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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	Apr. 30, 2020
Document And Entity Information
Entity Registrant Name	REED'S, INC.
Entity Central Index Key	0001140215
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,928,540
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash	$ 28	$ 913
Accounts receivable, net of allowance for doubtful accounts and returns and discounts of $282 and $375, respectively	4,018	2,099
Receivable from related party	230	356
Inventory, net of reserve for obsolescence of $262 and $646, respectively	7,990	10,508
Prepaid expenses and other current assets	911	420
Total current assets	13,177	14,296
Property and equipment, net of accumulated depreciation of $520 and $482, respectively	1,026	1,053
Equipment held for sale, net of impairment reserves of $96 and $96, respectively	67	67
Intangible assets	576	576
Total assets	14,846	15,992
Current liabilities:
Accounts payable	4,500	5,539
Accrued expenses	624	646
Revolving line of credit	4,785	3,177
Current portion of leases payable	95	49
Total current liabilities	10,004	9,411
Leases payable, less current portion	662	737
Convertible note to a related party	4,831	4,689
Warrant liability	2	8
Total liabilities	15,499	14,845
Stockholders' equity (deficit):
Series A Convertible Preferred stock, $10 par value, 500,000 shares authorized, 9,411 shares issued and outstanding	94	94
Common stock, $.0001 par value, 100,000,000 and 100,000,000 shares authorized, respectively; 47,595,206 and 47,595,206 shares issued and outstanding, respectively	5	5
Common stock issuable, 350,000 shares at March 31, 2020	285
Additional paid in capital	78,091	77,596
Accumulated deficit	(79,128)	(76,548)
Total stockholders' equity (deficit)	(653)	1,147
Total liabilities and stockholders' equity (deficit)	$ 14,846	$ 15,992

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts and returns and discounts	$ 282	$ 375
Inventory, reserve for obsolescence net	262	646
Property and equipment, accumulated depreciation	520	482
Equipment, impairment reserves	$ 96	$ 96
Series A convertible preferred stock, par value	$ 10	$ 10
Series A convertible preferred stock, shares authorized	500,000	500,000
Series A convertible preferred stock, shares issued	9,411	9,411
Series A convertible preferred stock, shares outstanding	9,411	9,411
Common stock, par value	$ 0.0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	47,595,206	47,595,206
Common stock, shares outstanding	47,595,206	47,595,206
Common stock, shares issuable	350,000

Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net Sales	$ 9,523	$ 8,449
Cost of goods sold	6,653	5,945
Gross profit	2,870	2,504
Operating expenses:
Delivery and handling expense	1,263	1,030
Selling and marketing expense	1,925	2,015
General and administrative expense	1,932	2,371
Gain on sale of assets		(30)
Total operating expenses	5,120	5,386
Loss from operations	(2,250)	(2,882)
Interest expense	(336)	(335)
Change in fair value of warrant liability	6	(47)
Net loss	$ (2,580)	$ (3,264)
Net loss per share - basic and diluted	$ (0.05)	$ (0.11)
Weighted average number of shares outstanding - basic and diluted	47,595,206	29,103,645

Condensed Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Preferred Stock [Member]	Common Stock Issuable [Member]	Additional Paid In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 3	$ 94		$ 53,591	$ (60,431)	$ (6,743)
Balance, shares at Dec. 31, 2018	25,729,461	9,411
Fair value of vested options				412		412
Fair value of vested restricted shares granted to officers				150		150
Shares granted to Directors for services				44		44
Shares granted to Directors for services, shares	17,652
Common shares issued pursuant to the rights offering, net of offering costs				14,867		14,867
Common shares issued pursuant to the rights offering, net of offering costs, shares	7,733,750
Exercise of warrants				46		46
Exercise of warrants, shares	33,084
Net Loss					(3,264)	(3,264)
Balance at Mar. 31, 2019	$ 3	$ 94	0	69,110	(63,695)	5,512
Balance, shares at Mar. 31, 2019	33,513,947	9,411
Balance at Dec. 31, 2019	$ 5	$ 94		77,596	(76,548)	1,147
Balance, shares at Dec. 31, 2019	47,595,206	9,411
Fair value of vested options				495		495
Fair value of vested restricted shares granted to officers			$ 285			285
Fair value of vested restricted shares granted to officers, shares			350,000
Net Loss					(2,580)	(2,580)
Balance at Mar. 31, 2020	$ 5	$ 94	$ 285	$ 78,091	$ (79,128)	$ (653)
Balance, shares at Mar. 31, 2020	47,595,206	9,411	350,000

Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (2,580)	$ (3,264)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	12	13
Gain on sale of property & equipment		(30)
Amortization of debt discount	96	75
Amortization of right of use assets	37	23
Fair value of vested options	495	412
Fair value of vested restricted shares granted to officers	285
Common stock issued for services		194
Decrease in allowance for doubtful accounts	(93)	(175)
Decrease in inventory reserve	(384)	(84)
Change in fair value of warrant liability	(6)	47
Accrual of interest on convertible note to a related party	142	126
Lease liability	(7)	(4)
Changes in operating assets and liabilities:
Accounts receivable	(1,826)	(668)
Inventory	2,902	(3,268)
Prepaid expenses and other assets	(365)	(314)
Accounts payable	(1,038)	(1,459)
Accrued expenses	(22)	(380)
Net cash used in operating activities	(2,352)	(8,756)
Cash flows from investing activities:
Proceeds from sale of property and equipment		30
Purchase of property and equipment	(22)	(52)
Net cash used in investing activities	(22)	(22)
Cash flows from financing activities:
Borrowings on line of credit	9,188	18,696
Repayments of line of credit	(7,677)	(22,992)
Repayment of amounts due to/from officers		195
Principal repayments on capital lease obligation	(22)	(8)
Exercise of warrants		46
Proceeds from sale of common stock		14,867
Net cash provided by financing activities	1,489	10,804
Net increase (decrease) in cash	(885)	2,026
Cash at beginning of period	913	624
Cash at end of period	28	2,650
Supplemental disclosures of cash flow information:
Cash paid for interest	$ 98	$ 135

Basis of Presentation and Liquidity

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Liquidity

1. Basis of Presentation and Liquidity

The accompanying interim condensed financial statements of Reed’s, Inc. (the “Company”, “we”, “us”, or “our”), are unaudited, but in the opinion of management contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position at March 31, 2020 and the results of operations and cash flows for the three months ended March 31, 2020 and 2019. The balance sheet as of December 31, 2019 is derived from the Company’s audited financial statements.

Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. We believe that the disclosures contained in these condensed financial statements are adequate to make the information presented herein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the Securities and Exchange Commission on March 18, 2020 and amended on April 8, 2020.

The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020.

In March 2020 the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, customers, economies, and financial markets globally. It has also disrupted the normal operations of many businesses, including ours. This outbreak could decrease spending, adversely affect demand for our product and harm our business and results of operations. It is not possible for us to predict the duration or magnitude of the adverse results of the outbreak and its effects on our business or results of operations at this time.

Liquidity

The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

For the three months ended March 31, 2020, the Company recorded a net loss of $2,580 and used cash in operations of $2,352. As of March 31, 2020, we had a cash balance of $28 with borrowing capacity of $2,961, a stockholder’s deficit of $653 and a working capital of $3,173, compared to a cash balance of $913 with borrowing capacity of $3,235, stockholders’ equity of $1,147 and a working capital of $4,885 at December 31, 2019.

In April 2020, the Company conducted a public offering of 15,333,334 shares of its common shares at a public offering price of $0.375 per share. The net proceeds to the Company from this offering are $5,362, after deducting underwriting discounts and commissions and other offering expenses. Proceeds from the offering will provide capital for working capital, and general corporate purposes. On April 29, 2020, the Company received loan proceeds in the amount of $770 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (the “Cares Act”), which was enacted on March 27, 2020.

Historically, we have financed our operations through public and private sales of common stock, issuance of preferred and common stock, convertible debt instruments, term loans and credit lines from financial institutions, and cash generated from operations. We have taken decisive action to improve our margins, including fully outsourcing our manufacturing process, streamlining our product portfolio, negotiating improved vendor contracts and restructuring our selling prices.

Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, depreciable lives of property and equipment, analysis of impairments of recorded long-term tangible and intangible assets, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services.

Revenue Recognition

The Company recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied.

The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s performance obligations are satisfied at that time.

All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them.

The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis.

Loss per Common Share

Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive.

For the periods ended March 31, 2020 and 2019, the calculations of basic and diluted loss per share are the same because potential dilutive securities would have had an anti-dilutive effect. The potentially dilutive securities consisted of the following:

	March 31, 2020		March 31, 2019
Convertible note to a related party		2,266,667		2,266,667
Warrants		6,413,782		6,827,167
Common stock equivalent of Series A Convertible Preferred stock		37,644		37,644
Common stock issuable		350,000		-
Unvested restricted common stock		150,000		598,370
Options		4,683,380		4,331,234
Total		13,901,473		14,061,082

The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.

Stock Compensation Expense

The Company periodically issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, whereby the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company recognizes the fair value of stock-based compensation within its Statements of Operations with classification depending on the nature of the services rendered.

The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.

Advertising Costs

Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs aggregated $302 and $307 for the three months ended March 31, 2020 and 2019, respectively.

Concentrations

Gross sales. During the three months ended March 31, 2020, the Company’s two largest customers accounted for 22% and 14% of gross sales, respectively. During the three months ended March 31, 2019, the Company’s two largest customers accounted for 25% and 9% of gross sales, respectively. No other customers exceeded 10% of sales in either period.

Accounts receivable. As of March 31, 2020, the Company had accounts receivable from three customers which comprised 18%, 14%, and 10% of its gross accounts receivable, respectively. As of December 31, 2019, the Company had accounts receivable from one customer which comprised 14% of its gross accounts receivable.

Purchases from vendors. During the three months ended March 31, 2020, the Company’s largest vendor accounted for approximately 10% of all purchases. During the three months ended March 31, 2019, the Company’s two largest vendors accounted for approximately 17% and 13% of all purchases, respectively. No other customers exceeded 10% of all purchases in either periods.

Accounts payable. As of March 31, 2020, the Company’s two largest vendors accounted for 16% and 10% of the total accounts payable, respectively. As of December 31, 2019, the Company’s largest three vendors accounted for 19%, 15% and 14% of the total accounts payable, respectively.

Fair Value of Financial Instruments

The Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring basis. Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure their fair value. ASC 820 defines the following levels of subjectivity associated with the inputs:

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.

Level 3—Unobservable inputs based on the Company’s assumptions.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, short-term bank loans, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of capital lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates.

As of March 31, 2020, and December 31, 2019, the Company’s balance sheets included Level 2 liabilities comprised of the fair value of warrant liabilities aggregating $2 and $8, respectively (see Note 9).

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows.

Other recent accounting pronouncements issued by the FASB, its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Inventory

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Inventory

3. Inventory

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Raw materials and packaging	$	4,473	$	4,261
Finished products		3,517		6,247
Total	$	7,990	$	10,508

The Company has recorded a reserve for slow moving and potentially obsolete inventory. The reserve at March 31, 2020, and December 31, 2019, was $262 and $646, respectively.

Property and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

4. Property and Equipment

Property and equipment is comprised of the following (in thousands):

	March 31, 2020			December 31, 2019
Right-of-use assets under operating leases	$	730		$	730
Right-of-use assets under finance leases		168			179
Computer hardware and software		648			626
Total cost		1,546			1,535
Accumulated depreciation and amortization		(520	)		(482	)
Net book value	$	1,026		$	1,053

Depreciation expense for the three months ended March 31, 2020 and 2019 was $12 and $13, respectively.

Equipment held for sale consists of the following (in thousands):

	March 31, 2020			December 31, 2019
Equipment held for sale	$	163		$	163
Reserve		(96	)		(96	)
Net book value	$	67		$	67

The balance as of March 31, 2020, and December 31, 2019, consists of residual manufacturing equipment, at estimated net realizable value, which management anticipates selling during 2020.

Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

Intangible assets are comprised of brand names acquired, specifically Virgil’s. They have been assigned an indefinite life, as we currently anticipate that they will contribute cash flows to the Company perpetually. These indefinite-lived intangible assets are not amortized but are assessed for impairment annually and evaluated annually to determine whether the indefinite useful life remains appropriate. We first assess qualitative factors to determine whether it is more likely than not that the asset is impaired. If further testing is necessary, we compare the estimated fair value of our asset with its book value. If the carrying amount of the asset exceeds its fair value, as determined by the discounted cash flows expected to be generated by the asset, an impairment loss is recognized in an amount equal to that excess. Based on management’s measurement, there were no indications of impairment at March 31, 2020.

