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1. Basis of Presentation and Liquidity The accompanying interim condensed financial statements of Reed’s, Inc. (the “Company”, “we”, “us”, or “our”), are unaudited, but in the opinion of management contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position at March 31, 2021 and the results of operations and cash flows for the three months ended March 31, 2021 and 2020. The balance sheet as of December 31, 2020 is derived from the Company’s audited financial statements. Certain information and footnote disclosures normally included in financial statements that have been prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. We believe that the disclosures contained in these condensed financial statements are adequate to make the information presented herein not misleading. For further information, refer to the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the Securities and Exchange Commission on March 30, 2021. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2021. COVID-19 Considerations During the period ended March 31, 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. Through March 31, 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. However, mitigation plans are being implemented to manage this risk. 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 March 31, 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. Net sales for the period ended March 31, 2021 were up 28% from the prior year period. Through March 31, 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. Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2021, the Company recorded a net loss of $4,507 and used cash in operations of $5,059. As of March 31, 2021, we had a cash balance of $155 with borrowing capacity of $2,513, a stockholder’s equity of $6,770 and a working capital of $5,698, compared to a cash balance of $595 with borrowing capacity of $5,166, stockholders’ equity of $10,404 and a working capital of $9,528 at December 31, 2020. Notwithstanding the net loss for the three months ended March 31, 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 of this quarterly report. 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.

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2. Significant Accounting Policies Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, depreciable lives of property and equipment, analysis of impairments of recorded long-term tangible and intangible assets, realization of deferred tax assets, accruals for potential liabilities and assumptions made in valuing stock instruments issued for services. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s performance obligations are satisfied at that time. All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis. Loss per Common Share Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. <p id="xdx_895_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z6G8TPAK31Gg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the periods ended March 31, 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: Schedule of Potentially Dilutive Securities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 95%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</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">March 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_z965NLrJKEh5" style="width: 16%; 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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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zFDH0FM0WqYd" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_z87CjOQG043k" 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 style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLLcPcQKQzk3" 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_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zuxRUM93mgK8" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">309,082</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z3WjiDKGUtDe" 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_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_z5bk1VIn4VPk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">11,028,322</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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zZDfNkAL9kB8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,683,380</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_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_zpT1gQ1FoRfj" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">14,737,289</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_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331_zrFaXXsv5xH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,901,473</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4. Stock Compensation Expense The Company periodically issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, Compensation-Stock Compensation 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. The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods. Advertising Costs Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs aggregated $349 and $302 for the three months ended March 31, 2021 and 2020, respectively. Concentrations Gross sales. During the three months ended March 31, 2021, the Company’s two largest customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zsGq5g3AmHei" title="Percentage of sale accounted to customer">23% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zTjjEbmyzLBg" title="Percentage of sale accounted to customer">12% of gross sales, respectively. During the three months ended March 31, 2020, the Company’s two largest customers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20200331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zDaL7Ybizt2d" title="Percentage of sale accounted to customer">22% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20200331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zJ2T9Ramw8Ke" title="Percentage of sale accounted to customer">14% of gross sales, respectively. No other customers exceeded <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--RangeAxis__srt--MaximumMember_zQVGg322k7jd">10% of sales in either period. Accounts receivable. As of March 31, 2021, the Company had accounts receivable from two customers which comprised <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zZHMZ9q4UIm7" title="Percentage of sale accounted to customer">18% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_ztH07s5jk7l7" title="Percentage of sale accounted to customer">10% of its gross accounts receivable, respectively. As of December 31, 2020, the Company had accounts receivable from one customer which comprised <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zPmHkREIuPlf" title="Percentage of sale accounted to customer">23% of its gross accounts receivable. No other customers exceeded <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--RangeAxis__srt--MaximumMember_z3HUaqRklxUb" title="Percentage of sale accounted to customer">10% of gross accounts receivable in either period. Purchases from vendors. During the three months ended March 31, 2021, the Company’s two largest vendor accounted for approximately 13% and 13% of all purchases, respectively. During the three months ended March 31, 2020, the Company’s largest vendor accounted for approximately 10% of all purchases. No other vendors exceeded 10% of all purchases in either periods. Accounts payable. As of March 31, 2021, the Company’s two largest vendors accounted for <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zuFrClJisl8i" title="Percentage of sale accounted to customer">19% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zEiX4TVcn0p2" title="Percentage of sale accounted to customer">10% of the total accounts payable, respectively. As of December 31, 2020 the Company’s largest two vendors accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zrPZ5MsgccLb" title="Percentage of sale accounted to customer">12% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zdeZ03fXMlv4" title="Percentage of sale accounted to customer">10% of the total accounts payable, respectively. No other vendors exceeded <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--RangeAxis__srt--MaximumMember_zQJGxwg8evo8" title="Percentage of sale accounted to customer">10% of gross accounts payable in either period. Fair Value of Financial Instruments The Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring basis. Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure their fair value. ASC 820 defines the following levels of subjectivity associated with the inputs: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company’s assumptions. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, short-term bank loans, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of capital lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for the Company beginning January 1, 2023, and early adoption is permitted. The Company does not believe the potential impact of the new guidance and related codification improvements will be material to its financial position, results of operations and cash flows. 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. 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.

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

Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (“ASC 606”). The underlying principle of ASC 606 is to recognize revenue to depict the transfer of goods or services to customers at the amount expected to be collected. ASC 606 creates a five-step model that requires entities to exercise judgment when considering the terms of contract(s), which include (1) identifying the contract or agreement with a customer, (2) identifying our performance obligations in the contract or agreement, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations, and (5) recognizing revenue as each performance obligation is satisfied. The Company does not have any significant contracts with customers requiring performance beyond delivery, and contracts with customers contain no incentives or discounts that could cause revenue to be allocated or adjusted over time. Shipping and handling activities are performed before the customer obtains control of the goods and therefore represent a fulfillment activity rather than a promised service to the customer. Revenue and costs of sales are recognized when control of the products transfers to our customer, which generally occurs upon shipment from our facilities. The Company’s performance obligations are satisfied at that time. All of the Company’s products are offered for sale as finished goods only, and there are no performance obligations required post-shipment for customers to derive the expected value from them. The Company does not allow for returns, except for damaged products when the damage occurred pre-fulfillment. Damaged product returns have historically been insignificant. Because of this, the stand-alone nature of our products, and our assessment of performance obligations and transaction pricing for our sales contracts, we do not currently maintain a contract asset or liability balance for obligations. We assess our contracts and the reasonableness of our conclusions on a quarterly basis.

Loss per Common Share Basic earnings (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed by dividing the net income applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued, using the treasury stock method. Potential common shares are excluded from the computation when their effect is antidilutive. <p id="xdx_895_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z6G8TPAK31Gg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the periods ended March 31, 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: Schedule of Potentially Dilutive Securities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 95%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</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">March 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_z965NLrJKEh5" style="width: 16%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">-</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_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zUlHguWHlWEc" style="width: 16%; 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_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_ziNaWp8Ez0hc" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">3,362,241</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zKURENzcSG06" 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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zFDH0FM0WqYd" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_z87CjOQG043k" 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 style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLLcPcQKQzk3" 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_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zuxRUM93mgK8" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">309,082</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z3WjiDKGUtDe" 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_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_z5bk1VIn4VPk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">11,028,322</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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zZDfNkAL9kB8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,683,380</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_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_zpT1gQ1FoRfj" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">14,737,289</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_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331_zrFaXXsv5xH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,901,473</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> The Series A Convertible Preferred Stock is convertible into Common shares at the rate of 1:4.

