Eastside Distilling (BLNE) 10-Q 12 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 12, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	001-38182
Entity Registrant Name	EASTSIDE DISTILLING, INC.
Entity Central Index Key	0001534708
Entity Tax Identification Number	20-3937596
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	2321 NE Argyle Street
Entity Address, Address Line Two	Unit D
Entity Address, City or Town	Portland
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97211
City Area Code	971
Local Phone Number	888-4264
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	EAST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,660,171

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 267	$ 723
Trade receivables, net	860	876
Inventories	3,989	4,442
Prepaid expenses and current assets	941	579
Total current assets	6,057	6,620
Property and equipment, net	5,489	5,741
Right-of-use assets	2,698	2,988
Intangible assets, net	5,655	5,758
Other assets, net	354	369
Total Assets	20,253	21,476
Current liabilities:
Accounts payable	2,077	1,728
Accrued liabilities	1,429	1,509
Deferred revenue	115	18
Current portion of secured credit facilities, net of debt issuance costs	3,377	3,442
Current portion of note payable, related party	4,651	4,598
Current portion of notes payable	7,749
Current portion of lease liabilities	870	991
Other current liability, related party	1,024	725
Total current liabilities	21,292	13,011
Lease liabilities, net of current portion	1,970	2,140
Note payable, related party		92
Notes payable, net of current portion		7,749
Total liabilities	23,262	22,992
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit):
Common stock, $0.0001 par value; 35,000,000 shares authorized; 16,660,171 and 16,199,269 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	2	2
Preferred stock, $0.0001 par value; 100,000,000 shares authorized; 2,500,000 shares issued and outstanding as of both March 31, 2023 and December 31, 2022
Additional paid-in capital	73,646	73,503
Accumulated deficit	(76,657)	(75,021)
Total stockholders’ equity (deficit)	(3,009)	(1,516)
Total Liabilities and Stockholders’ Equity	20,253	21,476
Nonrelated Party [Member]
Current liabilities:
Current portion of notes payable	7,749
Notes payable, net of current portion		$ 7,749

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	35,000,000	35,000,000
Common stock, shares issued	16,660,171	16,199,269
Common stock, shares outstanding	16,660,171	16,199,269
Preferred Stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	2,500,000	2,500,000
Preferred stock, shares outstanding	2,500,000	2,500,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Sales	$ 2,879	$ 3,780
Less customer programs and excise taxes	26	40
Net sales	2,853	3,740
Cost of sales	2,212	2,793
Gross profit	641	947
Operating expenses:
Sales and marketing expenses	511	647
General and administrative expenses	1,364	1,930
Loss on disposal of property and equipment	6
Total operating expenses	1,881	2,577
Loss from operations	(1,240)	(1,630)
Other income (expense), net
Interest expense	(329)	(406)
Other expense	(29)
Total other expense, net	(358)	(406)
Loss before income taxes	(1,598)	(2,036)
Provision for income taxes
Net loss	(1,598)	(2,036)
Preferred stock dividends	(38)	(38)
Net loss attributable to common shareholders	$ (1,636)	$ (2,074)
Basic and diluted net loss per common share	$ (0.10)	$ (0.14)
Basic and diluted weighted average common shares outstanding	16,475	14,901

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Cash Flows From Operating Activities:
Net loss	$ (1,598)	$ (2,036)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	407	263
(Recovery of) bad debt expense	(2)	43
Loss on disposal of assets	6
Write off of obsolete fixed assets	54
Inventory reserve	(19)	(32)
Stock dividend payable	(38)	(38)
Amortization of debt issuance costs		180
Interest accrued to secured credit facilities	78	50
Payment of accrued interest on secured credit facilities	(142)
Interest accrued for amounts due to related parties	123
Payment of accrued interest on amounts due to related parties	(141)
Issuance of common stock in exchange for services of related parties	60	207
Issuance of common stock in exchange for services of third parties	83	119
Stock-based compensation		2
Changes in operating assets and liabilities:
Trade receivables, net		148
Inventories	471	457
Prepaid expenses and other assets	(390)	(924)
Right-of-use assets	290	229
Accounts payable	350	1,102
Accrued liabilities	(104)	205
Other liabilities, related party	279
Deferred revenue	96
Net lease liabilities	(291)	(111)
Net cash used in operating activities	(428)	(136)
Cash Flows From Investing Activities:
Purchases of property and equipment	(28)	(1,389)
Net cash used in investing activities	(28)	(1,389)
Cash Flows From Financing Activities:
Proceeds from note payable, related party		2,000
Payments of principal on secured credit facilities		(940)
Payments of principal on notes payable		(205)
Net cash provided by financing activities		855
Net decrease in cash	(456)	(670)
Cash at the beginning of the period	723	3,276	$ 3,276
Cash at the end of the period	267	2,606	$ 723
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest	323	215
Cash paid for amounts included in measurement of lease liabilities	318	177
Supplemental Disclosure of Non-Cash Financing Activity
Exchange of assets for services	42
Right-of-use assets obtained in exchange for lease obligations		320
Warrants issued in relation to secured credit facilities		$ 948

Description of Business

Description of Business	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	1. Description of Business Eastside Distilling (the “Company” or “Eastside Distilling”) was incorporated under the laws of Nevada in 2004 under the name of Eurocan Holdings, Ltd. In December 2014, the Company changed its corporate name to Eastside Distilling, Inc. to reflect the acquisition of Eastside Distilling, LLC. The Company manufactures, acquires, blends, bottles, imports, markets and sells a wide variety of alcoholic beverages under recognized brands. The Company currently employs 49 people in the United States. The Company operates a beverage packaging and services business that operates in the beverage segment. During 2022, the Company made substantial investments to expand its product offerings to include digital can printing in the Pacific Northwest (together Craft Canning + Printing, “Craft C+P”). Craft C+P operates 13 mobile filling lines in Seattle, Washington; Spokane, Washington; and Portland, Oregon. The Company also offers co-packing services in Portland, Oregon offering end-to-end production capabilities. The Company’s spirits’ brands span several alcoholic beverage categories, including whiskey, vodka, rum, and tequila. The Company sells products on a wholesale basis to distributors in open states and through brokers in control states.