Line of Credit

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Line of Credit

6. Line of Credit

Amounts outstanding under the Company’s credit facilities are as follows (in thousands):

	March 31, 2020			December 31, 2019
Line of Credit	$	5,173		$	3,661
Capitalized finance costs		(388	)		(484	)
Net balance	$	4,785		$	3,177

On October 4, 2018, the Company entered into a financing agreement with Rosenthal & Rosenthal, Inc. The financing agreement provides a maximum borrowing capacity of $13,000. Borrowings are based on a formula of eligible accounts receivable and inventories (the “permitted borrowings”) plus advances (an “over-advance”) of up to $4,000 in excess of permitted borrowings. At March 31, 2020, the unused borrowing capacity under the financing agreement was $2,961. The line of credit matures on April 20, 2021.

Borrowings under the Rosenthal financing agreement bear interest at the greater of prime or 4.75%, plus an additional 2% to 3.5% depending upon whether the borrowing is based upon receivables, inventory or is an over-advance. The effective interest rate as of March 31, 2020 on outstanding borrowings was 7.2%. Additionally, the line of credit is subject to monthly facility and administration fees, and aggregate minimum monthly fees (including interest) of $4.

The line of credit is secured by substantially all of the assets excluding intellectual property of the Company. Additionally, any over-advance is guaranteed by an irrevocable stand-by letter of credit in the amount of $1,500, issued by Daniel J. Doherty III and the Daniel J. Doherty, III 2002 Family Trust, affiliates of Raptor/Harbor Reeds SPV LLC (“Raptor”). The over-advance is secured by all of Reed’s intellectual property collateral. Raptor beneficially owns 11.6% of the Company’s outstanding common stock as of March 31, 2020. Mr. Doherty is a member of the Company’s Board of Directors. In the event of a default under the financing agreement, Raptor has a put option to purchase from Rosenthal the entire amount of any outstanding over-advance plus accrued interest, prior to Rosenthal declaring an event of default under the financing agreement. If Raptor exercises the option, Rosenthal will release its first priority security interest on all intellectual property collateral of the Company to Raptor and terminate the letter of credit.

As part of the financing agreement in 2018, the Company amended and restated a subordinated convertible non-redeemable secured note to Raptor, to provide for additional advances of up to $4,000 in the event that Raptor exercises its put option described above (see Note 7). Consequently, the exercise price of 750,000 of Raptor’s outstanding warrants to purchase the Company’s common stock was reduced from $1.50 to $1.10, resulting in an increase in the fair value of the warrants of $161. This amount has been reflected as a capitalized finance cost and is being amortized over the life of the financing agreement.

The financing agreement with Rosenthal includes customary restrictions that limit our ability to engage in certain types of transactions, including our ability to utilize tangible and intangible assets as collateral for other indebtedness. Additionally, the agreement contains a financial covenant that requires us to meet certain minimum working capital and tangible net worth thresholds as of the end of each quarter. We were in compliance with the terms of our agreement with Rosenthal as of March 31, 2020.

In 2018, the Company incurred $882 of direct costs in conjunction with the initial financing agreement, consisting primarily of broker, bank and legal fees, and $161 cost of warrant modification. The Company annually incurs an additional $130 of fees from the bank, which is equal to 1% of the $13,000 borrowing limit. These costs have been capitalized and recorded as a debt discount and are being amortized over the 2.5 year life of the Rosenthal agreement. Amortization of debt discount was $96 and $75 for the three months ended March 31, 2020 and 2019, respectively.

Convertible Note to a Related Party

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Convertible Note to a Related Party

7. Convertible Note to a Related Party

The Convertible Note to a Related Party consists of the following (in thousands):

	March 31, 2020		December 31, 2019
12% Convertible Note Payable	$	3,400	$	3,400
Accrued Interest		1,431		1,289
Total obligation	$	4,831	$	4,689

On April 21, 2017, pursuant to a Securities Purchase Agreement, the Company issued a secured, convertible, subordinated, non-redeemable note in the principal amount of $3,400 (the “Raptor Note”) and warrants to purchase 1,416,667 shares of common stock. The purchaser, Raptor/Harbor Reeds SPV LLC (“Raptor”), beneficially owned approximately 11.6% and 14.9% of the Company’s common stock at March 31, 2020 and December 31, 2019, respectively.

The Raptor Note bears interest at a rate of 12% per annum, compounded monthly. It is secured by the Company’s assets, subordinate to the first priority security interest of Rosenthal & Rosenthal (see Note 6). The note may not be prepaid and matures on April 21, 2021. It may be converted, at any time and from time to time, into shares of common stock of the Company, at a revised conversion price of $1.50.

The warrant will expire on April 21, 2022 and has an adjusted exercise price of $1.50 per share. The note and warrant contain customary anti-dilution provisions, and the shares of common stock issuable upon conversion of the note and exercise of the warrant have been registered on Form S-3. The investor was also granted the right to participate in future financing transactions of the Company for a term of two years.

On October 4, 2018, in connection with the execution of the Rosenthal financing agreement, the Company amended and restated the subordinated convertible non-redeemable secured note to Raptor, to provide for additional advances of up to $4,000. In consideration therefore, the exercise price of 750,000 of Raptor’s outstanding warrants was reduced from $1.50 to $1.10, resulting in an increase in the fair value of the warrants, determined in accordance with the Black-Scholes-Merton option pricing model, of $161. This amount was recorded as a debt discount to the Rosenthal line of credit and is being amortized as interest expense over the life of the financing agreement (See Note 6).

Leases Payable

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases Payable

8. Leases Payable

The Company adopted ASU 2016-02, Leases, effective October 1, 2018. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease, initially measured at the present value of the lease payments. As a result, we recorded right-of-use assets aggregating $862 as of October 1, 2018, utilizing a discount rate of 12.6%. That amount consists of new leases on the Company’s Norwalk office and certain office equipment of $730, and existing capitalized leases reclassified to right of use assets of $132.

ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. During the three months ended March 31, 2020, the Company reflected amortization of right of use asset of $32 related to these leases, resulting in a net asset balance of $661 as of March 31, 2020.

In accordance with ASU 2016-02, the right-of-use assets are being amortized over the life of the underlying leases.

As of December 31, 2019, liabilities recorded under finance leases and operating leases were $89 and $697, respectively. During the three months ended March 31, 2020, the Company made payments of $22 towards finance lease liability and $7 towards operating lease liability. As of March 31, 2020, liability under finance lease amounted to $67 and liability under operating lease amounted to $690, of which $66 and $29 were reflected as current due, under finance leases and operating leases, respectively.

