Property and Equipment

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment

8. Property and Equipment

Property and equipment consisted of the following:

(Dollars in thousands)	June 30, 2022			December 31, 2021
Furniture and fixtures	$	4,281		$	3,779
Digital can printer		4,216			-
Leasehold improvements		1,526			1,386
Vehicles		222			814
Total cost		10,245			5,979
Less accumulated depreciation		(3,775	)		(3,816	)
Total property and equipment, net	$	6,470		$	2,163

Purchases of property and equipment totaled $2.5 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively. Depreciation expense totaled $0.5 million and $0.4 million for the six months ended June 30, 2022 and 2021, respectively.

During the six months ended June 30, 2022, the Company disposed of fixed assets with a net book value of $0.1 million resulting in a loss on disposal of fixed assets of $0.1 million. During the six months ended June 30, 2021, the Company disposed of fixed assets with a net book value of $0.2 million resulting in a loss on disposal of fixed assets of $0.1 million. As a result of these disposals, the Company received funds of $0.1 million from the sales of the disposed assets.

During the six months ended June 30, 2022, the Company entered into a master equity lease agreement with Enterprise FM Trust (“Enterprise”). Per the agreement, the Company delivered to Enterprise the titles to certain vehicles, which resulted in a loss on disposal of $0.1 million. In return, the Company directly leases the vehicles from Enterprise, which will also manage the maintenance of the vehicles.

During the six months ended June 30, 2022, the Company acquired the assets of a production facility for a cash payment of $0.2 million and concessions on service pricing.

Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2022

(Unaudited)