<p id="xdx_895_eus-gaap--ScheduleOfAntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareTextBlock_z6G8TPAK31Gg" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the periods ended March 31, 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: Schedule of Potentially Dilutive Securities <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-left: auto; border-collapse: collapse; width: 95%; margin-right: auto"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</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">March 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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_987_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_z965NLrJKEh5" style="width: 16%; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">-</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_981_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--ConvertibleNoteToARelatedPartyMember_zUlHguWHlWEc" style="width: 16%; 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_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_ziNaWp8Ez0hc" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">3,362,241</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--WarrantMember_zKURENzcSG06" 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_98F_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_zFDH0FM0WqYd" 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_980_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockEquivalentOfSeriesAConvertiblePreferredStockMember_z87CjOQG043k" 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 style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98C_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--CommonStockIssuableMember_zLLcPcQKQzk3" 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_988_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_zuxRUM93mgK8" style="text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">309,082</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__custom--UnvestedRestrictedCommonStockMember_z3WjiDKGUtDe" 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_98A_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_z5bk1VIn4VPk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">11,028,322</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_989_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331__us-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareByAntidilutiveSecuritiesAxis__us-gaap--StockOptionMember_zZDfNkAL9kB8" style="border-bottom: Black 1.5pt solid; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">4,683,380</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_983_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20210101__20210331_zpT1gQ1FoRfj" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">14,737,289</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_eus-gaap--AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount_pid_c20200101__20200331_zrFaXXsv5xH9" style="border-bottom: Black 2.5pt double; text-align: right" title="Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount">13,901,473</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2266667

3362241

6413782

37644

350000

309082

150000

11028322

4683380

14737289

13901473

Stock Compensation Expense The Company periodically issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, Compensation-Stock Compensation 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. The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.

Advertising Costs Advertising costs are expensed as incurred and are included in selling and marketing expense. Advertising costs aggregated $349 and $302 for the three months ended March 31, 2021 and 2020, respectively.

349000

302000

Concentrations Gross sales. During the three months ended March 31, 2021, the Company’s two largest customers accounted for <span id="xdx_905_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zsGq5g3AmHei" title="Percentage of sale accounted to customer">23% and <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zTjjEbmyzLBg" title="Percentage of sale accounted to customer">12% of gross sales, respectively. During the three months ended March 31, 2020, the Company’s two largest customers accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20200331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zDaL7Ybizt2d" title="Percentage of sale accounted to customer">22% and <span id="xdx_907_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20200331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember_zJ2T9Ramw8Ke" title="Percentage of sale accounted to customer">14% of gross sales, respectively. No other customers exceeded <span id="xdx_901_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--SalesRevenueNetMember__srt--RangeAxis__srt--MaximumMember_zQVGg322k7jd">10% of sales in either period. Accounts receivable. As of March 31, 2021, the Company had accounts receivable from two customers which comprised <span id="xdx_902_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zZHMZ9q4UIm7" title="Percentage of sale accounted to customer">18% and <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--CustomerTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_ztH07s5jk7l7" title="Percentage of sale accounted to customer">10% of its gross accounts receivable, respectively. As of December 31, 2020, the Company had accounts receivable from one customer which comprised <span id="xdx_90E_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--CustomerOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember_zPmHkREIuPlf" title="Percentage of sale accounted to customer">23% of its gross accounts receivable. No other customers exceeded <span id="xdx_90A_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoCustomerMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsReceivableMember__srt--RangeAxis__srt--MaximumMember_z3HUaqRklxUb" title="Percentage of sale accounted to customer">10% of gross accounts receivable in either period. Purchases from vendors. During the three months ended March 31, 2021, the Company’s two largest vendor accounted for approximately 13% and 13% of all purchases, respectively. During the three months ended March 31, 2020, the Company’s largest vendor accounted for approximately 10% of all purchases. No other vendors exceeded 10% of all purchases in either periods. Accounts payable. As of March 31, 2021, the Company’s two largest vendors accounted for <span id="xdx_90F_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zuFrClJisl8i" title="Percentage of sale accounted to customer">19% and <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zEiX4TVcn0p2" title="Percentage of sale accounted to customer">10% of the total accounts payable, respectively. As of December 31, 2020 the Company’s largest two vendors accounted for <span id="xdx_904_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorOneMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zrPZ5MsgccLb" title="Percentage of sale accounted to customer">12% and <span id="xdx_908_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20200101__20201231__srt--MajorCustomersAxis__custom--VendorTwoMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember_zdeZ03fXMlv4" title="Percentage of sale accounted to customer">10% of the total accounts payable, respectively. No other vendors exceeded <span id="xdx_903_eus-gaap--ConcentrationRiskPercentage1_pid_dp_c20210101__20210331__srt--MajorCustomersAxis__custom--NoVendorMember__us-gaap--ConcentrationRiskByBenchmarkAxis__us-gaap--AccountsPayableMember__srt--RangeAxis__srt--MaximumMember_zQJGxwg8evo8" title="Percentage of sale accounted to customer">10% of gross accounts payable in either period.

0.23

0.12

0.22

0.14

0.10

0.18

0.10

0.23

0.10

0.13

0.10

0.19

0.10

0.12

0.10

Fair Value of Financial Instruments The Company uses various inputs in determining the fair value of its financial assets and liabilities and measures these assets on a recurring basis. Financial assets recorded at fair value are categorized by the level of subjectivity associated with the inputs used to measure their fair value. ASC 820 defines the following levels of subjectivity associated with the inputs: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company’s assumptions. The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, short-term bank loans, accounts payable, notes payable and other payables, approximate their fair values because of the short maturity of these instruments. The carrying values of capital lease obligations and long-term financing obligations approximate their fair values because interest rates on these obligations are based on prevailing market interest rates.

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

3. Inventory Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands): Schedule of Inventory <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_494_20210331_z8qtBPAoTBmk" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20201231_z3Tl4CbEhg0i" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzpZB_zgQgaGk8P1Pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials and packaging</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,746</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,793</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzpZB_zsvbbVTm51ba" 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">4,699</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_40E_eus-gaap--InventoryNet_iTI_pn3n3_mtINzpZB_z5VXKgTKi9ch" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,445</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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> The Company has recorded a reserve for slow moving and potentially obsolete inventory. The reserve at March 31, 2021, and December 31, 2020, was $174 and $194, respectively.

