Eastside Distilling Inc

There have been no material changes in our risk factors from those previously disclosed in our annual report on Form 10-K for the year ended December 31, 2023, except for the following additions:

If the Company is unable to remedy its shareholder equity deficiency, its common stock may be removed from Nasdaq.

On April 8, 2024, the Staff of the Listing Qualifications Department of the Nasdaq Stock Market notified the Company that it had fallen out of compliance with the requirements for continued listing of the Company’s common stock on Nasdaq. Specifically, Nasdaq Listing Rule 5550(b)(1) requires that the stockholders’ equity of a listed company must exceed $2.5 million. As of March 31, 2024, the Company had a stockholders’ deficit of $0.5 million. Nasdaq has advised the Company that it has until May 23, 2024 to submit a plan to restore stockholders’ equity to sufficient levels or the Company’s common stock would be removed from Nasdaq. The Company can give no assurances that it will be able to submit a sufficient plan on time to be granted an extension.

On March 7, 2024, the Staff of the Listing Qualifications Department of the Nasdaq Stock Market notified the Company that it no longer complies with Nasdaq’s independent director and audit committee requirements as set forth in Listing Rule 5605. Nasdaq however, has provided a cure period to regain compliance prior to the earlier of the Company’s next annual shareholders’ meeting or January 22, 2025.

The Company has deferred paying interest to certain creditors in the first quarter of 2024 and is engaged in discussions with creditors to resolve a number of outstanding issues. There can be no assurances that the Company will successfully conclude these discussions and have the cash resources to fund operations.