Financial Data and Key Metrics Changes - Consolidated gross sales for Q1 2024 were $2.5 million, down from $2.9 million in Q1 2023, primarily due to bulk spirit sales of $600,000, offset by an increase in printed can sales [69] - Operating expenses decreased to $1.2 million in Q1 2024 from $1.9 million in Q1 2023, reflecting successful restructuring efforts [70] - Net loss for Q1 2024 was $1.3 million compared to $1.6 million in Q1 2023, with adjusted EBITDA remaining flat at approximately negative $800,000 for both periods [70] Business Line Data and Key Metrics Changes - Craft sales increased to $1.8 million in 2024 from $1.5 million in 2023, while spirit sales decreased to $600,000 in 2024 from $1.4 million in 2023 due to bulk spirit sales in Q1 2023 [15] - Craft's production output was 320% higher than Q1 2023, achieving three record months of production [12] - Consolidated gross profit was $200,000 for Q1 2024, down from $600,000 in Q1 2023, with gross margins at 8% compared to 24% in 2023 [16] Market Data and Key Metrics Changes - The tequila market is facing strong near-term headwinds as consumers trade down, impacting overall spirits sales [6] - Input prices for agave are coming down from all-time highs, which is expected to lead to savings in upcoming quarters [5] Company Strategy and Development Direction - The company is focusing on a multi-year effort to refocus spirits investment in profitable segments and regions [6] - There is a commitment to improving manufacturing processes and leveraging digital can printing technology to enhance market presence and sustainability [13][14] - The company aims to achieve significant market share and brand equity while maintaining a cost-leading position across packaging and overhead [55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ramp-up of digital can printing and the potential for increased production capacity later in the year [26] - The company is in advanced discussions to enhance the profitability of its spirits business, with expectations for positive cash flow and net income [88] - Management highlighted the importance of marketing around products in retail environments to capture consumer attention effectively [21][85] Other Important Information - The company has recently hired a Business Development Manager to enhance sales efforts and leverage existing relationships in the beverage industry [23] - Management noted that mobile canning operations have reached positive EBITDA in the first quarter, indicating improved operational efficiency [92] Q&A Session Summary Question: Can you provide clarity on the ramp-up of output on the digital can printer? - Management indicated that the ramp-up is meeting expectations, with a broader customer base moving to digital printing [76] Question: What is the status of the balance sheet and any changes during the quarter? - The company has made significant changes to improve the balance sheet, including reducing debt and converting it to equity [77] Question: How is the spirits business performing, and what are the plans for profitability? - Management is in discussions to push spirits into profitability, with a focus on improving cost positions and leveraging savings from agave price reductions [94]