Inventory is valued at the lower of cost (first-in, first-out) or net realizable value, and net of reserves is comprised of the following (in thousands): Schedule of Inventory <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_494_20210331_z8qtBPAoTBmk" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49F_20201231_z3Tl4CbEhg0i" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_403_eus-gaap--InventoryRawMaterials_iI_pn3n3_maINzpZB_zgQgaGk8P1Pj" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Raw materials and packaging</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">7,746</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">6,793</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--InventoryFinishedGoods_iI_pn3n3_maINzpZB_zsvbbVTm51ba" 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">4,699</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_40E_eus-gaap--InventoryNet_iTI_pn3n3_mtINzpZB_z5VXKgTKi9ch" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">12,445</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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>

7746000

6793000

4699000

4326000

12445000

11119000

174000

194000

4. Property and Equipment Property and equipment is comprised of the following (in thousands): Schedule of Property and Equipment <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_20210331_zSFQqqmChkk2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20201231_zJrmpIEw21Kk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</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: 60%; text-align: left">Right-of-use assets under operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_zrN0JBznwQli" style="width: 16%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_pn3n3" style="width: 16%; 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zLTwmmyufB77" style="text-align: right" title="Total cost">6</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_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_z33K6IvGaPW9" 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_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zKN8ggZrT0hj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">198</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_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzKEy_z0TwfCS2DRPj" 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">1,328</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_402_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzKEy_zKdCOcOk5ZZ2" 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">(379</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_40C_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzKEy_z2ISCCzy93ef" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">949</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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> Depreciation expense for the three months ended March 31, 2021 and 2020 was $32 and $12, respectively, and amortization of right-of-use assets for the three months ended March 31, 2021 and 2020 was $24 and $37, respectively. During the three months ended March 31, 2021, the Company disposed of right-of-use assets under finance leases with a cost of $<span id="xdx_908_eus-gaap--PropertyPlantAndEquipmentDisposals_pn3n3_c20210101__20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zHVg9qlJzQDk" title="Net book value of disposed right-of-use assets under finance leases">48 and accumulated amortization of $<span id="xdx_903_eus-gaap--AdjustmentForAmortization_pn3n3_c20210101__20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zGgTvlGH6GC8" title="Accumulated amortization">38, and terminated $<span id="xdx_90B_eus-gaap--PropertyPlantAndEquipmentTransfersAndChanges_pn3n3_c20210101__20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zTJOp9cnsiVf" title="Amount terminated related to finance leases">13 of related finance leases payable (see Note 8). Equipment held for sale consists of the following (in thousands): Schedule of Equipment Held for Sale <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_495_20210331_ze9B8e2DsFCe" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20201231_zRX2U1K5JCK6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipment_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Equipment held for sale</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; 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">$</td><td style="width: 16%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RestructuringReserve_iNI_pn3n3_di_zPLKL4a4ZeAi" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Reserve</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(96</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr> <tr id="xdx_40F_eus-gaap--AssetsHeldForSaleNotPartOfDisposalGroup_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Net book value</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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> The balance as of March 31, 2021, and December 31, 2020, consists of residual manufacturing equipment, at estimated net realizable value, which management anticipates selling during 2021.

Property and equipment is comprised of the following (in thousands): Schedule of Property and Equipment <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_20210331_zSFQqqmChkk2" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_490_20201231_zJrmpIEw21Kk" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</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: 60%; text-align: left">Right-of-use assets under operating leases</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_zrN0JBznwQli" style="width: 16%; text-align: right" title="Total cost">724</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_989_eus-gaap--PropertyPlantAndEquipmentGross_c20201231__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderOperatingLeasesMember_pn3n3" style="width: 16%; 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_988_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--RightOfUseAssetsUnderFinanceLeasesMember_zLTwmmyufB77" style="text-align: right" title="Total cost">6</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_98C_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__custom--ComputerHardwareAndSoftwareMember_z33K6IvGaPW9" 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_989_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_c20210331__us-gaap--PropertyPlantAndEquipmentByTypeAxis__us-gaap--MachineryAndEquipmentMember_zKN8ggZrT0hj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Total cost">198</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_40A_eus-gaap--PropertyPlantAndEquipmentGross_iI_pn3n3_maPPAENzKEy_z0TwfCS2DRPj" 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">1,328</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_402_eus-gaap--AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment_iNI_pn3n3_di_msPPAENzKEy_zKdCOcOk5ZZ2" 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">(379</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_40C_eus-gaap--PropertyPlantAndEquipmentNet_iTI_pn3n3_mtPPAENzKEy_z2ISCCzy93ef" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">949</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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

6000

54000

400000

198000

103000

1328000

1281000

379000

361000

949000

920000

32000

12000

24000

37000

48000

38000

13000

Equipment held for sale consists of the following (in thousands): Schedule of Equipment Held for Sale <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_20210331_ze9B8e2DsFCe" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_49C_20201231_zRX2U1K5JCK6" style="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr id="xdx_401_eus-gaap--DisposalGroupIncludingDiscontinuedOperationPropertyPlantAndEquipment_iI_pn3n3" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Equipment held for sale</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">163</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_407_eus-gaap--RestructuringReserve_iNI_pn3n3_di_zPLKL4a4ZeAi" 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_40F_eus-gaap--AssetsHeldForSaleNotPartOfDisposalGroup_iI_pn3n3" 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

96000

67000

5. Intangible Assets Intangible assets are comprised of brand names acquired, specifically Virgil’s, and costs related to trademarks. They have been assigned an indefinite life, as we currently anticipate that they will contribute cash flows to the Company perpetually. These indefinite-lived intangible assets are not amortized but are assessed for impairment annually and evaluated annually to determine whether the indefinite useful life remains appropriate. We first assess qualitative factors to determine whether it is more likely than not that the asset is impaired. If further testing is necessary, we compare the estimated fair value of our asset with its book value. If the carrying amount of the asset exceeds its fair value, as determined by the discounted cash flows expected to be generated by the asset, an impairment loss is recognized in an amount equal to that excess. Based on management’s assessment, there were no indications of impairment at March 31, 2021. During the three months ended March 31, 2021, the Company capitalized costs of $2 pertaining to legal and other fees incurred in applying for international trademarks for Reeds and Virgil’s brands. Intangible assets consist of the following (in thousands): Summary of Intangible Assets <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_496_20210331_z5K7bUuVqbJf" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20201231_z5cau7soe1uj" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40D_eus-gaap--IndefiniteLivedTradeNames_iI_pn3n3_maILIAEzz5L_zbat9LVmOJUk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Brand names</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; 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">$</td><td style="width: 16%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IndefiniteLivedTrademarks_iI_pn3n3_maILIAEzz5L_zEdDVHswAuV4" style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Trademarks</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">41</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">39</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr id="xdx_403_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iTI_pn3n3_mtILIAEzz5L_zYXiDBlpLnI9" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Total</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617</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>

2000

Intangible assets consist of the following (in thousands): Summary of Intangible Assets <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_496_20210331_z5K7bUuVqbJf" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_491_20201231_z5cau7soe1uj" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40D_eus-gaap--IndefiniteLivedTradeNames_iI_pn3n3_maILIAEzz5L_zbat9LVmOJUk" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; text-align: left">Brand names</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 16%; text-align: right">576</td><td style="width: 1%; text-align: left"> </td></tr> <tr id="xdx_404_eus-gaap--IndefiniteLivedTrademarks_iI_pn3n3_maILIAEzz5L_zEdDVHswAuV4" 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">41</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_403_eus-gaap--IndefiniteLivedIntangibleAssetsExcludingGoodwill_iTI_pn3n3_mtILIAEzz5L_zYXiDBlpLnI9" 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">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">617</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</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

