Eastside Distilling (BLNE) 10-Q 14 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover - $ / shares	6 Months Ended
	Jun. 30, 2024	Aug. 14, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
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		1,763,489
Entity Listing, Par Value Per Share	$ 0.0001

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 420	$ 403
Trade receivables, net	1,017	559
Inventories	3,043	3,212
Prepaid expenses and other current assets	467	363
Total current assets	4,947	4,537
Property and equipment, net	4,282	4,768
Right-of-use assets	2,140	2,602
Intangible assets, net	4,798	5,005
Other assets, net	422	568
Total Assets	16,589	17,480
Current liabilities:
Accounts payable	2,916	2,076
Accrued liabilities	742	575
Deferred revenue	51	88
Current portion of secured credit facilities, related party	3,323
Current portion of secured credit facilities, net of debt issuance costs	935
Current portion of notes payable	8,117	486
Current portion of notes payable, related party	92	92
Current portion of lease liabilities	909	888
Other current liability, related party	83
Total current liabilities	17,168	4,205
Lease liabilities, net of current portion	1,355	1,824
Secured credit facilities, related party		2,700
Secured credit facilities, net of debt issuance costs		342
Notes payable, net of current portion		7,556
Total liabilities	18,523	16,627
Commitments and contingencies (Note 13)
Stockholders’ equity (deficit):
Common stock, $0.0001 par value; 6,000,000 shares authorized as of June 30, 2024 and December 31, 2023; and 1,763,489 shares and 1,705,987 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively
Additional paid-in capital	83,628	83,559
Accumulated deficit	(85,562)	(82,706)
Total stockholders’ equity (deficit)	(1,934)	853
Total Liabilities and Stockholders’ Equity (Deficit)	16,589	17,480
Series B Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock, value
Series C Preferred Stock [Member]
Stockholders’ equity (deficit):
Preferred stock, value

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	6,000,000	6,000,000
Common stock, shares issued	1,763,489	1,705,987
Common stock, shares outstanding	1,763,489	1,705,987
Series B Preferred Stock [Member]
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
Series C Preferred Stock [Member]
Preferred Stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	240,000	240,000
Preferred stock, shares issued	200,000	200,000
Preferred stock, shares outstanding	200,000	200,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Sales	$ 3,061	$ 2,757	$ 5,548	$ 5,636
Less customer programs and excise taxes	109	96	185	122
Net sales	2,952	2,661	5,363	5,514
Cost of sales	2,799	2,635	5,024	4,847
Gross profit	153	26	339	667
Operating expenses:
Sales and marketing expenses	262	369	513	880
General and administrative expenses	1,152	1,194	2,257	2,558
Gain on disposal of property and equipment	(79)	(135)	(199)	(129)
Total operating expenses	1,335	1,428	2,571	3,309
Loss from operations	(1,182)	(1,402)	(2,232)	(2,642)
Other income (expense), net
Interest expense	(308)	(326)	(556)	(655)
Other income	2	85	7	56
Total other income (expense), net	(306)	(241)	(549)	(599)
Loss before income taxes	(1,488)	(1,643)	(2,781)	(3,241)
Provision for income taxes
Net loss	(1,488)	(1,643)	(2,781)	(3,241)
Preferred stock dividends	(37)	(37)	(75)	(75)
Net loss attributable to common shareholders	$ (1,525)	$ (1,680)	$ (2,856)	$ (3,316)
Basic net loss per common share	$ (0.87)	$ (1.96)	$ (1.65)	$ (3.94)
Basic weighted average common shares outstanding	1,745	856	1,726	841

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member] Series B Preferred Stock [Member]	Preferred Stock [Member] Series C Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022				$ 73,505	$ (75,021)	$ (1,516)
Balance, shares at Dec. 31, 2022	2,500		810
Issuance of common stock for services by third parties				83		83
Issuance of common stock for services by third parties, shares			11
Issuance of common stock for services by employees				60		60
Issuance of common stock for services by employees, shares			12
Preferred stock dividends					(38)	(38)
Net loss					(1,598)	(1,598)
Balance at Mar. 31, 2023				73,648	(76,657)	(3,009)
Balance, shares at Mar. 31, 2023	2,500		833
Balance at Dec. 31, 2022				73,505	(75,021)	(1,516)
Balance, shares at Dec. 31, 2022	2,500		810
Net loss						(3,241)
Balance at Jun. 30, 2023				74,299	(78,337)	(4,038)
Balance, shares at Jun. 30, 2023	2,500		968
Balance at Mar. 31, 2023				73,648	(76,657)	(3,009)
Balance, shares at Mar. 31, 2023	2,500		833
Issuance of common stock for services by third parties
Issuance of common stock for services by third parties, shares
Issuance of common stock for services by employees
Issuance of common stock for services by employees, shares
Preferred stock dividends					(37)	(37)
Net loss					(1,643)	(1,643)
Shares issued for cash				651		651
Shares issued for cash, shares			135
Balance at Jun. 30, 2023				74,299	(78,337)	(4,038)
Balance, shares at Jun. 30, 2023	2,500		968
Balance at Dec. 31, 2023				83,559	(82,706)	853
Balance, shares at Dec. 31, 2023	2,500	200	1,706
Issuance of common stock for services by third parties				2		2
Issuance of common stock for services by third parties, shares			2
Preferred stock dividends					(38)	(38)
Net loss					(1,293)	(1,293)
Balance at Mar. 31, 2024				83,561	(84,037)	(476)
Balance, shares at Mar. 31, 2024	2,500	200	1,708
Balance at Dec. 31, 2023				83,559	(82,706)	853
Balance, shares at Dec. 31, 2023	2,500	200	1,706
Net loss						(2,781)
Balance at Jun. 30, 2024				83,628	(85,562)	(1,934)
Balance, shares at Jun. 30, 2024		200	1,763
Balance at Mar. 31, 2024				83,561	(84,037)	(476)
Balance, shares at Mar. 31, 2024	2,500	200	1,708
Issuance of common stock for services by third parties				2		2
Issuance of common stock for services by third parties, shares			2
Issuance of common stock for services by employees				65		65
Issuance of common stock for services by employees, shares			53
Preferred stock dividends					(37)	(37)
Net loss					(1,488)	(1,488)
Balance at Jun. 30, 2024				$ 83,628	$ (85,562)	$ (1,934)
Balance, shares at Jun. 30, 2024		200	1,763