PART I: FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Eastside Distilling reported Q1 2024 net sales of $2.4 million, a net loss of $1.3 million, and a $0.5 million stockholders' deficit [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $17.0 million, total liabilities increased to $17.5 million, and stockholders' equity shifted to a $0.5 million deficit Consolidated Balance Sheet Summary | Financial Item | March 31, 2024 (unaudited, Thousands of USD) | December 31, 2023 (Thousands of USD) | | :--- | :--- | :--- | | **Total Assets** | **$17,022** | **$17,480** | | Total Current Assets | $4,696 | $4,537 | | **Total Liabilities** | **$17,498** | **$16,627** | | Total Current Liabilities | $15,902 | $4,205 | | **Total Stockholders' Equity (Deficit)** | **($476)** | **$853** | - Cash on hand decreased to **$336 thousand** from **$403 thousand** at the end of 2023[11](index=11&type=chunk) - Current liabilities surged due to reclassification of previously long-term secured credit facilities and notes payable as current[11](index=11&type=chunk) [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 net sales decreased to $2.4 million, gross profit declined to $186 thousand, and net loss improved to $1.3 million year-over-year Consolidated Statements of Operations Summary | Metric | Q1 2024 (Thousands of USD) | Q1 2023 (Thousands of USD) | | :--- | :--- | :--- | | Net Sales | $2,411 | $2,853 | | Gross Profit | $186 | $641 | | Loss from Operations | ($1,050) | ($1,240) | | Net Loss | ($1,293) | ($1,598) | | Net Loss Attributable to Common Shareholders | ($1,331) | ($1,636) | | Basic and Diluted Net Loss per Share | ($0.78) | ($2.00) | | Weighted Average Shares Outstanding (Thousands) | 1,706 | 824 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash used in operations significantly improved to $81 thousand, with cash balance decreasing to $336 thousand Consolidated Statements of Cash Flows Summary | Cash Flow Activity | Q1 2024 (Thousands of USD) | Q1 2023 (Thousands of USD) | | :--- | :--- | :--- | | Net cash used in operating activities | ($81) | ($428) | | Net cash provided by (used in) investing activities | $14 | ($28) | | Net cash provided by financing activities | $0 | $0 | | **Net decrease in cash** | **($67)** | **($456)** | | **Cash at end of period** | **$336** | **$267** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financials%20Statements) Notes detail the company's segment operations, severe liquidity issues, $84.0 million accumulated deficit, and debt restructuring - The company operates in two segments: **Craft Canning + Printing (Craft C+P)** and **Spirits**, including brands like Burnside Whiskey and Azuñia Tequila[23](index=23&type=chunk)[24](index=24&type=chunk) - The company has an accumulated deficit of **$84.0 million** as of March 31, 2024, with auditors expressing substantial doubt about its going concern ability[26](index=26&type=chunk)[28](index=28&type=chunk) - In September 2023, the company executed a Debt Satisfaction Agreement (DSA), exchanging **$6.5 million** of debt for equity and extending other debt maturities to March 31, 2025[94](index=94&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) Segment Performance Summary | Segment Performance (Q1 2024 vs Q1 2023, Thousands of USD) | Craft C+P | Spirits | | :--- | :--- | :--- | | **Sales** | $1,849 vs $1,456 | $638 vs $1,423 | | **Gross Profit (Loss)** | $49 vs ($101) | $137 vs $742 | | **Net Loss** | ($590) vs ($884) | ($92) vs $221 (Income) | [Management's Discussion and Analysis (MD&A)](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A covers segment strategy, Q1 2024 sales decline to $2.4 million, gross margin contraction, severe liquidity issues, and Azuñia brand impairment [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2024 consolidated sales decreased to $2.5 million due to a 55% drop in Spirits sales, partially offset by 27% Craft C+P growth - **Craft C+P** sales grew **27%** in Q1 2024, printing **4.8 million** cans versus **2.5 million** in Q1 2023, driven by new customers and improved throughput[133](index=133&type=chunk)[138](index=138&type=chunk) - **Spirits** sales decreased significantly due to the absence of **$0.6 million** in bulk spirits sales from Q1 2023[139](index=139&type=chunk) - Gross margin fell from **22%** to **8%** year-over-year, primarily due to the non-recurrence of high-margin bulk spirits sales from the prior year[145](index=145&type=chunk) - General and administrative expenses decreased from **$1.4 million** to **$1.1 million**, primarily due to cost-cutting measures including staff reductions and lease exits[149](index=149&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company faces precarious liquidity with $0.3 million cash, $11.2 million negative working capital, and deferred interest payments, relying on asset sales and financing - As of March 31, 2024, the company had **$0.3 million** in cash, **$11.2 million** negative working capital, and an **$84.0 million** accumulated deficit[154](index=154&type=chunk) - The company's survival depends on asset sales, external financing, and operational improvements, especially in digital can printing revenues and gross margins[155](index=155&type=chunk) - The company deferred interest payments in Q1 2024 and is negotiating with creditors, with no assurance of a successful outcome[156](index=156&type=chunk) [Critical Accounting Policies](index=32&type=section&id=Critical%20Accounting%20Policies) Critical accounting policy involves Azuñia brand intangible asset valuation, which was impaired as of December 31, 2023, resulting in a $0.4 million write-down - The valuation of the **Azuñia brand**, an indefinite-lived intangible asset, is a critical accounting estimate requiring significant management judgment for impairment assessment[162](index=162&type=chunk)[163](index=163&type=chunk) - As of December 31, 2023, the Azuñia brand was impaired, and its carrying cost was reduced by **$0.4 million**[164](index=164&type=chunk) [Controls and Procedures](index=33&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The CEO and CFO concluded the company's disclosure controls and procedures were effective as of quarter-end[167](index=167&type=chunk) - No material changes were made to internal controls over financial reporting during Q1 2024[168](index=168&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=33&type=section&id=Item%201%20Legal%20Proceedings) The company is defending against two primary legal actions, including a $285 thousand claim from Sandstrom Partners and a lawsuit from former CEO Grover Wickersham - The company is being sued by Sandstrom Partners, Inc. for **$285 thousand** in alleged unpaid service fees from a 2019 agreement[170](index=170&type=chunk) - Former CEO Grover Wickersham has filed a complaint against the company alleging fraud, breach of contract, and defamation[171](index=171&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A%20Risk%20Factors) New material risks include Nasdaq non-compliance for minimum stockholders' equity and independent director rules, plus deferred interest payments to creditors - The company is non-compliant with Nasdaq's **$2.5 million** minimum stockholders' equity requirement, having a **$0.5 million** deficit, facing potential delisting[173](index=173&type=chunk) - The company is also non-compliant with Nasdaq's independent director and audit committee composition rules, with a cure period to regain compliance[174](index=174&type=chunk) - Significant risk arises from deferred interest payments in Q1 2024, as unsuccessful creditor negotiations could jeopardize funding for operations[175](index=175&type=chunk)

