Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 14-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | American Brewing Company, Inc. | |
Entity Central Index Key | 1579823 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 12,280,454 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
BALANCE_SHEETS_Unaudited
BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $458,135 | $98,898 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $0, respectively | 50,032 | 43,779 |
Inventories | 53,330 | 80,306 |
Prepaid Expense | 46,123 | 75,989 |
Total current assets | 607,620 | 298,972 |
Property and equipment, net | 983,509 | 992,139 |
Other assets | 62,816 | 13,957 |
Total assets | 1,653,945 | 1,305,068 |
Current Liabilities: | ||
Accounts payable | 38,032 | 69,667 |
Current portion of notes payable and capital leases, net of unamortized discounts | 125,066 | 7,910 |
Current portion of related party debt, net of unamortized discounts | 20,580 | |
Accrued expenses and other current liabilities | 680,428 | 677,928 |
Total current liabilities | 864,106 | 755,505 |
Note payable and capital leases, less current portion, net of unamortized discounts | 143,438 | 5,013 |
Related party debt, less current portion, net of unamortized discounts | 17,258 | |
Total liabilities | 1,024,802 | 760,518 |
Stockholders' Equity: | ||
Series A preferred stock, $0.001 par value: 770,193 authorized, 250,000 issued and outstanding | 250 | 250 |
Series B convertible preferred stock, $0.001 par value: 229,807 authorized, 229,807 and none issued and outstanding, respectively | 230 | |
Common Stock, $0.001 par value; 50,000,000 shares authorized; 13,045,220, and 12,715,220 shares issued and outstanding, respectively | 13,046 | 12,716 |
Additional paid-in capital | 2,916,184 | 2,656,728 |
Accumulated deficit | -2,300,567 | -2,125,144 |
Total stockholders' (deficit) equity | 629,143 | 544,550 |
Total liabilities and stockholders' (deficit) equity | $1,653,945 | $1,305,068 |
BALANCE_SHEETS_Parenthetical
BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Series A Preferred Stock, par value | $0.00 | $0.00 |
Series A Preferred Stock, shares authorized | 770,193 | 770,193 |
Series A Preferred Stock, shares issued | 250,000 | 250,000 |
Series A Preferred Stock, shares outstanding | 250,000 | 250,000 |
Series B Preferred Stock, par value | $0.00 | $0.00 |
Series B Preferred Stock, shares authorized | 229,807 | 229,807 |
Series B Preferred Stock, shares issued | 0 | 0 |
Series B Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorised | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 13,045,220 | 12,715,220 |
Common Stock, shares authorised | 13,045,220 | 12,715,220 |
STATEMENTS_OF_OPERATIONS_Unaud
STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Revenue | $248,308 | $241,003 |
Less excise taxes | -4,909 | -4,636 |
Net revenue | 243,399 | 236,367 |
Cost of goods sold | 228,806 | 184,862 |
Gross profit | 14,593 | 51,505 |
Operating expenses: | ||
Advertising, promotional and selling | 30,789 | 24,147 |
Stock based compensation | 66,266 | 560,917 |
General and administrative | 88,569 | 124,486 |
Total operating expenses | 185,624 | 709,550 |
Operating loss | -171,031 | -658,045 |
Other (expense) income, net: | ||
Interest, net | -4,392 | -4,128 |
Gain on sale of property and equipment | 6,053 | |
Total other income (expense), net | -4,392 | 1,925 |
Net loss | ($175,423) | ($656,120) |
Net loss per share | ($0.01) | ($0.06) |
Weighted-average number of shares | 12,760,220 | 11,571,298 |
STATEMENTS_OF_CASH_FLOWS_Unaud
STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities: | ||
Net loss | ($175,423) | ($656,120) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 56,913 | 26,896 |
Amortization of stock based compensation | 66,266 | 560,917 |
Gain on the disposition of property and equipment | -6,053 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | -6,253 | -21,015 |
Inventories | 26,976 | 7,882 |
Prepaid expenses | 29,866 | |
Other assets | -7,755 | |
Accounts payable | -31,635 | 60,191 |
Accrued expenses | 2,500 | 42,469 |
Net cash (used in) provided by operating activities | -60,656 | 7,412 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -47,142 | -319,434 |
Escrow deposit | -50,000 | |
Proceeds from sale of property and equipment | 22,000 | |
Net cash used in investing activities | -97,142 | -297,434 |
Cash flows from financing activities: | ||