41000

39000

617000

615000

6. Line of Credit Amounts outstanding under the Company’s credit facilities are as follows (in thousands): Schedule of Amount Outstanding Under Credit Facilities <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_49B_20210331_ziFkFCToun2i" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20201231_zQbTAY1jyO02" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40B_eus-gaap--LinesOfCreditCurrent_iTI_pn3n3_zb3F2whb458c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">4,256</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">-</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> On October 4, 2018, the Company entered into a financing agreement with Rosenthal & Rosenthal, Inc. The financing agreement provides a maximum borrowing capacity of $<span id="xdx_907_eus-gaap--LineOfCreditFacilityMaximumBorrowingCapacity_iI_pn3n3_c20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zQjXnVMbyePa" title="Line of Credit Facility, Maximum Borrowing Capacity">13,000. Borrowings are based on a formula of eligible accounts receivable and inventories (the “permitted borrowings”) plus advances (an “over-advance” of up to $<span id="xdx_905_ecustom--LineOfCreditFacilityExcessOfPermittedBorrwingAmount_iI_pn3n3_c20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zih9tfJfWCN4" title="Excess of permitted borrowing amount">4,000) in excess of permitted borrowings. At March 31, 2021, the unused borrowing capacity under the financing agreement was $<span id="xdx_90C_eus-gaap--LineOfCreditFacilityRemainingBorrowingCapacity_iI_pn3n3_c20210331__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zku4HbGKJUHc" title="Line of Credit Facility, Remaining Borrowing Capacity">2,513. The line of credit matured on <span id="xdx_903_eus-gaap--LineOfCreditFacilityExpirationDate1_c20181003__20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember" title="Line of Credit Facility, Expiration Date">March 30, 2021, with automatic yearly renewals thereafter until terminated. 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_zqRL6qSsLj33" title="Line of credit, interest rate">4.75%, plus an additional <span id="xdx_90E_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_c20181003__20181004__srt--RangeAxis__srt--MinimumMember__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_z6Lfjp7yWLdf" title="Line of credit, interest rate">2.0% to <span id="xdx_900_eus-gaap--LineOfCreditFacilityInterestRateDuringPeriod_pid_dp_c20181003__20181004__srt--RangeAxis__srt--MaximumMember__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zOzUX0koYcog" title="Line of credit, interest rate">3.5% 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_903_ecustom--MinimumMonthlyFees_pn3n3_c20181001__20181004__us-gaap--TypeOfArrangementAxis__custom--FinancingAgreementMember__dei--LegalEntityAxis__custom--RosenthalAndRosenthalIncMember_zksG3WnJite3" title="Minimum monthly fees">4. The line of credit is secured by substantially all of the assets, excluding intellectual property, of the Company. The over-advance is secured by all of Reed’s intellectual property collateral. Additionally, any over-advance was guaranteed by an irrevocable stand-by letter of credit in the amount of $1,500, issued by Daniel J. Doherty III and the Daniel J. Doherty, III 2002 Family Trust, affiliates of Raptor/Harbor Reeds SPV LLC (“Raptor”). 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. 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_901_eus-gaap--EquityMethodInvestmentOwnershipPercentage_iI_pid_dp_c20210331__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_zcEipLYPG1ri" title="Equity ownership percentage">5% beneficial owner of Reed’s common stock. As consideration for the collateral support, Mr. Bello received <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_pid_c20210101__20210331__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_zPtNlopPACN2" title="Shares issued restricted stock">400,000 shares of Reed’s restricted stock. The Company determined the fair value of the 400,000 restricted stock to be $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_pn3n3_c20210101__20210331__srt--TitleOfIndividualAxis__custom--JohnJBelloMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__us-gaap--BeneficialOwnerMember_zfhxAwgNTu31" title="Shares issued restricted stock, value">472 which was recorded as a prepaid financing costs and included in prepaid expenses and other current assets on the condensed balance sheet at March 31, 2021. The prepaid financing fee is to be amortized over a twelve month period. During the three months ended March 31, 2021, the company amortized $25 of the prepaid financing costs to interest expense. The financing agreement with Rosenthal includes customary restrictions that limit our ability to engage in certain types of transactions, including our ability to utilize tangible and intangible assets as collateral for other indebtedness. Additionally, the agreement contains a financial covenant that requires us to meet certain minimum working capital and tangible net worth thresholds as of the end of each quarter. We were in compliance with the terms of our agreement with Rosenthal as of March 31, 2021. The Company annually incurs an additional $130 of fees from the bank, which is equal to 1% of the $13,000 borrowing limit. These costs have been capitalized and recorded as a debt discount and are amortized over the remaining life of the Rosenthal agreement. On December 31, 2020, the remaining unamortized debt discount of $<span id="xdx_90A_eus-gaap--DebtInstrumentUnamortizedDiscount_iI_pn3n3_c20201231__us-gaap--BalanceSheetLocationAxis__us-gaap--PrepaidExpensesAndOtherCurrentAssetsMember_z9J7O9piM6Ag" title="Unamortized debt discount">162 is included in prepaid expense and other current assets on the balance sheet. Amortization of debt discount was $162 and $96 for the three months ended March 31, 2021 and 2020, respectively. On March 31, 2021, no remaining unamortized debt discount remained.

Amounts outstanding under the Company’s credit facilities are as follows (in thousands): Schedule of Amount Outstanding Under Credit Facilities <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_49B_20210331_ziFkFCToun2i" style="border-bottom: Black 1.5pt solid; text-align: center">March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td><td style="padding-bottom: 1.5pt"> </td> <td colspan="2" id="xdx_493_20201231_zQbTAY1jyO02" style="border-bottom: Black 1.5pt solid; text-align: center">December 31, 2020</td><td style="padding-bottom: 1.5pt"> </td></tr> <tr id="xdx_40B_eus-gaap--LinesOfCreditCurrent_iTI_pn3n3_zb3F2whb458c" style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 60%; 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">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">4,256</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; width: 1%; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; width: 16%; text-align: right">-</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