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Cash Flows From Operating Activities:
Net loss	$ (1,488,000)	$ (1,293,000)	$ (1,643,000)	$ (1,598,000)	$ (2,781,000)	$ (3,241,000)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization					628,000	817,000
Bad debt expense					(5,000)	9,000
Other income						(25,000)
Gain on disposal of assets	(79,000)		(135,000)		(199,000)	(129,000)
Inventory reserve					(16,000)	(17,000)
Stock dividend payable					(75,000)	(75,000)
Amortization of debt issuance costs					97,000
Interest accrued to secured credit facilities					18,000	158,000
Interest accrued to notes payable					319,000
Payment of accrued interest on secured credit facilities						(117,000)
Interest accrued to secured credit facilities, related party					122,000	247,000
Payment of accrued interest on secured credit facilities, related party					(81,000)	(243,000)
Issuance of common stock for services by third parties					4,000	83,000
Issuance of common stock for services by employees					65,000	60,000
Changes in operating assets and liabilities:
Trade receivables, net					(453,000)	50,000
Inventories					185,000	848,000
Prepaid expenses and other assets					210,000	(216,000)
Right-of-use assets					462,000	497,000
Accounts payable					600,000	637,000
Accrued liabilities					167,000	(51,000)
Other liabilities, related party					81,000	458,000
Deferred revenue					(37,000)	136,000
Net lease liabilities					(448,000)	(525,000)
Net cash used in operating activities					(1,137,000)	(639,000)
Cash Flows From Investing Activities:
Proceeds from sale of fixed assets					97,000	146,000
Purchases of property and equipment					(2,200)	(73,000)
Net cash provided by investing activities					95,000	73,000
Cash Flows From Financing Activities:
Proceeds from issuance of stock						651,000
Proceeds from secured credit facilities					1,100,000	31,000
Payments of debt issuance on secured credit facilities					(41,000)
Net cash provided by financing activities					1,059,000	682,000
Net increase in cash					17,000	116,000
Cash at the beginning of the period		$ 403,000		$ 723,000	403,000	723,000	$ 723,000
Cash at the end of the period	$ 420,000		$ 839,000		420,000	839,000	$ 403,000
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest					81,000	441,000
Cash paid for amounts included in measurement of lease liabilities					249,000	687,000
Supplemental Disclosure of Non-Cash Financing Activity
Exchange of assets for services						42,000
Future proceeds related to installment sales of equipment					$ 396,000	$ 128,000

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2024
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 mobile filling lines and offers co-packing services with end-to-end production capabilities in Portland, Oregon. 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	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 financing. The Company has been dependent on raising capital from debt and equity financing to meet the Company’s operating needs. The Company had an accumulated deficit of $ 85.6 2.8 The Company reduced debt in 2023 through a debt for preferred equity swap. However, 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, 2023 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, 2023 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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024, its operating results for the three and six months ended June 30, 2024 and 2023 and its cash flows for the six months ended June 30, 2024 and 2023. 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, 2023. 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 acquired fixed co-packing assets). All intercompany balances and transactions have been eliminated on consolidation. 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 spirits 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. In the Craft C+P segment, sales are recognized when printed cans are delivered or when mobile filling services are performed. 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 0.1 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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 $ 0.1 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. Raw materials 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 expenses totaled $ 44,482 0.1 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 June 30, 2024, one customer represented 10 1 16 27 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 June 30, 2024 and December 31, 2023, 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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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. None of the Company’s assets or liabilities were measured at fair value as of June 30, 2024 or December 31, 2023. 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 June 30, 2024 and December 31, 2023, 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 12.5 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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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. Comprehensive Income The Company did not have any other comprehensive income items in either the six months ended June 30, 2024 or 2023. Accounts Receivable Factoring Program The Company had two accounts receivable factoring programs: one for its spirits customers (the “spirits program”) that had a zero balance as of June 30, 2024 and another for its co-packing customers (the “co-packing program”) that terminated in August 2023. Under the programs, the Company had the option to sell certain customer account receivables in advance of payment for 75 85 0.5 1 Transfers and Servicing 0.7 20,821 Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures .

Business Segment Information

Business Segment Information	6 Months Ended
	Jun. 30, 2024
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 multiple mobile lines in 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 to brokers in control states. The Company’s principal area of operation is in the U.S. It has one spirits’ customer that represents 16 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) The measure of profitability reviewed are 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. Segment information was as follows for the six months ended June 30: Schedule of Segment Information (Dollars in thousands) 2024 2023 Craft C+P Sales $ 4,225 $ 3,405 Net sales 4,146 3,381 Cost of sales 4,108 3,545 Gross profit 38 (164 ) Total operating expenses 1,376 1,314 Net loss (1,335 ) (1,462 ) Gross margin 1 % -5 % Interest expense $ - $ 8 Depreciation and amortization 560 740 Significant noncash items: (Gain) loss on disposal of property and equipment (199 ) (132 ) Spirits Sales $ 1,323 $ 2,231 Net sales 1,217 2,133 Cost of sales 916 1,302 Gross profit 301 831 Total operating expenses 481 880 Net income (loss) (176 ) (17 ) Gross margin 25 % 39 % Depreciation and amortization $ 68 $ 77 Corporate Total operating expenses $ 714 $ 1,115 Net loss (1,270 ) (1,762 ) Net Income (loss) (1,270 ) (1,762 ) Interest expense $ 556 $ 647 Significant noncash items: Stock compensation 76 166

Inventories

Inventories	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consisted of the following: Schedule of Inventories (Dollars in thousands) June 30, 2024 December 31, 2023 Raw materials $ 2,034 $ 2,253 Finished goods 1,009 959 Total inventories $ 3,043 $ 3,212 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2024
Prepaid Expenses And Other Current Assets
Prepaid Expenses and Other Current Assets	6. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: Schedule of Prepaid Expenses and Other Current Assets (Dollars in thousands) June 30, 2024 December 31, 2023 Prepayment of inventory $ 51 $ 52 Future proceeds related to installment sales of equipment 233 89 Other 183 222 Total prepaid expenses and other current assets $ 467 $ 363

