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DE 35-2177773 201 Merritt 7 Norwalk CT 06851 (800) 997-3337 Common Stock REED NASDAQ 93667855 Yes Yes Non-accelerated Filer true false false 654000 595000 152000 234000 4543000 4718000 740000 682000 164000 194000 13701000 11119000 1987000 1341000 21625000 18455000 435000 361000 886000 920000 96000 96000 67000 67000 621000 615000 23199000 20057000 6545000 6746000 799000 557000 723000 895000 2939000 599000 149000 130000 11155000 8927000 478000 555000 171000 11633000 9653000 10 10 500000 500000 9411 9411 9411 9411 94000 94000 0.0001 0.0001 120000000 120000000 93601380 93601380 86317096 86317096 9000 9000 105847000 97031000 -94384000 -86730000 11566000 10404000 23199000 20057000 11270000 10853000 23416000 20376000 8001000 7865000 16294000 14518000 3269000 2988000 7122000 5858000 2508000 1480000 5795000 2743000 2634000 1585000 4849000 3510000 1836000 1357000 4439000 3289000 6978000 4422000 15083000 9542000 -3709000 -1434000 -7961000 -3684000 202000 303000 458000 639000 770000 770000 13000 7000 -3141000 -1750000 -7649000 -4330000 5000 5000 5000 5000 -3146000 -1755000 -7654000 -4335000 -0.03 -0.03 -0.09 -0.08 90801842 59514620 88751896 53554913 86807905 9000 9411 94000 97904000 -91237000 6770000 528000 528000 74968 71000 71000 -5000 -5000 13493 15000 15000 52000 26000 26000 6680000 7333000 7333000 -3141000 -3141000 93601380 9000 9411 94000 105847000 -94384000 11566000 86317096 9000 9411 94000 97031000 -86730000 10404000 828000 828000 159777 169000 169000 -5000 -5000 13493 15000 15000 58000 29000 29000 400000000 472000 472000 6680000 7333000 7333000 -7649000 -7649000 93601380 9000 9411 94000 105847000 -94384000 11566000 47595206 5000 9411 94000 350000 285000 78091000 -79128000 -653000 -36000 -36000 -5000 -5000 15333334 1000 5309000 5310000 -1750000 -1750000 62928540 6000 9411 94000 350000 285000 83364000 -80883000 2866000 47595206 5000 9411 94000 77596000 -76548000 1147000 459000 459000 350000 285000 285000 -5000 -5000 15333334 1000 5309000 5310000 -4330000 -4330000 62928540 6000 9411 94000 350000 285000 83364000 -80883000 2866000 -7649000 -4330000 69000 24000 2000 6000 770000 162000 193000 147000 48000 62000 828000 459000 169000 285000 -83000 -116000 30000 209000 7000 288000 43000 13000 258000 -3080000 -2552000 2306000 -483000 -393000 -200000 -410000 -178000 -95000 -10309000 -5028000 6000 14000 95000 102000 -101000 -116000 33798000 21780000 30859000 22512000 770000 184000 2000 5000 29000 15000 7334000 5310000 10469000 5343000 59000 199000 595000 913000 654000 1112000 149000 157000 5000 5000 <p id="xdx_80C_eus-gaap--NatureOfOperations_zqe8YLRUJnw" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>1. <span id="xdx_829_zLxmZSsDSg72">Basis of Presentation and Liquidity</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 June 30, 2021 and the results of operations and cash flows for the three and six months ended June 30, 2021 and 2020. The balance sheet as of December 31, 2020 is derived from the Company’s audited financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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, 2020, as filed with the Securities and Exchange Commission on March 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"><b><i>COVID-19 Considerations</i></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">During the period ended June 30, 2021, the COVID-19 pandemic has impacted our operating results and the Company anticipates a continued impact for the balance of the year. In addition, the pandemic may cause reduced demand for our products if, for example, the pandemic results in a recessionary economic environment which negatively effects the consumers who purchase our products. Based on the recent increase in demand for our products, we believe that over the long term, there will continue to be strong demand for our products.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">Through June 30, 2021, the Company has experienced higher transportation expenses as the capacity in the freight market has not kept up with demand. The Company believes that costs will continue to increase throughout the year. In addition, the Company experienced increases in the pricing of several of its raw materials and delays in procuring several of these items. However, mitigation plans are being implemented to manage this risk.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">Our ability to operate without significant incremental negative operational impact from the COVID-19 pandemic will in part depend on our ability to protect our employees and our supply chain. The Company has endeavored to follow the recommended actions of government and health authorities to protect our employees. Since the inception of the COVID-19 pandemic and through June 30, 2021, we maintained the consistency of our operations during the onset of the COVID-19 pandemic. We will continue to innovate in managing our business, coordinating with our employees and suppliers to do our part in the infection prevention and remain flexible in responding to our customers and suppliers. However, the uncertainty resulting from the pandemic could result in an unforeseen disruption to our workforce and supply chain (for example an inability of a key supplier or transportation supplier to source and transport materials) that could negatively impact our operations.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">Net sales for the six month period ended June 30, 2021 were up 15% from the prior year period. Through June 30, 2021, we continue to generate cash flows to meet our short-term liquidity needs, and we expect to maintain access to the capital markets. We have also not observed any material impairments of our assets or a significant change in the fair value of our assets due to the COVID-19 pandemic.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>Liquidity</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 six months ended June 30, 2021, the Company recorded a net loss of $<span id="xdx_906_eus-gaap--NetIncomeLoss_iN_pn3n3_di_c20210101__20210630_zg00RR1eU8Tj" title="Net loss">7,649</span> and used cash in operations of $<span id="xdx_903_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iN_pn3n3_di_c20210101__20210630_zrKTY2mqYTpg" title="Net Cash Provided by (Used in) Operating Activities">10,309</span>. As of June 30, 2021, we had a cash balance of $<span id="xdx_902_eus-gaap--Cash_iI_pn3n3_c20210630_zxozflnMTla7" title="Cash">654</span> with borrowing capacity of $<span id="xdx_909_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_pn3n3_c20210630_zrGWW485sqj9" title="Borrowing capacity">4,343</span>, a stockholder’s equity of $<span id="xdx_90D_eus-gaap--StockholdersEquity_iI_pn3n3_c20210630_zc2OYL8WXkX8" title="Stockholders' Equity Attributable to Parent">11,566</span> and a working capital of $<span id="xdx_90B_ecustom--WorkingCapital_iI_pn3n3_c20210630_z0CcWE2VXB65" title="Working capital">10,470</span>, compared to a cash balance of $<span id="xdx_90B_eus-gaap--Cash_iI_pn3n3_c20201231_zmCCOhXsr8Q9" title="Cash">595</span> with borrowing capacity of $<span id="xdx_90E_eus-gaap--LineOfCreditFacilityCurrentBorrowingCapacity_iI_pn3n3_c20201231_zsyQv44ZLyWg" title="Borrowing capacity">5,166</span>, stockholders’ equity of $<span id="xdx_90B_eus-gaap--StockholdersEquity_iI_pn3n3_c20201231_zEoUi7BB1gtd" title="Stockholders' Equity">10,404</span> and a working capital of $<span id="xdx_90C_ecustom--WorkingCapital_iI_pn3n3_c20201231_zgyWfWwB14ql" title="Working capital">9,528</span> at December 31, 2020. Notwithstanding the net loss for the six months ended June 30, 2021, management projects adequate cash from operations and available line of credit to ensure continuation of the Company as a going concern for at least one year from the date these financial statements are issued.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> -7649000 -10309000 654000 4343000 11566000 10470000 595000 5166000 10404000 9528000 <p id="xdx_800_eus-gaap--SignificantAccountingPoliciesTextBlock_zvghkEMsn5Gd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>2. <span id="xdx_825_zhZ4luMnk6n1">Significant Accounting Policies</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84F_eus-gaap--UseOfEstimates_z95lf5Xsqwh4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zxZBGUAGO0I">Use of estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 compensation expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_847_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zHgDPLil4wZk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zXnyC77cqc7g">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, <i>Revenue from Contracts with Customers</i> (“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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 fulfilment 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfilment. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_845_eus-gaap--EarningsPerSharePolicyTextBlock_z8SeO3q6Vn7k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_86E_z6fWcZtPYdli">Loss per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zpTfnYaikA9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">For the periods ended June 30, 2021 and 2020, 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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BC_zrnigbKiH7Bb" style="display: none">Schedule of Potentially Dilutive Securities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2021</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2020</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Convertible note to a related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zI9hujPxkeo5" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0756">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zOmr2VOxgLw7" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,266,667</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8MQPzG97vE" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">3,088,479</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zBnRTNApeork" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">6,413,782</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Common stock equivalent of Series A Convertible Preferred stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zk3ziN3rPvOg" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zaMgyagex4m6" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock issuable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_z0RgiRQGgBta" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0768">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLK8CzuDNchj" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">350,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unvested restricted common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zOrkhjaJghdk" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">234,114</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z4NYtUb8uSAl" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">150,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Options</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zDwfE4M4pJe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">12,173,607</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zBFdrCFXAaSl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,777,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630_zv3oqY7LwcTi" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">15,533,844</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630_zleV9WySrzQ2" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,996,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zc1BrcJejLz8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_843_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_ztCRYtmc3Vp8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_864_zHc87C0RR3I2">Stock Compensation Expense</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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, <i>Compensation-Stock Compensation</i> whereby the value of the award is measured on the date of grant and recognized for employees as compensation expense on the straight-line basis over the vesting period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_849_eus-gaap--AdvertisingCostsPolicyTextBlock_zYmXAmIyXvdb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_868_zC73LJEgsREb">Advertising Costs</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs for the three months ended June 30, 2021 and 2020, aggregated $<span id="xdx_901_eus-gaap--AdvertisingExpense_pn3n3_c20210401__20210630_zQFBspIRItLi" title="Advertising costs">353</span> and $<span id="xdx_909_eus-gaap--AdvertisingExpense_pn3n3_c20200401__20200630_zWRbD6j0sdf2" title="Advertising costs">303</span>, respectively. Advertising costs for the six months ended June 30, 2021 and 2020, aggregated $<span id="xdx_905_eus-gaap--AdvertisingExpense_pn3n3_c20210101__20210630_zYrWRp1snUs4">702</span> and $<span id="xdx_902_eus-gaap--AdvertisingExpense_pn3n3_c20200101__20200630_zoZhHPPZcMd2">606</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_zbAd3fPIz0q4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zVsE1Kfwnbh3">Concentrations</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Sales. </i></span><span style="font: 10pt Times New Roman, Times, Serif">During the three months ended June 30, 2021, two customers accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_ztk60ph0nXul">19</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z9aCo3xDWlhb">12</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively, and during the six months ended June 30, 2021, two customers accounted for <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zbiObfb3NzXf">20</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zSxSeLp1g0yc">12</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively. During the three months ended June 30, 2020, two customers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zPXpXzM2Uwmh">26</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zu18QcPx0sJg">13</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively, and during the six months ended June 30, 2020, two customers accounted for <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zIpCjiflFO5">25</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zsWgwZYUKHFd">14</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively. No other customers exceeded <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--RangeAxis__srt--MaximumMember_zOd7z3KeFeJc">10</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of sales in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Accounts receivable.