4256000

13000000

4000000

2513000

2021-03-30

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

25000

130000

0.01

13000000

162000

96000

7. Note Payable 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_90C_eus-gaap--DebtInstrumentFaceAmount_c20200420__srt--TitleOfIndividualAxis__custom--PaycheckProtectionProgramMember__us-gaap--TypeOfArrangementAxis__custom--CityNationalBankMember_pn3n3" title="Aggregate amount">770, pursuant to the Paycheck Protection Program (the “PPP”) under the CARES Act. At December 31, 2020, the note payable balance was $770, of which $599 was reflected as the current portion of note payable. At March 31, 2021, the note payable balance was $770, of which $727 was reflected as the current portion of note payable. The PPP loan agreement is dated April 20, 2020, matures on April 20, 2022, bears interest at a rate of <span id="xdx_90F_eus-gaap--DebtInstrumentInterestRateStatedPercentage_iI_pid_dp_c20200420__us-gaap--TypeOfArrangementAxis__custom--PPPLoanAgreementMember_zxgBWcv3Qsvi" title="Debt Instrument, Interest Rate, Stated Percentage">1% per annum, with the first six months of interest deferred, is payable monthly commencing on November 2020, and is unsecured and guaranteed by the U.S. Small Business Administration. We applied ASC 470, Debt, to account for the PPP loan. Funds from the PPP loan may only be used for qualifying expenses as described in the CARES Act, including qualifying payroll costs, qualifying group health care benefits, qualifying rent and debt obligations, and qualifying utilities. The Company believes it used the entire loan amount for qualifying expenses. Under the terms of the PPP, certain amounts of the loan may be forgiven if they are used for qualifying expenses. The Company was in compliance with the terms of the PPP loan as of March 31, 2021. If the conditions outlined in the PPP loan program are adhered to by the Company, all or part of such loan could be forgiven. The Company believes that all or a substantial portion of the PPP loan is eligible for forgiveness. The Company applied for full forgiveness of the PPP loan on March 17, 2021. As for the potential loan forgiveness, once the PPP loan is, in part or wholly, forgiven and a legal release is received, the liability would be reduced by the amount forgiven and a gain on extinguishment would be recorded. However, the Company cannot provide any assurance whether the PPP loan will ultimately be forgiven by the SBA.

770000

599000

770000

727000

2022-04-20

0.01

8. Leases Liabilities The Company accounts for leases under ASC 842, Leases. 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. ASC 842 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis. During the three months ended March 31, 2021, the Company reflected amortization of right of use asset of $24 related to these leases, resulting in a net asset balance of $730 as of March 31, 2021. In accordance with ASC 842, the right-of-use assets are being amortized over the life of the underlying leases. As of December 31, 2020, lease liabilities totaled $685, made up of finance lease liabilities of $16 and operating lease liabilities of $669. During the three months ended March 31, 2021, the Company terminated $13 of finance leases, and made payments of $2 towards its finance lease liability and $8 towards its operating lease liability. As of March 31, 2021, lease liabilities totaled $663, made up of finance lease liability of $1 and operating lease liability of $662. As of March 31, 2021, the weighted average remaining lease terms for operating lease and finance lease are 3.76 years and 0.50 years, respectively. The weighted average discount rate for operating lease is 12.6% and 12.6% for finance lease.

24000

730000

685000

16000

669000

13000

2000

8000

663000

1000

662000

P3Y9M3D

P0Y6M

0.126

9. Stock-Based Compensation Restricted common stock The following table summarizes restricted stock activity during the three months ended March 31, 2021: Summary of Non-vested Restricted Stock Activity <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 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 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 at Date of 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 Average Grant Date 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: 44%">Balance, December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z6bPSeiFV8hc" style="width: 10%; 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_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iS_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zihIFpJrl6d" style="width: 10%; text-align: right" title="Issuable Shares, beginning balance">-</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_98D_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iS_pn3n3_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zEGmpR7mMOCb" style="width: 10%; 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_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_uUSDPShares_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zaZvqRTdLwz8" style="width: 10%; 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_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zvwfeP0qBcU8" 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_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zSBsDGdy59E8" style="text-align: right" title="Issuable Shares, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedGranted_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" 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_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zyAxSLwb2sXi" 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_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_pid_di_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zgxp9JzD2z36" style="text-align: right" title="Unvested Shares, Vested">(84,809</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfIssuableShares_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zG3gjcJGPhY7" style="text-align: right" title="Issuable Shares, Vested">84,809</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" style="text-align: right" title="Fair Value, Vested">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zERgkjPP6dZa" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested">-</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_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pid_di_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zK6fD6NCfzub" 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_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zqBeyij0Wtj7" 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_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_znU2QEYmroyh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Unvested Shares, Issued">-</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_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zkJgQphO4qsk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Issuable Shares, Issued">(84,809</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_983_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedIssued_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Fair Value, Issued">(98</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_98F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsIssuedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zdBn1V7OD2T5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Issued">-</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, March 31, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_ztlggIO0kbx4" style="border-bottom: Black 2.5pt double; text-align: right" title="Unvested Shares, ending balance">309,082</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_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iE_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z33D3jeottW" style="border-bottom: Black 2.5pt double; text-align: right" title="Issuable Shares, ending balance">-</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_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iE_pn3n3_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7d0M9ZX5oSj" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value, Unvested, ending balance">220</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_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_uUSDPShares_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zQ01fml90Gmc" 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> 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 $50,000 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_901_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriod_pid_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zVhOekQsQmH8" title="Number of shares awarded">245,900 restricted stock awards to five non-employee directors. <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_pid_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--AwardDateAxis__custom--FebruaryOneTwoThousandTwentyOneMember_zEGwhNB7GCRd" title="Number of shares vested">61,475 of these restricted stock awards vested on February1, 2021. The remaining <span id="xdx_90A_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber_iI_pid_c20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember__us-gaap--AwardDateAxis__custom--MayOneTwoThousandTwentyOneAugustOneTwoThousandTwentyOneAndNovemberOneTwoThousandTwentyOneMember_zjyc5m36CJ88" title="Shares expect to vest">184,425 restricted stock awards will vest equally on May 1, 2021, August 1, 2021, and November 1, 2021. The aggregate fair value of the stock awards was $<span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures_pn3n3_c20210125__20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zepDUFwSgFxj" title="Shares issued restricted stock, value">226 based on the market price of our common stock price which was $<span id="xdx_909_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExercisePrice_iI_pid_c20210126__srt--TitleOfIndividualAxis__custom--NonEmployeeDirectorsMember__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zfmRTms83wo5" title="Exercise price fair value">0.92 per share on the date of grants and is amortized as shares vest. The total fair value of restricted common stock vesting during the three months ended March 31, 2021 and 2020 was $98 and $285, respectively, and is included in general and administrative expenses in the accompanying statements of operations. As of March 31, 2021, the amount of unvested compensation related to issuances of restricted common stock was $<span id="xdx_904_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zrdauv6dt5U2">220, which will be recognized as an expense in future periods as the shares vest. When calculating basic loss per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date. Stock options The following table summarizes stock option activity during the three months ended March 31, 2021: Schedule of Stock Option Activity <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- Average 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- Average Remaining Contractual Terms (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 Intrinsic 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: 44%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zLrJw2KKnvVb" style="width: 10%; 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_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zO2wVE65169f" style="width: 10%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning">1.45</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_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zwgB6KEVadD1" style="width: 10%; 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">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z08rvANlGVze" style="width: 10%; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Begining">78</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Granted</td><td> </td> <td style="text-align: left"> </td><td id="xdx_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z4jMGWdgMPU" style="text-align: right" title="Shares, Granted">1,939,700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpb6ILXI6Rbf" style="text-align: right" title="Weighted-Average Exercise Price, Granted">1.01</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_986_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zj352AiNB0la" style="text-align: right" title="Shares, Exercised">(6,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z2Cfxbu9Rwwh" style="text-align: right" title="Weighted-Average Exercise Price, Exercised">0.50</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Unvested forfeited </td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zSVUH78iAH73" style="text-align: right" title="Shares, Unvested forfeited">(315,526</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zwkSOSHvGTfi" style="text-align: right" title="Weighted-Average Exercise Price, Unvested forfeited">1.75</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_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriod_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zXy3BrKCJh57" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Vested forfeited">(7,750</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">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z1c7WguEKcNg" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Vested forfeited">2.51</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1.5pt">Outstanding at March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxtNATtrF0hj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">11,028,322</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zCdLf7RIbZb2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending">1.15</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_984_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermEnding_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQS0GY4PMSTj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending">8.61</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">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zaaqhK6LoHf3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Ending">2,332</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Exercisable at March 31, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zeKXsV1CEPub" style="border-bottom: Black 2.5pt double; text-align: right" title="Shares Exercisable">3,160,048</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zCyy5MlMxmee" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.34</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_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zWAj2f7vLKt5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">6.76</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_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zn1QzMC0bS4f" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Shares Exercisable Ending Balance">759</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table> During the three months ended March 31, 2021, the Company received proceeds of $3 and issued 6,000 shares of common shares on the exercise of stock options. During the three months ended March 31, 2021, the Company approved options exercisable into <span id="xdx_904_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardNumberOfSharesAvailableForGrant_iI_pid_c20210331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_z2ejvbHp7ane" title="Number of options to be issued">1,939,700 shares to be issued pursuant to Reed’s 2020 Equity Incentive Plan. <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__srt--TitleOfIndividualAxis__custom--EmployeesMember_zZ5AcmHcZrXd" title="Number of option issued">1,939,700 options were issued to employees, <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardAcceleratedVestingNumber_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zJY4XQ7phlFh" title="Number of shares vested immediately">969,850 options vesting annually over a <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingPeriod1_dxL_c20200101__20201231__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zv9f4vb4tpEj" title="Vesting period::XDX::P4Y">four-year vesting period, and 969,850 options that will vest based on performance criteria to be established by the board of directors. The stock options are exercisable at a price of $1.01 per share and expire in <span id="xdx_90A_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardExpirationPeriod_dt_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember_zjumF1Lks1hl" title="Stock options expiration period">ten years. The total fair value of these options at grant date was approximately $<span id="xdx_902_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardSharesIssuedAtFairValue_pn3n3_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandSeventeenIncentiveCompensationPlanMember_zBCw7yksANK3" title="Fair value of options granted">1,294, which was determined using a Black-Scholes-Merton option pricing model with the following average assumption: stock price of $1.01 per share, expected term of <span id="xdx_90C_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardFairValueAssumptionsExpectedTerm1_dt_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zaRseE63L1T7" title="Expected term">six years, volatility of <span id="xdx_90C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsWeightedAverageVolatilityRate_pid_dp_uPercent_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember__srt--RangeAxis__srt--MinimumMember_zsUJzSNZjZT5" title="Weighted average volatility">76%, dividend rate of <span id="xdx_908_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedDividendRate_pid_dp_uPercent_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zBViMMZTZWma" title="Dividend rate">0%, and weighted average risk-free interest rate of <span id="xdx_907_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate_pid_dp_uPercent_c20210101__20210331__us-gaap--PlanNameAxis__custom--TwoThousandTwentyIncentiveCompensationPlanMember_zxiBmMtpNZR1" title="Risk-free interest rate">0.94%. 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. During the three months ended March 31, 2021 and 2020, the Company recognized $300 and $495 of compensation expense relating to vested stock options. As of March 31, 2021, the aggregate amount of unvested compensation related to stock options was approximately $<span id="xdx_901_eus-gaap--EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions_iI_pn3n3_c20210331__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zGB6myWICF81">4,274 which will be recognized as an expense as the options vest in future periods through March 28, 2025. As of March 31, 2021, the outstanding and exercisable options have an intrinsic value of $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pn3n3_c20210331__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zM49wV20qgSd" title="Outstanding options, intrinsic value">2,332 and $<span id="xdx_903_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iI_pn3n3_c20210331__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zVNGlURMLDQf" title="Exercisable, intrinsic value">759, respectively. The aggregate intrinsic value was calculated as the difference between the closing market price as of March 31, 2021, which was $<span id="xdx_90E_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--EmployeeStockOptionMember_zMxfPnpiCJq7" title="Exercise price, outstanding stock options">1.17, and the exercise price of the outstanding stock options.