Liquidity

Liquidity	3 Months Ended
	Mar. 31, 2023
Liquidity
Liquidity	2. Liquidity The Company’s primary capital requirements are for cash used in operating activities and the repayment of debt. Funds for the Company’s cash and liquidity needs have historically not been generated from operations but rather from loans as well as from convertible debt and equity financings. The Company has been dependent on raising capital from debt and equity financings to meet the Company’s operating needs. The Company had an accumulated deficit of $ 76.7 1.6 The Company’s ability to meet its ongoing operating cash needs over the next 12 months depends on growing revenues and gross margins, and generating positive operating cash flow primarily through increased sales, improved profit growth, and controlling expenses. In addition, the Company has been negotiating with creditors to reduce the interest burden and improve cash flow. If the Company is unable to reach an agreement with creditors or obtain additional financing, or additional financing is not available on acceptable terms, the Company may seek to sell assets, reduce operating expenses, reduce or eliminate marketing initiatives, and take other measures that could impair its ability to be successful. Although the Company’s audited financial statements for the year ended December 31, 2022 were prepared under the assumption that it would continue operations as a going concern, the report of its independent registered public accounting firm that accompanied the financial statements for the year ended December 31, 2022 contained a going concern explanatory paragraph in which such firm expressed substantial doubt about the Company’s ability to continue as a going concern, based on the financial statements at that time. If the Company cannot continue as a going concern, its stockholders would likely lose most or all of their investment in it.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	3. Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements for Eastside Distilling, Inc. and subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements in accordance with GAAP have been condensed or eliminated as permitted under the SEC’s rules and regulations. In management’s opinion, the unaudited consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2023, its operating results for the three months ended March 31, 2023 and 2022 and its cash flows for the three months ended March 31, 2023 and 2022. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Interim results are not necessarily indicative of the results that may be expected for an entire fiscal year. The consolidated financial statements include the accounts of Eastside Distilling, Inc.’s wholly-owned subsidiaries, including Craft Canning + Bottling, LLC (doing business as Craft Canning + Printing) and its wholly-owned subsidiary Galactic Unicorn Packaging, LLC (the Company’s newly acquired fixed co-packing assets) and MotherLode LLC. All intercompany balances and transactions have been eliminated on consolidation. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Net sales include product sales, less excise taxes and customer programs and incentives. The Company recognizes revenue by applying the following steps in accordance with Accounting Standards Codification (“ASC”) Topic 606 – Revenue from Contracts with Customers The Company recognizes sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of a consignment sale). For consignment sales, which include sales to the Oregon Liquor Control Commission, the Company recognizes sales upon the consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of shipment or purchase by customers at a retail location. For consignment sales, title passes to the consignee concurrent with the consignee’s shipment to the customer. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than customary rights of return. Customer Programs Customer programs, which include customer promotional discount programs, are a common practice in the alcoholic beverage industry. The Company reimburses wholesalers for an agreed amount to promote sales of products and to maintain competitive pricing. Amounts paid in connection with customer programs are recorded as reductions to net sales in accordance with ASC 606 - Revenue from Contracts with Customers (6,382) 3,812 Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) regulations, which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcoholic beverages in varying amounts. The Company calculates its excise tax expense based upon units produced and on its understanding of the applicable excise tax laws. Excise taxes totaled $ 32,136 40,062 Cost of Sales Cost of sales consists of all direct costs related to both spirits and canning for service, labor, overhead, packaging, and in-bound freight charges. Ingredients account for the largest portion of the cost of sales, followed by packaging and production costs. Sales and Marketing Expenses Sales and marketing expenses consist of sponsorships, agency fees, digital media, salary and benefit expenses, travel and entertainment expenses. Sales and marketing costs are expensed as incurred. Advertising and marketing expenses totaled $ 0.1 0.2 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) General and Administrative Expenses General and administrative expenses consist of salary and benefit expenses, travel and entertainment expenses for executive and administrative staff, rent and utilities, professional fees, insurance, and amortization and depreciation expense. General and administrative costs are expensed as incurred. Stock-Based Compensation The Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments at the end of each reporting period and as the underlying stock-based awards vest. Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. As of March 31, 2023, one distributor represented 9 15 37 40 Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. GAAP permits an entity to choose to measure many financial instruments and certain other items at fair value and contains financial statement presentation and disclosure requirements for assets and liabilities for which the fair value option is elected. As of March 31, 2023 and December 31, 2022, management has not elected to report any of the Company’s assets or liabilities at fair value under the “fair value option” provided by GAAP. The hierarchy of fair value valuation techniques under GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under GAAP’s fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using cash or unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management’s own assumptions regarding the applicable asset or liability. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) None of the Company’s assets or liabilities were measured at fair value as of March 31, 2023 or December 31, 2022. However, GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of trade receivables, accounts payable, accrued liabilities, notes payable, and the secured credit facilities. The estimated fair value of trade receivables, accounts payable, and accrued liabilities approximate their carrying value due to the short period of time to their maturities. As of March 31, 2023 and December 31, 2022, the principal amounts of the Company’s notes approximate fair value. Items Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities acquired in a business acquisition are valued at fair value at the date of acquisition due to having indefinite lives. The Company, on an annual basis, tests the indefinite life assets for impairment. If an indefinite life asset is found to be impaired, then the Company will estimate its useful life and amortize the asset over the remainder of its useful life. Inventories Inventories primarily consist of bulk and bottled liquor and raw materials and are stated at the lower of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out (“FIFO”) method. A portion of the Company’s finished goods inventory is held by certain independent distributors on consignment until it is sold to a third party. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Amortization of leasehold improvements is computed using the straight-line method over the life of the lease or the useful lives of the assets, whichever is shorter. The cost and related accumulated depreciation and amortization of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is reported as current period income or expense. The costs of repairs and maintenance are expensed as incurred. Intangible Assets / Goodwill The Company accounts for certain intangible assets at cost. Management reviews these intangible assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount, an impairment loss would be recognized to write down the asset to its estimated fair value. The Company performed a qualitative assessment of certain of its intangible assets as of March 31, 2023 and determined that they were not impaired. Long-lived Assets The Company accounts for long-lived assets, including certain intangible assets, at amortized cost. Management reviews long-lived assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount of the asset, an impairment loss would be recognized to write down the asset to its estimated fair value. The Company performed a qualitative assessment of certain of its long-lived assets as of March 31, 2023 and determined that they were not impaired. Comprehensive Income The Company did no Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) Accounts Receivable Factoring Program The Company has two accounts receivable factoring programs. One for its spirits customers (the “spirits program”) and another for its co-packing customers (the “co-packing program”). Under the programs, the Company has the option to sell certain customer account receivables in advance of payment for 75 85 0.5 1 Transfers and Servicing 0.1 12,244 0.1 Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Business Segment Information	4. Business Segment Information The Company’s internal management financial reporting consists of Craft C+P, Eastside spirits and corporate. Craft C+P offers digital can printing and co-packing services in Portland, Oregon allowing it to offer end-to-end production capabilities. Craft C+P operates 13 mobile lines in Washington and Oregon. The spirits brands span several alcoholic beverage categories, including whiskey, vodka, rum, and tequila and are sold on a wholesale basis to distributors in open states, and brokers in control states. The Company’s principal area of operation is in the U.S. and has two spirits customers that represents 37% of its revenue. Corporate consists of key accounting personnel and corporate expenses such as public company and board costs, as well as interest on debt. The measure of profitability reviewed is condensed statements of operations and gross margins. These business segments reflect how operations are managed, operating performance is evaluated and the structure of internal financial reporting. Total asset information by segment is not provided to, or reviewed by, the chief operating decision maker (“CODM”) as it is not used to make strategic decisions, allocate resources or assess performance. The accounting policies of the segments are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 3. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) Segment information was as follows for the three months ended March 31, 2023 and 2022: Schedule of Segment Information (Dollars in thousands) 2023 2022 Craft C+P Sales $ 1,456 $ 1,076 Net sales 1,477 1,076 Cost of sales 1,578 1,111 Gross profit (101 ) (35 ) Total operating expenses 749 1,047 Net loss (884 ) (1,093 ) Gross margin -7 % -3 % Interest expense $ 4 $ 11 Depreciation and amortization 368 221 Significant noncash items: Loss on disposal of property and equipment 6 - Stock compensation - 205 Spirits Sales $ 1,423 $ 2,704 Net sales 1,376 2,664 Cost of sales 634 1,682 Gross profit 742 982 Total operating expenses 522 625 Net income 221 357 Gross margin 54 % 37 % Depreciation and amortization $ 39 $ 42 Corporate Total operating expenses $ 610 $ 905 Net loss (935 ) (1,300 ) Interest expense $ 325 $ 395 Significant noncash items: Stock compensation 111 170 Craft C+P’s sales increased due to new digital printing revenues offset by lower mobile revenues. Gross margin decreased compared to the prior year as digital printing continues to ramp up and is not at sufficient capacity to offset related operating expense. The Company also incurred higher raw material costs in the quarter related to digital printing.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consisted of the following: Schedule of Inventories (Dollars in thousands) March 31, December 31, Raw materials $ 2,691 $ 3,127 Finished goods 1,298 1,315 Total inventories $ 3,989 $ 4,442

