. The Company does not believe that this standard will have a significant impact on its condensed consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, simplifying the Measurement of Inventory ("ASU 2015-11"), which requires entities to measure most inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for annual and interim periods beginning after December 15, 2016. Though permitted, the Company does not plan to early adopt. We are currently evaluating the impact ASU 2015-11 will have on the Company's condensed consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, simplifying the presentation of debt issuance costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 is effective for annual and interim periods beginning after December 15, 2015 and early application is permitted. We have early adopted as of December 31, 2015.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the September 30, 2016 presentation with no changes to net loss or total stockholders' deficit) previously reported.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Raw materials $ 589,921 $ 415,953 Finished goods 291,358 248,713 Other 373 19,158 Total $ 881,652 $ 683,824

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment net	Property and equipment consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Furniture and fixtures $ 67,890 $ 64,288 Leasehold improvements 8,607 8,607 Vehicles 38,831 38,831 Construction In-progress 34,603 31,253 Total cost 149,931 142,979 Less accumulated depreciation and amortization (47,553 ) (30,974 ) Property and equipment - net $ 102,378 $ 112,005

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Payable [Abstract]
Schedule of notes payable	Notes payable consisted of the following at September 30, 2016 and December 31, 2015: 2016 2015 Note payable bearing interest at 7.99%. The note is payable in monthly principal plus interest payments of $472 through December, 2020. The note is secured by a vehicle. $ 18,007 $ 21,940 Notes payable bearing interest at 8%. The notes have a 2-year maturity and are due at various dates between June 30, 2018 – September 19, 2018, and pay interest only on a monthly basis 1,250,000 - Total notes payable 1,268,007 21,940 Less current portion (4,424 ) (4,098 ) Less debt discount for detachable warrant (334,046 ) - Long-term portion of notes payable $ 929,537 $ 17,842
Schedule of maturities on notes payable	Maturities on notes payable as of September 30, 2016, are as follows: Year ending December 31: 2016 $ 1,364 2017 5,737 2018 1,256,217 2019 4,689 2020 - Thereafter - $ 1,268,007

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Schedule of convertible notes payable	There were no convertible notes payable outstanding at September 30, 2016. At December 31, 2015, convertible notes payable consisted of three separate notes: September 30, 2016 December 31, 2015 Convertible note bearing interest at 5% per annum in the principal amount of $150,000. The original maturity date of June 13, 2015 was extended to April 1, 2016 during the period ended December 31, 2015 and was further extended to July 1, 2016. The note was convertible into shares of the Company's common stock at a fixed conversion price of $8.00 per share. On July 1, 2016, the Company paid the outstanding amount under this Note, including interest in full. $ - $ 150,000 Secured Convertible promissory note, bearing interest at 14% per annum in the principal amount of $275,000 (the “Note”), payable in six installments (“Amortization Payments”) as set forth in an Amortization Schedule beginning the 30 th - 272,708 Convertible note bearing interest at 0% per annum. The note was converted into Company's preferred equity financing on April 4, 2016. - 50,000 Totals - 472,708 Less: discount on convertible debt - 16,750 Current convertible notes payable – net of debt discounts $ - $ 455,958 (1) On April 14, 2016, this note (the “Initial Note”) was transferred to MR Group I, LLC (“Investor”). In addition, on April 14, 2016, the Company issued and sold to Investor a convertible promissory note dated April 18, 2016, bearing interest at 14% per annum in the principal amount of $300,000 (the “Additional Note”, together with the Initial Note, the “Notes”). The Additional Note had a maturity date of January 18, 2017 and an original issue discount of $100,000. On May 13, 2016, the Company entered into Exchange Agreement (the “Exchange Agreement”) with the Investor pursuant to which the Company (i) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $219,200 with an August 31, 2016 maturity date (the “Note”) in exchange for a previously issued 14% secured convertible promissory note dated September 10, 2015 in the original principal amount of $275,000 (with current outstanding principal and interest of $197,208 and $21,992, respectively) with a May 10, 2016 maturity date held by Investor and (ii) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $302,647 with an April 30, 2017 maturity date (the “Second Note”, together with the Note, the “Exchange Notes”) in exchange for a previously issued 14% secured convertible promissory note dated April 18, 2016 in the original principal amount of $300,000 (with current outstanding principal and interest of $300,000 and $2,647, respectively) with a May 10, 2016 maturity date held by Investor. During the June period, $196,330 of the note was converted into common shares. On June 6, 2016, the Company paid the remaining outstanding amount under this Note ($100,000) in full, and on June 28, 2016, the Company paid the outstanding amount under the Second Note ($306,378) in full.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of effective tax rates reconciliation	The provision for income taxes results in effective tax rates which are different than the federal income tax statutory rate. The nature of the differences for the nine months ended September 30, 2016 and 2015 were as follows: 2016 2015 Expected federal income tax benefit $ (1,278,614 ) $ (996,775 ) Expected State income tax benefits (248,201 ) (193,492 ) Change in valuation allowance 1,526,815 1,190,266 Total provision for income taxes $ - $ -
Schedule of deferred tax assets and liabilities	The components of the net deferred tax assets and liabilities at September 30, 2016 and December 31, 2015 consisted of the following: 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 3,040,866 1,582,317 Stock-based compensation 145,895 61,050 Total deferred tax assets 3,186,761 1,643,367 Deferred tax liabilities: Depreciation and amortization (78,467 ) (61,888 ) Total deferred tax liabilities (78,467 ) (61,888 ) Valuation allowance (3,108,294 ) (1,581,479 ) Net deferred tax assets $ - -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating leases	At September 30, 2016, future minimum lease payments required under the operating leases were approximately as follows: Remainder of 2016 $ 80,000 2017 297,000 2018 272,000 2019 278,000 2020 240,000 Total $ 1,167,000