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 2024
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) June 30, 2024 December 31, 2023 Useful Life (in years) Furniture and fixtures $ 2,933 $ 3,410 3.0 7.0 Digital can printer 3,649 3,649 12.5 Support of digital can printer 695 695 7.0 Leasehold improvements 1,529 1,529 3.5 5.0 Vehicles 156 156 5.0 Total cost 8,962 9,439 Less accumulated depreciation (4,680 ) (4,671 ) Total property and equipment, net $ 4,282 $ 4,768 Purchases of property and equipment for the six months ended June 30, 2024 and 2023 were $ 2,200 0.1 0.4 0.6 During the six months ended June 30, 2024, the Company disposed of fixed assets for proceeds of $ 0.1 0.4 0.1 0.2 0.3 0.1 0.2 0.1

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	8. Intangible Assets Intangible assets consisted of the following: Schedule of Intangible Assets (Dollars in thousands) June 30, 2024 December 31, 2023 Permits and licenses $ 25 $ 25 Azuñia brand 4,153 4,153 Total intangible assets 4,153 4,153 Customer lists 2,895 2,895 Total intangible assets 7,073 7,073 Less accumulated amortization (2,275 ) (2,068 ) Intangible assets, net $ 4,798 $ 5,005 The customer list is being amortized over a seven-year 0.2 The permits and licenses and the 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. As of December 31, 2023, the Company determined that the Azuñia assets were impaired and recorded an impairment cost of $ 0.4 No Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2024
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) June 30, 2024 December 31, 2023 Product branding $ 396 $ 396 Deposits 235 240 Future proceeds related to installment sales of equipment 162 276 Total other assets 793 912 Less accumulated amortization (371 ) (344 ) Other assets, net $ 422 $ 568 As of June 30, 2024, the Company had $ 0.4 seven-year Amortization expense totaled $ 27,500 28,571 The deposits represent office lease deposits.

Leases

Leases	6 Months Ended
	Jun. 30, 2024
Lessee Disclosure [Abstract]
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. The Company determines if an arrangement is a lease at inception. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of June 30, 2024, the amount of right-of-use assets and lease liabilities were $ 2.1 2.3 0.4 0.5 0.1 Maturities of lease liabilities as of June 30, 2024 were as follows: Schedule of Maturities of Operating Lease Liabilities (Dollars in thousands) Operating Leases Weighted- Average Remaining Term in Years 2024 $ 499 2025 1,020 2026 808 2027 135 2028 - Thereafter - Total lease payments 2,462 Less imputed interest (based on 6.6 (198 ) Present value of lease liability $ 2,264 2.33 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Notes Payable	11. Notes Payable Notes payable consisted of the following: Schedule of Notes Payable (Dollars in thousands) June 30, 2024 December 31, 2023 $ 486 $ 486 Promissory notes payable bearing interest of 6.0 36 April 2024 $ 486 $ 486 Amended and restated promissory notes payable bearing interest of 8.0 March 2025 7,631 7,556 Total notes payable 8,117 8,042 Less current portion (8,117 ) (486 ) Long-term portion of notes payable $ - $ 7,556 The Company paid $ 0.1 million in interest on notes for the six months ended June 30, 2024 and 2023. Maturities on notes payable as of June 30, 2024 were as follows: Schedule of Maturities on Notes payable (Dollars in thousands) 2024 $ 486 2025 7,631 2026 - 2027 - 2028 - Thereafter - Total $ 8,117

Secured Credit Facilities

Secured Credit Facilities	6 Months Ended
	Jun. 30, 2024
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 9.25 On September 29, 2023, the Company entered into a Debt Satisfaction Agreement with Aegis and other creditors, pursuant to which the Aegis Note was amended and restated. See: Note 15, Stockholders Equity – Debt Satisfaction Agreement. 1.9 “ ” 29 2.6 0.1 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 44.00 60 52.00 3.3 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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 Interest on the Notes accrued at a rate of 6 October 18, 2022 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 $ 44.00 6 26.00 3.5 24.00 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 4,808 On September 29, 2023, the Company entered into a Debt Satisfaction Agreement with the Subscribers and other creditors, pursuant to which the Maturity Date of the Notes was extended from November 18, 2022 to March 31, 2025 and interest accrues at 9 See: Note 15, Stockholders Equity – Debt Satisfaction Agreement. 3.3 50 0.4 27,451 2024 Secured Notes On May 15, 2024, the Company entered into a Loan Agreement with the SPV, Aegis, Bigger Capital Fund, LP (“Bigger”), District 2 Capital Fund, LP (“District 2”), and LDI Investments, LLC (“LDI”). Pursuant to the Loan Agreement, Bigger, District 2 and LDI purchased from the Company for $ 1.1 1.1 The 2024 Secured Notes may be satisfied by payment of 110% of principal on or before November 29, 2024, by payment of 130% of principal on or before March 30, 2025 or by payment of 140% of principal on March 31, 2025. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) With each 2024 Secured Note, the Company issued Warrants to purchase a share of the Company’s common stock for $ 5.00 five years 598,021 299,011 The Loan Agreement provides that if the 2024 Secured Notes have not been satisfied by November 29, 2024, then until March 31, 2025 each of the Subscribers will have the right to purchase a “Kicker Note” in the amount of $ 0.5 0.3 The Company’s obligations under the 2024 Secured Notes and the Kicker Notes (collectively, the “2024 Notes”) are secured by the Company’s pledge of its assets, subject to certain specified exceptions. In connection with the Loan Agreement, the Company, Aegis, Bigger and District 2 amended and restated the Intercreditor Agreement they had executed on September 29, 2023. In the Amended and Restated Intercreditor Agreement, Aegis, Bigger and District 2 subordinate their liens on any barrels of spirits owned by the Company, and the parties agree that the net proceeds of any sale of barrels will be paid to the Subscribers in satisfaction of the 2024 Notes. Commencing when all barrels have been sold, the lien of the Subscribers under the 2024 Notes will become pari passu with the senior lien on the remaining collateral.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
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 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. During June 2024, this case was settled. 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.