</i> As of June 30, 2021, the Company had accounts receivable from one customer which comprised <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zx0vkmU6aXKg">12</span>% of its gross accounts receivable. As of December 31, 2020, the Company had accounts receivable from one customer which comprised <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zZghz56t4re7">23</span>% of its gross accounts receivable. No other customers exceeded <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--RangeAxis__srt--MaximumMember_zr74IXuhojS6">10</span>% of gross accounts receivable in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Purchases from vendors.</i> During the three months ended June 30, 2021, two vendors accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zV4kpSktONT9">13</span>% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210401__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zqUJL74H2X6">12</span>% of all purchases, respectively. During the six months ended June 30, 2021, two vendors accounted for <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zpCIP8RPaV9l">13</span>% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zQxoMaqu0L4a">12</span>% of all purchases, respectively. During the three months ended June 30, 2020, no vendor exceeded <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zSzzYdSqEmT6">10</span>% of all purchases. During the six months ended June 30, 2020, one vendor accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zkvtEKPTUZMc">11</span>% of all purchases. No other vendors exceeded <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zAZ6fnlhBqS5">10</span>% of all purchases in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Accounts payable.</i> As of June 30, 2021, the Company’s four largest vendors accounted for <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zlaYzuUkVk53">13</span>%, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zHfadAAYmWNg">11</span>%, <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zjmoh0NStdV">10</span>% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorFourMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zLHpbYznAtxf">10</span>% of the total accounts payable, respectively. As of December 31, 2020 the Company’s largest two vendors accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zXoJpdopXhl1">12</span>% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zTTx9tGJqtsb">10</span>% of the total accounts payable, respectively. No other vendors exceeded <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zAsRoA2OhiSk">10</span>% of gross accounts payable in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84C_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zdirBzgGCzRe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zk6ocWq9Iltd">Fair Value of Financial Instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 1—Quoted prices in active markets for identical assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 3—Unobservable inputs based on the Company’s assumptions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zH7R1xLSTLnj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_867_zQgx2VQR8Kb7">Recent Accounting Pronouncements</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">In June 2016, the FASB issued ASU 2016-13, <i>Measurement of Credit Losses on Financial Instruments</i>. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. The diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective January 1, 2024, for the Company and the provisions of this update can be adopted using either the modified retrospective method or a fully retrospective method. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Effective January 1, 2021, the Company early adopted ASU 2020-06 and that adoption did not have an impact on our financial statements and related disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p id="xdx_858_z1ZyX4TCaNn6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_84F_eus-gaap--UseOfEstimates_z95lf5Xsqwh4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zxZBGUAGO0I">Use of estimates</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 compensation expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_847_eus-gaap--RevenueFromContractWithCustomerPolicyTextBlock_zHgDPLil4wZk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zXnyC77cqc7g">Revenue Recognition</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, <i>Revenue from Contracts with Customers</i> (“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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 fulfilment 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfilment. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_845_eus-gaap--EarningsPerSharePolicyTextBlock_z8SeO3q6Vn7k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_86E_z6fWcZtPYdli">Loss per Common Share</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zpTfnYaikA9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">For the periods ended June 30, 2021 and 2020, 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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BC_zrnigbKiH7Bb" style="display: none">Schedule of Potentially Dilutive Securities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2021</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2020</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Convertible note to a related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zI9hujPxkeo5" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0756">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zOmr2VOxgLw7" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,266,667</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8MQPzG97vE" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">3,088,479</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zBnRTNApeork" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">6,413,782</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Common stock equivalent of Series A Convertible Preferred stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zk3ziN3rPvOg" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zaMgyagex4m6" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock issuable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_z0RgiRQGgBta" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0768">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLK8CzuDNchj" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">350,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unvested restricted common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zOrkhjaJghdk" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">234,114</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z4NYtUb8uSAl" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">150,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Options</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zDwfE4M4pJe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">12,173,607</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zBFdrCFXAaSl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,777,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630_zv3oqY7LwcTi" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">15,533,844</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630_zleV9WySrzQ2" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,996,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A6_zc1BrcJejLz8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89C_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_zpTfnYaikA9k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">For the periods ended June 30, 2021 and 2020, 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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BC_zrnigbKiH7Bb" style="display: none">Schedule of Potentially Dilutive Securities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2021</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center"><p style="margin-top: 0; margin-bottom: 0">June 30,</p> <p style="margin-top: 0; margin-bottom: 0">2020</p></td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Convertible note to a related party</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zI9hujPxkeo5" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0756">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zOmr2VOxgLw7" style="width: 14%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">2,266,667</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Warrants</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_z8MQPzG97vE" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">3,088,479</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zBnRTNApeork" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">6,413,782</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Common stock equivalent of Series A Convertible Preferred stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zk3ziN3rPvOg" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zaMgyagex4m6" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">37,644</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Common stock issuable</td><td> </td> <td style="text-align: left"> </td><td id="xdx_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_z0RgiRQGgBta" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount"><span style="-sec-ix-hidden: xdx2ixbrl0768">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLK8CzuDNchj" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">350,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Unvested restricted common stock</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zOrkhjaJghdk" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">234,114</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z4NYtUb8uSAl" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">150,000</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Options</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zDwfE4M4pJe" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">12,173,607</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zBFdrCFXAaSl" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,777,907</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20210101__20210630_zv3oqY7LwcTi" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">15,533,844</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98E_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_c20200101__20200630_zleV9WySrzQ2" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,996,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2266667000 3088479000 6413782000 37644000 37644000 350000000 234114000 150000000 12173607000 4777907000 15533844000 13996000000 <p id="xdx_843_eus-gaap--ShareBasedCompensationOptionAndIncentivePlansPolicy_ztCRYtmc3Vp8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_864_zHc87C0RR3I2">Stock Compensation Expense</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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, <i>Compensation-Stock Compensation</i> whereby the value of the award is measured on the date of grant and recognized for employees as compensation expense on the straight-line basis over the vesting period. Recognition of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_849_eus-gaap--AdvertisingCostsPolicyTextBlock_zYmXAmIyXvdb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_868_zC73LJEgsREb">Advertising Costs</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs for the three months ended June 30, 2021 and 2020, aggregated $<span id="xdx_901_eus-gaap--AdvertisingExpense_pn3n3_c20210401__20210630_zQFBspIRItLi" title="Advertising costs">353</span> and $<span id="xdx_909_eus-gaap--AdvertisingExpense_pn3n3_c20200401__20200630_zWRbD6j0sdf2" title="Advertising costs">303</span>, respectively. Advertising costs for the six months ended June 30, 2021 and 2020, aggregated $<span id="xdx_905_eus-gaap--AdvertisingExpense_pn3n3_c20210101__20210630_zYrWRp1snUs4">702</span> and $<span id="xdx_902_eus-gaap--AdvertisingExpense_pn3n3_c20200101__20200630_zoZhHPPZcMd2">606</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 353000 303000 702000 606000 <p id="xdx_840_eus-gaap--ConcentrationRiskCreditRisk_zbAd3fPIz0q4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zVsE1Kfwnbh3">Concentrations</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Sales. </i></span><span style="font: 10pt Times New Roman, Times, Serif">During the three months ended June 30, 2021, two customers accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_ztk60ph0nXul">19</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_z9aCo3xDWlhb">12</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively, and during the six months ended June 30, 2021, two customers accounted for <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zbiObfb3NzXf">20</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zSxSeLp1g0yc">12</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively. During the three months ended June 30, 2020, two customers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zPXpXzM2Uwmh">26</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zu18QcPx0sJg">13</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively, and during the six months ended June 30, 2020, two customers accounted for <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zIpCjiflFO5">25</span></span><span style="font: 10pt Times New Roman, Times, Serif">% and <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zsWgwZYUKHFd">14</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of gross billing, respectively. No other customers exceeded <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--RangeAxis__srt--MaximumMember_zOd7z3KeFeJc">10</span></span><span style="font: 10pt Times New Roman, Times, Serif">% of sales in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Accounts receivable.</i> As of June 30, 2021, the Company had accounts receivable from one customer which comprised <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zx0vkmU6aXKg">12</span>% of its gross accounts receivable. As of December 31, 2020, the Company had accounts receivable from one customer which comprised <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember_zZghz56t4re7">23</span>% of its gross accounts receivable. No other customers exceeded <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--CustomerConcentrationRiskMember__srt--RangeAxis__srt--MaximumMember_zr74IXuhojS6">10</span>% of gross accounts receivable in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Purchases from vendors.