Net Loss per Common Share (Tabl

Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of basic and diluted net loss per common share	The numerators and denominators used in computing basic and diluted net loss per common share in 2016 and 2015 were as follows: Three months ended 2016 2015 Net loss (numerator) $ (1,436,449 ) $ (1,412,612 ) Weighted average shares (denominator) 4,761,854 2,291,489 Basic and diluted net loss per common share $ (0.31 ) $ (0.62 ) Nine months ended 2016 2015 Net loss (numerator) $ (3,760,629 ) $ (2,931,690 ) Weighted average shares (denominator) 3,320,494 2,281,548 Basic and diluted net loss per common share $ (1.14 ) $ (1.28 )

Stockholder's Deficit (Tables)

Stockholder's Deficit (Tables)	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Schedule of balance of stockholder's equity	Convertible Series A Total Preferred Stock Common Stock Paid-in Accumulated Stockholders’ Shares Amount Shares Amount Capital Deficit Deficit Balance, December 31, 2015 - $ - 2,309,750 $ 4,620 $ 6,493,518 $ (7,561,751 ) $ (1,063,613 ) Issuance of common stock with detachable warrants - - 2,000,000 $ 4,000 1,996,000 - $ 2,000,000 Issuance of common stock for services rendered - - 81,434 $ 163 218,807 - $ 218,970 Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants 972 756,835 - $ - 179,145 - $ 935,980 Stock-based compensation - - 10,050 $ 20 208,957 - $ 208,977 Issuance of common stock for note payable - - 343,873 $ 688 195,642 - $ 196,330 Issuance of detachable warrants on notes payable - - - $ - 348,434 - $ 348,434 Issuance of common stock for Series A preferred dividend - - 12,802 $ 26 17,733 (17,759 ) $ 0 Issuance of cash for Series A preferred dividend - - - $ - - (19,600 ) $ (19,600 ) Beneficial conversion feature of convertible debt - - - $ - 228,550 - $ 228,550 Shares Issued for payoff of trade debt - - 8,750 $ 18 19,194 - $ 19,212 Net loss - - - - - (3,760,629 ) $ (3,760,629 ) Balance, September 30, 2016 972 $ 756,835 4,766,659 $ 9,535 $ 9,905,980 $ (11,359,739 ) $ (687,389 )
Schedule of issuance of convertible preferred stock	Shares Number of shares Shares Issued and Net Conversion of common stock Liquidation Liquidation Authorized Outstanding Proceeds Price/Share Equivalents Preference Value/Share Series A 3,000 972 $ 935,980 $ 1.50 648,000 $ 2,430,000 $ 2,500
Schedule of stock option activity	A summary of all stock option activity at and for the nine months ended September 30, 2016 is presented below: # of Options Weighted- Outstanding at December 31, 2015 110,000 (1) $ 12.80 Options granted 105,000 1.60 Options exercised - - Options canceled (6,250 ) 35.00 Outstanding at September 30, 2016 208,750 $ 6.60 Exercisable at September 30, 2016 68,281 $ 11.40 (1) 60,000 options granted under 2015 Stock Incentive Plan (of which 6,250 options were cancelled in the nine months ended September 30, 2016); 50,000 non-plan options were granted.
Schedule of option Black-Scholes option-pricing model assumptions	The following weighted-average assumptions were used in the Black-Scholes valuation model for options granted during the nine months ended September 30, 2016: Risk-free interest rate 0.92 % Expected term (in years) 6.25 Dividend yield - Expected volatility 75 % The following weighted-average assumptions were used in the Black-Scholes valuation model for options granted during the year ended December 31, 2015: Risk-free interest rate 0.84 % Expected term (in years) 2.46 Dividend yield - Expected volatility 74 %
Schedule of warrants Black-Scholes option-pricing model assumption	The estimated fair value of the warrants at issuance was $282,662, based on the Black-Scholes option-pricing model using the weighted-average assumptions below: Volatility 75 % Risk-free interest rate 0.89 % Expected term (in years) 3.0 Expected dividend yield - Fair value of common stock $ 1,050,000
Schedule of warrants activity	A summary of activity in warrants is as follows: Warrants Weighted Weighted Aggregate Outstanding at December 31, 2015 — — $ — $ — Nine months ended September 30, 2016: Granted 3,281,915 2.74 years $ 2.00 $ 0 Exercised - Forfeited and cancelled - - - - Outstanding at September 30, 2016 3,281,915 2.74 years $ 2.00 $ 0