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share	6 Months Ended
	Jun. 30, 2024
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 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Stockholders’ Equity	15. Stockholders’ Equity Debt Satisfaction Agreement On September 29, 2023, the Company entered into a Debt Satisfaction Agreement (the “DSA”) with the SPV, Aegis, Bigger, District 2, LDI and TQLA, LLC. The SPV is a special purpose vehicle whose equity is shared 50% by Bigger and District 2 and 50% by Aegis and LDI. Pursuant to the DSA, on September 29, 2023, the Company issued to the SPV 296,722 200,000 6.5 1.3 ● the principal balance of the Secured Promissory Note issued by the Company to Aegis on October 6, 2022 was reduced by $ 1.9 ● the Company’s debt to LDI of $ 1.4 ● the aggregate principal balance of the Secured Convertible Promissory Notes issued by the Company to Bigger in April and May of 2021 was reduced by $ 1.6 ● the aggregate principal balance of the Secured Convertible Promissory Notes issued by the Company to District 2 in April and May of 2021 was reduced by $ 1.6 Further pursuant to the DSA: ● the maturity date of the secured debt listed above as well as unsecured notes issued by the Company and held by Bigger and District 2 in the aggregate amount of $ 7.4 March 31, 2025 8 ● the Company, Aegis, Bigger and District 2 entered into an Intercreditor Agreement, pursuant to which the remaining secured debt obligations of the Company to Aegis, Bigger and District 2 were made pari passu ● the Common Stock Purchase Warrant issued by the Company to TQLA LLC on March 21, 2022, which permits TQLA LLC to purchase up to 145,834 9.99 19.99 ● Upon the liquidation, dissolution and winding up of the Company, or upon the effective date of a consolidation, merger or statutory share exchange in which the Company is not the surviving entity, the holder of each share of the Series C Preferred Stock shall be entitled to a distribution prior to and in preference of the holders of the common stock. ● In the event the Company declares a dividend payable in cash or stock to holders of any class of stock, the holder of each share of Series C Preferred Stock shall be entitled to receive a dividend equal in amount and kind to that payable to the holder of the number of shares of the Company’s common stock into which that holder’s Series C Preferred Stock could be converted on the record date for the distribution common stock. ● The holders of Series C Preferred Stock shall have no voting rights; except that nothing will limit a holder’s voting rights with respect to shares of any other class of the Company’s common stock held from time to time. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) Issuance of Common Stock During the six months ended June 30, 2024, the Company issued 1,764 2,046 1.16 3.05 55,738 0.1 1.21 On September 29, 2023, pursuant to the DSA (see discussion above), the Company issued to the SPV 296,722 200,000 6.5 During the year ended December 31, 2023, the Company issued 162,849 0.7 1.29 7.40 3.05 7.40 During the year ended December 31, 2023, the Company sold 343,495 1.4 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 62.00 42,500 The Series B Preferred Stock accrues dividends at a rate of 6 0.5 92,957 1.61 0.1 Issuance of Series C Preferred Stock On September 29, 2023, the Company entered into the DSA, pursuant to which the Company issued to the SVP 200,000 28.025 3.05 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, 2023 the number of shares available for grant under the 2016 Plan reset to 437,993 8 2,120 196,619 vesting schedules varying between immediate or three (3) years from the grant date. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) A summary of all stock option activity as of and for the six months ended June 30, 2024 is presented below: Summary of Stock Options Activity # of Options Weighted- Outstanding as of December 31, 2023 2,120 $ 57.95 Outstanding and Exercisable as of June 30, 2024 2,120 $ 57.95 The aggregate intrinsic value of options outstanding as of June 30, 2024 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. The Company did not issue any additional options during the three and six months ended June 30, 2024. Warrants On March 21, 2022, the Company entered into a promissory note with TQLA LLC to accept a one year loan of $ 3.5 24.00 (See discussion above) 9.99 19.99 From April 19, 2021 through May 12, 2021, the Company issued in a private placement Existing Warrants to purchase up to 45,000 52.00 45,000 45,000 60.00 August 19, 2026 see above 33.08 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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 5,000 78.80 January 15, 2025 On May 16, 2024, the Company entered into a Loan Agreement with the SPV, Aegis, Bigger, District 2, and LDI. With each 2024 Secured Note, the Company issued a Warrant to purchase a share of the Company’s common stock for $ 5.00 five years 598,021 299,011 A summary of all warrant activity as of and for the three and six months ended June 30, 2024 is presented below: Summary of Warrant Activity Warrants Weighted- Weighted- Aggregate Outstanding as of December 31, 2023 201,667 3.4 $ 34.87 $ - Outstanding as of June 30, 2024 201,667 3.4 $ 34.87 $ -

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	16. Related Party Transactions The following is a description of transactions since January 1, 2023 as to which the amount involved exceeds the lesser of $ 0.1 1 0.2 Aegis Security Insurance Company On October 7, 2022, the Company entered into a Note Purchase Agreement with 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 See discussion of the Aegis transaction in Note 12. LD Investments LLC During February 2024, LDI advanced the Company $ 0.6 1.4 On September 29, 2023, the Company entered into the DSA with LDI and other creditors. See: Note 15, Stockholders Equity – Debt Satisfaction Agreement. S 21 2024 Secured Notes On May 16, 2024, the Company entered into a Loan Agreement with LDI, s ee: Note 12, Secured Credit Facilities - 2024 Secured Notes.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	17. Subsequent Events The Company has analyzed its operations subsequent to June 30, 2024 through the date these financial statements were issued, and has determined that it does not have any material subsequent events.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
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 June 30, 2024, its operating results for the three and six months ended June 30, 2024 and 2023 and its cash flows for the six months ended June 30, 2024 and 2023. 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, 2023. 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 acquired fixed co-packing assets). All intercompany balances and transactions have been eliminated on consolidation.
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 spirits 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. In the Craft C+P segment, sales are recognized when printed cans are delivered or when mobile filling services are performed.
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 0.1 Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)
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 $ 0.1
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. Raw materials 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 expenses totaled $ 44,482 0.1
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 June 30, 2024, one customer represented 10 1 16 27
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 June 30, 2024 and December 31, 2023, 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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) 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. None of the Company’s assets or liabilities were measured at fair value as of June 30, 2024 or December 31, 2023. 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 June 30, 2024 and December 31, 2023, 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 12.5
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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements June 30, 2024 (Unaudited)
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.
Comprehensive Income	Comprehensive Income The Company did not have any other comprehensive income items in either the six months ended June 30, 2024 or 2023.
Accounts Receivable Factoring Program	Accounts Receivable Factoring Program The Company had two accounts receivable factoring programs: one for its spirits customers (the “spirits program”) that had a zero balance as of June 30, 2024 and another for its co-packing customers (the “co-packing program”) that terminated in August 2023. Under the programs, the Company had the option to sell certain customer account receivables in advance of payment for 75 85 0.5 1 Transfers and Servicing 0.7 20,821
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures .

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Segment Information	Segment information was as follows for the six months ended June 30: Schedule of Segment Information (Dollars in thousands) 2024 2023 Craft C+P Sales $ 4,225 $ 3,405 Net sales 4,146 3,381 Cost of sales 4,108 3,545 Gross profit 38 (164 ) Total operating expenses 1,376 1,314 Net loss (1,335 ) (1,462 ) Gross margin 1 % -5 % Interest expense $ - $ 8 Depreciation and amortization 560 740 Significant noncash items: (Gain) loss on disposal of property and equipment (199 ) (132 ) Spirits Sales $ 1,323 $ 2,231 Net sales 1,217 2,133 Cost of sales 916 1,302 Gross profit 301 831 Total operating expenses 481 880 Net income (loss) (176 ) (17 ) Gross margin 25 % 39 % Depreciation and amortization $ 68 $ 77 Corporate Total operating expenses $ 714 $ 1,115 Net loss (1,270 ) (1,762 ) Net Income (loss) (1,270 ) (1,762 ) Interest expense $ 556 $ 647 Significant noncash items: Stock compensation 76 166

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: Schedule of Inventories (Dollars in thousands) June 30, 2024 December 31, 2023 Raw materials $ 2,034 $ 2,253 Finished goods 1,009 959 Total inventories $ 3,043 $ 3,212

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Prepaid Expenses And Other Current Assets
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consisted of the following: Schedule of Prepaid Expenses and Other Current Assets (Dollars in thousands) June 30, 2024 December 31, 2023 Prepayment of inventory $ 51 $ 52 Future proceeds related to installment sales of equipment 233 89 Other 183 222 Total prepaid expenses and other current assets $ 467 $ 363

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2024
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) June 30, 2024 December 31, 2023 Useful Life (in years) Furniture and fixtures $ 2,933 $ 3,410 3.0 7.0 Digital can printer 3,649 3,649 12.5 Support of digital can printer 695 695 7.0 Leasehold improvements 1,529 1,529 3.5 5.0 Vehicles 156 156 5.0 Total cost 8,962 9,439 Less accumulated depreciation (4,680 ) (4,671 ) Total property and equipment, net $ 4,282 $ 4,768

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following: Schedule of Intangible Assets (Dollars in thousands) June 30, 2024 December 31, 2023 Permits and licenses $ 25 $ 25 Azuñia brand 4,153 4,153 Total intangible assets 4,153 4,153 Customer lists 2,895 2,895 Total intangible assets 7,073 7,073 Less accumulated amortization (2,275 ) (2,068 ) Intangible assets, net $ 4,798 $ 5,005

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2024
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) June 30, 2024 December 31, 2023 Product branding $ 396 $ 396 Deposits 235 240 Future proceeds related to installment sales of equipment 162 276 Total other assets 793 912 Less accumulated amortization (371 ) (344 ) Other assets, net $ 422 $ 568

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Lessee Disclosure [Abstract]
Schedule of Maturities of Operating Lease Liabilities	Maturities of lease liabilities as of June 30, 2024 were as follows: Schedule of Maturities of Operating Lease Liabilities (Dollars in thousands) Operating Leases Weighted- Average Remaining Term in Years 2024 $ 499 2025 1,020 2026 808 2027 135 2028 - Thereafter - Total lease payments 2,462 Less imputed interest (based on 6.6 (198 ) Present value of lease liability $ 2,264 2.33

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Notes Payable	Notes payable consisted of the following: Schedule of Notes Payable (Dollars in thousands) June 30, 2024 December 31, 2023 $ 486 $ 486 Promissory notes payable bearing interest of 6.0 36 April 2024 $ 486 $ 486 Amended and restated promissory notes payable bearing interest of 8.0 March 2025 7,631 7,556 Total notes payable 8,117 8,042 Less current portion (8,117 ) (486 ) Long-term portion of notes payable $ - $ 7,556
Schedule of Maturities on Notes payable	Maturities on notes payable as of June 30, 2024 were as follows: Schedule of Maturities on Notes payable (Dollars in thousands) 2024 $ 486 2025 7,631 2026 - 2027 - 2028 - Thereafter - Total $ 8,117

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Summary of Stock Options Activity	A summary of all stock option activity as of and for the six months ended June 30, 2024 is presented below: Summary of Stock Options Activity # of Options Weighted- Outstanding as of December 31, 2023 2,120 $ 57.95 Outstanding and Exercisable as of June 30, 2024 2,120 $ 57.95
Summary of Warrant Activity	A summary of all warrant activity as of and for the three and six months ended June 30, 2024 is presented below: Summary of Warrant Activity Warrants Weighted- Weighted- Aggregate Outstanding as of December 31, 2023 201,667 3.4 $ 34.87 $ - Outstanding as of June 30, 2024 201,667 3.4 $ 34.87 $ -

Liquidity (Details Narrative)

Liquidity (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 85,562				$ 85,562		$ 82,706
Net loss	$ 1,488	$ 1,293	$ 1,643	$ 1,598	$ 2,781	$ 3,241

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Product Information [Line Items]
Customer programs and incentives paid	$ 100,000	$ 100,000
Excise taxes	100,000	100,000
Advertising and marketing expenses	44,482	100,000
Interest charged on advance payment amount	$ 500,000
Interest charged on advance payment, rate	1%
Minimum [Member]
Product Information [Line Items]
Property and equipment useful life	3 years
Maximum [Member]
Product Information [Line Items]
Property and equipment useful life	12 years 6 months
Spirtits Program and Co Packing Program [Member]
Product Information [Line Items]
Concentration risk percentage description	Under the programs, the Company had 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		700,000
Fees		$ 20,821
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Customer [Member]
Product Information [Line Items]
Concentration risk percentage	10%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | One Distributor [Member]
Product Information [Line Items]
Concentration risk percentage			1%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Distributor [Member]
Product Information [Line Items]
Concentration risk percentage	16%
Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | One Distributor and One Wholesale Customer [Member]
Product Information [Line Items]
Concentration risk percentage		27%

