Business Segment Information

6 Months Ended

Jun. 30, 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 spirits’ customer that represents 16% 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.

Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2024

(Unaudited)

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.

Segment information was as follows for the six months ended June 30:

(Dollars in thousands)	2024			2023
Craft C+P
Sales	$	4,225		$	3,405
Net sales		4,146			3,381
Cost of sales		4,108			3,545
Gross profit		38			(164	)
Total operating expenses		1,376			1,314
Net loss		(1,335	)		(1,462	)
Gross margin		1	%		-5	%
Interest expense	$	-		$	8
Depreciation and amortization		560			740
Significant noncash items:
(Gain) loss on disposal of property and equipment		(199	)		(132	)
Spirits
Sales	$	1,323		$	2,231
Net sales		1,217			2,133
Cost of sales		916			1,302
Gross profit		301			831
Total operating expenses		481			880
Net income (loss)		(176	)		(17	)
Gross margin		25	%		39	%
Depreciation and amortization	$	68		$	77
Corporate
Total operating expenses	$	714		$	1,115
Net loss		(1,270	)		(1,762	)
Interest expense	$	556		$	647
Significant noncash items:
Stock compensation		76			166