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
Net loss	$ (1,436,449)	$ (1,412,612)	$ (3,760,629)	$ (2,931,690)
Accumulated deficit	$ (11,359,739)		(11,359,739)		$ (7,561,751)
Net cash proceeds from equity and debt financings			$ 3,900,000

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)Number	Sep. 30, 2015USD ($)Number
Number of operating segment | Number	1
Advertising expense	$ 170,000	$ 240,000
Interest expense	21,500	1,085
Amount of factored invoice	560,172	94,293
Proceeds from accounts receivable invoive	420,129	70,720
Accounts receivable factored invoices	$ 184,875	$ 27,560
Property And Equipment [Member] | Minimum [Member]
Useful life	2 years
Property And Equipment [Member] | Maximum [Member]
Useful life	7 years
Accounts Receivable [Member]
Number of distributors | Number	2	2
Accounts Receivable [Member] | Distributor One [Member]
Percentage concentration risk	77.00%	77.00%
Accounts Receivable [Member] | Distributor Two [Member]
Percentage concentration risk	85.00%	85.00%
Sales Revenue [Member] | Distributor One [Member]
Number of distributors | Number		1
Percentage concentration risk		35.00%
Sales Revenue [Member] | Three Distributors [Member]
Number of distributors | Number	3
Percentage concentration risk	57.00%

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 589,921	$ 415,953
Finished goods	291,358	248,713
Other	373	19,158
Total	$ 881,652	$ 683,824

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total cost	$ 149,931	$ 142,979
Less accumulated depreciation and amortization	(47,553)	(30,974)
Property and equipment - net	102,378	112,005
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	67,890	64,288
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	8,607	8,607
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total cost	38,831	38,831
Construction In-Progress [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 34,603	$ 31,253

Property and Equipment (Detai33

Property and Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 16,579	$ 13,927

Notes Payable (Details)

Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Total notes payable	$ 1,268,007	$ 21,940
Less current portion	(4,424)	(4,098)
Less debt discount for detachable warrant	(334,046)
Long-term portion of notes payable	929,537	17,842
7.99% Notes Payable Due On December, 2020 [Member]
Total notes payable	18,007	$ 21,940
Principal plus interest payments	$ 472
Frequency of payment	Monthly
8% Notes Payable Due On June 30, 2018 [Member]
Total notes payable	$ 1,250,000
Frequency of payment	Monthly

Notes Payable (Details 1)

Notes Payable (Details 1)	Sep. 30, 2016USD ($)
Long-term Debt, Rolling Maturity [Abstract]
2,016	$ 1,364
2,017	5,737
2,018	1,256,217
2,019	4,689
2,020
Thereafter
Total	$ 1,268,007