Prepaid Expenses and Current As

Prepaid Expenses and Current Assets	3 Months Ended
	Mar. 31, 2023
Prepaid Expenses And Current Assets
Prepaid Expenses and Current Assets	6. Prepaid Expenses and Current Assets Prepaid expenses and current assets consisted of the following: Schedule of Prepaid Expenses and Current Assets (Dollars in thousands) March 31, December 31, Prepayment of fixed assets $ 350 $ 346 Prepayment of inventory 302 - Other 289 233 Total prepaid expenses and current assets $ 941 $ 579 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited)

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Property and Equipment	7. Property and Equipment Property and equipment consisted of the following: Schedule of Property and Equipment (Dollars in thousands) March 31, December 31, Furniture and fixtures $ 4,073 $ 4,093 Digital can printer 4,264 4,216 Leasehold improvements 1,529 1,529 Vehicles 222 222 Total cost 10,088 10,060 Less accumulated depreciation (4,599 ) (4,319 ) Total property and equipment, net $ 5,489 $ 5,741 Purchases of property and equipment totaled $ 0 1.4 1.3 0.3 0.1 During the three months ended March 31, 2023, the Company disposed of fixed assets resulting in a loss of $ 5,901 and wrote off obsolete fixed assets with a net book value of $ 0.1 million.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	8. Intangible Assets Intangible assets consisted of the following: Schedule of Intangible Assets (Dollars in thousands) March 31, December 31, Permits and licenses $ 25 $ 25 Azuñia brand 4,492 4,492 Customer lists 2,895 2,895 Total intangible assets 7,412 7,412 Less accumulated amortization (1,757 ) (1,654 ) Intangible assets, net $ 5,655 $ 5,758 The customer list is being amortized over a seven-year life. Amortization expense totaled $ 0.1 The permits and licenses, and Azuñia brand have all been determined to have an indefinite life and will not be amortized. The Company, on an annual basis, tests the indefinite life assets for impairment. If the carrying value of an indefinite life asset is found to be impaired, then the Company will record an impairment loss and reduce the carrying value of the asset.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	9. Other Assets Other assets consisted of the following: Schedule of Other Assets (Dollars in thousands) March 31, December 31, Product branding $ 400 $ 400 Deposits 256 256 Total other assets 656 656 Less accumulated amortization (302 ) (287 ) Other assets, net $ 354 $ 369 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) As of March 31, 2023, the Company had $ 0.4 Amortization expense totaled $ 14,286 The deposits represent office lease deposits.

Leases

Leases	3 Months Ended
	Mar. 31, 2023
Leases
Leases	10. Leases The Company has various lease agreements in place for facilities, equipment and vehicles. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2027 2.7 2.8 0.3 0.1 0.2 Maturities of lease liabilities as of March 31, 2023 were as follows: Schedule of Maturities of Operating Lease Liabilities (Dollars in thousands) Operating Leases Weighted- Average Remaining Term in Years 2023 $ 833 2024 797 2025 795 2026 632 2027 141 Thereafter - Total lease payments 3,198 Less imputed interest (based on 6.7 (358 ) Present value of lease liability $ 2,840 3.29

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Notes Payable	11. Notes Payable Notes payable consisted of the following: Schedule of Notes Payable (Dollars in thousands) March 31, December 31, Promissory notes payable bearing interest of 6.0%. The notes have a 36-month term with maturity in April 2024. Accrued interest is paid in accordance with a monthly amortization schedule. $ 7,749 $ 7,749 Promissory notes payable bearing interest of 6.0 36 April 2024 $ 7,749 $ 7,749 Total notes payable 7,749 7,749 Less current portion (7,749 ) - Long-term portion of notes payable $ - $ 7,749 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) The Company paid $ 0.1 0.2 Maturities on notes payable as of March 31, 2023 were as follows: Schedule of Maturities on Notes Payable (Dollars in thousands) 2023 $ - 2024 7,749 2025 - 2026 - 2027 - Thereafter - Total $ 7,749

Secured Credit Facilities

Secured Credit Facilities	3 Months Ended
	Mar. 31, 2023
Secured Credit Facilities
Secured Credit Facilities	12. Secured Credit Facilities Note Purchase Agreement On October 7, 2022, the Company entered into a Note Purchase Agreement dated as of October 6, 2022 with Aegis Security Insurance Company (“Aegis”). Pursuant to the Note Purchase Agreement, Aegis purchased from the Company a secured promissory note in the principal amount of $ 4.5 3.3 1.2 The Aegis Note bears interest at 9.25 45,000 0.1 See additional discussion in Note 16. 6% Secured Convertible Promissory Notes On April 19, 2021, the Company entered into a securities purchase agreement (“Purchase Agreement”) with accredited investors (“Subscribers”) for their purchase of up to $ 3.3 6 0.0001 2.20 60 2.60 3.3 Roth Capital, LLC acted as placement agent in the private offering, and the Company paid the Placement Agent a cash fee of five percent ( 5 3.1 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) Interest on the Notes accrues at a rate of 6 October 18, 2022 0.1 All amounts due under the Notes are convertible at any time after the issuance date, in whole or in part (subject to rounding for fractional shares), at the option of the holders into the Company’s common stock at a fixed conversion price, which is subject to adjustment as summarized below. The Notes were initially convertible into the Company’s common stock at an initial fixed conversion price of $ 2.20 6 1.30 3.5 1.20 The Company may prepay the Notes at any time in whole or in part by paying a sum of money equal to 100 The Notes contain customary triggering events including but not limited to: (i) failure to make payments when due under the Notes; and (ii) bankruptcy or insolvency of the Company. If a triggering event occurs, each holder may require the Company to redeem all or any portion of the Notes (including all accrued and unpaid interest thereon), in cash. The Notes are secured by a subordinated security interest in the Company’s assets pursuant to the terms of a Security Agreement entered into between the Company and the Subscribers. On October 13, 2022, the Company entered into an Amendment Agreement with the holders of the 6 96,153