Schedule of Segment Information

Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Sales	$ 3,061		$ 2,757		$ 5,548	$ 5,636
Net sales	2,952		2,661		5,363	5,514
Cost of sales	2,799		2,635		5,024	4,847
Gross profit	153		26		339	667
Total operating expenses	1,335		1,428		2,571	3,309
Net Income (loss)	(1,488)	$ (1,293)	(1,643)	$ (1,598)	(2,781)	(3,241)
Depreciation and amortization					628	817
(Gain) loss on disposal of property and equipment	$ 79		$ 135		199	129
Craft C+P [Member]
Segment Reporting Information [Line Items]
Sales					4,225	3,405
Net sales					4,146	3,381
Cost of sales					4,108	3,545
Gross profit					38	(164)
Total operating expenses					1,376	1,314
Net Income (loss)					$ (1,335)	$ (1,462)
Gross margin					1%	(5.00%)
Interest expense						$ 8
Depreciation and amortization					560	740
(Gain) loss on disposal of property and equipment					(199)	(132)
Spirits [Member]
Segment Reporting Information [Line Items]
Sales					1,323	2,231
Net sales					1,217	2,133
Cost of sales					916	1,302
Gross profit					301	831
Total operating expenses					481	880
Net Income (loss)					$ (176)	$ (17)
Gross margin					25%	39%
Depreciation and amortization					$ 68	$ 77
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Total operating expenses					714	1,115
Net Income (loss)					(1,270)	(1,762)
Interest expense					556	647
Stock compensation					$ 76	$ 166

Business Segment Information (D

Business Segment Information (Details Narrative)	6 Months Ended
	Jun. 30, 2024
Sprits Customer [Member]
Segment Reporting Information [Line Items]
Percentage of revenue	16%

Schedule of Inventories (Detail

Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 2,034	$ 2,253
Finished goods	1,009	959
Total inventories	$ 3,043	$ 3,212

Schedule of Prepaid Expenses an

Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Prepaid Expenses And Other Current Assets
Prepayment of inventory	$ 51	$ 52
Future proceeds related to installment sales of equipment	233	89
Other	183	222
Total prepaid expenses and other current assets	$ 467	$ 363

Schedule of Property and Equipm

Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total cost	$ 8,962	$ 9,439
Less accumulated depreciation	(4,680)	(4,671)
Total property and equipment, net	$ 4,282	4,768
Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	12 years 6 months
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 2,933	3,410
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	7 years
Digital Can Printer [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 3,649	3,649
Useful life (in years)	12 years 6 months
Support of Digital Can Printer [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 695	695
Useful life (in years)	7 years
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 1,529	1,529
Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years 6 months
Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 156	$ 156
Useful life (in years)	5 years

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Purchase of property	$ 2,200	$ 73,000
Depreciation expense	400,000	600,000
Proceeds from disposal of fixed assets	100,000	300,000
Future proceeds related to installment sales of equipment	396,000	128,000
Net book value of fixed assets	100,000	200,000
Gain (loss) on disposal of fixed assets	$ 200,000	$ 100,000

Schedule of Intangible Assets (

Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Indefinite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 7,073	$ 7,073
Less accumulated amortization	(2,275)	(2,068)
Intangible assets, net	4,798	5,005
Customer Lists [Member]
Indefinite-Lived Intangible Assets [Line Items]
Total intangible assets	2,895	2,895
Permits and Licenses [Member]
Indefinite-Lived Intangible Assets [Line Items]
Total intangible assets	25	25
Azunia Brand [Member]
Indefinite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 4,153	$ 4,153

Intangible Assets (Details Narr

Intangible Assets (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 200,000	$ 200,000
Impairment loss	$ 0		$ 400,000
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets useful life	7 years

Schedule of Other Assets (Detai

Schedule of Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	$ 793	$ 912
Less accumulated amortization	(371)	(344)
Other assets, net	422	568
Product Branding [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	396	396
Deposits [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	235	240
Future Sale of Equipment [Member]
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Total other assets	$ 162	$ 276

Other Assets (Details Narrative

Other Assets (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Capitalized costs related to services	$ 400,000
Other assets useful life	7 years
Adjustment for amortization	$ 27,500	$ 28,571

Schedule of Maturities of Opera

Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Lessee Disclosure [Abstract]
2024	$ 499
2025	1,020
2026	808
2027	135
2028
Thereafter
Total lease payments	2,462
Less imputed interest (based on 6.6% weighted-average discount rate)	(198)
Present value of lease liability	$ 2,264
Operating lease weighted average remaining lease term	2 years 3 months 29 days

Schedule of Maturities of Ope_2

Schedule of Maturities of Operating Lease Liabilities (Details) (Parenthetical)	Jun. 30, 2024
Lessee Disclosure [Abstract]
Operating lease weighted average discount rate	6.60%

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Lessee Disclosure [Abstract]
Operating lease right of use asset	$ 2,140	$ 2,602
Operating lease liabilities	2,264
Lease cost	400
Operating lease cost	500
Short term lease cost	$ 100

Schedule of Notes Payable (Deta

Schedule of Notes Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Short-Term Debt [Line Items]
Total notes payable	$ 8,117	$ 8,042
Less current portion	(8,117)	(486)
Long-term portion of notes payable		7,556
Note Payable One [Member]
Short-Term Debt [Line Items]
Total notes payable	486	486
Note Payable Two [Member]
Short-Term Debt [Line Items]
Total notes payable	$ 7,631	$ 7,556

Schedule of Notes Payable (De_2

Schedule of Notes Payable (Details) (Parenthetical)	6 Months Ended
	Jun. 30, 2024
Note Payable One [Member]
Short-Term Debt [Line Items]
Interest rate	6%
Debt term	36 months
Debt maturity period	April 2024
Note Payable Two [Member]
Short-Term Debt [Line Items]
Interest rate	8%
Debt maturity period	March 2025

Schedule of Maturities on Notes

Schedule of Maturities on Notes payable (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2024	$ 486
2025	7,631
2026
2027
2028
Thereafter
Total	$ 8,117

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Notes Payable [Member]
Short-Term Debt [Line Items]
Debt instrument. periodic interest	$ 0.1	$ 0.1