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)		Sep. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Totals			$ 472,708
Less: discount on convertible debt			16,750
Current convertible notes payable - net of debt discounts			455,958
5% Convertible Note Due July 1, 2016 [Member]
Short-term Debt [Line Items]
Totals			150,000
14% Secured Convertible Promissory Note (Initial Note) [Member]
Short-term Debt [Line Items]
Totals	[1]		272,708
0% Convertible Interest Bearing Note [Member]
Short-term Debt [Line Items]
Totals			$ 50,000
[1]	On April 14, 2016, this note (the "Initial Note") was transferred to MR Group I, LLC ("Investor"). In addition, on April 14, 2016, the Company issued and sold to Investor a convertible promissory note dated April 18, 2016, bearing interest at 14% per annum in the principal amount of $300,000 (the "Additional Note", together with the Initial Note, the "Notes"). The Additional Note had a maturity date of January 18, 2017 and an original issue discount of $100,000. On May 13, 2016, the Company entered into Exchange Agreement (the "Exchange Agreement") with the Investor pursuant to which the Company (i) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $219,200 with an August 31, 2016 maturity date (the "Note") in exchange for a previously issued 14% secured convertible promissory note dated September 10, 2015 in the original principal amount of $275,000 (with current outstanding principal and interest of $197,208 and $21,992, respectively) with a May 10, 2016 maturity date held by Investor and (ii) issued Investor a 14% secured convertible promissory note dated May 13, 2016 in the aggregate principal amount of $302,647 with an April 30, 2017 maturity date (the "Second Note", together with the Note, the "Exchange Notes") in exchange for a previously issued 14% secured convertible promissory note dated April 18, 2016 in the original principal amount of $300,000 (with current outstanding principal and interest of $300,000 and $2,647, respectively) with a May 10, 2016 maturity date held by Investor. During the June period, $196,330 of the note was converted into common shares. On June 6, 2016, the Company paid the remaining outstanding amount under this Note ($100,000) in full, and on June 28, 2016, the Company paid the outstanding amount under the Second Note ($306,378) in full.

Convertible Notes Payable (De37

Convertible Notes Payable (Details Narrative) - USD ($)	Jun. 28, 2016	Jun. 06, 2016	Jun. 03, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	May 13, 2016	Apr. 14, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Amortization of the debt discount				$ 14,388	$ 0
Original debt issue discount										$ 16,750
Debt conversion amount						$ 196,330
MR Group I, LLC [Member] | Exchange Agreement [Member] | 14% Secured Convertible Promissory Note [Member]
Short-term Debt [Line Items]
Debt conversion amount			$ 196,330
Repayments of debt	$ 306,378	$ 100,000
5% Convertible Note Due July 1, 2016 [Member]
Short-term Debt [Line Items]
Conversion price (in dollars per share)				$ 8		$ 8
14% Secured Convertible Promissory Note (Initial Note) [Member]
Short-term Debt [Line Items]
Principal amount				$ 275,000		$ 275,000
Description of repayment terms						Payable in six installments (“Amortization Payments”) as set forth in an Amortization Schedule beginning the 30th day after issuance and each 30-days thereafter.
Description of conversion price terms						The Note is convertible at a price per share equal to the lesser of (i) the Fixed Conversion Price (currently $3.00) or (ii) 65% of the lowest trading price of the Company’s common stock during the 5 trading days prior to conversion.
Description of collateral						Secured by all of the Company’s assets pursuant to the terms and conditions of an Amended and Restated Pledge and Security Agreement.
14% Secured Convertible Promissory Note (Initial Note) [Member] | MR Group I, LLC [Member]
Short-term Debt [Line Items]
Principal amount									$ 275,000
14% Secured Convertible Promissory Note (Initial Note) [Member] | MR Group I, LLC [Member] | Exchange Agreement [Member]
Short-term Debt [Line Items]
Principal amount				197,208		$ 197,208		$ 275,000
Interest payable				21,992		21,992
14% Secured Convertible Promissory Note (Initial Note) [Member] | MR Group I, LLC [Member] | Exchange Agreement [Member] | 14% Secured Convertible Promissory Note Due August 31, 2016 [Member]
Short-term Debt [Line Items]
Principal amount				219,200		$ 219,200
0% Convertible Interest Bearing Note [Member]
Short-term Debt [Line Items]
Description of conversion price terms						The note was converted into Company's preferred equity financing on April 4, 2016.
14% Additional Secured Convertible Promissory Note Due January 18, 2018 [Member] | MR Group I, LLC [Member]
Short-term Debt [Line Items]
Principal amount									300,000
Original debt issue discount									$ 100,000
14% Additional Secured Convertible Promissory Note Due January 18, 2018 [Member] | MR Group I, LLC [Member] | Exchange Agreement [Member]
Short-term Debt [Line Items]
Principal amount				300,000		$ 300,000
Interest payable				2,647		2,647
14% Additional Secured Convertible Promissory Note Due January 18, 2018 [Member] | MR Group I, LLC [Member] | Exchange Agreement [Member] | 14% Secured Convertible Promissory Note Due April 30, 2017 [Member]
Short-term Debt [Line Items]
Principal amount				$ 302,647		$ 302,647