</i> During the three months ended June 30, 2021, two vendors accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210401__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zV4kpSktONT9">13</span>% and <span id="xdx_909_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210401__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zqUJL74H2X6">12</span>% of all purchases, respectively. During the six months ended June 30, 2021, two vendors accounted for <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zpCIP8RPaV9l">13</span>% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zQxoMaqu0L4a">12</span>% of all purchases, respectively. During the three months ended June 30, 2020, no vendor exceeded <span id="xdx_90D_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200401__20200630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zSzzYdSqEmT6">10</span>% of all purchases. During the six months ended June 30, 2020, one vendor accounted for <span id="xdx_900_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20200630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zkvtEKPTUZMc">11</span>% of all purchases. No other vendors exceeded <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zAZ6fnlhBqS5">10</span>% of all purchases in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i>Accounts payable.</i> As of June 30, 2021, the Company’s four largest vendors accounted for <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zlaYzuUkVk53">13</span>%, <span id="xdx_90C_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zHfadAAYmWNg">11</span>%, <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorThreeMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zjmoh0NStdV">10</span>% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20210101__20210630__srt--MajorCustomersAxis__custom--VendorFourMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zLHpbYznAtxf">10</span>% of the total accounts payable, respectively. As of December 31, 2020 the Company’s largest two vendors accounted for <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zXoJpdopXhl1">12</span>% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_uPure_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zTTx9tGJqtsb">10</span>% of the total accounts payable, respectively. No other vendors exceeded <span id="xdx_90B_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210630__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--CostOfGoodsTotalMember__us-gaap--ConcentrationRiskByTypeAxis__us-gaap--SupplierConcentrationRiskMember_zAsRoA2OhiSk">10</span>% of gross accounts payable in either period.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 0.19 0.12 0.20 0.12 0.26 0.13 0.25 0.14 0.10 0.12 0.23 0.10 0.13 0.12 0.13 0.12 0.10 0.11 0.10 0.13 0.11 0.10 0.10 0.12 0.10 0.10 <p id="xdx_84C_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zdirBzgGCzRe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_869_zk6ocWq9Iltd">Fair Value of Financial Instruments</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 1—Quoted prices in active markets for identical assets or liabilities.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Level 3—Unobservable inputs based on the Company’s assumptions.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_842_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_zH7R1xLSTLnj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="xdx_867_zQgx2VQR8Kb7">Recent Accounting Pronouncements</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">In June 2016, the FASB issued ASU 2016-13, <i>Measurement of Credit Losses on Financial Instruments</i>. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">In August 2020, the FASB issued ASU No. 2020-06 (“ASU 2020-06”) “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40).” ASU 2020-06 reduces the number of accounting models for convertible debt instruments by eliminating the cash conversion and beneficial conversion models. The diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. For contracts in an entity’s own equity, the type of contracts primarily affected by this update are freestanding and embedded features that are accounted for as derivatives under the current guidance due to a failure to meet the settlement conditions of the derivative scope exception. This update simplifies the related settlement assessment by removing the requirements to (i) consider whether the contract would be settled in registered shares, (ii) consider whether collateral is required to be posted, and (iii) assess shareholder rights. ASU 2020-06 is effective January 1, 2024, for the Company and the provisions of this update can be adopted using either the modified retrospective method or a fully retrospective method. Early adoption is permitted, but no earlier than January 1, 2021, including interim periods within that year. Effective January 1, 2021, the Company early adopted ASU 2020-06 and that adoption did not have an impact on our financial statements and related disclosures.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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.</span></p> <p id="xdx_801_eus-gaap--InventoryDisclosureTextBlock_zzWZqzjDCVJ" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>3. <span id="xdx_82C_zVZisPrvvqJ8">Inventory</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zxu3VRZMVcw2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span id="xdx_8BC_zL4Wf3woDur3" style="display: none">Schedule of Inventory</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20210630_zf0l6TxXM4sd" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20201231_zs7b9TQqOJVk" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzBzw_zTGVFbfKcw08" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Raw materials and packaging</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">9,038</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">6,793</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzBzw_zCrXRICvAQpg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Finished products</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,663</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,326</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryNet_iTI_pn3n3_mtINzBzw_zbHNgOggeKT3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,701</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AB_ziHXeioRP6ha" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company has recorded a reserve for slow moving and potentially obsolete inventory. The reserve at June 30, 2021, and December 31, 2020, was $<span id="xdx_90B_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20210630_z8LaCeKVQgwg">164</span> and $<span id="xdx_90D_eus-gaap--InventoryValuationReserves_iI_pn3n3_c20201231_z1rP58mHPP39">194</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89B_eus-gaap--ScheduleOfInventoryCurrentTableTextBlock_zxu3VRZMVcw2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span id="xdx_8BC_zL4Wf3woDur3" style="display: none">Schedule of Inventory</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20210630_zf0l6TxXM4sd" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49E_20201231_zs7b9TQqOJVk" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzBzw_zTGVFbfKcw08" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Raw materials and packaging</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">9,038</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">6,793</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_408_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzBzw_zCrXRICvAQpg" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Finished products</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,663</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,326</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_406_eus-gaap--InventoryNet_iTI_pn3n3_mtINzBzw_zbHNgOggeKT3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">13,701</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">11,119</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9038000 6793000 4663000 4326000 13701000 11119000 164000 194000 <p id="xdx_800_eus-gaap--PropertyPlantAndEquipmentDisclosureTextBlock_zfrhTaeFDYre" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b>4. <span id="xdx_82C_zSbpWheksuOh">Property and Equipment</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89C_eus-gaap--PropertyPlantAndEquipmentTextBlock_zeqpYzZPrK32" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Property and equipment is comprised of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BC_znwhaxJod2gg" style="display: none">Schedule of Property and Equipment</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20210630_zMa00XayVCyg" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20201231_zqohZKa9M6u7" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right-of-use assets under operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_zA3m46kXyNe2" style="width: 14%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_pn3n3" style="width: 14%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Right-of-use assets under finance leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zWwRuftLeDZ4" style="text-align: right" title="Total cost"><span style="-sec-ix-hidden: xdx2ixbrl0849">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_pn3n3" style="text-align: right" title="Total cost">54</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware and software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_z5cxnqDfodpc" style="text-align: right" title="Total cost">400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_pn3n3" style="text-align: right" title="Total cost">400</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Machinery and equipment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zKfJXxPiZkr9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">197</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_pn3n3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">103</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzWgY_zuazMKKIUmv" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,281</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzWgY_zAa8A8vciwCl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(435</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(361</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzWgY_zumn8OC58RNf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Net book value</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">886</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">920</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A7_z7wqanGTewh8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Depreciation expense for the six months ended June 30, 2021 and 2020 was $<span id="xdx_906_eus-gaap--Depreciation_pn3n3_c20210101__20210630_z1Wcijbvmshd">48</span> and $<span id="xdx_90B_eus-gaap--Depreciation_pn3n3_c20200101__20200630_zVf8EqwumNva">24</span>, respectively, and amortization of right-of-use assets for the six months ended June 30, 2021 and 2020 was $<span id="xdx_900_ecustom--RightOfUseAssetAmortizationExpense_pn3n3_c20210101__20210630_zvdW7pbZAFhk" title="Amortization of right-of-use assets">69</span> and $<span id="xdx_900_ecustom--RightOfUseAssetAmortizationExpense_pn3n3_c20200101__20200630_zizyGwdm571h" title="Amortization of right-of-use assets">62</span>, respectively. During the six months ended June 30, 2021, the Company disposed of right-of-use assets under finance leases with a cost of $<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentDisposals_pn3n3_c20210101__20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zX2gqlNL0NQe" title="Net book value of disposed right-of-use assets under finance leases">48</span> and accumulated amortization of $<span id="xdx_907_eus-gaap--AdjustmentForAmortization_pn3n3_c20210101__20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zlOOpCPuLhlh" title="Accumulated amortization">38</span> and terminated $<span id="xdx_90D_eus-gaap--PropertyPlantAndEquipmentTransfersAndChanges_pn3n3_c20210101__20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zhMbgTf5GiYk" title="Amount terminated related to finance leases">13</span> of related finance leases payable (see Note 8).</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89A_eus-gaap--DisclosureOfLongLivedAssetsHeldForSaleTextBlock_zdVqYFGnnvb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Equipment held for sale consists of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BD_zqcUKHoZucWh" style="display: none">Schedule of Equipment Held for Sale</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20210630_zPa9MwC7pkk3" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20201231_znxpBbmfpRyg" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_406_eus-gaap--DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipment_iI_pn3n3_maAHFSNzEeM_zU1sVoKBwKUi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Equipment held for sale</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RestructuringReserve_iNI_pn3n3_di_msAHFSNzEeM_zViaUCWvDqb3" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Reserve</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--AssetsHeldForSaleNotPartOfDisposalGroup_iI_pn3n3_mtAHFSNzEeM_zSADoL5sAWsh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Net book value</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AC_zfe2q2j5ME99" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The balance as of June 30, 2021, and December 31, 2020, consists of residual manufacturing equipment, at estimated net realizable value, which management anticipates selling during 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89C_eus-gaap--PropertyPlantAndEquipmentTextBlock_zeqpYzZPrK32" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Property and equipment is comprised of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BC_znwhaxJod2gg" style="display: none">Schedule of Property and Equipment</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20210630_zMa00XayVCyg" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20201231_zqohZKa9M6u7" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Right-of-use assets under operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_zA3m46kXyNe2" style="width: 14%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_pn3n3" style="width: 14%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Right-of-use assets under finance leases</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zWwRuftLeDZ4" style="text-align: right" title="Total cost"><span style="-sec-ix-hidden: xdx2ixbrl0849">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_pn3n3" style="text-align: right" title="Total cost">54</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Computer hardware and software</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_z5cxnqDfodpc" style="text-align: right" title="Total cost">400</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_pn3n3" style="text-align: right" title="Total cost">400</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Machinery and equipment</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210630__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zKfJXxPiZkr9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">197</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_pn3n3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">103</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzWgY_zuazMKKIUmv" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Total cost</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,321</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,281</td><td style="text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzWgY_zAa8A8vciwCl" style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1.5pt">Accumulated depreciation and amortization</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(435</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(361</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_409_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzWgY_zumn8OC58RNf" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Net book value</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">886</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">920</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 724000 724000 54000 400000 400000 197000 103000 1321000 1281000 435000 361000 886000 920000 48000 24000 69000 62000 48000 38000 13000 <p id="xdx_89A_eus-gaap--DisclosureOfLongLivedAssetsHeldForSaleTextBlock_zdVqYFGnnvb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Equipment held for sale consists of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8BD_zqcUKHoZucWh" style="display: none">Schedule of Equipment Held for Sale</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20210630_zPa9MwC7pkk3" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_494_20201231_znxpBbmfpRyg" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_406_eus-gaap--DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipment_iI_pn3n3_maAHFSNzEeM_zU1sVoKBwKUi" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Equipment held for sale</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_40D_eus-gaap--RestructuringReserve_iNI_pn3n3_di_msAHFSNzEeM_zViaUCWvDqb3" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Reserve</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40A_eus-gaap--AssetsHeldForSaleNotPartOfDisposalGroup_iI_pn3n3_mtAHFSNzEeM_zSADoL5sAWsh" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Net book value</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">67</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 163000 163000 96000 96000 67000 67000 <p id="xdx_80E_eus-gaap--IntangibleAssetsDisclosureTextBlock_z05fQ5QKIb4h" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>5. <span id="xdx_82A_zSyOfBAZ7WK7">Intangible Assets</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Intangible assets are comprised of brand names acquired, specifically Virgil’s, and costs related to trademarks. They have been assigned an indefinite life, as we currently anticipate that they will contribute cash flows to the Company perpetually. These indefinite-lived intangible assets are not amortized but are assessed for impairment annually and evaluated annually to determine whether the indefinite useful life remains appropriate. We first assess qualitative factors to determine whether it is more likely than not that the asset is impaired. If further testing is necessary, we compare the estimated fair value of our asset with its book value. If the carrying amount of the asset exceeds its fair value, as determined by the discounted cash flows expected to be generated by the asset, an impairment loss is recognized in an amount equal to that excess. Based on management’s assessment, there were <span id="xdx_909_eus-gaap--ImpairmentOfIntangibleAssetsFinitelived_pn3n3_do_c20210101__20210630_zVgmRnphRGBc" title="Impairment of intangible assets">no</span> indications of impairment at June 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">During the six months ended June 30, 2021, the Company capitalized costs of $<span id="xdx_903_eus-gaap--FiniteLivedIntangibleAssetsCostIncurredToRenewOrExtend_pn3n3_c20210101__20210630_zjIO0KZWXTT3" title="Intangible asset capitalized cost">6</span> pertaining to legal and other fees incurred in applying for international trademarks for Reeds and Virgil’s brands.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_897_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_zgzDqynYFMRg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Intangible assets consist of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8BD_zfyokh24jGE8" style="display: none">Summary of Intangible Assets</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210630_zlfExezh7zJk" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20201231_zW1x8im0TPeh" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--IndefiniteLivedTradeNames_iI_pn3n3_maILIAEzfVJ_zjXcZei32WVb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Brand names</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IndefiniteLivedTrademarks_iI_pn3n3_maILIAEzfVJ_zoQErla1W7Sk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Trademarks</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">39</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iTI_pn3n3_mtILIAEzfVJ_zFMc9JmJPAv2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">621</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">615</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A1_zmo15MrP5JU2" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"><b> </b></span></p> 0 6000 <p id="xdx_897_eus-gaap--ScheduleOfIndefiniteLivedIntangibleAssetsTableTextBlock_zgzDqynYFMRg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Intangible assets consist of the following (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8BD_zfyokh24jGE8" style="display: none">Summary of Intangible Assets</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20210630_zlfExezh7zJk" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20201231_zW1x8im0TPeh" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_408_eus-gaap--IndefiniteLivedTradeNames_iI_pn3n3_maILIAEzfVJ_zjXcZei32WVb" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; text-align: left">Brand names</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 14%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_400_eus-gaap--IndefiniteLivedTrademarks_iI_pn3n3_maILIAEzfVJ_zoQErla1W7Sk" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Trademarks</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">45</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">39</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_40B_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iTI_pn3n3_mtILIAEzfVJ_zFMc9JmJPAv2" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">621</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">615</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 576000 576000 45000 39000 621000 615000 <p id="xdx_809_eus-gaap--ShortTermDebtTextBlock_zshxum4jo5Wk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>6. <span id="xdx_827_zp5gnERGYuvg">Line of Credit</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89E_eus-gaap--ScheduleOfLineOfCreditFacilitiesTextBlock_zTmfItzRMNRf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Amounts outstanding under the Company’s credit facilities are as follows (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8B9_zg9TmMOUwGlh" style="display: none">Schedule of Amount Outstanding Under Credit Facilities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20210630_zr2hMW84gPt2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zQg2LY3c2hkd" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40B_eus-gaap--LinesOfCreditCurrent_iTI_pn3n3_zocC4VfDDBZa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; padding-bottom: 2.5pt">Line of credit</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">2,939</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0915">-</span></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A5_zPTMF92JlhHb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">On October 4, 2018, the Company entered into a financing agreement with Rosenthal &amp; Rosenthal, Inc. (“Rosenthal”). The financing agreement provides a maximum borrowing capacity of $<span id="xdx_902_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn3n3_c20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zaLHLPTscUA5">13,000</span></span><span style="font: 10pt Times New Roman, Times, Serif">. Borrowings are based on a formula of eligible accounts receivable and inventories (the “permitted borrowings”) plus advances (an “over-advance” of up to $<span id="xdx_901_ecustom--LineOfCreditFacilityExcessOfPermittedBorrwingAmount_iI_pn3n3_c20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zi9sb6x2Vlxg">4,000</span></span><span style="font: 10pt Times New Roman, Times, Serif">) in excess of permitted borrowings. At June 30, 2021, the unused borrowing capacity under the financing agreement was $<span id="xdx_90B_eus-gaap--LineOfCreditFacilityRemainingBorrowingCapacity_iI_pn3n3_c20210630__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zRZCdYU2BcKe">4,343. The line of credit automatically renews each year until terminated. The line of credit matured on March 30, 2021, and was automatically renewed to mature on March 30, 2022.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Borrowings under the Rosenthal financing agreement bear interest at the greater of prime or <span id="xdx_908_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_c20181003__20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zxVlLUwpLodj">4.75</span>%, plus an additional <span id="xdx_904_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_uPure_c20181003__20181004__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zYZf53uxvBLk">2.0</span>% to <span id="xdx_908_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_uPure_c20181003__20181004__srt--RangeAxis__srt--MaximumMember__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zPJXru1X2ip" title="Line of credit, interest rate">3.5</span>% depending on whether the borrowing is based upon receivables, inventory or is an over-advance. Additionally, the line of credit is subject to monthly facility and administration fees, and aggregate minimum monthly fees (including interest) of $<span id="xdx_90F_ecustom--MinimumMonthlyFees_pn3n3_c20181003__20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zhjUK8JYOQWh" title="Minimum monthly fees">4</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The line of credit is secured by substantially all of the assets, excluding intellectual property, of the Company. The over-advance is secured by all of Reed’s intellectual property collateral. Additionally, any over-advance was guaranteed by an irrevocable stand-by letter of credit in the amount of $<span id="xdx_900_ecustom--LetterOfCredit_iI_pn3n3_c20181004__srt--TitleOfIndividualAxis__custom--DanielJDohertyMember_z5mxkuvIF7Sk">1,500</span></span><span style="font: 10pt Times New Roman, Times, Serif">, issued by Daniel J. Doherty III and the Daniel J. Doherty, III 2002 Family Trust, affiliates of Raptor/Harbor Reeds SPV LLC (“Raptor”). <span id="xdx_900_eus-gaap--LineOfCreditFacilityDescription_c20210310__20210311_z6TEDoMAh284" title="Line of credit description">On March 11, 2021, the Company entered into an amendment to the financing agreement, releasing that irrevocable standby letter of credit of $1,500 by Raptor with a $2,000 pledge of securities to Rosenthal by John J. Bello and Nancy E. Bello, as Co-Trustees of The John and Nancy Bello Revocable Living Trust.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">John J. Bello, current Chairman and former Interim Chief Executive Officer of Reed’s, is a related party. He is also a greater than <span id="xdx_90E_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20210630__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_zsjLvhIm4nN3" title="Equity ownership percentage">5</span>% beneficial owner of Reed’s common stock. As consideration for the collateral support, Mr. Bello received <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20210101__20210630__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_z4ZgcLP8dwf7" title="Shares issued restricted stock">400,000</span> shares of Reed’s restricted stock. The Company determined the fair value of the 400,000 restricted stock to be $<span id="xdx_906_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_pn3n3_c20210101__20210630__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_z3cm4iTYE2cg" title="Shares issued restricted stock, value">472</span> which was recorded as a prepaid financing costs and included in prepaid expenses and other current assets on the condensed balance sheet at June 30, 2021. The prepaid financing fee is to be amortized over a twelve month period. During the six months ended June 30, 2021, the company amortized $<span id="xdx_904_eus-gaap--AmortizationOfFinancingCosts_pn3n3_c20210101__20210630_zmLO6Q9UsWCg" title="Amortization of prepaid financing costs">147</span> of the prepaid financing costs to interest expense.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">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 June 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company annually incurs an additional $<span id="xdx_906_eus-gaap--DebtInstrumentFeeAmount_iI_pn3n3_c20210630_zfoqDFc5Qgxl" title="Annual fees">130</span> of fees from the bank, which is equal to <span id="xdx_90D_ecustom--PercentageOfFeesOnBorrowingCapacity_iI_pid_dp_uPure_c20210630_zv49WK6XZ7S5" title="Percentage of fees on borrowing capacity">1</span>% of the $<span id="xdx_90A_eus-gaap--LineOfCredit_iI_pn3n3_c20210630_z4ZFe0mTvLQj" title="Line of credit">13,000</span> borrowing limit. These costs have been capitalized and recorded as a debt discount and are amortized over the remaining life of the Rosenthal agreement. On December 31, 2020, the remaining unamortized debt discount of $<span id="xdx_903_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pn3n3_c20201231__us-gaap--BalanceSheetLocationAxis__us-gaap--PrepaidExpensesAndOtherCurrentAssetsMember_zw2AOvffVE7i" title="Unamortized debt discount">162</span> is included in prepaid expense and other current assets on the balance sheet. Amortization of debt discount was $<span id="xdx_909_eus-gaap--AmortizationOfDebtDiscountPremium_pn3n3_c20210101__20210630_z1WU1KNiE2og" title="Amortization of debt discount">162</span> and $<span id="xdx_90A_eus-gaap--AmortizationOfDebtDiscountPremium_pn3n3_c20200101__20200630_zSYTVqTTjqg5" title="Amortization of debt discount">193</span> for the six months ended June 30, 2021 and 2020, respectively. On June 30, 2021, <span id="xdx_90A_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pn3n3_do_c20210630_zgNxj2r7Jat9" title="Unamortized debt discount">no</span> remaining unamortized debt discount remained.