Secured Credit Facilities (Deta

Secured Credit Facilities (Details Narrative) - USD ($)							3 Months Ended	6 Months Ended
	May 15, 2024	Sep. 29, 2023	Oct. 13, 2022	Oct. 07, 2022	Apr. 01, 2022	Apr. 19, 2021	Jun. 30, 2023	Jun. 30, 2024	May 16, 2024	Dec. 31, 2023
Common stock, par value								$ 0.0001		$ 0.0001
Stock issuance cost percentage								5%
Common Stock [Member]
Number of shares issued							135
Secured Convertible Promissory Notes [Member]
Secured debt percentage					6%			6%
Debt instrument, conversion price					$ 26			$ 44
Maturity date								Oct. 18, 2022
Loon amount paid by share issuance					$ 3,500,000
Secured Convertible Promissory Notes [Member] | Common Stock [Member]
Debt instrument, conversion price					$ 24
2024 Secured Notes [Member] | Bigger, District 2 and LDI [Member]
Description of debt instrument payment	The 2024 Secured Notes may be satisfied by payment of 110% of principal on or before November 29, 2024, by payment of 130% of principal on or before March 30, 2025 or by payment of 140% of principal on March 31, 2025.
Roth Capital, LLC [Member]
Proceeds from private offering								$ 3,100,000
Note Purchase Agreement [Member]
Aggregate principal amount				$ 4,500,000
Payments in cash				$ 1,200,000
Secured debt percentage				9.25%
Note Purchase Agreement [Member] | Subscribers [Member]
Secured debt percentage			6%
Note Purchase Agreement [Member] | Each of the Subscribers [Member]
Number of shares issued			4,808
Note Purchase Agreement [Member] | TQLA, LLC [Member]
Repayment of debt				$ 3,300,000
Debt Satisfaction Agreement [Member]
Loon amount paid by share issuance		$ 6,500,000
Debt Satisfaction Agreement [Member] | Subscribers and Other Creditors [Member]
Aggregate principal amount								400,000
Secured debt percentage		9%
Principal and interest		$ 3,300,000
Interest expense accrued								27,451
Debt Satisfaction Agreement [Member] | Subscribers [Member]
Ownership interest		50%
Debt Satisfaction Agreement [Member] | Aegis and Other Creditors [Member]
Aggregate principal amount								2,600,000
Principal and interest		$ 1,900,000
Interest expense accrued								$ 100,000
Debt Satisfaction Agreement [Member] | Aegis and Other Creditors [Member] | SPV [Member]
Ownership interest		29%
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member]
Aggregate principal amount						$ 3,300,000
Secured debt percentage						6%
Common stock, par value						$ 0.0001
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | IPO [Member]
Private offering closing price						$ 3,300,000
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | Warrant [Member]
Warrant exercisable price per share						$ 52
Purchase Agreement [Member] | Accredited Investors [Member] | Secured Convertible Promissory Notes [Member] | Common Stock [Member]
Debt instrument, conversion price						$ 44
Outstanding notes payable percentage						60%
Loan Agreement [Member] | 2024 Secured Notes [Member] | Bigger, District 2 and LDI [Member]
Aggregate principal amount	$ 1,100,000
Warrant exercisable price per share	$ 5								$ 5
Proceeds from debt	$ 1,100,000
Warrant exercisable period	5 years								5 years
Loan Agreement [Member] | 2024 Secured Notes [Member] | LD Investments LLC [Member]
Warrant to purchase of shares	598,021								598,021
Purchase amount of secured notes	$ 500,000
Loan Agreement [Member] | 2024 Secured Notes [Member] | Bigger [Member]
Warrant to purchase of shares	299,011								299,011
Purchase amount of secured notes	$ 300,000
Loan Agreement [Member] | 2024 Secured Notes [Member] | District 2 [Member]
Warrant to purchase of shares	299,011								299,011
Purchase amount of secured notes	$ 300,000

Commitments and Contingencies (

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

Net Income (Loss) per Common _2

Net Income (Loss) per Common Share (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Antidilutive common shares	0	0

Summary of Stock Options Activi

Summary of Stock Options Activity (Details)	Jun. 30, 2024 $ / shares shares
Equity [Abstract]
Number of Options, Outstanding, Beginning balance | shares	2,120
Weighted- Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 57.95
Number of Options, Outstanding and Exercisable, Ending balance | shares	2,120
Weighted- Average Exercise Price, Outstanding and Exercisable, Ending balance | $ / shares	$ 57.95

Summary of Warrant Activity (De

Summary of Warrant Activity (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Equity [Abstract]
Warrants, Outstanding, Beginning balance	201,667
Weighted-Average Remaining Life (Years), Outstanding		3 years 4 months 24 days
Weighted-Average Exercise Price, Outstanding, Beginning balance	$ 34.87
Aggregate Intrinsic Value, Outstanding, Beginning balance
Warrants, Outstanding, Ending balance	201,667	201,667
Weighted-Average Remaining Life (Years), Outstanding	3 years 4 months 24 days
Weighted-Average Exercise Price, Outstanding, Ending balance	$ 34.87	$ 34.87
Aggregate Intrinsic Value, Outstanding, Ending balance

Stockholders_ Equity (Details N

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

3 Months Ended

6 Months Ended

12 Months Ended

Sep. 29, 2023

Oct. 19, 2021

Sep. 08, 2016

Jun. 30, 2024

Mar. 31, 2024

Jun. 30, 2023

Mar. 31, 2023

Jun. 30, 2024

Jun. 30, 2023

Dec. 31, 2023

May 16, 2024

May 15, 2024

Mar. 21, 2022

Jul. 30, 2021

May 12, 2021

Jan. 15, 2020

Accumulated Other Comprehensive Income (Loss) [Line Items]

Description debt satisfaction agreement

On September 29, 2023, the Company entered into a Debt Satisfaction Agreement (the “DSA”) with the SPV, Aegis, Bigger, District 2, LDI and TQLA, LLC. The SPV is a special purpose vehicle whose equity is shared 50% by Bigger and District 2 and 50% by Aegis and LDI.