Income Taxes (Details)

Income Taxes (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Expected federal income tax benefit	$ (1,278,614)	$ (996,775)
Expected State income tax benefits	(248,201)	(193,492)
Change in valuation allowance	1,526,815	1,190,266
Total provision for income taxes

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Deferred tax assets
Net operating loss carryforwards	$ 3,040,866	$ 1,582,317
Stock-based compensation	145,895	61,050
Total deferred tax assets	3,186,761	1,643,367
Deferred tax liabilities
Depreciation and amortization	(78,467)	(61,888)
Total deferred tax liabilities	(78,467)	(61,888)
Valuation allowance	(3,108,294)	(1,581,479)
Net deferred tax assets

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	9 Months Ended
	Sep. 30, 2016USD ($)
Tax Credit Carryforward [Line Items]
Net operating loss carryforward	$ 7,500,000
Federal [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carrayforward year	20 years
Net operating loss expiration year	2,034
State [Member]
Tax Credit Carryforward [Line Items]
Net operating loss carrayforward year	15 years
Net operating loss expiration year	2,029

Commitments and Contingencies41

Commitments and Contingencies (Details)	Sep. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Remainder of 2016	$ 80,000
2,017	297,000
2,018	272,000
2,019	278,000
2,020	240,000
Total	$ 1,167,000

Commitments and Contingencies42

Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Rent expense	$ 304,000	$ 290,000
Operating lease agreements expiration	October 2,020
Minimum [Member]
Monthly lease payments	$ 1,300
Maximum [Member]
Monthly lease payments	$ 24,000

Net Loss per Common Share (Deta

Net Loss per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net loss (numerator)	$ (1,456,049)	$ (1,412,612)	$ (3,797,988)	$ (2,931,690)
Weighted average shares (denominator)	4,761,854	2,291,489	3,320,494	2,281,548
Basic and diluted net loss per common share (in dollars per share)	$ (0.31)	$ (0.62)	$ (1.14)	$ (1.28)

Stockholder's Deficit (Details)

Stockholder's Deficit (Details) - USD ($)	Jul. 07, 2016	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning				$ (1,063,613)	$ (1,063,613)
Issuance of common stock with detachable warrants					2,000,000
Issuance of common stock for services rendered					$ 218,970
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants					935,980
Stock-based compensation					$ 208,977
Issuance of common stock for note payable					196,330
Issuance of detachable warrants on notes payable					348,434
Issuance of common stock for Series A preferred dividend					$ 0
Issuance of cash for Series A preferred dividend					(19,600)
Beneficial conversion feature of convertible debt				228,550
Shares Issued for payoff of trade debt					$ 19,212
Net loss		$ (1,436,449)	$ (1,412,612)		(3,760,629)	$ (2,931,690)
Balance, Ending		(687,389)			(687,389)
8% Series A Convertible Preferred Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning
Issuance of common stock with detachable warrants
Issuance of common stock for services rendered
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants					756,835
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants (in shares)					$ 972
Stock-based compensation
Issuance of common stock for note payable
Issuance of detachable warrants on notes payable
Issuance of common stock for Series A preferred dividend	$ 17,759
Issuance of common stock for Series A preferred dividend (in shares)	12,802
Issuance of cash for Series A preferred dividend
Beneficial conversion feature of convertible debt
Shares Issued for payoff of trade debt
Net loss
Balance, Ending		$ 756,835			$ 756,835
Balance, Ending (in shares)		972			972
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning				$ 4,620	$ 4,620
Balance, Beginning (in shares)				2,309,750	2,309,750
Issuance of common stock with detachable warrants					$ 4,000
Issuance of common stock with detachable warrants (in shares)					2,000,000
Issuance of common stock for services rendered					$ 163
Issuance of common stock for services rendered (in shares)					81,434
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants
Stock-based compensation					$ 20
Stock-based compensation (in shares)					10,050
Issuance of common stock for note payable					$ 688
Issuance of common stock for note payable (in shares)					343,873
Issuance of detachable warrants on notes payable
Issuance of common stock for Series A preferred dividend					$ 26
Issuance of common stock for Series A preferred dividend (in shares)					12,802
Issuance of cash for Series A preferred dividend
Beneficial conversion feature of convertible debt
Shares Issued for payoff of trade debt					$ 18
Shares Issued for payoff of trade debt (in shares)					8,750
Net loss
Balance, Ending		$ 9,535			$ 9,535
Balance, Ending (in shares)		4,766,659			4,766,659
Paid-in Capital [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning				$ 6,493,518	$ 6,493,518
Issuance of common stock with detachable warrants					1,996,000
Issuance of common stock for services rendered					$ 218,807
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants					179,145
Stock-based compensation					$ 208,957
Issuance of common stock for note payable					195,642
Issuance of detachable warrants on notes payable					348,434
Issuance of common stock for Series A preferred dividend					$ 17,733
Issuance of cash for Series A preferred dividend
Beneficial conversion feature of convertible debt					$ 228,550
Shares Issued for payoff of trade debt					19,194
Net loss
Balance, Ending		$ 9,905,980			9,905,980
Accumulated Deficit [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance, Beginning				$ (7,561,751)	(7,561,751)
Issuance of common stock with detachable warrants
Issuance of common stock for services rendered
Issuance of Series A convertible Preferred stock, net of issuance cost of $35,920 with detachable warrants
Stock-based compensation
Issuance of common stock for note payable
Issuance of detachable warrants on notes payable
Issuance of common stock for Series A preferred dividend					$ (17,759)
Issuance of cash for Series A preferred dividend					(19,600)
Beneficial conversion feature of convertible debt
Shares Issued for payoff of trade debt
Net loss					(3,760,629)
Balance, Ending		$ (11,359,739)			$ (11,359,739)