As of March 31, 2020, the weighted average remaining lease terms for operating lease and finance lease are 4.76 years and 0.75 years, respectively. The weighted average discount rate for operating lease is 12.6% and 6.93% for finance lease.

Warrant Liability

3 Months Ended

Mar. 31, 2020

Warrants and Rights Note Disclosure [Abstract]

Warrant Liability

9. Warrant Liability

Various stock sales made by the Company to finance operations have been accompanied by the issuance of warrants. Some of these warrant agreements contain fundamental transaction provisions which may give rise to an obligation of the Company to pay cash to the warrant holders. For accounting purposes, in accordance with ASC 480, Distinguishing Liabilities from Equity, those warrants with fundamental transaction terms are accounted for as liabilities given the terms may give rise to an obligation of the Company to the warrant holders. These liabilities are measured at fair value at each reporting period and the change in the fair value is recognized in earnings in the accompanying Statements of Operations.

The fair value of the warrant liability was determined using the Black-Scholes-Merton option pricing model at March 31, 2020 and December 31, 2019, using the following assumptions:

	March 31, 2020			December 31, 2019

Stock Price	$	0.48		$	0.91
Risk free interest rate		1.69	%		1.95	%
Expected volatility		99.39	%		83.36	%
Expected life in years		1.17			1.42
Expected dividend yield		0	%		0	%
Number of Warrants containing fundamental transaction provisions		138,762			138,762
Fair Value of Warrants	$	2		$	8

The risk-free interest rate is based on rates established by the Federal Reserve Bank. The Company uses the historical volatility of its common stock to estimate its future volatility. The expected life of the warrant is based upon its remaining contractual life. The expected dividend yield reflects that the Company has not paid dividends to its common stockholders in the past and does not expect to do so in the foreseeable future.

The following table sets forth a summary of the changes in the estimated fair value of the warrant liability during the three months ended March 31, 2020 and 2019:

	March 31, 2020			March 31, 2019
Beginning Balance	$	8		$	38
Change in fair value		(6	)		47
Ending balance	$	2		$	85

Stock-Based Compensation

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

10. Stock-Based Compensation

Restricted common stock

The following table summarizes restricted stock activity during the three months ended March 31, 2020:

	Unvested Shares			Issuable Shares		Fair Value at Date of Issuance			Weighted Average Grant Date Fair Value
Balance, December 31, 2019		-			-	$	-			-
Granted		500,000			-		418			0.84
Vested		(350,000	)		350,000		(285	)		-
Issued		-			-		-			-
Balance, March 31, 2020		150,000			350,000	$	133		$	0.84

During the three months ended March 31, 2020, the Company issued 500,000 shares of restricted stock to a director and two executive employees. 350,000 of these shares vested immediately, 75,000 shares will vest in increments of 18,750 each over four years from the date of grant, and 75,000 shares will vest over four years based on performance criteria determined by the Board of Directors or Compensation Committee. Unvested shares remain subject to forfeiture if vesting conditions are not met. The aggregate fair value of the stock awards was $418 based on the market price of our common stock price which ranged from $0.81 to $0.89 per share on the dates of grants and is amortized as shares vest. The total fair value of restricted common stock vesting during the three months ended March 31, 2020 and 2019 was $285 and $150, respectively, and is included in general and administrative expenses in the accompanying statements of operations. As of March 31, 2020, the amount of unvested compensation related to issuances of restricted common stock was $133, which will be recognized as an expense in future periods as the shares vest. When calculating basic loss per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date.

Stock options

The following table summarizes stock option activity during the three months ended March 31, 2020:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2019		3,265,580		$	2.19		7.09	$	6
Granted		1,617,800		$	0.67
Exercised		-		$	-
Unvested Forfeited or expired		(36,625	)	$	1.92
Vested Forfeited or expired		(163,375	)	$	4.72
Outstanding at March 31, 2020		4,683,380		$	1.56		8.74	$	-
Exercisable at March 31, 2020		1,520,086		$	1.41		8.14	$	-

During the three months ended March 31, 2020, the Company approved options exercisable into 1,617,800 shares to be issued pursuant to Reed’s 2017 Incentive Compensation Plan. 1,282,800 options were issued to employees including 582,800 options that vested immediately, 350,000 options vesting annually over a four-year vesting period, and 350,000 options that will vest based on performance criteria to be established by the board. In addition, 335,000 options granted to consultants, board members, and former employees vest over various periods.

The stock options are exercisable at a price ranging from $0.44 to $0.89 per share and expire in ten years. The total fair value of these options at grant date was approximately $896, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price ranging from $0.44 to $0.89 per share, expected term of seven years, volatility of 120%, dividend rate of 0%, and risk-free interest rate ranging from 0.56% to 1.63%. The expected term represents the weighted-average period of time that share option awards granted are expected to be outstanding giving consideration to vesting schedules and historical participant exercise behavior; the expected volatility is based upon historical volatility of the Company’s common stock; the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future; and the risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the share option award. The fair value of the options of $896 will be amortized as the options vest in future periods through March 28, 2024.

During the three months ended March 31, 2020 and 2019, the Company recognized $495 and $412 of compensation expense relating to vested stock options. As of March 31, 2020, the aggregate amount of unvested compensation related to stock options was approximately $1,875 which will be recorded as an expense in future periods as the options vest.

As of March 31, 2020, the outstanding options have no intrinsic value. The aggregate intrinsic value was calculated as the difference between the closing market price as of March 31, 2020, which was $0.48, and the exercise price of the outstanding stock options.

Stock Warrants

3 Months Ended

Mar. 31, 2020

Warrants and Rights Note Disclosure [Abstract]

Stock Warrants

11. Stock Warrants

As of March 31, 2020, the Company has issued warrants to purchase an aggregate of 6,413,782 shares of common stock. The Company’s warrant activity during the three months ended March 31, 2020 is as follows:

	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value

Outstanding at December 31, 2019		6,413,782	$	2.06		1.52	$	-
Exercised		-		-
Forfeited or expired		-		-
Outstanding at March 31, 2020		6,413,782	$	2.06		1.27	$	-
Exercisable at March 31, 2020		6,413,782	$	2.06		1.27	$	-

There were no warrant transactions during the three months ended March 31, 2020. As of March 31, 2020, the outstanding warrants have no intrinsic value. The intrinsic value was calculated as the difference between the closing market price as of March 31, 2020, which was $0.48, and the exercise price of the Company’s warrants to purchase common stock.