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	13. Commitments and Contingencies Legal Matters On March 1, 2023, Sandstrom Partners, Inc. filed a complaint in the Circuit Court of the State of Oregon for the County of Multnomah alleging the Company failed to pay for its services pursuant to an agreement entered into on October 16, 2019. The complaint seeks damages of $ 285,000 On December 15, 2020, Grover Wickersham filed a complaint in the United States District Court for the District Court of Oregon against the Company. Mr. Wickersham, the former CEO and Chairman of the Board of the Company, has asserted causes of action for fraud in the inducement, breach of contract, breach of the implied covenant of good faith and fair dealing, defamation, interference with economic advantage, elder financial abuse, and dissemination of false and misleading proxy materials. The Company disputes the allegations and intends to defend the case vigorously. The Company is not currently subject to any other material legal proceedings; however, it could be subject to legal proceedings and claims from time to time in the ordinary course of its business, or legal proceedings it considered immaterial may in the future become material. Regardless of the outcome, litigation can, among other things, be time consuming and expensive to resolve, and can divert management resources. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited)

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income (Loss) per Common Share	14. Net Income (Loss) per Common Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period, without considering any dilutive items. Potentially dilutive securities consist of the incremental common stock issuable upon exercise of stock options, convertible notes and warrants. Potentially dilutive securities are excluded from the computation if their effect is anti-dilutive. There were no

Stockholders_ Equity

Stockholders’ Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders’ Equity	15. Stockholders’ Equity Schedule of Stockholders’ Equity (Shares and dollars in thousands) Shares Amount Shares Amount Capital Deficit Equity Series B Common Stock Paid-in Accumulated Total Stockholders’ (Shares and dollars in thousands) Shares Amount Shares Amount Capital Deficit Equity Balance, December 31, 2021 2,500 $ - 14,791 $ 1 $ 72,003 $ (58,605 ) $ 13,399 Stock-based compensation - - - - 2 - 2 Issuance of common stock for services by third parties - - 125 - 119 - 119 Issuance of common stock for services by employees - - 170 1 206 - 207 Issuance of detachable warrants on notes payable - - - - 948 - 948 Net loss - - - - - (38 ) (38 Net loss - - - - - (2,036 ) (2,036 ) Balance, March 31, 2022 2,500 $ - 15,086 $ 2 $ 73,278 $ (60,679 ) $ 12,601 Series B Preferred Stock Common Stock Paid-in Accumulated Total Shares Amount Shares Amount Capital Deficit (Deficit) Balance, December 31, 2022 2,500 $ - 16,199 $ 2 $ 73,503 $ (75,021 ) $ (1,516 ) Beginning balance 2,500 $ - 16,199 $ 2 $ 73,503 $ (75,021 ) $ (1,516 ) Issuance of common stock for services by third parties - - 225 - 83 - 83 Issuance of common stock for services by employees - - 236 - 60 - 60 Preferred stock dividends - - - - - (38 ) (38 ) Net loss - - - - - (1,598 ) (1,598 ) Balance, March 31, 2023 2,500 $ - 16,660 $ 2 $ 73,646 $ (76,657 ) $ (3,009 ) Ending balance 2,500 $ - 16,660 $ 2 $ 73,646 $ (76,657 ) $ (3,009 ) Issuance of Common Stock During the three months ended March 31, 2023, the Company issued 460,899 0.1 0.25 0.37 During the year ended December 31, 2022, the Company issued 385,306 96,153 6 0.3 0.28 0.96 On April 5, 2022, the Company sold 200,000 0.2 On February 4, 2022, 170,000 1.21 0.2 Issuance of Series B Preferred Stock On October 19, 2021, Company entered into a securities purchase agreement (“Purchase Agreement”) with an accredited investor (“Subscriber”) for its purchase of 2.5 1.00 3.10 850,000 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) The Series B Preferred Stock accrues dividends at a rate of 6 0.5 460,093 0.33 37,500 Stock-Based Compensation On September 8, 2016, the Company adopted the 2016 Equity Incentive Plan (the “2016 Plan”). Pursuant to the terms of the plan, on January 1, 2022 the number of shares available for grant under the 2016 Plan reset to 5,225,141 8 61,752 7,115,483 The Company also issues, from time to time, options that are not registered under a formal option plan. As of March 31, 2023, there were no options outstanding that were not issued under the Plans. A summary of all stock option activity as of and for the three months ended March 31, 2023 is presented below: Summary of Stock Option Activity # of Options Weighted- Outstanding as of December 31, 2022 51,752 $ 3.16 Outstanding as of March 31, 2023 51,752 $ 3.16 Exercisable as of March 31, 2023 51,752 $ 3.16 The aggregate intrinsic value of options outstanding as of March 31, 2023 was $ 0 The Company uses the Black-Scholes valuation model to measure the grant-date fair value of stock options. The grant-date fair value of stock options issued to employees is recognized on a straight-line basis over the requisite service period. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments as the underlying stock-based awards vest. To determine the fair value of stock options using the Black-Scholes valuation model, the calculation takes into consideration the effect of the following: ● Exercise price of the option ● Fair value of the Company’s common stock on the date of grant ● Expected term of the option ● Expected volatility over the expected term of the option ● Risk-free interest rate for the expected term of the option The calculation includes several assumptions that require management’s judgment. The expected term of the options is calculated using the simplified method described in GAAP. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is derived from volatility calculated using historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the options. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the options. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) The Company did not issue any additional options during the three months ended March 31, 2023. For the three months ended March 31, 2023 and 2022, net compensation expense related to stock options was $ 0 1,614 Warrants On March 21, 2022, the Company entered into a promissory note with TQLA LLC to accept a one year loan of $ 3.5 1.20 From April 19, 2021 through May 12, 2021, the Company issued in a private placement Existing Warrants to purchase up to 900,000 2.60 900,000 900,000 3.00 On January 15, 2020, the Company and its subsidiaries entered into a loan agreement (the “Loan Agreement”) between the Company and Live Oak Banking Company (“Live Oak”), a North Carolina banking corporation (the “Lender”) to refinance existing debt of the Company and to provide funding for general working capital purposes In connection with the Loan Agreement, the Company issued to the Lender a warrant to purchase up to 100,000 3.94 A summary of all warrant activity as of and for the three months ended March 31, 2023 is presented below: Summary of Warrant Activity Warrants Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 4,033,333 3.8 $ 1.67 $ - Outstanding as of March 31, 2023 4,033,333 3.8 $ 1.67 $ -

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions The following is a description of transactions since January 1, 2022 as to which the amount involved exceeds the lesser of $ 0.1 1 0.3 During 2022, the Company entered into a Secured Line of Credit Promissory Note with TQLA LLC and amended it twice for total borrowing of $ 3.3 4.5 4.5 Details regarding the Aegis transactions are set forth in Note 12. TQLA LLC is owned by Stephanie Kilkenny and her husband, Patrick Kilkenny. Patrick Kilkenny is also the principal owner of Aegis Security Insurance Company. Stephanie Kilkenny is a member of the Eastside Board of Directors. Short-term Advance During December 2022, LD Investments advanced the Company $ 0.7 0.3 1.0