Stockholder's Deficit (Details

Stockholder's Deficit (Details 1) - 8% Series A Convertible Preferred Stock [Member] - USD ($)	2 Months Ended	9 Months Ended
	Jun. 17, 2016	Sep. 30, 2016	Dec. 31, 2015
Shares Authorized		100,000,000	100,000,000
Shares Issued and Outstanding		972
Net Proceeds		$ 935,980
Conversion Price/Share	$ 1.50	$ 1.50
Number of shares of common stock Equivalents		648,000
Liquidation Preference		$ 2,430,000
Liquidation Value/Share		$ 2,500

Stockholder's Deficit (Detail46

Stockholder's Deficit (Details 2)	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning | shares	110,000	[1]
Options granted | shares	105,000
Options exercised | shares
Options canceled | shares	(6,250)
Outstanding at ending | shares	208,750
Exercisable at ending | shares	68,281
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning | $ / shares	$ 12.80
Options granted | $ / shares	1.60
Options exercised | $ / shares
Options canceled | $ / shares	35
Outstanding at ending | $ / shares	6.60
Exercisable at ending | $ / shares	$ 11.40
[1]	60,000 options granted under 2015 Stock Incentive Plan (of which 6,250 options were cancelled in the nine months ended September 30, 2016); 50,000 non-plan options were granted.

Stockholder's Deficit (Detail47

Stockholder's Deficit (Details 3)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Equity [Abstract]
Risk-free interest rate	0.92%	0.84%
Expected term	6 years 3 months	2 years 5 months 16 days
Dividend yield
Expected volatility	75.00%	74.00%

Stockholder's Deficit (Detail48

Stockholder's Deficit (Details 4) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Volatility	75.00%	74.00%
Risk-free interest rate	0.92%	0.84%
Expected term	6 years 3 months	2 years 5 months 16 days
Expected dividend yield
Warrant [Member]
Volatility	75.00%
Risk-free interest rate	0.89%
Expected term	3 years
Expected dividend yield
Fair value of common stock	$ 1,050,000

Stockholder's Deficit (Detail49

Stockholder's Deficit (Details 5) - Warrant [Member]	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Class Of Warrant Or Right Outstanding [Roll Forward]
Outstanding at beginning | shares
Granted | shares	3,281,915
Outstanding at ending | shares	3,281,915
Class Of Warrant Or Right Outstanding Weighted Average Remaining Life [Roll Forward]
Granted	2 years 8 months 26 days
Outstanding at ending	2 years 8 months 26 days
Class Of Warrant Or Right Exercise Price Of Warrants Or Rights [Roll Forward]
Outstanding at beginning | $ / shares
Granted | $ / shares	2
Outstanding at ending | $ / shares	$ 2
Class Of Warrant Or Right Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginning | $
Granted | $	0
Outstanding at ending | $	$ 0