The following table summarizes restricted stock activity during the three months ended March 31, 2021: Summary of Non-vested Restricted Stock Activity <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 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 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 at Date of 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 Average Grant Date 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: 44%">Balance, December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iS_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z6bPSeiFV8hc" style="width: 10%; 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_98A_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iS_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zihIFpJrl6d" style="width: 10%; text-align: right" title="Issuable Shares, beginning balance">-</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_98D_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iS_pn3n3_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zEGmpR7mMOCb" style="width: 10%; 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_98F_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iS_pid_uUSDPShares_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zaZvqRTdLwz8" style="width: 10%; 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_983_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zvwfeP0qBcU8" 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_98D_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsNonvestedIssuableSharesGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zSBsDGdy59E8" style="text-align: right" title="Issuable Shares, Granted">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98E_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedGranted_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" 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_989_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zyAxSLwb2sXi" 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_983_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares_iN_pid_di_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zgxp9JzD2z36" style="text-align: right" title="Unvested Shares, Vested">(84,809</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfIssuableShares_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zG3gjcJGPhY7" style="text-align: right" title="Issuable Shares, Vested">84,809</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" style="text-align: right" title="Fair Value, Vested">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zERgkjPP6dZa" style="text-align: right" title="Weighted Average Grant Date Fair Value, Vested">-</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_985_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedNumberOfShares_iN_pid_di_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zK6fD6NCfzub" 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_98D_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsForfeitedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zqBeyij0Wtj7" 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_98C_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_znU2QEYmroyh" style="border-bottom: Black 1.5pt solid; text-align: right" title="Unvested Shares, Issued">-</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_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zkJgQphO4qsk" style="border-bottom: Black 1.5pt solid; text-align: right" title="Issuable Shares, Issued">(84,809</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_983_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedIssued_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_pn3n3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Fair Value, Issued">(98</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_98F_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedOptionsIssuedWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zdBn1V7OD2T5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted Average Grant Date Fair Value, Issued">-</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, March 31, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_989_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares_iE_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_ztlggIO0kbx4" style="border-bottom: Black 2.5pt double; text-align: right" title="Unvested Shares, ending balance">309,082</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_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfIssuableShares_iE_pid_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z33D3jeottW" style="border-bottom: Black 2.5pt double; text-align: right" title="Issuable Shares, ending balance">-</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_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedFairValue_iE_pn3n3_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_z7d0M9ZX5oSj" style="border-bottom: Black 2.5pt double; text-align: right" title="Fair Value, Unvested, ending balance">220</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_986_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue_iE_pid_uUSDPShares_c20210101__20210331__us-gaap--AwardTypeAxis__us-gaap--RestrictedStockMember_zQ01fml90Gmc" 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