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements for Eastside Distilling, Inc. and subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements in accordance with GAAP have been condensed or eliminated as permitted under the SEC’s rules and regulations. In management’s opinion, the unaudited consolidated financial statements include all material adjustments, all of which are of a normal and recurring nature, necessary to present fairly the Company’s financial position as of March 31, 2023, its operating results for the three months ended March 31, 2023 and 2022 and its cash flows for the three months ended March 31, 2023 and 2022. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Interim results are not necessarily indicative of the results that may be expected for an entire fiscal year. The consolidated financial statements include the accounts of Eastside Distilling, Inc.’s wholly-owned subsidiaries, including Craft Canning + Bottling, LLC (doing business as Craft Canning + Printing) and its wholly-owned subsidiary Galactic Unicorn Packaging, LLC (the Company’s newly acquired fixed co-packing assets) and MotherLode LLC. All intercompany balances and transactions have been eliminated on consolidation. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited)
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition Net sales include product sales, less excise taxes and customer programs and incentives. The Company recognizes revenue by applying the following steps in accordance with Accounting Standards Codification (“ASC”) Topic 606 – Revenue from Contracts with Customers The Company recognizes sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of a consignment sale). For consignment sales, which include sales to the Oregon Liquor Control Commission, the Company recognizes sales upon the consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of shipment or purchase by customers at a retail location. For consignment sales, title passes to the consignee concurrent with the consignee’s shipment to the customer. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than customary rights of return.
Customer Programs	Customer Programs Customer programs, which include customer promotional discount programs, are a common practice in the alcoholic beverage industry. The Company reimburses wholesalers for an agreed amount to promote sales of products and to maintain competitive pricing. Amounts paid in connection with customer programs are recorded as reductions to net sales in accordance with ASC 606 - Revenue from Contracts with Customers (6,382) 3,812
Excise Taxes	Excise Taxes The Company is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau (“TTB”) regulations, which includes making timely and accurate excise tax payments. The Company is subject to periodic compliance audits by the TTB. Individual states also impose excise taxes on alcoholic beverages in varying amounts. The Company calculates its excise tax expense based upon units produced and on its understanding of the applicable excise tax laws. Excise taxes totaled $ 32,136 40,062
Cost of Sales	Cost of Sales Cost of sales consists of all direct costs related to both spirits and canning for service, labor, overhead, packaging, and in-bound freight charges. Ingredients account for the largest portion of the cost of sales, followed by packaging and production costs.
Sales and Marketing Expenses	Sales and Marketing Expenses Sales and marketing expenses consist of sponsorships, agency fees, digital media, salary and benefit expenses, travel and entertainment expenses. Sales and marketing costs are expensed as incurred. Advertising and marketing expenses totaled $ 0.1 0.2 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited)
General and Administrative Expenses	General and Administrative Expenses General and administrative expenses consist of salary and benefit expenses, travel and entertainment expenses for executive and administrative staff, rent and utilities, professional fees, insurance, and amortization and depreciation expense. General and administrative costs are expensed as incurred.
Stock-Based Compensation	Stock-Based Compensation The Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and are subject to periodic market adjustments at the end of each reporting period and as the underlying stock-based awards vest.
Concentrations	Concentrations Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of trade receivables. As of March 31, 2023, one distributor represented 9 15 37 40
Fair Value Measurements	Fair Value Measurements GAAP defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements. GAAP permits an entity to choose to measure many financial instruments and certain other items at fair value and contains financial statement presentation and disclosure requirements for assets and liabilities for which the fair value option is elected. As of March 31, 2023 and December 31, 2022, management has not elected to report any of the Company’s assets or liabilities at fair value under the “fair value option” provided by GAAP. The hierarchy of fair value valuation techniques under GAAP provides for three levels: Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing assets and liabilities under GAAP’s fair value measurement requirements are as follows: Level 1: Fair value of the asset or liability is determined using cash or unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Fair value of the asset or liability is determined using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3: Fair value of the asset or liability is determined using unobservable inputs that are significant to the fair value measurement and reflect management’s own assumptions regarding the applicable asset or liability. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited) None of the Company’s assets or liabilities were measured at fair value as of March 31, 2023 or December 31, 2022. However, GAAP requires the disclosure of fair value information about financial instruments that are not measured at fair value. Financial instruments consist principally of trade receivables, accounts payable, accrued liabilities, notes payable, and the secured credit facilities. The estimated fair value of trade receivables, accounts payable, and accrued liabilities approximate their carrying value due to the short period of time to their maturities. As of March 31, 2023 and December 31, 2022, the principal amounts of the Company’s notes approximate fair value. Items Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities acquired in a business acquisition are valued at fair value at the date of acquisition due to having indefinite lives. The Company, on an annual basis, tests the indefinite life assets for impairment. If an indefinite life asset is found to be impaired, then the Company will estimate its useful life and amortize the asset over the remainder of its useful life.
Inventories	Inventories Inventories primarily consist of bulk and bottled liquor and raw materials and are stated at the lower of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out (“FIFO”) method. A portion of the Company’s finished goods inventory is held by certain independent distributors on consignment until it is sold to a third party. The Company regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory.
Property and Equipment	Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years. Amortization of leasehold improvements is computed using the straight-line method over the life of the lease or the useful lives of the assets, whichever is shorter. The cost and related accumulated depreciation and amortization of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is reported as current period income or expense. The costs of repairs and maintenance are expensed as incurred.
Intangible Assets / Goodwill	Intangible Assets / Goodwill The Company accounts for certain intangible assets at cost. Management reviews these intangible assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount, an impairment loss would be recognized to write down the asset to its estimated fair value. The Company performed a qualitative assessment of certain of its intangible assets as of March 31, 2023 and determined that they were not impaired.
Long-lived Assets	Long-lived Assets The Company accounts for long-lived assets, including certain intangible assets, at amortized cost. Management reviews long-lived assets for probable impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these estimated cash flows were less than the carrying amount of the asset, an impairment loss would be recognized to write down the asset to its estimated fair value. The Company performed a qualitative assessment of certain of its long-lived assets as of March 31, 2023 and determined that they were not impaired.
Comprehensive Income	Comprehensive Income The Company did no Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements March 31, 2023 (Unaudited)
Accounts Receivable Factoring Program	Accounts Receivable Factoring Program The Company has two accounts receivable factoring programs. One for its spirits customers (the “spirits program”) and another for its co-packing customers (the “co-packing program”). Under the programs, the Company has the option to sell certain customer account receivables in advance of payment for 75 85 0.5 1 Transfers and Servicing 0.1 12,244 0.1
Reclassification of Prior Year Presentation	Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Segment Information	Segment information was as follows for the three months ended March 31, 2023 and 2022: Schedule of Segment Information (Dollars in thousands) 2023 2022 Craft C+P Sales $ 1,456 $ 1,076 Net sales 1,477 1,076 Cost of sales 1,578 1,111 Gross profit (101 ) (35 ) Total operating expenses 749 1,047 Net loss (884 ) (1,093 ) Gross margin -7 % -3 % Interest expense $ 4 $ 11 Depreciation and amortization 368 221 Significant noncash items: Loss on disposal of property and equipment 6 - Stock compensation - 205 Spirits Sales $ 1,423 $ 2,704 Net sales 1,376 2,664 Cost of sales 634 1,682 Gross profit 742 982 Total operating expenses 522 625 Net income 221 357 Gross margin 54 % 37 % Depreciation and amortization $ 39 $ 42 Corporate Total operating expenses $ 610 $ 905 Net loss (935 ) (1,300 ) Interest expense $ 325 $ 395 Significant noncash items: Stock compensation 111 170