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_89E_eus-gaap--ScheduleOfLineOfCreditFacilitiesTextBlock_zTmfItzRMNRf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Amounts outstanding under the Company’s credit facilities are as follows (in thousands):</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> <span id="xdx_8B9_zg9TmMOUwGlh" style="display: none">Schedule of Amount Outstanding Under Credit Facilities</span></span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_498_20210630_zr2hMW84gPt2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>June 30,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2021</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_499_20201231_zQg2LY3c2hkd" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>December 31,</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>2020</b></span></p></td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40B_eus-gaap--LinesOfCreditCurrent_iTI_pn3n3_zocC4VfDDBZa" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 64%; padding-bottom: 2.5pt">Line of credit</td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right">2,939</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 14%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0915">-</span></td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 2939000 13000000 4000000 0.0475 0.020 0.035 4000 1500000 On March 11, 2021, the Company entered into an amendment to the financing agreement, releasing that irrevocable standby letter of credit of $1,500 by Raptor with a $2,000 pledge of securities to Rosenthal by John J. Bello and Nancy E. Bello, as Co-Trustees of The John and Nancy Bello Revocable Living Trust. 0.05 400000 472000 147000 130000 0.01 13000000 162000 162000 193000 0 <p id="xdx_80D_eus-gaap--DebtDisclosureTextBlock_zCmmHqHokaIb" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>7. <span id="xdx_82D_zoAfdMAJuKn4">Note Payable</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">On April 20, 2020, the Company was granted a loan (the “PPP loan”) from City National Bank in the aggregate amount of $<span id="xdx_909_eus-gaap--DebtInstrumentFaceAmount_iI_pn3n3_c20200420__srt--TitleOfIndividualAxis__custom--PaycheckProtectionProgramMember__us-gaap--TypeOfArrangementAxis__custom--CityNationalBankMember_zL4DgEGoDbsk" title="Aggregate amount">770</span>, pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. At December 31, 2020, the note payable balance was $<span id="xdx_909_eus-gaap--NotesPayable_iI_pn3n3_c20201231_zWKodWQPzcN" title="Note payable">770</span>, of which $<span id="xdx_901_eus-gaap--NotesPayableCurrent_iI_pn3n3_c20201231_ztafnqZstPk4" title="Note payable, current">599</span> was reflected as the current portion of note payable. During the six months ended June 30, 2021, the Company was notified that its PPP loan forgiveness application was approved. The Company recorded the loan forgiveness as a gain on forgiveness of debt of $<span id="xdx_90A_eus-gaap--NotesAndLoansPayableCurrent_iI_pn3n3_uUSD_c20210630_z5mGP2g9PDT4" title="Loan forgiveness gain on debt">770</span>, which is included in other income, leaving <span id="xdx_904_eus-gaap--NotesPayable_iI_pn3n3_do_c20210630_zeegUL5Lw7Ef">no</span> remaining balance owed at June 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 770000 770000 599000 770000 0 <p id="xdx_80C_eus-gaap--LeasesOfLesseeDisclosureTextBlock_zXLc6LbrcARc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>8. <span id="xdx_823_zF4G3EiK4q57">Leases Liabilities</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The Company accounts for leases under ASC 842, <i>Leases</i>. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">ASC 842 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. During the six months ended June 30, 2021, the Company reflected amortization of right of use asset of $<span id="xdx_902_eus-gaap--OperatingLeaseRightOfUseAssetAmortizationExpense_pn3n3_uUSD_c20210101__20210630_zI2at1gBbhB9" title="Operating Lease, Right-of-Use Asset, Amortization Expense">48</span> related to these leases, resulting in a net asset balance of $<span id="xdx_909_eus-gaap--OperatingLeaseRightOfUseAsset_iI_pn3n3_c20210630_zSTTLXLRKRHc" title="Operating lease, right-of-use asset">724</span> as of June 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">In accordance with ASC 842, the right-of-use assets are being amortized over the life of the underlying leases.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">As of December 31, 2020, lease liabilities totalled $<span id="xdx_906_ecustom--LeaseLiabilities_iI_pn3n3_c20201231_zc7LCiqFMlL8" title="Lease liabilities">685</span>, made up of finance lease liabilities of $<span id="xdx_909_eus-gaap--FinanceLeaseLiability_iI_pn3n3_uUSD_c20201231_z8gLcLUeXfe1" title="Finance leases liability">16</span> and operating lease liabilities of $<span id="xdx_907_eus-gaap--OperatingLeaseLiability_iI_pn3n3_uUSD_c20201231_zuAoRuZQstXi" title="Operating leases liability">669</span>. During the six months ended June 30, 2021, the Company terminated $<span id="xdx_905_ecustom--FinanceLeaseTerminated_pn3n3_uUSD_c20210101__20210630_zm41Xn84QZ2" title="Finance lease terminated">13</span> of finance leases, and made payments of $<span id="xdx_905_eus-gaap--FinanceLeasePrincipalPayments_pn3n3_uUSD_c20210101__20210630_za67ATaETVE1" title="Payments of finance lease liability">2</span> towards its finance lease liability and $<span id="xdx_900_eus-gaap--OperatingLeasePayments_pn3n3_uUSD_c20210101__20210630_z193uhWvkUX4" title="Payments of operating lease liability">43</span> towards its operating lease liability. As of June 30, 2021, operating lease liabilities totalled $<span id="xdx_90C_ecustom--LeaseLiabilities_iI_pn3n3_uUSD_c20210630_zWTNAbwFa4n2" title="Lease liabilities">627</span>.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">As of June 30, 2021, the weighted average remaining lease terms for operating leases are <span title="Weighted average remaining lease term for operating lease"><span id="xdx_90B_eus-gaap--OperatingLeaseWeightedAverageRemainingLeaseTerm1_iI_dtY_c20210630_zNWUvl83Pwr" title="Weighted average remaining lease term for operating lease">3.51</span></span> years. The weighted average discount rate for operating leases is <span id="xdx_90E_eus-gaap--OperatingLeaseWeightedAverageDiscountRatePercent_iI_pid_dp_c20210630_zYlftKYo4555" title="Weighted average discount rate for operating lease">12.6</span>%.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 48000 724000 685000 16000 669000 13000 2000 43000 627000 P3Y6M3D 0.126 <p id="xdx_805_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zRH3nXOJDpJ9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>9. <span id="xdx_829_zxZAfcxLrHde">Common Stock</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b> </b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i><span style="text-decoration: underline">Common stock issuance</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">On May 5, 2021, the Company entered into a placement agency agreement with Roth Capital Partners, LLC (the “Placement Agent”) and a securities purchase agreement with a certain purchaser for the purchase of shares of the Company’s common stock, par value $<span id="xdx_90C_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_uUSDPShares_c20210505__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember_zoL6612qeph" title="Common stock, par value">0.0001</span> per share, in an offering of securities registered under an effective registration statement filed with the Securities and Exchange Commission (“SEC”). In the offering, the Company sold <span id="xdx_903_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_pid_uShares_c20210504__20210505_z7Q2mDq3hPah" title="Number of shares sold">6,680,000</span> shares of common stock, at a price of $<span id="xdx_90C_eus-gaap--SaleOfStockPricePerShare_iI_pid_c20210505_zQqaBPk0ILCe" title="Sale of stock price per share">1.18</span> per share. The offering closed on May 7, 2021 and total proceeds received, net of fees, were $<span id="xdx_901_eus-gaap--ProceedsFromIssuanceOfCommonStock_pn3n3_c20210506__20210507_zT7dex62AE75" title="Proceeds from issuance of common stock">7,333</span>. <span id="xdx_907_eus-gaap--SaleOfStockDescriptionOfTransaction_c20210504__20210505_zxYazNA1tQff" title="Description on sale of stock">The Placement Agent was paid a total cash fee at the closing of the Offering equal to 6.5% of the gross cash proceeds received by the Company from the sale of the shares of common stock in the offering.</span></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i><span style="text-decoration: underline">Common stock repurchases</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">During the six months ended June 30, 2021, the Company repurchased <span id="xdx_90A_ecustom--CommonStockSharesRepurchases_iI_c20210630_zlFZctVysem4">13,943 </span></span><span style="font: 10pt Times New Roman, Times, Serif">shares of common stock from an officer for $<span id="xdx_900_ecustom--CommonStockValueRepurchases_iI_pn3n3_c20210630_zu1mcI5zINAf">15</span></span> <span style="font: 10pt Times New Roman, Times, Serif">based on the market value of share on the date repurchased. The Company retired the shares.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 0.0001 6680000 1.18 7333000 The Placement Agent was paid a total cash fee at the closing of the Offering equal to 6.5% of the gross cash proceeds received by the Company from the sale of the shares of common stock in the offering. 13943 15000 <p id="xdx_80F_eus-gaap--DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock_zEniORhSodK7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>9. <span id="xdx_824_zUgS1sXBHLH1">Stock-Based Compensation</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i><span style="text-decoration: underline">Restricted common stock</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_890_eus-gaap--NonvestedRestrictedStockSharesActivityTableTextBlock_zZKNJRx1N5Q5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The following table summarizes restricted stock activity during the six months ended June 30, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8B3_ziBMd04lBA36" style="display: none">Summary of Non-vested Restricted Stock Activity</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Unvested<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issuable<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value<br/> at Date of<br/> Issuance</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/> Average <br/> Grant Date<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Balance, December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zPW4lq2Co54k" style="width: 11%; text-align: right" title="Unvested Shares, beginning balance">150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iS_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_znz2mA68sBI4" style="width: 11%; text-align: right" title="Issuable Shares, beginning balance"><span style="-sec-ix-hidden: xdx2ixbrl1006">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zRphe1ZZxu0k" style="width: 11%; text-align: right" title="Fair Value Unvested, beginning balance">92</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7BbNJpyQcjb" style="width: 11%; text-align: right" title="Weighted Average Grant Date Fair Value, Unvested, beginning balance">0.89</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zvJA2T9FOdsk" style="text-align: right" title="Unvested Shares, Granted">245,900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zChovQW9jlZb" style="text-align: right" title="Issuable Shares, Granted"><span style="-sec-ix-hidden: xdx2ixbrl1014">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedGranted_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zfMmmiXKNQ1g" style="text-align: right" title="Fair Value, Granted">226</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zLdT2MddHIO6" style="text-align: right" title="Weighted Average Grant Date Fair Value, Granted">0.92</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_pid_di_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zKqp2alOofY1" style="text-align: right" title="Unvested Shares, Vested">(159,777</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfIssuableShares_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zhi6CBgVkaaj" style="text-align: right" title="Issuable Shares, Vested">159,777</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zGi20naCxWzl" style="text-align: right" title="Fair Value, Vested"><span style="-sec-ix-hidden: xdx2ixbrl1024">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z1Qiais1gFP3" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested"><span style="-sec-ix-hidden: xdx2ixbrl1026">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pid_di_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zQKMRJcTzmkk" style="text-align: right" title="Unvested Shares, Forfeited">(2,009</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z0skoY2rwQEb" style="text-align: right" title="Weighted Average Grant Date Fair Value, Forfeited">0.89</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Issued</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zUBDJC6Vpl8l" style="border-bottom: Black 1.5pt solid; text-align: right" title="Unvested Shares, Issued"><span style="-sec-ix-hidden: xdx2ixbrl1032">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesIssuedInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zUDzpwp3yZz2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Issuable Shares, Issued">(159,777</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedIssued_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zN3DSvmhdiz3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Fair Value, Issued">(171</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsIssuedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z6USOXediqs5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Issued"><span