Related Party Activities

3 Months Ended

Mar. 31, 2020

Related Party Activities

12. Related Party Activities

On December 31, 2018, the Company completed the sale of its Los Angeles manufacturing plant to CCB, an entity owned by Chris Reed, a related party. The sale included substantially all machinery, equipment, furniture and fixtures of the manufacturing plant. CCB assumed the monthly payments on our lease obligation effective immediately upon closing of the sale. Our release from the obligation by the lessor, however, is dependent upon CCB’s deposit of $1,200 of security with the lessor. As of March 31, 2020, $800 has been deposited with the lessor and Mr. Reed has placed approximately 363,000 shares of the Company’s common stock valued at $174 that he owns into escrow with the lessor. Mr. Reed expects to deposit the proceeds from the sale of the shares with the lessor in 2020, at which time we expect to be released from the lease obligation.

Beginning in 2019, we are to receive a 5% royalty on CCB’s private label sales to existing customers for three years and a 5% referral fee on CCB’s private label sales to referred customers for three years. For the year ended December 31, 2019, the Company recorded royalty revenue from CCB of $128 which is recorded as a receivable. In addition, at December 31, 2019, the Company has outstanding receivable from CCB of $228 consisting of inventory advances to CCB. The aggregate receivable from CCB at December 31, 2019 was $356. During the three months ended March 31, 2020, the Company received payment of $126, leaving a receivable balance of $230 at March 31, 2020.

Subsequent Events

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Events

13. Subsequent Events

On April 29, 2020, the Company received loan proceeds in the amount of $770 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (the “Cares Act”), which was enacted on March 27, 2020.

On April 9, 2020, the Company received a notification letter from the Nasdaq Listing Qualifications department notifying the Company that the bid price of our common stock had closed at less than $1.00 per share over the previous 30 consecutive business days, and, as a result, did not comply with Listing Rule 5550(a)(2), the continued listing bid price rule. The Company was provided 180 calendar days to regain compliance with the continued listing bid price rule. Subsequently, in response to the COVID-19 pandemic and related extraordinary market conditions, Nasdaq announced that the compliance period for any company previously notified about non-compliance with the continued listing bid price rule will be suspended and resume on July 1, 2020. If, at any time during the extended compliance period, the bid price of our common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq staff will provide written notification that the Company has achieved compliance with the continued listing bid price rule. If we fail to regain compliance with the continued listing bid price rule during this period but meet all of the other applicable standards for initial listing on the Nasdaq Capital Market with the exception of the continued listing bid price rule, we may be eligible for additional time. To qualify, we would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the continued listing bid price rule, and would need to provide written notice of our intention to cure the deficiency during the second compliance period, by effecting a reverse stock split, if necessary.

On April 20, 2020, the Company received a notification letter from the Nasdaq Listing Qualifications department that, based upon review of Nasdaq Listing Rule 5550(b)(2) which requires the Company to maintain a minimum Market Value of Listed Securities (the “MVLS Rule”) of $35 million, the Company’s MVLS for the last 30 consecutive business days no longer meets this requirement. Consequently, a deficiency exists with regard to the MVLS Rule. Nasdaq listing Rule 5810(c)(3)(C) provides Reed’s a compliance period of 180 calendar days, or through October 19, 2020, during which to regain compliance. If, at any time during the compliance period the MVLS closes at $35 million or more for a minimum of ten consecutive business days, the Nasdaq Listing Qualifications Department will provide the Company written confirmation of compliance with the MVLS Rule and this matter will be closed. If we fail to regain compliance with the MVLS Rule during the compliance period, we will receive written notification that our securities will be subject to delisting.

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Use of Estimates

Use of estimates

Revenue Recognition

Revenue Recognition

All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them.

Loss Per Common Share

Loss per Common Share

	March 31, 2020		March 31, 2019
Convertible note to a related party		2,266,667		2,266,667
Warrants		6,413,782		6,827,167
Common stock equivalent of Series A Convertible Preferred stock		37,644		37,644
Common stock issuable		350,000		-
Unvested restricted common stock		150,000		598,370
Options		4,683,380		4,331,234
Total		13,901,473		14,061,082

The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.

Stock Compensation Expense

Stock Compensation Expense

Advertising Costs

Advertising Costs

Concentrations

Concentrations

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Level 1—Quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.

Level 3—Unobservable inputs based on the Company’s assumptions.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=84158767&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

+ Details

Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Accounting Policies [Abstract]

Schedule of Potentially Dilutive Securities

The potentially dilutive securities consisted of the following:

	March 31, 2020		March 31, 2019
Convertible note to a related party		2,266,667		2,266,667
Warrants		6,413,782		6,827,167
Common stock equivalent of Series A Convertible Preferred stock		37,644		37,644
Common stock issuable		350,000		-
Unvested restricted common stock		150,000		598,370
Options		4,683,380		4,331,234
Total		13,901,473		14,061,082

Inventory (Tables)

3 Months Ended

Mar. 31, 2020

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands):

	March 31, 2020		December 31, 2019
Raw materials and packaging	$	4,473	$	4,261
Finished products		3,517		6,247
Total	$	7,990	$	10,508

Property and Equipment (Tables)

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment is comprised of the following (in thousands):

	March 31, 2020			December 31, 2019
Right-of-use assets under operating leases	$	730		$	730
Right-of-use assets under finance leases		168			179
Computer hardware and software		648			626
Total cost		1,546			1,535
Accumulated depreciation and amortization		(520	)		(482	)
Net book value	$	1,026		$	1,053

Schedule of Equipment Held for Sale

Equipment held for sale consists of the following (in thousands):

	March 31, 2020			December 31, 2019
Equipment held for sale	$	163		$	163
Reserve		(96	)		(96	)
Net book value	$	67		$	67

Line of Credit (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Amount Outstanding Under Credit Facilities

Amounts outstanding under the Company’s credit facilities are as follows (in thousands):

	March 31, 2020			December 31, 2019
Line of Credit	$	5,173		$	3,661
Capitalized finance costs		(388	)		(484	)
Net balance	$	4,785		$	3,177

Convertible Note to a Related Party (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Convertible Notes

The Convertible Note to a Related Party consists of the following (in thousands):

	March 31, 2020		December 31, 2019
12% Convertible Note Payable	$	3,400	$	3,400
Accrued Interest		1,431		1,289
Total obligation	$	4,831	$	4,689

Warrant Liability (Tables)