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: Schedule of Inventories (Dollars in thousands) March 31, December 31, Raw materials $ 2,691 $ 3,127 Finished goods 1,298 1,315 Total inventories $ 3,989 $ 4,442

Prepaid Expenses and Current _2

Prepaid Expenses and Current Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Prepaid Expenses And Current Assets
Schedule of Prepaid Expenses and Current Assets	Prepaid expenses and current assets consisted of the following: Schedule of Prepaid Expenses and Current Assets (Dollars in thousands) March 31, December 31, Prepayment of fixed assets $ 350 $ 346 Prepayment of inventory 302 - Other 289 233 Total prepaid expenses and current assets $ 941 $ 579

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following: Schedule of Property and Equipment (Dollars in thousands) March 31, December 31, Furniture and fixtures $ 4,073 $ 4,093 Digital can printer 4,264 4,216 Leasehold improvements 1,529 1,529 Vehicles 222 222 Total cost 10,088 10,060 Less accumulated depreciation (4,599 ) (4,319 ) Total property and equipment, net $ 5,489 $ 5,741

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following: Schedule of Intangible Assets (Dollars in thousands) March 31, December 31, Permits and licenses $ 25 $ 25 Azuñia brand 4,492 4,492 Customer lists 2,895 2,895 Total intangible assets 7,412 7,412 Less accumulated amortization (1,757 ) (1,654 ) Intangible assets, net $ 5,655 $ 5,758

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Assets	Other assets consisted of the following: Schedule of Other Assets (Dollars in thousands) March 31, December 31, Product branding $ 400 $ 400 Deposits 256 256 Total other assets 656 656 Less accumulated amortization (302 ) (287 ) Other assets, net $ 354 $ 369

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases
Schedule of Maturities of Operating Lease Liabilities	Maturities of lease liabilities as of March 31, 2023 were as follows: Schedule of Maturities of Operating Lease Liabilities (Dollars in thousands) Operating Leases Weighted- Average Remaining Term in Years 2023 $ 833 2024 797 2025 795 2026 632 2027 141 Thereafter - Total lease payments 3,198 Less imputed interest (based on 6.7 (358 ) Present value of lease liability $ 2,840 3.29

Notes Payable (Tables)

Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable consisted of the following: Schedule of Notes Payable (Dollars in thousands) March 31, December 31, Promissory notes payable bearing interest of 6.0%. The notes have a 36-month term with maturity in April 2024. Accrued interest is paid in accordance with a monthly amortization schedule. $ 7,749 $ 7,749 Promissory notes payable bearing interest of 6.0 36 April 2024 $ 7,749 $ 7,749 Total notes payable 7,749 7,749 Less current portion (7,749 ) - Long-term portion of notes payable $ - $ 7,749
Schedule of Maturities on Notes Payable	Maturities on notes payable as of March 31, 2023 were as follows: Schedule of Maturities on Notes Payable (Dollars in thousands) 2023 $ - 2024 7,749 2025 - 2026 - 2027 - Thereafter - Total $ 7,749

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Stockholders’ Equity	Schedule of Stockholders’ Equity (Shares and dollars in thousands) Shares Amount Shares Amount Capital Deficit Equity Series B Common Stock Paid-in Accumulated Total Stockholders’ (Shares and dollars in thousands) Shares Amount Shares Amount Capital Deficit Equity Balance, December 31, 2021 2,500 $ - 14,791 $ 1 $ 72,003 $ (58,605 ) $ 13,399 Stock-based compensation - - - - 2 - 2 Issuance of common stock for services by third parties - - 125 - 119 - 119 Issuance of common stock for services by employees - - 170 1 206 - 207 Issuance of detachable warrants on notes payable - - - - 948 - 948 Net loss - - - - - (38 ) (38 Net loss - - - - - (2,036 ) (2,036 ) Balance, March 31, 2022 2,500 $ - 15,086 $ 2 $ 73,278 $ (60,679 ) $ 12,601 Series B Preferred Stock Common Stock Paid-in Accumulated Total Shares Amount Shares Amount Capital Deficit (Deficit) Balance, December 31, 2022 2,500 $ - 16,199 $ 2 $ 73,503 $ (75,021 ) $ (1,516 ) Beginning balance 2,500 $ - 16,199 $ 2 $ 73,503 $ (75,021 ) $ (1,516 ) Issuance of common stock for services by third parties - - 225 - 83 - 83 Issuance of common stock for services by employees - - 236 - 60 - 60 Preferred stock dividends - - - - - (38 ) (38 ) Net loss - - - - - (1,598 ) (1,598 ) Balance, March 31, 2023 2,500 $ - 16,660 $ 2 $ 73,646 $ (76,657 ) $ (3,009 ) Ending balance 2,500 $ - 16,660 $ 2 $ 73,646 $ (76,657 ) $ (3,009 )
Summary of Stock Option Activity	A summary of all stock option activity as of and for the three months ended March 31, 2023 is presented below: Summary of Stock Option Activity # of Options Weighted- Outstanding as of December 31, 2022 51,752 $ 3.16 Outstanding as of March 31, 2023 51,752 $ 3.16 Exercisable as of March 31, 2023 51,752 $ 3.16
Summary of Warrant Activity	A summary of all warrant activity as of and for the three months ended March 31, 2023 is presented below: Summary of Warrant Activity Warrants Weighted- Weighted- Aggregate Outstanding as of December 31, 2022 4,033,333 3.8 $ 1.67 $ - Outstanding as of March 31, 2023 4,033,333 3.8 $ 1.67 $ -

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Liquidity
Retained Earnings (Accumulated Deficit)	$ 76,657		$ 75,021
Net Income (Loss) Attributable to Parent	$ 1,598	$ 2,036

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Product Information [Line Items]
Customer programs and incentives paid	$ (6,382)	$ (6,382)
Reversal customer discount	3,812	3,812
Excise taxes	32,136	40,062
Marketing and advertising expense	100,000	200,000
Comprehensive income	0	$ 0
Interest charged on advance payment amount	$ 500,000
Interest charged on advance payment, rate	1%
Spirtits Program and Co Packing Program [Member]
Product Information [Line Items]
Concentration risk percentage description	Under the programs, the Company has the option to sell certain customer account receivables in advance of payment for 75% (spirits program) or 85% (co-packing program) of the amount due. When the customer remits payment, the Company receives the remaining balance. For the spirits program, interest is charged on the advanced 75% payment at a rate of 2.4% for the first 30 days plus 1.44% for each additional ten-day period
Spirits Program [Member]
Product Information [Line Items]
Payment of account receivables in advance percentage	75%
Copacking Program [Member]
Product Information [Line Items]
Payment of account receivables in advance percentage	85%
Factored invoices	$ 100,000
Fees	12,244
Factored co-packing invoices balance outstanding	$ 100,000
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Distributors [Member]
Product Information [Line Items]
Concentration risk percentage	9%		15%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Distributor and One Wholesale Customer [Member]
Product Information [Line Items]
Concentration risk percentage	37%		40%