style="-sec-ix-hidden: xdx2ixbrl1038">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zaCuQMFbxPSa" style="border-bottom: Black 2.5pt double; text-align: right" title="Unvested Shares, ending balance">234,114</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iE_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zDjCMrc72Jbl" style="border-bottom: Black 2.5pt double; text-align: right" title="Issuable Shares, ending balance"><span style="-sec-ix-hidden: xdx2ixbrl1042">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iE_pn3n3_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zSTJ9XyUZG57" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value, Unvested, ending balance">147</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zgiIcYwx7Nm3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Grant Date Fair Value, Unvested, ending balance">0.89</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AD_ztQOaHXkVHwj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">On January 26, 2021, the board of directors of Reed’s, pursuant to a joint recommendation from its governance and compensation committees, set the cash compensation of its non-employee directors at $<span id="xdx_900_eus-gaap--SalariesAndWages_pn3n3_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember_zM112IQITZD9" title="Cash compensation">50,000</span> for fiscal 2021, payable quarterly in accordance with the company’s policies for non-employee director compensation. In addition, the Company granted <span id="xdx_903_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pid_uShares_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zbey2SHys5K3" title="Number of shares awarded">245,900</span> restricted stock awards to five non-employee directors. <span id="xdx_909_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_pid_uShares_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--AwardDateAxis__custom--FebruaryOneTwoThousandTwentyOneAndMayOneTwoThousandTwentyOneMember_zM0DFNMeyFTd" title="Number of shares vested">61,475</span> of these restricted stock awards vested on February 1, 2021 and May 1, 2021. The remaining <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pid_uShares_c20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--AwardDateAxis__custom--AugustOneTwoThousandTwentyOneAndNovemberOneTwoThousandTwentyOneMember_zCOd81jqptR9" title="Shares expect to vest">122,950</span> restricted stock awards will vest equally on August 1, 2021, and November 1, 2021. The aggregate fair value of the stock awards was $<span id="xdx_904_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_pn3n3_uUSD_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zUtC7nm0dlY7" title="Shares issued restricted stock, value">226</span> based on the market price of our common stock price which was $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z66AV1iVH628" title="Exercise price fair value">0.92</span> per share on the date of grants and is amortized as shares vest.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The total fair value of vested restricted common stock vesting during the six months ended June 30, 2021 and 2020 was $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zFqYfhbNvq4j" title="Stock Issued During Period, Value, Restricted Stock Award, Gross">169</span> and $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardGross_pn3n3_uUSD_c20200101__20200630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zHqMzNxhdwaf" title="Stock Issued During Period, Value, Restricted Stock Award, Gross">285</span>, respectively, and is included in general and administrative expenses in the accompanying statements of operations. As of June 30, 2021, the amount of unvested compensation related to issuances of restricted common stock was $<span id="xdx_90C_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zU1VodoeQ2pk" title="Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount">147</span>, 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><i><span style="text-decoration: underline">Stock options</span></i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_ztkdx0D9Sesc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The following table summarizes stock option activity during the six months ended June 30, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_8B4_zkONVHiXPxn" style="display: none">Schedule of Stock Option Activity</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-<br/> Average <br/> Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-<br/> Average<br/> Remaining<br/> Contractual<br/> Terms <br/> (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate <br/> Intrinsic <br/> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOXL7sYtoTMl" style="width: 11%; text-align: right" title="Shares Outstanding, Beginning balance">9,417,898</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxF7I9uomsG7" style="width: 11%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning">1.19</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUbsC5LQqrP" style="width: 11%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning">6.09</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zFmDAJVdeJn1" style="width: 11%; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Begining">78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zcp6yBonPLg1" style="text-align: right" title="Shares, Granted">3,288,700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zqjo07LjCYJ7" style="text-align: right" title="Weighted-Average Exercise Price, Granted">1.06</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zYLvkk36jCX4" style="text-align: right" title="Shares, Exercised">(58,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOsHvoGu7MG4" style="text-align: right" title="Weighted-Average Exercise Price, Exercised">0.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unvested forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zgsXBqzNST4" style="text-align: right" title="Shares, Unvested forfeited or expired">(419,647</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQkeNRMOXfYb" style="text-align: right" title="Weighted-Average Exercise Price, Unvested forfeited or expired">1.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Vested forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriod_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zrFlrLw2enrc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Vested forfeited or expired">(55,344</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUwtGoxCmZmf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Vested forfeited or expired">2.67</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Outstanding at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z6J10kOjiPwb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">12,173,607</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zYALvgmQXVw8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending">1.13</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermEnding_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_znAWKqchKE65" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending">8.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_uUSD_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_ztURXxFeouQ1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Ending">1,012</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zkz335RB5OJ9" style="border-bottom: Black 2.5pt double; text-align: right" title="Shares Exercisable">3,122,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zgOwNGwpl8Hb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.33</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOnBanFnwirc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">6.65</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pn3n3_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOhJ1n62WFw" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Shares Exercisable Ending Balance">510</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8AF_zRIr8ECoGxW3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">During the six months ended June 30, 2021, the Company received proceeds of $<span id="xdx_904_eus-gaap--ProceedsFromStockPlans_pn3n3_uUSD_c20210101__20210630_zg3lnPXhuw7j" title="Proceeds from stock option exercised">29</span> and issued <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_pid_uShares_c20210101__20210630_z8CSVz0mX168" title="Exercise of options, shares">58,000</span> shares of common shares on the exercise of stock options.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">During the six months ended June 30, 2021, the Company approved options exercisable into <span id="xdx_900_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_uShares_c20200630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zyEFLzdHKzOg" title="Number of options to be issued">3,288,700 </span></span><span style="font: 10pt Times New Roman, Times, Serif">shares to be issued pursuant to Reed’s 2020 Equity Incentive Plan. <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_uShares_c20210101__20210630__srt--TitleOfIndividualAxis__custom--EmployeesMember_zuIefWxrHZSd">3,288,700</span></span><span style="font: 10pt Times New Roman, Times, Serif"> options were issued to employees, <span id="xdx_90D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardAcceleratedVestingNumber_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z2UemJ5BFAd7" title="Number of options vested">1,644,350</span></span><span style="font: 10pt Times New Roman, Times, Serif"> options vesting annually over a <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingRights_dxL_c20200101__20201231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z67uJz62BXhb" title="Vesting period description::XDX::P4Y"><span style="-sec-ix-hidden: xdx2ixbrl1117">four-year </span></span></span><span style="font: 10pt Times New Roman, Times, Serif">vesting period, and <span id="xdx_903_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionVestedNumberOfShares_pid_uShares_c20200101__20201231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zKWGDVQijO83">1,644,350 </span></span><span style="font: 10pt Times New Roman, Times, Serif">options that will vest based on performance criteria to be established by the board of directors.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The stock options are exercisable at prices ranging from $<span id="xdx_908_eus-gaap--SharePrice_iI_pid_uUSDPShares_c20210630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember__srt--RangeAxis__srt--MinimumMember_zCLZexQ5VVUd" title="Stock price">0.98</span> to $<span id="xdx_904_eus-gaap--SharePrice_iI_pid_uUSDPShares_c20210630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember__srt--RangeAxis__srt--MaximumMember_zoUbColLNNqk" title="Stock price">1.18</span> per share and expire in <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod_dt_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember_zkTEJkYUJtob" title="Stock options expiration period">ten years</span>. The total fair value of these options at grant date was approximately $<span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedAtFairValue_pn3n3_uUSD_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember_zPNZKFWt1wV9" title="Fair value of options granted">2,345</span>, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $<span id="xdx_90A_eus-gaap--SharePrice_iI_pid_uUSDPShares_c20210630__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember_zY7yHKTGQfW1" title="Stock price">1.06</span> per share, expected term of <span id="xdx_90E_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dt_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zkHBvvUF1dOb" title="Expected term">six years</span>, volatility of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_pid_dp_uPure_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember__srt--RangeAxis__srt--MinimumMember_zMAZgvtl58ug" title="Weighted average volatility">79</span>%, dividend rate of <span id="xdx_906_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPure_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zJY6wDJoP3U4" title="Dividend rate">0</span>%, and weighted average risk-free interest rate of <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPure_c20210101__20210630__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zwSRjQ9T3eSa" title="Risk-free interest rate">0.98</span>%. 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.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">During the six months ended June 30, 2021 and 2020, the Company recognized $<span id="xdx_902_eus-gaap--AllocatedShareBasedCompensationExpense_pn3n3_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zGj3Sv03Unej">828 </span></span><span style="font: 10pt Times New Roman, Times, Serif">and $<span id="xdx_906_eus-gaap--AllocatedShareBasedCompensationExpense_pn3n3_c20200101__20200630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zjfYLwf6QcYl">459 </span></span><span style="font: 10pt Times New Roman, Times, Serif">of compensation expense relating to vested stock options. As of June 30, 2021, the aggregate amount of unvested compensation related to stock options was approximately $<span id="xdx_907_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zcep1PUkqSdi">4,700 </span></span><span style="font: 10pt Times New Roman, Times, Serif">which will be recognized as an expense as the options vest in future periods through March 28, 2025.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">As of June 30, 2021, the outstanding and exercisable options have an intrinsic value of $<span id="xdx_90F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pn3n3_uUSD_c20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zbIrstzogea4" title="Outstanding options, intrinsic value">1,012</span> and $<span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_pn3n3_c20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z0XCkClal3x9" title="Exercisable, intrinsic value">510</span>, respectively. The aggregate intrinsic value was calculated as the difference between the closing market price as of June 30, 2021, which was $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_z0oJMmS9iK0i" title="Exercise price, outstanding stock options">1.02</span>, and the exercise price of the outstanding stock options.