84809

2009

0.89

-84809 -98000

309082

220000

0.89

50000000

245900

61475

184425

226000

0.92

98000

285000

220000

The following table summarizes stock option activity during the three months ended March 31, 2021: Schedule of Stock Option Activity <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- Average 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- Average Remaining Contractual Terms (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 Intrinsic 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: 44%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iS_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zLrJw2KKnvVb" style="width: 10%; 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">$</td><td id="xdx_98B_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zO2wVE65169f" style="width: 10%; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Beginning">1.45</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_987_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zwgB6KEVadD1" style="width: 10%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning">6.09</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iS_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z08rvANlGVze" style="width: 10%; 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_98F_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z4jMGWdgMPU" style="text-align: right" title="Shares, Granted">1,939,700</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td id="xdx_988_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zpb6ILXI6Rbf" style="text-align: right" title="Weighted-Average Exercise Price, Granted">1.01</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Exercised</td><td> </td> <td style="text-align: left"> </td><td id="xdx_986_eus-gaap--StockIssuedDuringPeriodSharesStockOptionsExercised_iN_pid_di_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zj352AiNB0la" style="text-align: right" title="Shares, Exercised">(6,000</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_987_eus-gaap--ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z2Cfxbu9Rwwh" 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_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod_iN_pid_di_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zSVUH78iAH73" style="text-align: right" title="Shares, Unvested forfeited">(315,526</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeituresWeightedAverageGrantDateFairValue_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zwkSOSHvGTfi" style="text-align: right" title="Weighted-Average Exercise Price, Unvested forfeited">1.75</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1.5pt">Vested forfeited </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_981_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriod_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zXy3BrKCJh57" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Vested forfeited">(7,750</td><td style="padding-bottom: 1.5pt; text-align: left">)</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_98A_ecustom--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_z1c7WguEKcNg" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Vested forfeited">2.51</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 March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_985_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zxtNATtrF0hj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">11,028,322</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">$</td><td id="xdx_982_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zCdLf7RIbZb2" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Exercise Price, Outstanding, Ending">1.15</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_984_ecustom--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTermEnding_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zQS0GY4PMSTj" style="border-bottom: Black 1.5pt solid; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending">8.61</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zaaqhK6LoHf3" style="border-bottom: Black 1.5pt solid; text-align: right" title="Aggregate Intrinsic Value, Shares Outstanding, Ending">2,332</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 March 31, 2021</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_986_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zeKXsV1CEPub" style="border-bottom: Black 2.5pt double; text-align: right" title="Shares Exercisable">3,160,048</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">$</td><td id="xdx_980_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zCyy5MlMxmee" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.34</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td id="xdx_988_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1_dtY_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zWAj2f7vLKt5" style="border-bottom: Black 2.5pt double; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">6.76</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_980_eus-gaap--SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1_iE_pn3n3_c20210101__20210331__us-gaap--DerivativeInstrumentRiskAxis__us-gaap--StockOptionMember_zn1QzMC0bS4f" style="border-bottom: Black 2.5pt double; text-align: right" title="Aggregate Intrinsic Value, Shares Exercisable Ending Balance">759</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

9417898

1.45

P6Y1M2D

78000

1939700

1.01

6000

0.50

315526

1.75

-7750 2.51

11028322

1.15

P8Y7M9D

2332000

3160048

1.34

P6Y9M3D

759000

3000

6000

1939700

969850

1.01

P10Y

1294000

P6Y

0.76

0.0094

300000

495000

4274000

2332000

759000

1.17

10. Stock Warrants As of March 31, 2021, the Company has issued warrants to purchase an aggregate of <span id="xdx_90B_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByWarrantsOrRights_iI_c20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zYuKyHvu4Thf" title="Warrant to purchase common stock">3,362,241 shares of common stock. The Company’s warrant activity during the three months ended March 31, 2021 is as follows: Schedule of Warrant Activity <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">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">Weighted- Average Exercise Price</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">Weighted- Average Remaining Contractual Terms (Years)</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: 44%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iS_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgPmQ4k2tdM4" style="width: 10%; 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">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcT1pVlbTfRl" style="width: 10%; text-align: right" title="Weighted-Average Exercise Price, Outstanding Beginning Balance">1.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTwx2x2EBKId" style="width: 10%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance">2.49</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iS_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZLXNuhhg4xe" style="width: 10%; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Beginning">-</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_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zctkJKXDgcgd" style="text-align: right" title="Shares, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisedWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zistiAcOhOal" style="text-align: right" title="Weighted-Average Exercise Price, Exercised">-</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">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--ClassOfWarrantOrRightNumberOfSecuritiesForfitedOrExpired_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcGL6Ovjgvnb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Forfeited">-</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--ClassOfWarrantOrRightNumberOfSecuritiesForfeitedWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zuCrkQltlNh3" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited">-</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 March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7IXngrZA7L5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">3,362,241</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">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zx5KG0CcvDD6" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding Ending Balance">1.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_984_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms1_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z0wA7Xswb7x1" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance">2.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTAnMnSprjl" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Ending">526</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 March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisable_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zePumnkOKBl4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Exercisable, Ending Balance">3,362,241</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">$</td><td id="xdx_981_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisableWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zK5slTUklZgd" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_985_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableWeightedAverageRemainingContractualTerms_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTO8A1GZmxA8" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">2.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableAggregateIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4shY6aZ6Zq8" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Exercisable">526</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table> There were <span id="xdx_902_eus-gaap--ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue_iI_pn3n3_do_c20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zwr6dhL8uzd9" title="Number of warrants outstanding, intrinsic value">no warrant transactions during the three months ended March 31, 2021. As of March 31, 2021, the outstanding and exercisable warrants have an intrinsic value of $<span id="xdx_90E_ecustom--ClassOfWarrantsOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iI_pn3n3_c20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZFVXMcDVGHi" title="Aggregate intrinsic value">526. The intrinsic value was calculated as the difference between the closing market price as of March 31, 2021, which was $1.17, and the exercise price of the Company’s warrants to purchase common stock.

