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Eastside Distilling, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in sales to $783,000 from $849,000 in the same quarter the previous year. The decrease is attributed to a reduction in distribution of Azuñia tequila and lower sales of bulk barrels.
Cost of sales for the quarter was $560,000, representing 72% of net sales, compared to 79% in the same quarter of the previous year. This decrease in cost ratio is due to lower bulk spirits and distributor sales.
The company reported a gross profit of $200,000 for the quarter, compared to $168,000 in the previous year, with the increase attributed to cost savings initiatives.
Sales and marketing expenses decreased to $218,000 from $303,000, primarily due to reduced headcount as part of spirits restructuring.
General and administrative expenses increased to $435,000 from $172,000, due to a reversal of compensation expense in the third quarter of 2023.
Net loss for the quarter was $1,359,000, down from $2,156,000 in the previous year. After preferred dividends, net loss attributable to common shareholders was $1,397,000, compared to $2,194,000 in the previous year.
Cash used in operating activities was $1,603,000, while cash provided by investing and financing activities was $114,000 and $1,493,000, respectively.
Eastside had negative working capital of $12,604,000 as of September 30, 2024. The company acknowledges its dependence on raising capital from debt and equity financing to meet future obligations.
The filing also details various financial agreements, including a Debt Exchange Agreement and a merger with Beeline Financial Holdings, Inc.
Eastside does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Eastside continues to focus on expanding its spirits portfolio and highlights its dependence on a few large customers for a significant portion of its sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Eastside Distilling Inc. quarterly 10-Q report dated November 15, 2024. To report an error, please email earnings@qz.com.