Proceeds from notes payable and capital leases, net of original issue discounts | 424,322 | |
Proceeds from related party debt, net of original issue discounts | 110,000 | |
Issuance of stock for cash, net of commissions paid | 86,800 | |
Repayment of notes payable and capital lease payments | -17,287 | -9,723 |
Net cash provided by financing activities | 517,035 | 77,077 |
Net change in cash and cash equivalents | 359,237 | -212,945 |
Cash and cash equivalents at beginning of period | 98,898 | 428,574 |
Cash and cash equivalents at end of period | 458,135 | 215,629 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 4,392 | 4,100 |
Income taxes paid | ||
Noncash transactions: | ||
Debt discount due to preferred stock issued with notes payable and related party debt | 185,176 | |
Debt discount due to common stock issued with notes payable and related party debt | 38,440 | |
Issuance of common stock for prepaid consulting services | 600,000 | |
Transfer of deposit on equipment to property and equipment for equipment placed in service | $223,000 |
A_Basis_of_Presentation
A Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE A –Basis of Presentation |
The accompanying unaudited interim financial statements as of March 31, 2015 of American Brewing Company, Inc. (the "Company"), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's Form 10-K filed with the SEC on April 15, 2015. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for future quarters or for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited financial statements for fiscal 2014 as reported in the Form 10-K have been omitted. | |
Reclassifications | |
Certain prior year amounts have been reclassified to conform to the current year presentation. | |
Concentrations | |
As of March 31, 2015 there were four customers that represented 92% of Accounts Receivable. For the quarters ended March 31, 2015 and 2014, three customers represented approximately 56% and 57% of revenue, respectively. For the quarters ended March 31, 2015 and 2014, two suppliers of grain and bottling services represented approximately 36% and 51% of the cost of goods sold, respectively. |
B_Going_Concern
B Going Concern | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE B – Going Concern |
The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of approximately $2,300,000 and $2,125,000 as of March 31, 2015 and December 31, 2014, respectively, has a history of recurring net losses and negative working capital. These matters, among others, raise substantial doubt about our ability to continue as a going concern. | |
While the Company is attempting to increase sales and generate additional revenues, the Company's cash position may not be significant enough to support the Company's daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate additional revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate additional revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company's ability to further implement its business plan and generate additional revenues. | |
The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
C_Inventories
C Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | NOTE C – Inventories | ||||||||
Inventories consist of raw materials, work in process and finished goods. Raw materials, which principally consist of hops, other brewing materials, are stated at the lower of cost, determined on the first-in, first-out basis, or market. Inventories are generally classified as current assets. The Company has yearly contracts with vendors to supply essential hop varieties on-hand in order to limit the risk of an unexpected reduction in supply or price fluctuations. The cost elements of work in process and finished goods inventory consist of raw materials, direct labor and direct overhead. | |||||||||
Inventories consisted of the following as of: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Raw materials | $ | 16,743 | $ | 13,011 | |||||
Work in progress | 13,875 | 53,145 | |||||||
Finished goods | 22,712 | 14,150 | |||||||
$ | 53,330 | $ | 80,306 |
D_Notes_Payable_and_Capital_Le
D Notes Payable and Capital Leases | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Notes Payable and Capital Lease | NOTE D – Notes Payable and Capital Leases | ||||||||
Notes payable and capital leases consisted of the following as of: | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Notes payable, net of unamortized discounts of $152,954 and $0, respectively | $ | 261,251 | $ | - | |||||