3362241

Schedule of Warrant Activity <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">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">Weighted- Average Exercise Price</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">Weighted- Average Remaining Contractual Terms (Years)</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: 44%">Outstanding at December 31, 2020</td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_98D_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iS_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zgPmQ4k2tdM4" style="width: 10%; 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">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iS_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcT1pVlbTfRl" style="width: 10%; text-align: right" title="Weighted-Average Exercise Price, Outstanding Beginning Balance">1.56</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left"> </td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTwx2x2EBKId" style="width: 10%; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Beginning Balance">2.49</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td> <td style="width: 1%; text-align: left">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iS_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zZLXNuhhg4xe" style="width: 10%; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Beginning">-</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_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zctkJKXDgcgd" style="text-align: right" title="Shares, Exercised">-</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td id="xdx_985_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisedWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zistiAcOhOal" style="text-align: right" title="Weighted-Average Exercise Price, Exercised">-</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">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--ClassOfWarrantOrRightNumberOfSecuritiesForfitedOrExpired_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zcGL6Ovjgvnb" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares, Forfeited">-</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--ClassOfWarrantOrRightNumberOfSecuritiesForfeitedWeightedAverageExercisePrice_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zuCrkQltlNh3" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Forfeited">-</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 March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98C_eus-gaap--ClassOfWarrantOrRightNumberOfSecuritiesCalledByEachWarrantOrRight_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z7IXngrZA7L5" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Outstanding, Ending Balance">3,362,241</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">$</td><td id="xdx_98F_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesOutstandingWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zx5KG0CcvDD6" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Outstanding Ending Balance">1.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_984_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingWeightedAverageRemainingContractualTerms1_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z0wA7Xswb7x1" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Outstanding Ending Balance">2.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_982_ecustom--ClassOfWarrantOrRightNumberOfSecuritieOutstandingAggregateIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTAnMnSprjl" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Outstanding Ending">526</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 March 31, 2021</td><td style="padding-bottom: 1.5pt"> </td> <td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td id="xdx_98E_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisable_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zePumnkOKBl4" style="border-bottom: Black 1.5pt solid; text-align: right" title="Shares Exercisable, Ending Balance">3,362,241</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">$</td><td id="xdx_981_ecustom--ClassOfWarrantOrRightNumberOfSecuritiesExercisableWeightedAverageExercisePrice_iE_pid_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zK5slTUklZgd" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Exercise Price, Exercisable Ending Balance">1.56</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left"> </td><td id="xdx_985_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableWeightedAverageRemainingContractualTerms_dtY_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_zTO8A1GZmxA8" style="padding-bottom: 1.5pt; text-align: right" title="Weighted-Average Remaining Contractual Terms (Years), Exercisable Ending Balance">2.24</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td> <td style="padding-bottom: 1.5pt; text-align: left">$</td><td id="xdx_983_ecustom--ClassOfWarrantOrRightNumberOfSecuritieExercisableAggregateIntrinsicValue_iE_pn3n3_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__us-gaap--WarrantMember_z4shY6aZ6Zq8" style="padding-bottom: 1.5pt; text-align: right" title="Aggregate Intrinsic Value Shares Exercisable">526</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr> </table>

3362241

1.56 P2Y5M26D

3362241

1.56 P2Y2M26D 526000 3362241 1.56 P2Y2M26D 526000

526000

1.17

11. Related Party Activities On December 31, 2018, the Company completed the sale of its Los Angeles manufacturing plant to California Custom Beverage, LLC (“CCB”), an entity owned by Christopher J. Reed, a related party, and CCB assumed the monthly payments on our lease obligation for the Los Angeles manufacturing plant. Our release from the obligation by the lessor, however, is dependent upon CCB’s deposit of $<span id="xdx_908_eus-gaap--SecurityDeposit_iI_pn3n3_c20181231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zcm8gqCeRtWa" title="Deposit of security with lessor">1,200 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 March 31, 2021, $800 has been deposited with the lessor and Mr. Reed has placed approximately 363,000 pledged shares valued at $425 that remain in escrow with the lessor. Beginning in 2019, we are to receive a <span id="xdx_90C_ecustom--RoyaltyPercentage_iI_pid_dp_c20191231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zqDTH8zPENG2" title="Royalty percentage">5% royalty on CCB’s private label sales to existing customers for three years and a <span id="xdx_901_ecustom--ReferralFeePercentage_iI_pid_dp_c20191231__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_z8qqgPPHI5Z9" title="Referral fee percentage">5% referral fee on CCB’s private label sales to referred customers for three years. During the three months ended March 31, 2021 and 2020, the Company recorded royalty revenue from CCB of $3 and $5, respectively. At December 31, 2020, the Company had an aggregate receivable balance from CCB of $<span id="xdx_90D_eus-gaap--AccountsReceivableRelatedParties_c20201231__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_pn3n3" title="Receivable from related party">682 at December 3,1 2020. During the quarter ended March 31, 2021, the Company recorded royalty revenue receivable of $<span id="xdx_900_ecustom--RoyaltyRevenueReceivable_iI_pn3n3_c20210331__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_z4ugr65UPkf9" title="Royalty revenue receivable">3, and advanced expenses of $<span id="xdx_90C_ecustom--InventoryAdvances_pn3n3_c20210101__20210331__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember__srt--TitleOfIndividualAxis__custom--ChrisReedMember_zB5hZlRrjBY5" title="Inventory advances">16, leaving an aggregate receivable balance of $701 at March 31, 2021. At March 31, 2021 and December 31, 2020, the Company had accounts payable due to CCB of $<span id="xdx_902_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_iI_pn3n3_c20210331__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_zltJauM3AfGe" title="Accounts payable due to related parties">557 and $<span id="xdx_903_eus-gaap--AccountsPayableRelatedPartiesCurrentAndNoncurrent_c20201231__srt--TitleOfIndividualAxis__custom--ChrisReedMember__dei--LegalEntityAxis__custom--CaliforniaCustomBeverageLLCMember_pn3n3" title="Accounts payable due to related parties">1,034, respectively. Lindsay Martin, daughter of a director of the Company, is employed as Vice President of Marketing. Ms. Martin was paid approximately $<span id="xdx_90E_eus-gaap--RelatedPartyCosts_pn3n3_c20210101__20210331__srt--TitleOfIndividualAxis__custom--LindsayMartinMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--VicePresidentMember_zyd234O5lcC2" title="Amount paid for service">87 and $<span id="xdx_904_eus-gaap--RelatedPartyCosts_pn3n3_c20200101__20200331__srt--TitleOfIndividualAxis__custom--LindsayMartinMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__srt--VicePresidentMember_zY0IJYCHFwD9" title="Amount paid for service">42, respectively, for her services during the three months ended March 31, 2021 and 2020, respectively.

1200000

800000

363000

425000

0.05 0.05

3000

5000

682000

3000 16000

701000

557000

1034000

87000

42000

13. Subsequent Events 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 and sale of shares of the Company’s common stock, par value $<span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20210505__us-gaap--TypeOfArrangementAxis__custom--PlacementAgencyAgreementMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--RothCapitalPartnersLLCMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_znAcGUrKCqsb" title="Common stock, par value"><span id="xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_iI_pid_c20210505__us-gaap--TypeOfArrangementAxis__custom--SecuritiesPurchaseAgreementMember__us-gaap--SubsequentEventTypeAxis__us-gaap--SubsequentEventMember_z7JrTZgjriFg" title="Common stock, par value">0.0001 per share, in an offering of securities registered under an effective registration statement filed with the Securities and Exchange Commission (“SEC”) pursuant to the Securities Act of 1933, as amended (SEC File No. 333-229105). In the offering, the Company sold 6,680,000 shares of common stock, at a price of $1.18 per share (the “Offering”). The offering closed on May 7, 2021. For a period of 90 days after the closing date of the sale of the shares of common stock, the provisions of the securities purchase agreement generally prohibit the Company from issuing or agreeing to issue shares of common stock or common stock equivalents other than under equity compensation plans, outstanding rights to acquire common stock or common stock equivalents, or in connection with certain acquisitions or strategic transactions. The placement agency agreement provides that the Company will indemnify the Placement Agent against certain liabilities, including liabilities under the Securities Act of 1933, as amended. The Placement Agent agreed to use reasonable best efforts to arrange for the sale of the shares of common stock being issued and sold in the Offering. The Placement Agent will be 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.

0.0001

6680000

1.18

The Placement Agent will be 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.