3 Months Ended

Mar. 31, 2020

Warrants and Rights Note Disclosure [Abstract]

Schedule of Warrant Liability Using Assumptions

The fair value of the warrant liability was determined using the Black-Scholes-Merton option pricing model at March 31, 2020 and December 31, 2019, using the following assumptions:

	March 31, 2020			December 31, 2019

Stock Price	$	0.48		$	0.91
Risk free interest rate		1.69	%		1.95	%
Expected volatility		99.39	%		83.36	%
Expected life in years		1.17			1.42
Expected dividend yield		0	%		0	%
Number of Warrants containing fundamental transaction provisions		138,762			138,762
Fair Value of Warrants	$	2		$	8

Schedule of Warrant Liability

The following table sets forth a summary of the changes in the estimated fair value of the warrant liability during the three months ended March 31, 2020 and 2019:

	March 31, 2020			March 31, 2019
Beginning Balance	$	8		$	38
Change in fair value		(6	)		47
Ending balance	$	2		$	85

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Non-vested Restricted Stock Activity

The following table summarizes restricted stock activity during the three months ended March 31, 2020:

	Unvested Shares			Issuable Shares		Fair Value at Date of Issuance			Weighted Average Grant Date Fair Value
Balance, December 31, 2019		-			-	$	-			-
Granted		500,000			-		418			0.84
Vested		(350,000	)		350,000		(285	)		-
Issued		-			-		-			-
Balance, March 31, 2020		150,000			350,000	$	133		$	0.84

Schedule of Stock Option Activity

The following table summarizes stock option activity during the three months ended March 31, 2020:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value
Outstanding at December 31, 2019		3,265,580		$	2.19		7.09	$	6
Granted		1,617,800		$	0.67
Exercised		-		$	-
Unvested Forfeited or expired		(36,625	)	$	1.92
Vested Forfeited or expired		(163,375	)	$	4.72
Outstanding at March 31, 2020		4,683,380		$	1.56		8.74	$	-
Exercisable at March 31, 2020		1,520,086		$	1.41		8.14	$	-

Stock Warrants (Tables)

3 Months Ended

Mar. 31, 2020

Warrants and Rights Note Disclosure [Abstract]

Schedule of Warrant Activity

The Company’s warrant activity during the three months ended March 31, 2020 is as follows:

	Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Terms (Years)		Aggregate Intrinsic Value

Outstanding at December 31, 2019		6,413,782	$	2.06		1.52	$	-
Exercised		-		-
Forfeited or expired		-		-
Outstanding at March 31, 2020		6,413,782	$	2.06		1.27	$	-
Exercisable at March 31, 2020		6,413,782	$	2.06		1.27	$	-

Basis of Presentation and Liquidity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Apr. 29, 2020	Apr. 30, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Net loss			$ (2,580)	$ (3,264)
Net cash used in operating activities			(2,352)	(8,756)
Cash balance			28		$ 913
Borrowing capacity			2,961		3,235
Stockholder's equity (deficit)			(653)	$ 5,512	1,147	$ (6,743)
Working capital			$ 3,173		$ 4,885
Subsequent Event [Member] \| Cares Act [Member]
Proceeds from loan	$ 770
Subsequent Event [Member] \| Public Offering [Member]
Issuance of common stock		15,333,334
Common stock price per share		$ 0.375
Proceeds from offering		$ 5,362

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Advertising costs	$ 302	$ 307
Warrant liabilities	$ 2		$ 8
Customer One [Member] \| Sales Revenue, Net [Member]
Percentage of sale accounted to customer	22.00%	25.00%
Customer One [Member] \| Accounts Receivable [Member]
Percentage of sale accounted to customer	18.00%		14.00%
Customer Two [Member] \| Sales Revenue, Net [Member]
Percentage of sale accounted to customer	14.00%	9.00%
Customer Two [Member] \| Accounts Receivable [Member]
Percentage of sale accounted to customer	14.00%
Customer Three [Member] \| Accounts Receivable [Member]
Percentage of sale accounted to customer	10.00%
Vendor [Member]
Percentage of sale accounted to customer	10.00%
Vendor One [Member]
Percentage of sale accounted to customer		17.00%
Vendor One [Member] \| Accounts Payable [Member]
Percentage of sale accounted to customer	16.00%		19.00%
Vendor Two [Member]
Percentage of sale accounted to customer		13.00%
Vendor Two [Member] \| Accounts Payable [Member]
Percentage of sale accounted to customer	10.00%		15.00%
Vendor Three [Member] \| Accounts Payable [Member]
Percentage of sale accounted to customer			14.00%
Maximum [Member] \| Sales Revenue, Net [Member]
Percentage of sale accounted to customer	10.00%
Maximum [Member] \| Vendor [Member]
Percentage of sale accounted to customer	10.00%

Significant Accounting Policies - Schedule of Potentially Dilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Potentially dilutive securities	13,901,473	14,061,082
Convertible Note to a Related Party [Member]
Potentially dilutive securities	2,266,667	2,266,667
Warrants [Member]
Potentially dilutive securities	6,413,782	6,827,167
Common Stock Equivalent of Series A Convertible Preferred Stock [Member]
Potentially dilutive securities	37,644	37,644
Common Stock Issuable [Member]
Potentially dilutive securities	350,000
Unvested Restricted Common Stock [Member]
Potentially dilutive securities	150,000	598,370
Options [Member]
Potentially dilutive securities	4,683,380	4,331,234

Inventory (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Inventory, reserve for obsolescence net	$ 262	$ 646

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials and packaging	$ 4,473	$ 4,261
Finished products	3,517	6,247
Total	$ 7,990	$ 10,508

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 12	$ 13

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Total cost	$ 1,546	$ 1,535
Accumulated depreciation and amortization	(520)	(482)
Net book value	1,026	1,053
Right-of-use Assets Under Operating Leases [Member]
Total cost	730	730
Right-of-use Assets Under Finance Leases [Member]
Total cost	168	179
Computer Hardware and Software [Member]
Total cost	$ 648	$ 626

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

Intangible Assets (Details Narrative)	3 Months Ended
Intangible Assets (Details Narrative)	Mar. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of intangible assets