Related party debt, net of unamortized discounts of $72,912 and $0, respectively | 37,838 | - | |||||||
Capital leases | 7,253 | 12,923 | |||||||
306,342 | 12,923 | ||||||||
Less current portion, net of unamortized discounts of $40,690 and $0, respectively | (145,646 | ) | (7,910 | ) | |||||
Long-term portion, net of unamortized discounts of $185,176 and $0, respectively | $ | 160,696 | $ | 5,013 | |||||
Related Party Debt | |||||||||
The Company received debt from a member of management used in the proposed purchase of B&R Liquid Adventure (See Note H Subsequent Events for more information). The amounts received total $110,000 and remain outstanding as of March 31, 2015. The two notes of $50,000 and $60,000 each bear interest of 8% and 10% per annum and are payable in 60 days and 5 years, respectively and are described in further detail in the following notes payable disclosure. There was no related party debt outstanding as of December 31, 2014. | |||||||||
Notes Payable | |||||||||
On or about January 15, 2015 the Company entered into a security Equipment Financing Agreement with Pinnacle Capital Partners for $124,322. The note requires 48 monthly payments of $3,218 each of which include $628 in interest. The note cannot be prepaid. As of March 31, 2015 the remaining balance of this note is $112,705. | |||||||||
On or about March 26, 2015 the Company entered into three 60 day promissory notes for cash proceeds of $50,000 each (including one from a related party employee for $50,000 described above). Each note has a 1.5% loan fee and bears an interest rate of 8% per annum. The loan fees resulted in aggregate discounts to the notes of $2,250. The notes also included an equity payment totaling 230,000 shares of common stock that was issued with the debt. The Company has allocated the loan proceeds among the debt and the stock based upon relative fair value. The relative fair value of the stock was determined to be $38,440 and it was recorded as a debt discount. As of March 31, 2015 no payments have been made on these notes and with $111,560 outstanding, net of discounts. The discounts of $40,690 will be amortized over the life of the loans to interest expense. | |||||||||
On or about March 31, 2015 the Company entered into two promissory notes totaling $260,000 (including one from a related party employee for $60,000 described above) with an interest rate of 10% per annum due and payable beginning June 30, 2015 maturing on March 31, 2020. Payments of interest are required quarterly. Should the Company be successful in raising $2,000,000 or more in funding the entire balance of the note will be due immediately. The notes were issued in conjunction with an equity payment totaling 229,807 shares of Series B preferred stock that was issued with the debt. The Company has allocated the loan proceeds among the debt and the stock based upon relative fair value. The relative fair value of the stock was determined to be $185,176 based upon the fair market value of the common stock on the dates of issuance at a ratio of 8 common shares of stock to every one share of preferred series B stock and it was recorded as a debt discount. As of March 31, 2015 no payments have been made on these notes and with $74,824 outstanding, net of discounts. The discounts of $185,176 will be amortized over the life of the loans to interest expense. | |||||||||
Capital Leases | |||||||||
The Company has entered into various capital lease agreements to obtain property and equipment for operations. These agreements range from 2 to 3 years with interest rates ranging from 5% to 6%. These leases are secured by the underlying leased property and equipment. | |||||||||
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E_Stockholders_Equity
E Stockholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE E – Stockholders' Equity |
Common and Preferred Stock | |
The Company issued 100,000 shares of common stock to Institutional Analyst, Inc for services rendered on or about February 20, 2015. The Company estimated the fair market value to be $0.364 per share and as a result, recorded expenses of $36,400 under general and administrative expenses in the accompanying statements of operations as of March 31, 2015. | |