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_890_eus-gaap--NonvestedRestrictedStockSharesActivityTableTextBlock_zZKNJRx1N5Q5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The following table summarizes restricted stock activity during the six months ended June 30, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_8B3_ziBMd04lBA36" style="display: none">Summary of Non-vested Restricted Stock Activity</span> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Unvested<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Issuable<br/> Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Fair Value<br/> at Date of<br/> Issuance</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted<br/> Average <br/> Grant Date<br/> Fair Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Balance, December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zPW4lq2Co54k" style="width: 11%; text-align: right" title="Unvested Shares, beginning balance">150,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iS_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_znz2mA68sBI4" style="width: 11%; text-align: right" title="Issuable Shares, beginning balance"><span style="-sec-ix-hidden: xdx2ixbrl1006">-</span></td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zRphe1ZZxu0k" style="width: 11%; text-align: right" title="Fair Value Unvested, beginning balance">92</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7BbNJpyQcjb" style="width: 11%; text-align: right" title="Weighted Average Grant Date Fair Value, Unvested, beginning balance">0.89</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zvJA2T9FOdsk" style="text-align: right" title="Unvested Shares, Granted">245,900</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zChovQW9jlZb" style="text-align: right" title="Issuable Shares, Granted"><span style="-sec-ix-hidden: xdx2ixbrl1014">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedGranted_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zfMmmiXKNQ1g" style="text-align: right" title="Fair Value, Granted">226</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zLdT2MddHIO6" style="text-align: right" title="Weighted Average Grant Date Fair Value, Granted">0.92</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt">Vested</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_pid_di_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zKqp2alOofY1" style="text-align: right" title="Unvested Shares, Vested">(159,777</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfIssuableShares_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zhi6CBgVkaaj" style="text-align: right" title="Issuable Shares, Vested">159,777</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zGi20naCxWzl" style="text-align: right" title="Fair Value, Vested"><span style="-sec-ix-hidden: xdx2ixbrl1024">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z1Qiais1gFP3" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested"><span style="-sec-ix-hidden: xdx2ixbrl1026">-</span></td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt">Forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pid_di_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zQKMRJcTzmkk" style="text-align: right" title="Unvested Shares, Forfeited">(2,009</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z0skoY2rwQEb" style="text-align: right" title="Weighted Average Grant Date Fair Value, Forfeited">0.89</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; padding-bottom: 1.5pt">Issued</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zUBDJC6Vpl8l" style="border-bottom: Black 1.5pt solid; text-align: right" title="Unvested Shares, Issued"><span style="-sec-ix-hidden: xdx2ixbrl1032">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_982_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesIssuedInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zUDzpwp3yZz2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Issuable Shares, Issued">(159,777</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedIssued_pn3n3_uUSD_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zN3DSvmhdiz3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Fair Value, Issued">(171</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsIssuedWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z6USOXediqs5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Issued"><span style="-sec-ix-hidden: xdx2ixbrl1038">-</span></td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt">Balance, June 30, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zaCuQMFbxPSa" style="border-bottom: Black 2.5pt double; text-align: right" title="Unvested Shares, ending balance">234,114</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iE_pid_uShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zDjCMrc72Jbl" style="border-bottom: Black 2.5pt double; text-align: right" title="Issuable Shares, ending balance"><span style="-sec-ix-hidden: xdx2ixbrl1042">-</span></td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iE_pn3n3_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zSTJ9XyUZG57" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value, Unvested, ending balance">147</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zgiIcYwx7Nm3" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted Average Grant Date Fair Value, Unvested, ending balance">0.89</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 150000 92000 0.89 245900 226000 0.92 159777 159777 2009 0.89 -159777 -171000 234114 147000 0.89 50000000 245900 61475 122950 226000 0.92 169000 285000 147000 <p id="xdx_898_eus-gaap--ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock_ztkdx0D9Sesc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">The following table summarizes stock option activity during the six months ended June 30, 2021:</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_8B4_zkONVHiXPxn" style="display: none">Schedule of Stock Option Activity</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-<br/> Average <br/> Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Weighted-<br/> Average<br/> Remaining<br/> Contractual<br/> Terms <br/> (Years)</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate <br/> Intrinsic <br/> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOXL7sYtoTMl" style="width: 11%; text-align: right" title="Shares Outstanding, Beginning balance">9,417,898</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxF7I9uomsG7" style="width: 11%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning">1.19</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUbsC5LQqrP" style="width: 11%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning">6.09</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zFmDAJVdeJn1" style="width: 11%; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Begining">78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zcp6yBonPLg1" style="text-align: right" title="Shares, Granted">3,288,700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_98D_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zqjo07LjCYJ7" style="text-align: right" title="Weighted-Average Exercise Price, Granted">1.06</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zYLvkk36jCX4" style="text-align: right" title="Shares, Exercised">(58,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_983_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOsHvoGu7MG4" style="text-align: right" title="Weighted-Average Exercise Price, Exercised">0.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unvested forfeited</td><td> </td> <td style="text-align: left"> </td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zgsXBqzNST4" style="text-align: right" title="Shares, Unvested forfeited or expired">(419,647</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQkeNRMOXfYb" style="text-align: right" title="Weighted-Average Exercise Price, Unvested forfeited or expired">1.74</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Vested forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_989_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriod_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zrFlrLw2enrc" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Vested forfeited or expired">(55,344</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_987_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zUwtGoxCmZmf" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Vested forfeited or expired">2.67</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Outstanding at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z6J10kOjiPwb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">12,173,607</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zYALvgmQXVw8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending">1.13</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98B_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermEnding_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_znAWKqchKE65" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending">8.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_uUSD_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_ztURXxFeouQ1" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Ending">1,012</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at June 30, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_uShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zkz335RB5OJ9" style="border-bottom: Black 2.5pt double; text-align: right" title="Shares Exercisable">3,122,079</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zgOwNGwpl8Hb" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.33</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_98B_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOnBanFnwirc" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">6.65</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_981_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pn3n3_c20210101__20210630__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zOhJ1n62WFw" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Shares Exercisable Ending Balance">510</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> 9417898 1.19 P6Y1M2D 78000 3288700 1.06 58000 0.50 419647 1.74 -55344 2.67 12173607 1.13 P8Y6M21D 1012000 3122079 1.33 P6Y7M24D 510000 29000 58000 3288700 3288700 1644350 1644350 0.98 1.18 P10Y 2345000 1.06 P6Y 0.79 0 0.0098 828000 459000 4700000 1012000 510000 1.02 <p id="xdx_809_ecustom--StockWarrantsTextBlock_zfJSUZI8f8X3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>10. <span id="xdx_822_zr9n0n13kZUk">Stock Warrants</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">As of June 30, 2021, the Company has issued warrants to purchase an aggregate of 3,362,241 shares of common stock. The Company’s warrant activity during the six months ended June 30, 2021 is as follows:</span></p> <p id="xdx_892_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zDzKU3dPozV1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_8B0_zAhNajjY9USh" style="display: none">Schedule of Warrant Activity</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted-</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Average Exercise Price</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted-</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Average Remaining Contractual Terms (Years)</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iS_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zyRmdJ5sPWg9" style="width: 11%; text-align: right" title="Shares Outstanding, Beginning Balance">3,362,241</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zngl3rROVf29" style="width: 11%; text-align: right" title="Weighted-Average Exercise Price, Outstanding Beginning Balance">1.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zMbKWKTkEMMk" style="width: 11%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance">2.49</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZLPqwXj1j73" style="width: 11%; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Beginning"><span style="-sec-ix-hidden: xdx2ixbrl1157">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercised_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjxxVKJlW7wi" style="text-align: right" title="Shares, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl1159">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisedWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zawwPaydfsUi" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl1161">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesForfitedOrExpired_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z2SKf6JGaYth" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Forfeited or expired">(273,762</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98A_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesForfeitedWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbha1CJdOxPa" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited or expired">4.04</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Outstanding at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iE_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_ze3FWfcgWJKd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">3,088,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zKcctTXnNDUc" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding Ending Balance">1.35</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_98B_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms1_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7G9Qisygszl" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance">2.17</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_980_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iE_pn3n3_uUSD_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z2aVnka3X5a" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Ending">376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Exercisable at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisable_iE_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zMuYcIxUhOC9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Exercisable, Ending Balance">3,088,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisableWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zNtgAtBp4NA7" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.35</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableWeightedAverageRemainingContractualTerms_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zdhlkDHXMx9d" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">2.17</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableAggregateIntrinsicValue_iE_pn3n3_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zqzzt637pv06" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Exercisable">376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> <p id="xdx_8A5_zverhmWuHGW3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">There were <span id="xdx_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pn3n3_do_uUSD_c20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zRoMF4dgU8h8" title="Number of warrants outstanding, intrinsic value">no</span> warrant transactions during the six months ended June 30, 2021. As of June 30, 2021, the outstanding and exercisable warrants have an intrinsic value of $<span id="xdx_908_ecustom--ClassOfWarrantsOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iI_pn3n3_uUSD_c20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zd5qO9plQoba" title="Aggregate intrinsic value">376</span>. The intrinsic value was calculated as the difference between the closing market price as of June 30, 2021, which was $<span id="xdx_904_eus-gaap--SharePrice_iI_pid_c20210630__us-gaap--StatementEquityComponentsAxis__custom--StockWarrantsMember_zNYWWTFxULa2" title="Stock price">1.02</span>, and the exercise price of the Company’s warrants to purchase common stock.