Schedule of Segment Information

Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Sales	$ 2,853	$ 3,740
Cost of sales	2,212	2,793
Gross profit	641	947
Total operating expenses	1,881	2,577
Net loss	(1,598)	(2,036)
Interest expense	329	406
Loss on disposal of property and equipment	(6)
Craft C+P [Member]
Segment Reporting Information [Line Items]
Sales	1,456	1,076
Net sales	1,477	1,076
Cost of sales	1,578	1,111
Gross profit	(101)	(35)
Total operating expenses	749	1,047
Net loss	$ (884)	$ (1,093)
Gross margin	(7.00%)	(3.00%)
Interest expense	$ 4	$ 11
Depreciation and amortization	368	221
Loss on disposal of property and equipment	6
Stock compensation		205
Spirits [Member]
Segment Reporting Information [Line Items]
Sales	1,423	2,704
Net sales	1,376	2,664
Cost of sales	634	1,682
Gross profit	742	982
Total operating expenses	522	625
Net loss	$ 221	$ 357
Gross margin	54%	37%
Depreciation and amortization	$ 39	$ 42
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Total operating expenses	610	905
Net loss	(935)	(1,300)
Interest expense	325	395
Stock compensation	$ 111	$ 170

Schedule of Inventories (Detail

Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 2,691	$ 3,127
Finished goods	1,298	1,315
Total inventories	$ 3,989	$ 4,442

Schedule of Prepaid Expenses an

Schedule of Prepaid Expenses and Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Prepaid Expenses And Current Assets
Prepayment of fixed assets	$ 350	$ 346
Prepayment of inventory	302
Other	289	233
Total prepaid expenses and current assets	$ 941	$ 579

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Total cost	$ 10,088	$ 10,060
Less accumulated depreciation	(4,599)	(4,319)
Total property and equipment, net	5,489	5,741
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	4,073	4,093
Digital Can Printer [Member]
Property, Plant and Equipment [Line Items]
Total cost	4,264	4,216
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	1,529	1,529
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 222	$ 222

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Abstract]
Purchases of property and equipment	$ 28,000	$ 1,389,000
Investments		1,300,000
Depreciation expense	300,000	$ 100,000
Loss on disposal of fixed assets	5,901
Property, Plant and Equipment, Disposals	$ 100,000

Schedule of Intangible Assets (

Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 7,412	$ 7,412
Less accumulated amortization	(1,757)	(1,654)
Intangible assets, net	5,655	5,758
Permits And Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	25	25
Azunia Brand [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	4,492	4,492
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 2,895	$ 2,895

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.1	$ 0.1

Schedule of Other Assets (Detai

Schedule of Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	$ 656	$ 656
Less accumulated amortization	(302)	(287)
Other assets, net	354	369
Product Branding [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	400	400
Deposits [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	$ 256	$ 256

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Net value of service write down	$ 400,000
Adjustment for amortization	100,000	$ 100,000
Other Assets [Member]
Adjustment for amortization	$ 14,286	$ 14,286

Schedule of Maturities of Opera

Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases
2023	$ 833
2024	797
2025	795
2026	632
2027	141
Thereafter
Total lease payments	3,198
Less imputed interest (based on 6.7% weighted-average discount rate)	(358)
Present value of lease liability	$ 2,840
Operating lease weighted average remaining lease term	3 years 3 months 14 days

Schedule of Maturities of Ope_2

Schedule of Maturities of Operating Lease Liabilities (Details) (Parenthetical)	Mar. 31, 2023
Leases
Operating lease weighted average discount rate	6.70%

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Leases
Lease obligations expire description	lease obligations expire at various dates through 2027
Operating lease right of use asset	$ 2,698	$ 2,988
Operating lease liabilities	2,840
Lease cost	300
Operating lease cost	100
Short term lease cost	$ 200

Schedule of Notes Payable (Deta

Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Total notes payable	$ 7,749	$ 7,749
Total notes payable	(7,749)
Total notes payable		7,749
Note Payable One [Member]
Short-Term Debt [Line Items]
Total notes payable	$ 7,749	$ 7,749

Schedule of Notes Payable (De_2

Schedule of Notes Payable (Details) (Parenthetical) - Note Payable One [Member]	3 Months Ended
	Mar. 31, 2023
Short-Term Debt [Line Items]
Interest rate	6%
Debt term	36 months
Debt instrument maturity date description	April 2024

Schedule of Maturities on Notes

Schedule of Maturities on Notes Payable (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2023
2024	7,749
2025
2026
2027
Thereafter
Total	$ 7,749

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Notes Payable [Member]
Short-Term Debt [Line Items]
Interest on notes	$ 0.1	$ 0.2

Secured Credit Facilities (Deta

Secured Credit Facilities (Details Narrative) - USD ($)					3 Months Ended		12 Months Ended
	Oct. 13, 2022	Oct. 07, 2022	Apr. 02, 2022	Apr. 19, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Oct. 06, 2023
Debt instrument face amount					$ 1,000,000
Interest expense					$ 329,000	$ 406,000
Common stock, par value					$ 0.0001		$ 0.0001
Stock issuance cost percentage					5%
Debt instrument, description					The Company may prepay the Notes at any time in whole or in part by paying a sum of money equal to 100% of the principal amount to be redeemed, together with accrued and unpaid interest, plus a prepayment fee equal to five percent (5%) of the principal amount to be repaid
Debt prepayment cost					100%
Secured Convertible Promissory Notes [Member]
Debt instrument face amount			$ 3,500,000
Interest expense					$ 100,000
Debt instrument interest rate during period			6%		6%
Debt instrument, conversion price					$ 2.20
Debt instrument maturity date					Oct. 18, 2022
Share price			$ 1.30
Secured Convertible Promissory Notes [Member] | Common Stock [Member]
Share price			$ 1.20
Roth Capital, LLC [Member]
Proceeds from issuance initial public offering					$ 3,100,000
Each of the Subscribers [Member]
Number of shares issued							96,153
Note Purchase Agreement [Member]
Debt instrument face amount		$ 4,500,000			4,500,000
Payments in cash		$ 1,200,000
Secured debt percentage		9.25%
Interest expense					$ 100,000
Note Purchase Agreement [Member] | Subscribers [Member]
Secured debt percentage	6%						6%
Note Purchase Agreement [Member] | Each of the Subscribers [Member]
Number of shares issued	96,153
Note Purchase Agreement [Member] | Forecast [Member]
Commitment fee, amount								$ 45,000
Note Purchase Agreement [Member] | TQLA, LLC [Member]
Debt instrument face amount							$ 3,300,000
Repayment of debt		$ 3,300,000
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member]
Proceeds from loans				$ 3,300,000
Debt instrument interest rate during period				6%
Common stock, par value				$ 0.0001
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | IPO [Member]
Proceeds from issuance initial public offering				$ 3,300,000
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | Warrant [Member]
Warrant exercise price				$ 2.60
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | Common Stock [Member]
Debt instrument, conversion price				$ 2.20
Outstanding notes payable percentage				60%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	Mar. 01, 2023 USD ($)
Sandstrom Partners Inc [Member]
Loss contingency damages paid value	$ 285,000