On or about March 26, 2015 the Company issued 230,000 shares of common stock in conjunction with three promissory notes. As discussed in Note D the shares were valued based on the fair market value of the common stock and discounted based on the relative value of these shares to the debt resulting in a recorded value of $38,440 recognized as a debt discount. | |
During the period ended March 31, 2015, the Company authorized and issued 229,807 shares of non-voting preferred Series B stock, not eligible for dividends, with a par value of $0.001 per share and a conversion rate of 8 shares of common stock per share of Series B preferred stock and a rank equal to common stock and below Series A preferred stock. As discussed in Note D the shares were sold in conjunction with two promissory notes and valued based on the fair market value of the common stock and discounted based on the relative value of these shares to the debt resulting in a recorded value of $185,176. | |
Warrants | |
As of March 31, 2015, the Company has warrants to purchase 1,025,000 shares of common stock outstanding, with exercise prices between $0.50 and $1.00, expiration dates between September 2016 and October 2019. The intrinsic value of the warrants is $0 as of March 31, 2015. |
F_Commitments_and_Contingencie
F Commitments and Contingencies | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | NOTE F – Commitments and Contingencies | ||||
Purchase Commitments | |||||
The Company entered into contracts for the supply of a portion of its hops requirements. These purchase contracts extend through crop year 2018 and specify both the quantities and prices to which the Company is committed. As of March 31, 2015, hops purchase commitments outstanding was approximately $873,000. As of March 31, 2015, projected cash outflows under hops purchase commitments for each of the remaining years under the contracts are as follows: | |||||
Remaining 2015 | $ | 144,000 | |||
2016 | 230,000 | ||||
2017 | 229,000 | ||||
2018 | 270,000 | ||||
$ | 873,000 | ||||
These commitments are not accrued in the balance of the Company as of March 31, 2015. In addition, the Company has elected not to recognize the purchase contracts as cash flow hedges in accordance with ASC Topic 815, Derivatives and Hedges. | |||||
Lease Commitments | |||||
On or about December 1 2013, the Company entered into a facilities lease with a third party. The lease term is 25 months. The monthly base rent of $4,709 increases annually based on the Consumer Price Index All Urban Consumers U.S. City Average. Monthly rent payments also include common area maintenance charges, taxes, and other charges. On or about December 24, 2014 the company amended this lease to add an additional 2,016 square feet of warehouse space. As of March 31, 2015, the minimum monthly lease payment was $5,424. Rent expense was approximately $16,000 and $9,500 for quarter ended March 31, 2015 and 2014 respectively. | |||||
On or about September 28, 2011, the Company entered into a keg rental supply and services agreement with a third party. The initial rental period is a term of 36 months, and began on the date of delivery of the kegs. The agreement automatically extends on month-to-month basis for an additional 36 months, unless terminated by either party with a 30 day notice. Monthly keg rental fees are $512 and $476 for the initial and extended rental period, respectively. A deposit of $4,000 was made prior to delivery. On or about January 31, 2015 the Company exercised the buyout option on this lease and paid $11,600 for the 200 1/6 barrel kegs no further payments will be made. | |||||
On or about October 21, 2011, the Company entered into a keg rental supply and services agreement with a third party. The initial rental period is a term of 36 months, and began on the date of delivery of the kegs. The agreement automatically extends on month-to-month basis for an additional 36 months. After the 72nd month, the Company can elect to enter into a final 24 month rental period. At the conclusion of the final rental period the Company can purchase the kegs between $40 to $50 each. Monthly keg rental fees are $670, $622, and $500 for the initial, extended and final rental period. On or about January 31, 2015 the Company exercised the buyout option on this lease and paid $17,200 for the 200 ½ barrel kegs no further payments will be made. | |||||