Gain loss extinguishment of debt

$ 1,300,000

Common stock, par value

$ 0.0001

$ 0.0001

$ 0.0001

Proceeds from sale of common stock

$ 651,000

Net income

$ (1,488,000)

$ (1,293,000)

$ (1,643,000)

$ (1,598,000)

(2,781,000)

(3,241,000)

Accrued preferred dividends

$ 37,000

$ 37,000

$ 75,000

75,000

Options outstanding

2,120

2,120

2,120

Aggregate intrinsic value of options outstanding

$ 0

$ 0

2016 Equity Incentive Plan [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Number of shares available for grant

437,993

Outstanding capital stock shares percentage

8%

Options outstanding

2,120

2,120

Number of RSU's outstanding

196,619

196,619

Vesting schedule

vesting schedules varying between immediate or three (3) years from the grant date.

At The Market Public Placements [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Sale of common stock, shares

343,495

Proceeds from sale of common stock

$ 1,400,000

Director [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Issuance of stock for stock-based compensation, shares

1,764

Issuance of common stock for stock-based compensation

$ 2,046

Common stock, par value

$ 1.16

$ 1.16

Director [Member] | Minimum [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Per share

3.05

$ 3.05

Employees and Consultant [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Issuance of stock for stock-based compensation, shares

55,738

Issuance of common stock for stock-based compensation

$ 100,000

Employees and Consultant [Member] | Minimum [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Per share

1.21

$ 1.21

Directors and Employees [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Issuance of stock for stock-based compensation, shares

162,849

Issuance of common stock for stock-based compensation

$ 700,000

Directors and Employees [Member] | Minimum [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Common stock, par value

$ 1.29

Per share

3.05

Directors and Employees [Member] | Maximum [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Common stock, par value

7.40

Per share

7.40

Series C Preferred Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Preferred stock dividend payment terms

the Company declares a dividend payable in cash or stock to holders of any class of stock, the holder of each share of Series C Preferred Stock shall be entitled to receive a dividend equal in amount and kind to that payable to the holder of the number of shares of the Company’s common stock into which that holder’s Series C Preferred Stock could be converted on the record date for the distribution common stock.

Preferred stock voting rights

holders of Series C Preferred Stock shall have no voting rights; except that nothing will limit a holder’s voting rights with respect to shares of any other class of the Company’s common stock held from time to time.

Preferred stock, stated value

0.0001

$ 0.0001

0.0001

Series B Preferred Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Preferred stock, stated value

$ 0.0001

$ 0.0001

$ 0.0001

Dividend rate percentage per annum

6%

Net income

$ 500,000

Shares issued for dividends

92,957

Common Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Number of shares available for purchase

135

Net income

Warrant [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

45,000

45,000

Warrant exercisable price per share

$ 52

Warrant [Member] | TQLA, LLC [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Loan amount

$ 3,500,000

Warrant exercisable price per share

$ 24

New Warrant Shares [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

45,000

Warrant exercisable price per share

$ 33.08

$ 60

Maturity date

Aug. 19, 2026

Debt Satisfaction Agreement [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Debt principal value reduced by exchange of equity

$ 6,500,000

Value reduced by exchange of equity

6,500,000

Debt Satisfaction Agreement [Member] | TQLA, LLC [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

145,834

Voting power percentage

9.99%

Beneficial ownership limitation percentage increase

19.99%

Debt Satisfaction Agreement [Member] | Aegis [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Debt principal value reduced by exchange of equity

1,900,000

Debt Satisfaction Agreement [Member] | LDI Investments LLC [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Debt payment

1,400,000

Debt Satisfaction Agreement [Member] | Bigger Capital Fund LP [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Debt principal value reduced by exchange of equity

1,600,000

Debt Satisfaction Agreement [Member] | District 2 Capital Fund LP [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Debt principal value reduced by exchange of equity

1,600,000

Debt Satisfaction Agreement [Member] | Bigger And District 2 [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Aggregate amount of unsecured notes

$ 7,400,000

Maturity date

Mar. 31, 2025

Interest rate increased

8%

Debt Satisfaction Agreement [Member] | Series C Preferred Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Shares issued for debt satisfaction

200,000

Debt Satisfaction Agreement [Member] | Series C Preferred Stock [Member] | SVP [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Shares issued for debt satisfaction

200,000

Preferred stock, stated value

$ 28.025

Conversion price

$ 3.05

Debt Satisfaction Agreement [Member] | Common Stock [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Shares issued for debt satisfaction

296,722

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

Accumulated Other Comprehensive Income (Loss) [Line Items]

Number of shares available for purchase

2,500,000

Preferred stock, stated value

$ 1

Conversion price per share

$ 62

Common stock were reserved for issuance

42,500

Common stock dividend issued, per share

$ 1.61

Accrued preferred dividends

$ 100,000

$ 100,000

Loan Agreement [Member] | 2024 Secured Notes [Member] | Bigger, District 2 and LDI [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant exercisable price per share

$ 5

$ 5

Warrants exercisable term

5 years

5 years

Loan Agreement [Member] | 2024 Secured Notes [Member] | LD Investments LLC [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

598,021

598,021

Loan Agreement [Member] | 2024 Secured Notes [Member] | Bigger [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

299,011

299,011

Loan Agreement [Member] | 2024 Secured Notes [Member] | District 2 [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

299,011

299,011

Loan Agreement [Member] | Warrant [Member]

Accumulated Other Comprehensive Income (Loss) [Line Items]

Warrant to purchase of shares

5,000

Warrant exercisable price per share

$ 78.80

Maturity date

Jan. 15, 2025

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Millions			1 Months Ended
	Jan. 01, 2023	Oct. 07, 2022	Feb. 29, 2024	Sep. 29, 2023
Related Party Transaction [Line Items]
Assets requirement from related party transaction	$ 0.1
Percentage of average of assets net	1%
Other assets	$ 0.2
LDI Investments LLC [Member]
Related Party Transaction [Line Items]
Principal amount				$ 1.4
Proceeds from short-term advance			$ 0.6
Note Purchase Agreement [Member]
Related Party Transaction [Line Items]
Principal amount		$ 4.5
Note Purchase Agreement [Member] | TQLA, LLC [Member]
Related Party Transaction [Line Items]
Repayment of debt		3.3
Note Purchase Agreement [Member] | Aegis [Member]
Related Party Transaction [Line Items]
Principal amount		$ 4.5
Debt Satisfaction Agreement [Member] | LDI Investments LLC [Member] | SPV [Member]
Related Party Transaction [Line Items]
Equity interest ownership percentage				21%