Property and Equipment

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and Equipment

7. Property and Equipment

Property and equipment consisted of the following as of December 31:

(Dollars in thousands)	2023			2022			Useful Life (in years)
Furniture and fixtures	$	3,410		$	4,093		3.0 - 7.0
Digital can printer		3,649			3,649		12.5
Support of digital can printer		695			567		7.0
Leasehold improvements		1,529			1,529		3.5 - 5.0
Vehicles		156			222		5.0
Total cost		9,439			10,060
Less accumulated depreciation		(4,671	)		(4,319	)
Total property and equipment, net	$	4,768		$	5,741

Purchases of property and equipment totaled $0.2 million and $2.5 million for the years ended December 31, 2023 and 2022, respectively. Depreciation expense totaled $0.9 million and $1.0 million for the years ended December 31, 2023 and 2022, respectively.

During the year ended December 31, 2023, the Company disposed of fixed assets for proceeds of $0.3 million, including future proceeds of installment sales of $0.4 million, with a net book value of $0.3 million resulting in a gain of $0.4 million. During the year ended December 31, 2022, 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. During the years ended December 31, 2023 and 2022, the Company wrote off obsolete fixed assets with a net book value of $25,304 and $5,270, respectively.

During the year ended December 31, 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 resulting in a loss on disposal of $0.1 million, which is included in the $0.1 million loss from 2022 above. In return, the Company directly leased the vehicles from Enterprise, which also managed the maintenance of the vehicles. In April 2023, the master equity lease agreement matured and the titles to the vehicles were returned to the Company.

Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

December 31, 2023