On or about January 24, 2012, the Company entered into a keg rental supply and services agreement with a third party. The initial rental period is a term of 36 months, and began on the date of delivery of the kegs. The agreement automatically extends on month-to-month basis for an additional 36 months. After the 72nd month, the Company can elect to enter into a final 24 month rental period. At the conclusion of the final rental period the Company can purchase the kegs between $40 to $50 each. Monthly keg rental fees are $670, $622, and $500 for the initial, extended and final rental period. A deposit of $4,000 was made prior to delivery. On or about January 31, 2015 the Company exercised the buyout option on this lease and paid $17,200 for the 200 ½ barrel kegs no further payments will be made. | |||||
Aggregate minimum annual rental payments for all operating lease agreements as of March 31, 2015, are as follows: | |||||
Remaining 2015 | $ | 49,000 | |||
$ | 49,000 | ||||
Keg lease expense was approximately $2,000 and $5,500 for the quarters ended March 31, 2015 and 2014 respectively. | |||||
Consulting Agreement | |||||
During the fiscal year ended December 31, 2014, the Company entered into various consulting agreements for services to be provided over terms from three to twelve months for a total of 1,302,500 shares of fully vested and non-forfeitable common stock. The Company valued these shares at $726,800 (based on the estimated fair market value of the Company's stock on the date of grant) and recorded a prepaid expense to be amortized to general and administrative expense over the term of the agreement. $28,569 was amortized during the three months ended March 31, 2015 with the remaining balance of $43,531 as a prepaid expense asset on the accompanying balance sheet as of March 31, 2015. | |||||
On October 26, 2014, the Company entered into a consulting agreement in exchange for 25,000 warrants to purchase 25,000 shares of common stock. The Company valued the warrant at $0.06 per share (based on the Black-Scholes option pricing model on the date of grant) and recorded a prepaid expense to be amortized to general and administrative expense over the term of the agreement. $1,297 was amortized during the three months ended March 31, 2015 the remaining balance of $2,592 as a prepaid expense asset on the accompanying balance sheet as of March 31, 2015. | |||||
On or about March 2, 2015, the Company entered into consulting and professional services agreements with a third party for business consulting services. The agreements required the Company to issue to the third party 100,000 shares of common stock share for services to be performed or to be performed. The consulting agreement is for no stated duration and the shares vest immediately. The Company valued these shares at $0.364 per share and recorded a $36,400 expense to general and administrative expenses in the accompanying results of operations during the three months ended March 31, 2015. |
G_Segment_Information
G Segment Information | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | NOTE G – Segment Information | ||||||||||||
The Company's operations are classified into the sale of alcohol to retail customers through the Company's tasting room, and wholesale sales to distributors. Our retail division is located in the greater Seattle, Washington area and serves walk-in customers seven days a week. Our wholesale division sells to distributors primarily in the greater Seattle, Washington area. Although both segments are involved in the sale and distribution of alcohol, they serve different customers and are managed separately, requiring specialized expertise. We determined our operating segments in accordance with FASB ASC Topic 280, Segment Reporting. | |||||||||||||
Results of the operating segments are as follows: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Retail | Wholesale | Total | |||||||||||
Sales | $ | 82,225 | $ | 166,083 | $ | 248,308 | |||||||
Less excise taxes | 1,620 | 3,289 | 4,909 | ||||||||||
Net revenue | 80,605 | 162,794 | 243,399 | ||||||||||
Cost of goods sold | 75,506 | 153,300 | 228,806 | ||||||||||
Gross profit | $ | 5,099 | $ | 9,494 | $ | 14,593 | |||||||
As of March 31, 2015 | |||||||||||||
Accounts receivable | $ | - | $ | 50,032 | $ | 50,032 | |||||||
Property and equipment, | |||||||||||||
net of accumulated depreciation | $ | 46,575 | $ | 936,934 | $ | 983,509 | |||||||
Three Months Ended March 31, 2014 | |||||||||||||
Retail | Wholesale | Total | |||||||||||
Sales | $ | 69,834 | $ | 171,169 | $ | 241,003 | |||||||
Less excise taxes | 1,343 | 3,293 | 4,636 | ||||||||||