PORTLAND, Ore., May 2, 2024 /PRNewswire/ -- Eastside Distilling, Inc. (NASDAQ: EAST) ("Eastside" or the "Company"), a consumer-focused beverage company that builds craft inspired experiential brands and high-quality artisan products around premium spirits, digital can printing, co-packing and mobile filling, will report its first quarter financial results after the market close on Monday, May 13, 2024. The Company will host a conference call on Monday, May 13, 2024 at 5:00pm Eastern Time to review results.2 ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q4 2023 Results Conference Call April 2, 2024 8:30 AM ET Company Participants Tiffany Milton - Controller Geoffrey Gwin - CEO Conference Call Participants Matthew Campbell - Laridae Capital Operator Good day, and welcome to the Eastside Distilling Reports Fourth Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Tiffany Milton, Controller. Please go ahead. ...

U. S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to _____________ Commission File Number 001-38182 (I.R.S. Employer Identification No.) 2321 NE Argyle Street, Unit D Portland, Oregon 97211 (Address of principal executive o ...

PORTLAND, Ore., March 11, 2024 /PRNewswire/ -- A consumer-focused beverage company that builds craft inspired experiential brands and high-quality artisan products around premium spirits, digital can printing, co-packing and mobile filling, announced today that CEO Geoffrey Gwin will attend the 36th Annual Roth Conference that takes place on March 17-19, 2024, in Laguna Niguel, California.  Investors that would like to schedule a meeting with Eastside management should contact their Roth representative or E ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q3 2023 Earnings Call Transcript November 14, 2023 10:00 AM ET Company Participants Tiffany Milton - Controller Geoffrey Gwin - Chief Executive Officer Conference Call Participants Matthew Campbell - Laridae Capital Operator Good afternoon, and welcome to the Eastside Distilling Third Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask quest ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _________________ Commission File No.: 001-38182 EASTSIDE DISTILLING, INC. (Exact name of registrant as specified in its charter) Nevada 20-3937596 (S ...

As filed with the Securities and Exchange Commission on October 25, 2023 Registration No. 333-_________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 EASTSIDE DISTILLING, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 ...

Eastside Distilling, Inc. (NASDAQ:EAST) Q2 2023 Earnings Conference Call August 14, 2023 5:00 PM ET Company Participants Tiffany Milton - Controller Geoffrey Gwen - Chief Executive Officer Bruce Wells - Craft Controller Conference Call Participants Matthew Campbell - Laridae Capital Operator Good afternoon, everyone and welcome to the Eastside Distilling Reports Second Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please also note today’s event is being recorded. At this time, I’d ...