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Discontinued Operations | 3 Months Ended
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Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 4. Discontinued Operations The Company reports discontinued operations by applying the following criteria in accordance with ASC Topic 205-20, Presentation of Financial Statements – Discontinued Operations: (1) Component of an entity; (2) Held for sale criteria; and (3) Strategic shift. On December 31, 2019, management made a strategic shift to focus the Company’s sales and marketing efforts on the nationally branded product platform, resulting in the decision to close all four of its retail stores in the Portland, Oregon area. The retail stores were closed or abandoned by March 31, 2020. On February 2, 2021, Redneck Riviera Whiskey Co, LLC (“RRWC”) entered into a Termination and Inventory Purchase Agreement (the “Termination Agreement”) with Rich Marks, LLC, John D. Rich Tisa Trust and Redneck Spirits Group, LLC (collectively the buyers referred to as “RSG”), pursuant to which, on February 5, 2021, RRWC sold all of its inventory of Redneck Riviera, Granny Rich, and Howdy Dew distilled spirits products, including finished goods, raw materials, and barrel inventory, as well as all assignable certificates of label approval/exemption, branding, permits, and registrations relating thereto, for $4.7 million. In addition, the Company terminated its Amended and Restated License Agreement (the “License Agreement”) dated May 31, 2018 by and among Eastside, RRWC, Rich Marks, LLC, and John D. Rich TISA Trust U/A/D March 27, 2018, Dwight P. Miles, Trustee in exchange for $3.0 million. In connection with the Termination Agreement, the Company entered into a Supplier Agreement dated as of February 2, 2021 with RSG, pursuant to which the Company will produce certain products and perform specified services for RSG for a six (6) month period on the terms and conditions set forth in the Supplier Agreement. The Company did not incur any penalties as a result of the termination of the License Agreement. For the three months ended March 31, 2021, the revenue, expenses and cash flows from retail operations and the RRWC business have been classified as discontinued operations separately from continuing operations. As of December 31, 2021, there were no assets and liabilities related to discontinued retail operations and the Redneck Riviera Spirits business. Income and expense related to discontinued retail operations and the Redneck Riviera Spirits business were as follows for the three months ended March 31, 2022 and 2021: Schedule of Discontinued Retail Operations
(Dollars in thousands) |  | 2022 |  |  | 2021 |
|  | (Unaudited) |  |  | (Unaudited) |
Sales |  | $ | - |  |  | $ | 290 |
Less customer programs and excise taxes |  |  | - |  |  |  | 31 |
Net sales |  |  | - |  |  |  | 259 |
Cost of sales |  |  | - |  |  |  | 162 |
Gross profit |  |  | - |  |  |  | 97 |
Operating expenses: |  |  |  |  |  |  |  |
Sales and marketing expenses |  |  | - |  |  |  | 27 |
General and administrative expenses |  |  | - |  |  |  | 16 |
Total operating expenses |  |  | - |  |  |  | 43 |
Income from operations |  |  | - |  |  |  | 54 |
Other income, net |  |  |  |  |  |  |  |
Other income |  |  | - |  |  |  | 1,029 |
Gain on termination of license agreement |  |  | - |  |  |  | 2,850 |
Total other expense, net |  |  | - |  |  |  | 3,879 |
Net income |  | $ | - |  |  | $ | 3,933 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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