Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On May 12, 2017, the Company filed a revised S-1 registration statement for the proposed sale common stock of up to $6.9 million.

On May 1, 2017, the Company announced the acquisition of a majority stake in Big Bottom Distilling, LLC (“BBD”), a Hillsboro, Oregon-based distiller of award winning and super premium gins, whiskeys, brandies, rum, and vodka. The transaction is structured as an exchange of 84,286 Eastside shares for 90% of the BBD LLC units, and will maintain the independence of BBD as a separate entity underneath the operational umbrella of Eastside Distilling. BBD and Eastside will benefit from brand synergies because of the limited overlap with Eastside products. Eastside will devote sales, marketing, financial capital and production resources to expanding BBDs business, which in 2016 had total revenues of approximately $201,000.

On April 24, 2017, the Company issued 50,000 shares of its common stock upon conversion of 50 shares of preferred stock. As of April 24, 2017, the Company has zero shares of preferred stock outstanding.

On April 21, 2017, the Company completed a $500,000 convertible note purchase agreement with an accredited investor. The note has a maturity date of April 3, 2020, and bears interest at the rate of five percent (5%) per annum. The note has an automatic conversion feature upon the closing (or first in a series of closings) of the next equity financing in which the Company sells shares of its equity securities for an aggregate consideration of at least $4,000,000 at a purchase price of at least $2.50. The outstanding principal and unpaid accrued interest on the Note shall be automatically converted into equity securities at a price equal to 80% of the price paid per share by the investors in the next equity financing or $2.00, whichever is lower, provided, however, that in no event shall the conversion price be less than $2.00. The note has a voluntary conversion feature where the investor may convert, in whole or in part, at any time at the conversion rate of $2.00.

On April 5, 2017, the board approved an incentive option grant to messr Grover Wickersham totaling 100,000 shares with an exercise price of $1.60. In addition, the board approved a restricted stock unit grant of 100,000 shares of common stock that vested on April 5, 2017. 30,650 shares were not issued in order to satisfy messr Wickersham’s personal tax withholding responsibility.

On April 3, 2017, the Company issued 25,000 shares of common stock to a third-party consultant in exchange for services rendered.

From April 3, 2017 to May 4, 2017, the Company issued 256,781 shares of its common stock for $333,815, including 256,781 warrants for common stock. This represented the remaining closings of the Company’s private offering as filed in the Form 8-K on March 27, 2017. The private offering was completed on May 4, 2017.

On April 2, 2017 and April 18, 2017, 13, 2016, the independent directors, messrs Trent Davis and Michael Fleming, respectively, each exercised 13,888 stock options to purchase common stock at $1.80 per share.