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p id="xdx_892_eus-gaap--ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlock_zDzKU3dPozV1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span id="xdx_8B0_zAhNajjY9USh" style="display: none">Schedule of Warrant Activity</span><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 90%; margin-right: auto"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Shares</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted-</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Average Exercise Price</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Weighted-</b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>Average Remaining Contractual Terms (Years)</b></span></p></td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Aggregate Intrinsic Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td><td> </td> <td colspan="2"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_981_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iS_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zyRmdJ5sPWg9" style="width: 11%; text-align: right" title="Shares Outstanding, Beginning Balance">3,362,241</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_984_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iS_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zngl3rROVf29" style="width: 11%; text-align: right" title="Weighted-Average Exercise Price, Outstanding Beginning Balance">1.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_988_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zMbKWKTkEMMk" style="width: 11%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance">2.49</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iS_pn3n3_uUSD_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZLPqwXj1j73" style="width: 11%; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Beginning"><span style="-sec-ix-hidden: xdx2ixbrl1157">-</span></td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_988_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercised_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zjxxVKJlW7wi" style="text-align: right" title="Shares, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl1159">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_987_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisedWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zawwPaydfsUi" style="text-align: right" title="Weighted-Average Exercise Price, Exercised"><span style="-sec-ix-hidden: xdx2ixbrl1161">-</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Forfeited</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesForfitedOrExpired_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z2SKf6JGaYth" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Forfeited or expired">(273,762</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98A_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesForfeitedWeightedAverageExercisePrice_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zbha1CJdOxPa" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited or expired">4.04</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Outstanding at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_986_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iE_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_ze3FWfcgWJKd" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">3,088,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zKcctTXnNDUc" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding Ending Balance">1.35</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_98B_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms1_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7G9Qisygszl" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance">2.17</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_980_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iE_pn3n3_uUSD_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z2aVnka3X5a" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Ending">376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1.5pt">Exercisable at June 30, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98D_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisable_iE_pid_uShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zMuYcIxUhOC9" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Exercisable, Ending Balance">3,088,479</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisableWeightedAverageExercisePrice_iE_pid_uUSDPShares_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zNtgAtBp4NA7" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.35</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableWeightedAverageRemainingContractualTerms_dtY_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zdhlkDHXMx9d" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">2.17</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableAggregateIntrinsicValue_iE_pn3n3_c20210101__20210630__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zqzzt637pv06" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Exercisable">376</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> 3362241 1.56 P2Y5M26D -273762 4.04 3088479 1.35 P2Y2M1D 376000 3088479 1.35 P2Y2M1D 376000 0 376000 1.02 <p id="xdx_801_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zI0xVZuzTI06" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>11. <span id="xdx_826_zeYtRJ3nc6ed">Related Party Activities</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">On December 31, 2018, the Company completed the sale of its Los Angeles manufacturing plant to California Custom Beverage, LLC (“CCB”), an entity owned by Christopher J. Reed, a related party, and CCB assumed the monthly payments on our lease obligation for the Los Angeles manufacturing plant. Our release from the obligation by the lessor, however, is dependent upon CCB’s deposit of $<span id="xdx_90B_eus-gaap--SecurityDeposit_iI_pn3n3_uUSD_c20181231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zm7Ypn7pnMG1" title="Deposit of security with lessor">1,200</span> of security with the lessor. The deposit is secured by Mr. Reed’s pledge of common stock to the lessor and guaranteed personally by Mr. Reed and his wife. As of June 30, 2021, $<span id="xdx_90A_eus-gaap--SecurityDeposit_iI_pn3n3_c20210630__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zYCjmmanj6e3" title="Deposit of security with lessor">800</span> has been deposited with the lessor and Mr. Reed has placed approximately <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_pid_uShares_c20210101__20210630__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zkwK6etT2jJc" title="Number of common stock value placed">363,000</span> pledged shares valued at $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pn3n3_uUSD_c20210101__20210630__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zt6nYyTwM0v" title="Value of common stock placed">370</span> that remain in escrow with the lessor.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Beginning in 2019, we are to receive a <span id="xdx_90D_ecustom--RoyaltyPercentage_iI_pid_dp_uPure_c20191231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zAwJ04a8LhHi" title="Royalty percentage">5</span>% royalty on CCB’s private label sales to existing customers for three years and a <span id="xdx_90B_ecustom--ReferralFeePercentage_iI_pid_dp_uPure_c20191231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_z3Ce5gStWhp8" title="Referral fee percentage">5</span>% referral fee on CCB’s private label sales to referred customers for three years. During the six months ended June 30, 2021 and 2020, the Company recorded royalty revenue from CCB of $<span id="xdx_90B_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_pn3n3_uUSD_c20210101__20210630__srt--ProductOrServiceAxis__us-gaap--RoyaltyMember_zqqzyYIRJ8od" title="Royalty revenue">3</span> and $<span id="xdx_90C_eus-gaap--RevenueFromContractWithCustomerIncludingAssessedTax_pn3n3_uUSD_c20200101__20200630__srt--ProductOrServiceAxis__us-gaap--RoyaltyMember_zjmthecpzv28" title="Royalty revenue">5</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">At December 31, 2020, the Company had an aggregate receivable balance from CCB of $<span id="xdx_907_eus-gaap--AccountsReceivableRelatedParties_iI_pn3n3_uUSD_c20201231__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_zxsaFHlHI3Z" title="Receivable from related party">682</span> at December 31, 2020. During the six months ended June 30, 2021, the Company recorded royalty revenue receivable of $<span id="xdx_901_ecustom--RoyaltyRevenueReceivable_iI_pn3n3_uUSD_c20210630__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zeS6wQ1JVoUb" title="Royalty revenue receivable">3</span>, and advanced expenses of $<span id="xdx_90E_ecustom--InventoryAdvances_pn3n3_uUSD_c20210101__20210630__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zhhTPLUsIwpe" title="Inventory advances">55</span>, leaving an aggregate receivable balance of $<span id="xdx_903_eus-gaap--AccountsReceivableRelatedParties_iI_pn3n3_uUSD_c20210630__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zeK0nHIKFacg" title="Receivable from related party">740</span> at June 30, 2021.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Any over-advance on the Company’s line of credit with Rosenthal was guaranteed by an irrevocable stand-by letter of credit in the amount of $<span id="xdx_902_ecustom--LetterOfCredit_iI_pn3n3_c20210630__srt--TitleOfIndividualAxis__custom--DanielJDohertyMember_z4DIV0gzAaM" title="Letter of credit.">1,500</span>, issued by Daniel J. Doherty III and the Daniel J. Doherty, III 2002 Family Trust, affiliates of Raptor/Harbor Reeds SPV LLC (“Raptor”). <span id="xdx_902_eus-gaap--LineOfCreditFacilityDescription_c20210101__20210630_znJKBJOqvswh" title="Line of credit description">On March 11, 2021, the Company entered into an amendment to the financing agreement, releasing that irrevocable standby letter of credit of $1,500 by Raptor with a $2,000 pledge of securities to Rosenthal by John J. Bello and Nancy E. Bello, as Co-Trustees of The John and Nancy Bello Revocable Living Trust.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0">John J. Bello, current Chairman and former Interim Chief Executive Officer of Reed’s, is a related party. He is also a greater than <span id="xdx_904_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_uPure_c20210630__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_zoXlD5dHJMZ7" title="Equity ownership percentage">5%</span> beneficial owner of Reed’s common stock. As consideration for the collateral support, Mr. Bello received <span id="xdx_900_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20210101__20210630__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_z67DIQwFFZfa" title="Shares issued restricted stock">400,000</span> shares of Reed’s restricted stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">At June 30, 2021 and December 31, 2020, the Company had accounts payable due to CCB of $<span id="xdx_902_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_iI_pn3n3_uUSD_c20210630__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_ziUM9T5clUll" title="Accounts payable due to related parties">799</span> and $<span id="xdx_90E_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_iI_pn3n3_uUSD_c20201231__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_zQ4q8YImnfsg" title="Accounts payable due to related parties">577</span>, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Lindsay Martin, daughter of a director of the Company, is employed as Vice President of Marketing. Ms. Martin was paid approximately $<span id="xdx_907_eus-gaap--RelatedPartyCosts_pn3n3_uUSD_c20210101__20210630__srt--TitleOfIndividualAxis__custom--LindsayMartinMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--VicePresidentMember_zuOnIdvxCq5b" title="Amount paid for service">133</span> and $<span id="xdx_90E_eus-gaap--RelatedPartyCosts_pn3n3_uUSD_c20200101__20200630__srt--TitleOfIndividualAxis__custom--LindsayMartinMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--VicePresidentMember_zvqCjnzIZG0a" title="Amount paid for service">87</span>, respectively, for her services during the six months ended June 30, 2021 and 2020, respectively.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> 1200000 800000 363000 370000 0.05 0.05 3000 5000 682000 3000 55000 740000 1500000 On March 11, 2021, the Company entered into an amendment to the financing agreement, releasing that irrevocable standby letter of credit of $1,500 by Raptor with a $2,000 pledge of securities to Rosenthal by John J. Bello and Nancy E. Bello, as Co-Trustees of The John and Nancy Bello Revocable Living Trust. 0.05 400000 799000 577000 133000 87000 <p id="xdx_80F_eus-gaap--SubsequentEventsTextBlock_z1YtrUUdnHa1" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b>13. <span id="xdx_82D_zv5kEiXzTf6e">Subsequent Events</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Subsequent to June 30, 2021, the Company issued <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210701__20210811__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_zgZPsuknfkFa" title="Stock issued during period stock options exercised">5,000</span> shares of common stock on the exercise of stock options, and <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_c20210701__20210811__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember__srt--TitleOfIndividualAxis__srt--DirectorMember_zqjAwPZUWHhj" title="Stock issued during period stock options exercised">61,475</span> shares of common stock to its directors.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"/> 5000 61475