Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

16. Subsequent Events

On October 29, 2020, the Company announced its intent to divest its Redneck Riviera Spirits business. The Company signed a non-binding term sheet between Eastside and Rich Marks, LLC, Redneck Riviera Whiskey Co, LLC, John D. Rich Tisa Trust and Redneck Spirits Group, LLC (collectively the buyers referred to as “RSG”). RSG will pay a termination fee as well as purchase certain assets from the Company which could include raw materials and finished goods. The total consideration is estimated to be $8.1 million inclusive of a $3 million dollar termination fee and the remainder of proceeds from selling RSG raw materials and finished goods. The divesture is subject to negotiation and execution of definitive agreements.

In November 2020, Intersect Beverage, LLC (“Intersect”) and TQLA, LLC (“TQLA”) sent the Company a second deposit bringing the total outstanding amount deposited to $500,000. No assurances can be given the Company’s discussions with Intersect and TQLA will lead to a final agreement to change the deferred consideration for the Azuñia acquisition, nor that the deposits will be applied to that Agreement. If the Company is unable to reach a satisfactory agreement with Intersect and TQLA it would be required to return the cash deposit.

On October 31, 2020, the Company consolidated its headquarters with the Craft Canning + Bottling office and operating facility in Portland, Oregon.