Stockholder's Deficit (Detail50

Stockholder's Deficit (Details Narrative) - USD ($)	Jul. 07, 2016	Jun. 22, 2016	Jun. 03, 2016	Jan. 31, 2016	Jun. 17, 2016	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Stock based compensation expense							$ 208,977	$ 124,250
Debt conversion amount							196,330
Number of shares issued		2,000,000
Number of shares issued, value		$ 2,000,000
Number of shares issued upon accrued and unpaid dividends, value							0
Number of units issued for cash					499
Number of units issued for cash, value					$ 499,000
Number of units issued for cancellation outstanding indebtedness					50
Number of units issued for cancellation outstanding indebtedness, value					$ 50,000
Outstanding indebtedness net of issuance costs							1,268,007
Beneficial conversation feature						$ 228,550
Issuance of common stock for services rendered							218,970
8% Series A Convertible Preferred Stock [Member]
Debt conversion amount
Number of shares issued							1
Number of shares issued upon accrued and unpaid dividends	12,802
Number of shares issued upon accrued and unpaid dividends, value	$ 17,759
Outstanding indebtedness net of issuance costs					$ 35,920
Preferred stock stated value (in dollars per share)					$ 1,000
Preferred stock fixed conversion price (in dollars per share)					$ 1.50		$ 1.50
Description of participation rights					Dividends are payable quarterly in arrears at the Company’s option either in cash or “in kind” in shares of Common Stock; provided, however that dividends may only be paid in cash following the fiscal year in which the Company has net income (as shown in its audited financial statements contained in its Annual Report on Form 10-K for such year) of at least $500,000, to the extent permitted under applicable law out of funds legally available therefor. For ‘in-kind” dividends, holders will receive that number of shares of Common Stock equal to (i) the amount of the dividend payment due such stockholder divided by (ii) 90% of the average of the per share market values during the twenty (20) trading days immediately preceding a dividend date.
Description of liquidation rights					In the event of any voluntary or involuntary liquidation, dissolution or winding up, or sale of the Company, each holder of Series A Preferred shall be entitled to receive its pro rata portion of an aggregate payment equal to: (i) $1,000 multiplied by (ii) the total number of shares of Series A Preferred Stock issued under the Series A Certificate of Designation multiplied by (iii) 2.5.
Beneficial conversation feature
Number of units issued					972
Number of units issued, value					$ 972,000
Issuance of common stock for services rendered
Six Third-Party Consultant [Member]
Number of shares issued for services							81,434
Issuance of common stock for services rendered							$ 218,970
Employees [Member]
Number of shares issued to employees				10,050
Value of shares issued to employees				$ 54,270
Stock based compensation expense							$ 154,707
MR Group I, LLC [Member] | Exchange Agreement [Member] | 14% Secured Convertible Promissory Note [Member]
Debt conversion amount			$ 196,330
Number of shares issued upon debt conversion			343,873
Officers [Member]
Number of units issued for services					423		423
Number of units issued for services, value					$ 423,000

Stockholder's Deficit (Detail51

Stockholder's Deficit (Details Narrative 1) - USD ($)	Sep. 08, 2016	Jan. 29, 2015	Jun. 22, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Number of options granted					105,000
Aggregate intrinsic value of options outstanding				$ 42,000	$ 42,000
Number of unvested options				140,469	140,469
Number of vested options					15,677
Aggregate intrinsic value of unvested options				$ 42,000	$ 42,000
Aggregate grant date fair value unvested options					$ 328,275
Weighted-average grant-date fair value of stock options granted					$ 1.06	$ 14.20
Stock option plan expense					$ 154,707	$ 124,250
Compensation cost related to stock options not yet recognized				$ 194,263	$ 194,263
Period of compensation cost related to stock options not yet recognized					2 years 5 months 16 days
Number of shares issued			2,000,000
Warrant [Member]
Number of shares issued				525,000
Estimated fair value				$ 282,662	$ 282,662
Minimum [Member]
Vesting period of option					6 months
Maximum [Member]
Vesting period of option					36 months
2015 Stock Incentive Plan [Member]
Number of shares available for grant		150,000
Number of option issued					53,750
Number of options granted		60,000			6,250
Description of vesting percentage					Vest at the rate of at least 25 percent in the first year, starting 6-months after the grant date, and 75% in year two.
Non Plan Options [Member]
Number of unregistered option outstanding				50,000	50,000
2016 Stock Incentive Plan [Member]
Number of shares available for grant	500,000
Number of options granted	105,000
Description of vesting percentage