Line of Credit (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		12 Months Ended
	Oct. 04, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Amortization of debt discount		$ 96	$ 75
Daniel J. Doherty [Member]
Letter of credit	$ 1,500
Daniel J. Doherty [Member] \| Reeds Inc. [Member]
Ownership percentage		11.60%
Financing Agreement [Member] \| Rosenthal and Rosenthal, Inc. [Member]
Line credit, borrowing limit	13,000			$ 13,000
Excess of permitted borrowing amount	$ 4,000
Unused borrowing capacity		$ 2,961
Line of credit maturity date	Apr. 20, 2021
Line of credit, interest rate	4.75%	7.20%
Minimum monthly fees		$ 4
Direct costs for transaction				882
Cost of warrant modification				161
Additional fees incurred from bank				$ 130
Percentage of borrowing limit				1.00%
Debt instrument, term				2 years 6 months
Financing Agreement [Member] \| Rosenthal and Rosenthal, Inc. [Member] \| Minimum [Member]
Line of credit, interest rate	2.00%
Financing Agreement [Member] \| Rosenthal and Rosenthal, Inc. [Member] \| Maximum [Member]
Line of credit, interest rate	3.50%
Financing Agreement [Member] \| Raptor/Harbor Reeds SPV LLC [Member]
Amount of additional advances	$ 4,000
Warrant outstanding shares	750,000
Warrant exercise price	$ 1.50
Warrant exercise price, amount reduced	$ 1.10
Increase in fair value of warrants	$ 161

Line of Credit - Schedule of Amount Outstanding Under Credit Facilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Line of Credit	$ 5,173	$ 3,661
Capitalized finance costs	(388)	(484)
Net balance	$ 4,785	$ 3,177

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Convertible Note to a Related Party (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Oct. 04, 2018	Apr. 21, 2017	Mar. 31, 2020	Dec. 31, 2019
Securities Purchase Agreement [Member]
Number of warrants to purchase of common stock		1,416,667
Warrant expiration date		Apr. 21, 2022
Warrant exercise price		$ 1.50
Securities Purchase Agreement [Member] \| Raptor/Harbor Reeds SPV LLC [Member]
Ownership percentage			11.60%	14.90%
Securities Purchase Agreement [Member] \| Raptor Note [Member]
Secured convertible debt principal amount		$ 3,400
Convertible note interest rate percentage		12.00%
Debt maturity date		Apr. 21, 2021
Note conversion price per share		$ 1.50
Note term		2 years
Financing Agreement [Member] \| Raptor/Harbor Reeds SPV LLC [Member]
Warrant exercise price	$ 1.50
Amount of additional advances	$ 4,000
Warrant outstanding shares	750,000
Warrant exercise price, amount reduced	$ 1.10
Increase in fair value of warrants	$ 161

Convertible Note to a Related Party - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
12% Convertible Note Payable	$ 3,400	$ 3,400
Accrued Interest	1,431	1,289
Total obligation	$ 4,831	$ 4,689

Convertible Note to a Related Party - Schedule of Convertible Notes (Details) (Parenthetical)	Mar. 31, 2020	Dec. 31, 2019
Convertible Notes [Member]
Convertible note interest rate percentage	12.00%	12.00%

Leases Payable (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
Leases Payable (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Oct. 01, 2018
Leases [Abstract]
Right-of-use assets	$ 661			$ 862
Weighted average discount rate for operating lease	12.60%			12.60%
Office equipment value				$ 730
Capitalized leases reclassified to right of use assets				$ 132
Accumulated Amortization of right of use asset	$ 32
Finance leases liability	67		$ 89
Operating leases liability	690		$ 697
Payments of finance lease liability	22
Payments of operating lease liability	7	$ 4
Financing lease current due	66
Operating lease current due	$ 29
Weighted average remaining lease term for operating lease	4 years 9 months 3 days
Weighted average remaining lease term for finance lease	9 months
Weighted average discount rate for finance lease	6.93%

Warrant Liability - Schedule of Warrant Liability Using Assumptions (Details) - Warrants [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Stock Price	$ 0.48	$ 0.91
Risk free interest rate	1.69%	1.95%
Expected Volatility	99.39%	83.36%
Expected life in years	1 year 2 months 1 day	1 year 5 months 1 day
Expected dividend yield	0.00%	0.00%
Number of Warrants containing fundamental transaction provisions	138,762	138,762
Fair Value of Warrants	$ 2	$ 8

Warrant Liability - Schedule of Warrant Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrants and Rights Note Disclosure [Abstract]
Beginning Balance	$ 8	$ 38
Change in fair value	(6)	47
Ending balance	$ 2	$ 85

Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Value of restricted shares issued	$ 285	$ 150
Fair value of vested stock option	$ 495	412
2017 Incentive Compensation Plan [Member]
Number of options to be issued	1,617,800
Stock options expiration period	10 years
Fair value of options granted	$ 896
Expected term	7 years
Volatility	120.00%
Dividend rate	0.00%
Amortization period of option fair value	Mar. 28, 2024
Fair value of vested stock option	$ 495
Minimum [Member]
Stock price	$ 0.44
Minimum [Member] \| 2017 Incentive Compensation Plan [Member]
Risk-free interest rate	0.56%
Maximum [Member]
Stock price	$ 0.89
Maximum [Member] \| 2017 Incentive Compensation Plan [Member]
Risk-free interest rate	1.63%
Employees [Member]
Number of option issued	1,282,800
Consultants Board Members and Former Employees [Member]
Number of option issued	335,000
Restricted Stock [Member]
Vesting, description	350,000 of these shares vested immediately, 75,000 shares will vest in increments of 18,750 each over four years from the date of grant, and 75,000 shares will vest over four years based on performance criteria determined by the Board of Directors or Compensation Committee. Unvested shares remain subject to forfeiture if vesting conditions are not met.
Number of shares vested immediately	350,000
Number of options vested	350,000
Number of shares to be vested during period	75,000
Vesting period	4 years
Value of restricted shares issued	$ 418
Number of restricted shares, value	285	$ 150
Aggregate value of unvested compensation	$ 133
Restricted Stock [Member] \| Minimum [Member]
Market price per share	$ 0.81
Restricted Stock [Member] \| Maximum [Member]
Market price per share	$ 0.89
Restricted Stock [Member] \| Four Years from the Date of Grant [Member]
Number of options vested	18,750
Restricted Stock [Member] \| A Director and Two Executive Employees [Member]
Number of restricted shares issued	500,000
Stock Options [Member]
Number of options vested	350,000
Number of shares to be vested during period	582,800
Vesting period	4 years
Aggregate value of unvested compensation	$ 1,875
Stock price	$ 0.48
Outstanding options, intrinsic value