Net revenue | 68,491 | 167,876 | 236,367 | ||||||||||
Cost of goods sold | 53,610 | 131,252 | 184,862 | ||||||||||
Gross profit | $ | 14,881 | $ | 36,624 | $ | 51,505 | |||||||
H_Subsequent_Events
H Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE H – Subsequent Events |
On April 1, 2015 the Company, entered into an Asset Purchase Agreement whereby the Company acquired substantially all of the operating assets of B&R Liquid Adventure, LLC a California Limited Liability Company ("B&R"), a company engaged in the manufacture of Bucha Live Kombucha, a gluten free, organic certified, sparkling kombucha tea. On April 1, 2015, the parties executed all documents related to the Acquisition. The Company has placed $50,000 in escrow as of March 31, 2015 related to the purchase. | |
Upon the closing of the Acquisition, the Company received substantially all of the operating assets of B&R, consisting of inventory, fixed assets and intellectual property valued at $275,000 in exchange for 1,479,290 shares of common stock valued at $500,000, a cash payment of $260,000, and a secured promissory note in an amount of $140,000. See Form 8-k filed with the SEC on April 2, 2015 for more detailed information. | |
On or about April 20, 2015 the Company and two officers agreed to forgive $500,000 of the $600,000 in accrued officer compensation included on the accompanying balance sheet for the period ending March 31, 2015 under accrued expenses and other current liabilities. | |
On or about April 22, 2015 the Company entered into a promissory note for $50,000 carrying an interest rate of 3% per month for a term of 90 days. Payment of the principle and accrued interest are due in 90 days from the date of issue with no payments made to date. | |
On or about April 27, 2015 the Company issued 120,181 common shares to three employees as bonus compensation. The Company estimated the fair market value of these shares at $0.44 per share totaling approximately $52,880 that will be recorded as compensation expense. |
C_Inventories_Tables
C Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Raw materials | $ | 16,743 | $ | 13,011 | |||||
Work in progress | 13,875 | 53,145 | |||||||
Finished goods | 22,712 | 14,150 | |||||||
$ | 53,330 | $ | 80,306 |
D_Notes_Payable_and_Capital_Le1
D Notes Payable and Capital Leases (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes to Financial Statements | |||||||||
Notes Payable and Capital Leases | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Notes payable, net of unamortized discounts of $152,954 and $0, respectively | $ | 261,251 | $ | - | |||||
Related party debt, net of unamortized discounts of $72,912 and $0, respectively | 37,838 | - | |||||||
Capital leases | 7,253 | 12,923 | |||||||
306,342 | 12,923 | ||||||||
Less current portion, net of unamortized discounts of $40,690 and $0, respectively | (145,646 | ) | (7,910 | ) | |||||
Long-term portion, net of unamortized discounts of $185,176 and $0, respectively | $ | 160,696 | $ | 5,013 |
F_Commitments_and_Contingencie1
F Commitments and Contingencies (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Purchase Commitments for each year | |||||
Remaining 2015 | $ | 144,000 | |||
2016 | 230,000 | ||||
2017 | 229,000 | ||||
2018 | 270,000 | ||||
$ | 873,000 | ||||
Minimum Annual Rental Payment | |||||
Remaining 2015 | $ | 49,000 | |||
$ | 49,000 |
G_Segment_Information_Tables
G Segment Information (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Operating Segment | Three Months Ended March 31, 2015 | ||||||||||||
Retail | Wholesale | Total | |||||||||||
Sales | $ | 82,225 | $ | 166,083 | $ | 248,308 | |||||||
Less excise taxes | 1,620 | 3,289 | 4,909 | ||||||||||
Net revenue | 80,605 | 162,794 | 243,399 | ||||||||||
Cost of goods sold | 75,506 | 153,300 | 228,806 | ||||||||||
Gross profit | $ | 5,099 | $ | 9,494 | $ | 14,593 | |||||||
As of March 31, 2015 | |||||||||||||
Accounts receivable | $ | - | $ | 50,032 | $ | 50,032 | |||||||
Property and equipment, | |||||||||||||
net of accumulated depreciation | $ | 46,575 | $ | 936,934 | $ | 983,509 | |||||||
Three Months Ended March 31, 2014 | |||||||||||||
Retail | Wholesale | Total | |||||||||||
Sales | $ | 69,834 | $ | 171,169 | $ | 241,003 | |||||||
Less excise taxes | 1,343 | 3,293 | 4,636 | ||||||||||
Net revenue | 68,491 | 167,876 | 236,367 | ||||||||||
Cost of goods sold | 53,610 | 131,252 | 184,862 | ||||||||||
Gross profit | $ | 14,881 | $ | 36,624 | $ | 51,505 | |||||||
