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ITEM 1A RISK FACTORS
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 Companys 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. On June 3, 2024 the Staff extended to October 7, 2024 the date by which Eastside Distilling may the Company could regain compliance with the Equity Rule. As of June 30, 2024, Based upon the Company had a stockholders deficitclosing of $1.9 million. The Company can give no assurancesMerger and that it will be able to submit a sufficiee Debt Agreement plan on time to be granted an extension.
On March October 7, 2024, the Staff of the Listing Qualifications Department of Company has regained compliance with the Equity Rule. Nasdaq Stock Market notifihas advised the Company that it no longer complies with Nasdaqs independent director and audit, however, that it will committee requirements as set forth in Listing Rule 5605. Nasdaq however, has provided a cure period to regainntinue to monitor the Companys ongoing compliance prior towith the earlier of the Companys next annual shareholders meeting or January 22, 2025.
TEquity Rule and, if at the time when the Company has deferred paying interest to certain creditors in the first half of 2024 and is engaged in discussions with creditors to resolve a number of outstafiles its next periodic report with the SEC i.e. its Annual Report on Form 10-K for the year ending issues. There can be no assurances thatDecember 31, 2024 - the Company will successfullydoes not evidence conclude these discussions and havempliance with the Equity Rule, the cash resourcesCompanys common stock may be subject to fund operationsdelisting from Nasdaq.
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