Stock-Based Compensation - Summary of Non-vested Restricted Stock Activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Unvested Shares, beginning balance
Unvested Shares, Granted	500,000
Unvested Shares, Vested	(350,000)
Unvested Shares, Issued
Unvested Shares, ending balance	150,000
Number of Issuable Shares, beginning balance
Number of Issuable Shares, Granted
Number of Issuable Shares, Vested	350,000
Number of Issuable Shares, Issued
Number of Issuable Shares, ending balance	350,000
Fair Value Unvested, beginning balance \| $
Fair Value, Granted \| $	418
Fair Value, Vested \| $	(285)
Fair Value, Issued \| $
Fair Value, Unvested, ending balance \| $	$ 133
Weighted Average Grant Date Fair Value, Unvested, beginning balance \| $ / shares
Weighted Average Grant Date Fair Value, Granted \| $ / shares	0.84
Weighted Average Grant Date Fair Value, Vested \| $ / shares
Weighted Average Grant Date Fair Value, Issued \| $ / shares
Weighted Average Grant Date Fair Value, Unvested, ending balance \| $ / shares	$ 0.84

Stock-Based Compensation - Schedule of Stock Option Activity (Details) - Options [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Shares Outstanding, Beginning balance \| shares	3,265,580
Shares, Granted \| shares	1,617,800
Shares, Exercised \| shares
Shares, Unvested forfeited or expired \| shares	(36,625)
Shares, Vested forfeited or expired \| shares	(163,375)
Shares Outstanding, Ending Balance \| shares	4,683,380
Shares Exercisable, Ending Balance \| shares	1,520,086
Weighted-Average Exercise Price, Outstanding, Beginning \| $ / shares	$ 2.19
Weighted-Average Exercise Price, Granted \| $ / shares	0.67
Weighted-Average Exercise Price, Exercised \| $ / shares
Weighted-Average Exercise Price, Unvested forfeited or expired \| $ / shares	1.92
Weighted-Average Exercise Price, Vested forfeited or expired \| $ / shares	4.72
Weighted-Average Exercise Price, Outstanding, Ending Balance \| $ / shares	1.56
Weighted-Average Exercise Price, Exercisable Ending Balance \| $ / shares	$ 1.41
Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning	7 years 1 month 2 days
Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance	8 years 8 months 26 days
Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance	8 years 1 month 20 days
Aggregate Intrinsic Value, Shares Outstanding, Ending Balance \| $	$ 6
Aggregate Intrinsic Value, Shares Exercisable Ending Balance \| $

Stock Warrants (Details Narrative) - Stock Warrants [Member]	Mar. 31, 2020 USD ($) $ / shares shares
Warrant to purchase common stock \| shares	6,413,782
Number of warrants outstanding, value \| $
Stock price \| $ / shares	$ 0.48

Stock Warrants - Schedule of Warrant Activity (Details) - Warrants [Member]	3 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Shares Outstanding, Beginning Balance \| shares	6,413,782
Shares, Exercised \| shares
Shares, Forfeited or expired \| shares
Shares Outstanding, Ending Balance \| shares	6,413,782
Shares Exercisable, Ending Balance \| shares	6,413,782
Weighted-Average Exercise Price, Outstanding Beginning Balance \| $ / shares	$ 2.06
Weighted-Average Exercise Price, Exercised \| $ / shares
Weighted-Average Exercise Price, Forfeited or expired \| $ / shares
Weighted-Average Exercise Price, Outstanding Ending Balance \| $ / shares	2.06
Weighted-Average Exercise Price, Exercisable Ending Balance \| $ / shares	$ 2.06
Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance	1 year 6 months 7 days
Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance	1 year 3 months 8 days
Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance	1 year 3 months 8 days
Aggregate Intrinsic Value Shares Outstanding Beginning \| $
Aggregate Intrinsic Value Shares Outstanding Ending \| $
Aggregate Intrinsic Value Shares Exercisable Ending \| $

Related Party Activities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
California Custom Beverage, LLC [Member]
Receivable from related party		$ 356
Chris Reed [Member]
Deposit of security with lessor	$ 800
Number of common stock placed	363,000
Value of common stock paced	$ 174
Receivable from related party	230
Amount received from related party	$ 126
Chris Reed [Member] \| California Custom Beverage, LLC [Member]
Deposit of security with lessor			$ 1,200
Royalty percentage		5.00%
Referral fee percentage		5.00%
Receivable from related party		$ 128
Inventory advances		$ 228

Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended
	Apr. 29, 2020	Apr. 20, 2020	Apr. 09, 2020	Apr. 30, 2020
Common stock bid price description			On April 9, 2020, the Company received a notification letter from the Nasdaq Listing Qualifications department notifying the Company that the bid price of our common stock had closed at less than $1.00 per share over the previous 30 consecutive business days, and, as a result, did not comply with Listing Rule 5550(a)(2), the continued listing bid price rule. The Company was provided 180 calendar days to regain compliance with the continued listing bid price rule. Subsequently, in response to the COVID-19 pandemic and related extraordinary market conditions, Nasdaq announced that the compliance period for any company previously notified about non-compliance with the continued listing bid price rule will be suspended and resume on July 1, 2020. If, at any time during the extended compliance period, the bid price of our common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq staff will provide written notification that the Company has achieved compliance with the continued listing bid price rule. If we fail to regain compliance with the continued listing bid price rule during this period but meet all of the other applicable standards for initial listing on the Nasdaq Capital Market with the exception of the continued listing bid price rule, we may be eligible for additional time.
Description of listed securities		On April 20, 2020, the Company received a notification letter from the Nasdaq Listing Qualifications department that, based upon review of Nasdaq Listing Rule 5550(b)(2) which requires the Company to maintain a minimum Market Value of Listed Securities (the "MVLS Rule") of $35 million, the Company's MVLS for the last 30 consecutive business days no longer meets this requirement. Consequently, a deficiency exists with regard to the MVLS Rule. Nasdaq listing Rule 5810(c)(3)(C) provides Reed's a compliance period of 180 calendar days, or through October 19, 2020, during which to regain compliance. If, at any time during the compliance period the MVLS closes at $35 million or more for a minimum of ten consecutive business days, the Nasdaq Listing Qualifications Department will provide the Company written confirmation of compliance with the MVLS Rule and this matter will be closed.
Cares Act [Member]
Proceeds from loan	$ 770
Public Offering [Member]
Number of common stock issued				15,333,334
Common stock price per share				$ 0.375
Proceeds from public offering				$ 5,362