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Discontinued Operations | 9 Months Ended | 12 Months Ended
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Sep. 30, 2024 | Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract] |  |
Discontinued Operations | 4. Discontinued Operations 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. Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) On September 4, 2024, the Company and its subsidiary, Craft C+P, entered into the Debt Agreement with The B.A.D. Company, LLC (the “SPV”), Aegis Security Insurance Company (“Aegis”), Bigger Capital Fund, LP (“Bigger”), District 2 Capital Fund, LP (“District 2”), LDI Investments, LLC (“LDI”), William Esping (“Esping”), WPE Kids Partners (“WPE”) and Robert Grammen (“Grammen”), collectively, the “Investors”. The SPV is a special purpose vehicle whose equity is shared 50% by Bigger and District 2 and 50% by Aegis and LDI. On October 7, 2024, a closing will be held pursuant to the terms of the Debt Agreement. Aegis, Bigger, District 2 and LDI will transfer to the Company 31,234 shares of Series C Preferred Stock and 119,873 shares of the Company’s common stock. The Investors will also release the Company from liability for $4.1 million of senior secured debt and $2.5 million of unsecured debt. In consideration of their surrender of stock and release of debt, the Company will cause Craft C+P to be merged into a limited liability company owned by the Investors. Given that the effect of the Debt Agreement meets all the initial criteria for classification of held for sale, the assets, liabilities, and operating results of Craft C+P have been classified as held for sale during the nine month periods ended September 30, 2024 and 2023, and as of September 30, 2024 and December 31, 2023. The consolidated financial statements for the prior periods have been adjusted to reflect comparable information. Assets and liabilities related to Craft C+P were as follows: Schedule of Disposal Groups, Including Discontinued Operations
(Dollars in thousands) |  | September 30, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash |  | $ | 135 |  |  | $ | 96 |
Trade receivables, net |  |  | 756 |  |  |  | 396 |
Inventories |  |  | 1,071 |  |  |  | 526 |
Prepaid expenses and other current assets |  |  | 678 |  |  |  | 250 |
Total current assets |  |  | 2,640 |  |  |  | 1,268 |
Property and equipment, net |  |  | 4,156 |  |  |  | 4,598 |
Right-of-use assets |  |  | 1,415 |  |  |  | 1,923 |
Intangible assets, net |  |  | 517 |  |  |  | 827 |
Other assets, net |  |  | 210 |  |  |  | 321 |
Total Assets |  | $ | 8,938 |  |  | $ | 8,937 |
Liabilities |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 2,130 |  |  | $ | 1,014 |
Accrued liabilities |  |  | 266 |  |  |  | 110 |
Deferred revenue |  |  | 42 |  |  |  | 88 |
Current portion of lease liabilities |  |  | 686 |  |  |  | 665 |
Total current liabilities |  |  | 3,124 |  |  |  | 1,877 |
Lease liabilities, net of current portion |  |  | 843 |  |  |  | 1,366 |
Total liabilities |  | $ | 3,967 |  |  | $ | 3,243 |
Income and expense related to Craft C+P were as follows for the nine months ended September 30, 2024 and 2023:
(Dollars in thousands) |  | 2024 |  |  | 2023 |
Sales |  | $ | 6,775 |  |  | $ | 5,637 |
Less customer programs and excise taxes |  |  | 117 |  |  |  | 79 |
Net sales |  |  | 6,658 |  |  |  | 5,558 |
Cost of sales |  |  | 6,322 |  |  |  | 5,378 |
Gross profit |  |  | 336 |  |  |  | 180 |
Operating expenses: |  |  |  |  |  |  |  |
Sales and marketing expenses |  |  | 45 |  |  |  | 81 |
General and administrative expenses |  |  | 2,355 |  |  |  | 2,103 |
Gain on disposal of property and equipment |  |  | (195 | ) |  |  | (171 | )
Total operating expenses |  |  | 2,205 |  |  |  | 2,013 |
Loss from operations |  |  | (1,869 | ) |  |  | (1,833 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | - |  |  |  | (12 | )
Other income |  |  | 3 |  |  |  | 33 |
Total other income, net |  |  | 3 |  |  |  | 21 |
Loss before income taxes |  |  | (1,866 | ) |  |  | (1,812 | )
Provision for income taxes |  |  | - |  |  |  | - |
Net loss |  | $ | (1,866 | ) |  | $ | (1,812 | )