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	1 Months Ended	2 Months Ended	3 Months Ended	9 Months Ended
	Jun. 22, 2016	Jun. 17, 2016	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Related party note payable			$ 12,500	$ 12,500	$ 12,500
Description of number of shares consisted in each unit				Each Units consisting of 1 share of our Series A Preferred and a 3-year warrant to purchase 667 shares of the Company’s common stock at an exercise price of $2.00 per share.
Number of shares issued	2,000,000
8% Series A Convertible Preferred Stock [Member]
Number of shares issued				1
Warrant [Member]
Number of shares issued			525,000
Number of warrants purchased			667	667
Warrant term				3 years
Warrant exercise price (in dollars per share)			$ 2	$ 2
Mr. Steven Earles [Member]
Amount due to related party			$ 7,720	$ 7,720	$ 27,075
Related party note payable			$ 12,500	$ 12,500
Number of units issued for services				185
Value of units issued for services				$ 185,000
Officers [Member]
Number of units issued for services		423		423
Mr. Steve Shum [Member]
Number of units issued for services				97
Value of units issued for services				$ 97,000
Mr. Martin Kunkel [Member]
Number of units issued for services				58
Value of units issued for services				$ 58,000
Carris Earles & Wife of the Company's Chief Executive Officer [Member]
Number of units issued for services				83
Value of units issued for services				$ 83,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Nov. 04, 2016	Oct. 13, 2016	Oct. 10, 2016	Sep. 08, 2016	Nov. 14, 2016	Jun. 22, 2016	Sep. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Oct. 09, 2016	Dec. 31, 2015
Proceeds from notes payable								$ 185,000	$ 291,500
Common stock, outstanding							4,766,659	4,766,659			2,309,750
Common stock, authorized							45,000,000	45,000,000			45,000,000
Number of shares granted						2,000,000
8% Series A Convertible Preferred Stock [Member]
Number of shares converted								648,000
Number of shares granted								1
Warrant [Member]
Warrants issued to purchase common stock							667	667
Warrant exercise price (in dollars per share)							$ 2	$ 2
Number of shares granted							525,000
2016 Stock Incentive Plan [Member]
Description of vesting rights
Subsequent Event [Member]
Gross proceeds from sale of notes and warrants					$ 300,000
Description of reverse stock split			20 to 1
Common stock, outstanding			4,766,659							95,333,180
Common stock, authorized			45,000,000							900,000,000
Reverse stock split record date			Oct. 17, 2016
Reverse stock split effective date			Oct. 18, 2016
Subsequent Event [Member] | 8% Promissory Notes [Member]
Principal amount					$ 300,000
Promissory note interest rate					8.00%
Debt maturity period					2 years
Description of debt maturity period					October X, 2018 – October Y, 2018
Subsequent Event [Member] | Warrant [Member]
Warrants issued to purchase common stock					150,000
Warrant exercise price (in dollars per share)					$ 2
Subsequent Event [Member] | Independent Directors [Member]
Number of shares granted		35,000
Exercise price		$ 1.80
Subsequent Event [Member] | Mr. Steve Shum [Member] | 8% Series A Convertible Preferred Stock [Member]
Number of shares converted	97
Subsequent Event [Member] | Mr. Steve Shum [Member] | Common Stock [Member]
Number of common shares issued upon stock conversion	64,667
Subsequent Event [Member] | Mr. Steve Shum [Member] | Warrant [Member]
Number of warrant to purchase common shares cancelled	64,660.2
Subsequent Event [Member] | Mr. Steven Earles [Member] | 8% Series A Convertible Preferred Stock [Member]
Number of shares converted	185
Subsequent Event [Member] | Mr. Steven Earles [Member] | Common Stock [Member]
Number of common shares issued upon stock conversion	123,333
Subsequent Event [Member] | Mr. Steven Earles [Member] | Warrant [Member]
Number of warrant to purchase common shares cancelled	123,321
Subsequent Event [Member] | First Amendment to Employment Agreement [Member] | Mr. Steve Shum [Member]
Annual base salary	$ 135,000
Accrued and unpaid salary paid	4,250
Subsequent Event [Member] | Second Amendment to Employment Agreement [Member] | Mr. Steven Earles [Member]
Annual base salary	120,000
Waive prior accrued and unpaid salary	182,027
Subsequent Event [Member] | Second Amendment to Employment Agreement [Member] | Mr. Steven Earles [Member] | 2016 Stock Incentive Plan [Member]
Number of restricted stock unit granted, value	$ 30,000
Description of vesting rights	Vest in four equal amounts on each of November 4, 2016, January 1, 2017, April 1, 2017 and July 1, 2017.