Net Income (Loss) per Common _2

Net Income (Loss) per Common Share (Details Narrative) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Antidilutive common shares	0	0

Schedule of Stockholders_ Equit

Schedule of Stockholders’ Equity (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (1,516)	$ 13,399	$ 13,399
Issuance of common stock for services by third parties	83	119
Issuance of common stock for services by employees	60	207
Issuance of detachable warrants on notes payable		948
Net loss		(38)
Net loss	(1,598)	(2,036)
Ending balance	(3,009)	12,601	(1,516)
Preferred stock dividends	(38)
Preferred Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance
Beginning balance, shares	2,500	2,500	2,500
Issuance of common stock for services by third parties
Issuance of common stock for services by employees
Issuance of detachable warrants on notes payable
Net loss
Net loss
Ending balance
Ending balance, shares	2,500	2,500	2,500
Preferred stock dividends
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ 2	$ 1	$ 1
Beginning balance, shares	16,199	14,791	14,791
Issuance of common stock for services by third parties
Issuance of common stock for services by third parties, shares	225	125
Issuance of common stock for services by employees		$ 1
Issuance of common stock for services by employees, shares	236	170
Issuance of detachable warrants on notes payable
Net loss
Net loss
Ending balance	$ 2	$ 2	$ 2
Ending balance, shares	16,660	15,086	16,199
Preferred stock dividends
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	73,503	$ 72,003	$ 72,003
Issuance of common stock for services by third parties	83	119
Issuance of common stock for services by employees	60	206
Issuance of detachable warrants on notes payable		948
Net loss
Net loss
Ending balance	73,646	73,278	73,503
Preferred stock dividends
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(75,021)	(58,605)	(58,605)
Issuance of common stock for services by third parties
Issuance of common stock for services by employees
Issuance of detachable warrants on notes payable
Net loss		(38)
Net loss	(1,598)	(2,036)
Ending balance	(76,657)	$ (60,679)	$ (75,021)
Preferred stock dividends	$ (38)

Summary of Stock Option Activit

Summary of Stock Option Activity (Details)	Mar. 31, 2023 $ / shares shares
Equity [Abstract]
Number of options outstanding, beginning balance | shares	51,752
Weighted- average exercise price options outstanding, beginning balance | $ / shares	$ 3.16
Number of options outstanding, ending balance | shares	51,752
Weighted- average exercise price options outstanding, ending balance | $ / shares	$ 3.16
Number of options exercisable, ending balance | shares	51,752
Weighted- average exercise price options exercisable, ending balance | $ / shares	$ 3.16

Summary of Warrant Activity (De

Summary of Warrant Activity (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Equity [Abstract]
Warrants outstanding, beginning balance | shares	4,033,333
Warrants outstanding weighted average remaining life, beginning balance	3 years 9 months 18 days
Warrants outstanding weighted average exercise price, beginning balance | $ / shares	$ 1.67
Warrants outstanding aggregate intrinsic value, beginning balance | $
Warrants outstanding, ending balance | shares	4,033,333
Warrants outstanding weighted average remaining life, ending balance	3 years 9 months 18 days
Warrants outstanding weighted average exercise price, ending balance | $ / shares	$ 1.67
Warrants outstanding aggregate intrinsic value, ending balance | $

Stockholders_ Equity (Details N

Stockholders’ Equity (Details Narrative) - USD ($)

3 Months Ended

12 Months Ended

Oct. 13, 2022

Apr. 05, 2022

Feb. 04, 2022

Oct. 19, 2021

Sep. 08, 2016

Mar. 31, 2023

Mar. 31, 2022

Dec. 31, 2022

Oct. 07, 2022

Mar. 21, 2022

Jul. 30, 2021

May 12, 2021

Jan. 15, 2020

Class of Stock [Line Items]

Issuance of common stock for services

$ 2,000

Common stock, par value

$ 0.0001

$ 0.0001

common stock value per share

$ 1.20

Preferred stock par value

$ 0.0001

$ 0.0001

Net income

$ (1,598,000)

(2,036,000)

Common stock dividend issued, shares

38,000

38,000

Aggregate intrinsic value of options outstanding

0

Allocated share based compensation expenses

$ 0

$ 1,614

Loan

$ 3,500,000

New Warrants [Member]

Class of Stock [Line Items]

Class of warrants

900,000

900,000

Exercise price

$ 3

$ 2.60

New Warrant Shares [Member]

Class of Stock [Line Items]

Class of warrants

900,000

2016 Equity Incentive Plan [Member]

Class of Stock [Line Items]

Number of shares available for grant

5,225,141

Outstanding capital stock shares percentage

8%

Options outstanding

61,752

Number of RSU's issued

7,115,483

Series B Convertible Preferred Stock [Member]

Class of Stock [Line Items]

Dividend rate percentage per annum

6%

Net income

$ 500,000

Note Purchase Agreement [Member]

Class of Stock [Line Items]

Secured debt percentage

9.25%

Securities Purchase Agreement [Member] | Series B Convertible Preferred Stock [Member]

Class of Stock [Line Items]

Common stock dividend issued, shares

2,500,000

460,093

Preferred stock par value

$ 1

Common stock dividend issued, per share

$ 3.10

$ 0.33

Common stock dividend issued, shares

850,000

Common stock dividend issued, shares

$ 37,500

Loan Agreement [Member] | New Warrants [Member]

Class of Stock [Line Items]

Class of warrants

100,000

Exercise price

$ 3.94

Directors and Employees [Member]

Class of Stock [Line Items]

Issuance of common stock for services, shares

460,899

385,306

Issuance of common stock for services

$ 100,000

$ 300,000

Directors and Employees [Member] | Minimum [Member]

Class of Stock [Line Items]

Common stock, par value

$ 0.25

$ 0.28

Directors and Employees [Member] | Maximum [Member]

Class of Stock [Line Items]

Common stock, par value

$ 0.37

$ 0.96

Each of the Subscribers [Member]

Class of Stock [Line Items]

Common stock dividend issued, shares

96,153

Each of the Subscribers [Member] | Note Purchase Agreement [Member]

Class of Stock [Line Items]

Common stock dividend issued, shares

96,153

Subscribers [Member] | Note Purchase Agreement [Member]

Class of Stock [Line Items]

Secured debt percentage

6%

6%

Chief Executive Officer [Member]

Class of Stock [Line Items]

Issuance of common stock for services, shares

170,000

Issuance of common stock for services

$ 200,000

Sale of stock shares

200,000

Proceeds sale of stock

$ 200,000

common stock value per share

$ 1.21

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Millions	Jan. 01, 2022	Mar. 31, 2023	Dec. 31, 2022	Oct. 07, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Assets requirement from related party transaction	$ 0.1
Percentage of average of assets net	1%
Other assets	$ 0.3
Debt principal amount		$ 1
Short term advance		0.3	$ 0.7
Note Purchase Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt principal amount		$ 4.5		$ 4.5
Note Purchase Agreement [Member] | TQLA, LLC [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Debt principal amount			$ 3.3