Eastside Distilling, Inc. and Subsidiaries Notes to Consolidated Financial Statements September 30, 2024 (Unaudited) | 4. Discontinued Operations 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 September 4, 2024, the Company and its subsidiary, Craft C+P, entered into the Debt Agreement with The B.A.D. Company, LLC (the “SPV”), Aegis Security Insurance Company (“Aegis”), Bigger Capital Fund, LP (“Bigger”), District 2 Capital Fund, LP (“District 2”), LDI Investments, LLC (“LDI”), William Esping (“Esping”), WPE Kids Partners (“WPE”) and Robert Grammen (“Grammen”), collectively, the “Investors”. The SPV is a special purpose vehicle whose equity is shared 50% by Bigger and District 2 and 50% by Aegis and LDI. On October 7, 2024, a closing will be held pursuant to the terms of the Debt Agreement. Aegis, Bigger, District 2 and LDI will transfer to the Company 31,234 shares of Series C Preferred Stock and 119,873 shares of the Company’s common stock. The Investors will also release the Company from liability for $4.1 million of senior secured debt and $2.5 million of unsecured debt. In consideration of their surrender of stock and release of debt, the Company will cause Craft C+P to be merged into a limited liability company owned by the Investors. Given that the effect of the Debt Agreement meets all the initial criteria for classification of held for sale, the assets, liabilities, and operating results of Craft C+P have been classified as held for sale as of and for the years ended December 31, 2023 and 2022. The consolidated financial statements for the prior periods have been adjusted to reflect comparable information. Assets and liabilities related to Craft C+P were as follows as of December 31, 2023 and 2022: Schedule of Disposal Groups, Including Discontinued Operations
(Dollars in thousands) |  | 2023 |  |  | 2022 |
Assets |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |
Cash |  | $ | 96 |  |  | $ | 111 |
Trade receivables, net |  |  | 396 |  |  |  | 422 |
Inventories |  |  | 526 |  |  |  | 992 |
Prepaid expenses and other current assets |  |  | 250 |  |  |  | 442 |
Total current assets |  |  | 1,268 |  |  |  | 1,967 |
Property and equipment, net |  |  | 4,598 |  |  |  | 5,486 |
Right-of-use assets |  |  | 1,923 |  |  |  | 2,714 |
Intangible assets, net |  |  | 827 |  |  |  | 1,241 |
Other assets, net |  |  | 321 |  |  |  | 108 |
Total Assets |  | $ | 8,937 |  |  | $ | 11,516 |
Liabilities |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |
Accounts payable |  | $ | 1,014 |  |  | $ | 654 |
Accrued liabilities |  |  | 110 |  |  |  | 109 |
Deferred revenue |  |  | 88 |  |  |  | 18 |
Current portion of lease liabilities |  |  | 665 |  |  |  | 736 |
Other current liability, related party |  |  | - |  |  |  | 173 |
Total current liabilities |  |  | 1,877 |  |  |  | 1,690 |
Lease liabilities, net of current portion |  |  | 1,366 |  |  |  | 2,117 |
Total liabilities |  | $ | 3,243 |  |  | $ | 3,807 |
Income and expense related to Craft C+P were as follows for the years ended December 31, 2023 and 2022:
(Dollars in thousands) |  | 2023 |  |  | 2022 |
Sales |  | $ | 6,817 |  |  | $ | 5,626 |
Less customer programs and excise taxes |  |  | 105 |  |  |  | 100 |
Net sales |  |  | 6,712 |  |  |  | 5,526 |
Cost of sales |  |  | 6,829 |  |  |  | 6,341 |
Gross profit |  |  | (117 | ) |  |  | (815 | )
Operating expenses: |  |  |  |  |  |  |  |
Sales and marketing expenses |  |  | 126 |  |  |  | 85 |
General and administrative expenses |  |  | 2,878 |  |  |  | 3,344 |
(Gain) loss on disposal of property and equipment |  |  | (367 | ) |  |  | 65 |
Total operating expenses |  |  | 2,637 |  |  |  | 3,494 |
Loss from operations |  |  | (2,754 | ) |  |  | (4,309 | )
Other income (expense), net |  |  |  |  |  |  |  |
Interest expense |  |  | (12 | ) |  |  | (44 | )
Other income |  |  | 17 |  |  |  | 104 |
Total other income, net |  |  | 5 |  |  |  | 60 |
Loss before income taxes |  |  | (2,749 | ) |  |  | (4,249 | )
Provision for income taxes |  |  | - |  |  |  | - |
Net loss |  | $ | (2,749 | ) |  | $ | (4,249 | )

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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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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