Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

8. Intangible Assets

Intangible assets consisted of the following:

(Dollars in thousands)	March 31, 2024			December 31, 2023
Permits and licenses	$	25		$	25
Azuñia brand		4,153			4,153
Customer lists		2,895			2,895
Total intangible assets		7,073			7,073
Less accumulated amortization		(2,171	)		(2,068	)
Intangible assets, net	$	4,902		$	5,005

The customer list is being amortized over a seven-year life. Amortization expense totaled $0.1 million for both the three months ended March 31, 2024 and 2023.

The permits and licenses and the Azuñia brand have all been determined to have an indefinite life and will not be amortized. The Company, on an annual basis, tests the indefinite life assets for impairment. If the carrying value of an indefinite life asset is found to be impaired, then the Company will record an impairment loss and reduce the carrying value of the asset. As of December 31, 2023, the Company determined that the Azuñia assets were impaired and recorded an impairment cost of $0.4 million. No further impairment charge was recorded during the three months ended March 31, 2024.

Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

March 31, 2024

(Unaudited)