C_Inventories_Details
C Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
C Inventories Details | ||
Raw materials | $16,743 | $13,011 |
Work in progress | 13,875 | 53,145 |
Finished goods | 22,712 | 14,150 |
Total | $53,330 | $80,306 |
D_Notes_Payable_and_Capital_Le2
D Notes Payable and Capital Leases (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
D Notes Payable And Capital Leases Details | ||
Notes payable, net of unamortized discounts of $152,954 and $0, respectively | $261,251 | |
Related party debt, net of unamortized discounts of $72,912 and $0, respectively | 37,838 | |
Capital leases | 7,253 | 12,923 |
Subtotal | 306,342 | 12,923 |
Less current portion, net of unamortized discounts of $40,690 and $0, respectively | -145,646 | -7,910 |
Long-term portion, net of unamortized discounts of $185,176 and $0, respectively | $160,696 | $5,013 |
D_Notes_Payable_and_Capital_Le3
D Notes Payable and Capital Leases (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
D Notes Payable And Capital Leases Details 2 | |
Entered into Equipment Financing Agreement | $124,322 |
Number of monthly payments | 48 |
Amount of payments | 3,218 |
Interest included with payments | 628 |
Remaining balance of agreement | 112,705 |
Amount received for (3) 60 day Pomissory notes | 150,000 |
Loan fee for each note | 150.00% |
Interest rate for (3) 60 day Pomissory notes | 80.00% |
Number of shares issued for debt discount | 230,000 |
The relative fair value of the stock | 38,440 |
Aggregate discounts to the (3) 60 day Pomissory notes | 2,250 |
Outstanding amount due on the (3) 60 day Pomissory notes | 111,560 |
Amount received for (2) Pomissory notes | 260,000 |
Interest rate for (2) Promissory notes | 10.00% |
Maturity of notes | 31-Mar-20 |
Number of shares of Series B preferred stock issued with the debt | 229,807 |
The relative fair value of the shares of Series B preferred stock | 185,176 |
Outstanding amount due for the (2) Pomissory notes | 74,824 |
Aggregate discounts to the Series B preferred stock | $185,176 |
B_Going_Concern_Details_Narrat
B Going Concern (Details Narrative) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Approximate accumulated deficit | $2,300,000 | $2,125,000 |
E_Stockholders_Equity_Details_
E Stockholders' Equity (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Shares issued for services | 100,000 |
Per share value for shares issued for services | $0.36 |
Recorded as general and administrative expenses | $36,400 |
Shares issued in connection with three promissory notes | 230,000 |
Debt discount | 38,440 |
Non-voting preferred Series B stock issued | 229,807 |
Value of non-voting preferred Series B stock | 0.001 |
recordd value of non-voting preferred Series B stock | $185,176 |
Number of warrants the Company has to use to purchase stock | 1,025,000 |
Exercise price minimum | $0.50 |
Exercise price maximum | $1 |
F_Commitments_and_Contingencie2
F Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 |
Purchase commitments [Abstract] | |
Remaining 2015 | $144,000 |
2016 | 230,000 |
2017 | 229,000 |
2018 | 270,000 |
Total | $873,000 |
F_Commitments_and_Contingencie3
F Commitments and Contingencies (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
F Commitments And Contingencies Details | ||
Remaining 2015 | $49,000 | |
Total | 49,000 | |
Monthly base rent | 5,424 | |
Rent Expense | 16,000 | 9,500 |
Kegs lease expense | $2,000 | $5,500 |
G_Segment_Information_Details
G Segment Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Sales | $248,308 | $241,003 |
Net revenue | 243,399 | 236,367 |
Cost of goods sold | 228,806 | 184,862 |
Gross profit | 14,593 | 51,505 |
Accounts receivable | 50,032 | |
Retail Sale [Member] | ||
Sales | 82,225 | 69,834 |
Less excise taxes | 1,620 | 1,343 |
Net revenue | 80,605 | 68,491 |
Cost of goods sold | 75,506 | 32,697 |
Gross profit | 5,099 | 35,794 |
Accounts receivable | ||
Property and equipment, net of accumulated depreciation | 46,575 | |
WholeSale [Member] | ||
Sales | 166,083 | 171,169 |
Less excise taxes | 3,289 | 3,293 |
Net revenue | 162,794 | 167,876 |
Cost of goods sold | 153,300 | 80,145 |
Gross profit | 9,494 | 87,731 |
Accounts receivable | 50,032 | |
Property and equipment, net of accumulated depreciation | $936,934 |
H_Subsequent_Events_Details
H Subsequent Events (Details) (USD $) | Apr. 23, 2014 |
H Subsequent Events Details | |
Shares Issued to employees | 120,181 |
Fair Market Value | $0.49 |