Business Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Business Segment Information

4. Business Segment Information

The Company’s internal management financial reporting consists of Craft C+P, Eastside spirits and corporate. Craft C+P offers digital can printing and co-packing services in Portland, Oregon, allowing it to offer end-to-end production capabilities. Craft C+P operates multiple mobile lines in Oregon. The spirits brands span several alcoholic beverage categories, including whiskey, vodka, rum, and tequila and are sold on a wholesale basis to distributors in open states, and to brokers in control states. The Company’s principal area of operation is in the U.S. It has one Craft C+P customer that represents 15% of its revenue. Corporate consists of key executive and accounting personnel and corporate expenses such as public company and board costs, as well as interest on debt.

The measure of profitability reviewed are condensed statements of operations and gross margins. These business segments reflect how operations are managed, operating performance is evaluated and the structure of internal financial reporting. Total asset information by segment is not provided to, or reviewed by, the chief operating decision maker (“CODM”) as it is not used to make strategic decisions, allocate resources or assess performance. The accounting policies of the segments are the same as those described for the Company in the Summary of Significant Accounting Policies in Note 3.

Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2024

(Unaudited)

Segment information was as follows for the three months ended March 31:

(Dollars in thousands)	2024			2023
Craft C+P
Sales	$	1,849		$	1,456
Net sales		1,814			1,477
Cost of sales		1,765			1,578
Gross profit		49			(101	)
Total operating expenses		638			749
Net loss		(590	)		(884	)
Gross margin		3	%		-7	%
Interest expense	$	-		$	4
Depreciation and amortization		270			368
Significant noncash items:
(Gain) loss on disposal of property and equipment		(120	)		6
Spirits
Sales	$	638		$	1,423
Net sales		597			1,376
Cost of sales		460			634
Gross profit		137			742
Total operating expenses		234			522
Net income (loss)		(92	)		221
Gross margin		23	%		54	%
Depreciation and amortization	$	36		$	39
Corporate
Total operating expenses	$	364		$	610
Net loss		(611	)		(935	)
Interest expense	$	248		$	325
Significant noncash items:
Stock compensation		67			111