Lost Spirits Distillery, Inc.

Lost Spirits is Closing

Bryan Davis

Published on Apr 3, 2024

Dear Friends & Supporters, 

After 14 years in business, Lost Spirits Distillery will close its doors for good when it plays its final performance on April 29, 2024.

While we were able to sustain the operational cost of the business last quarter, there is just no way to claw our way out of the immense debt accumulated in recent years.  The debt burden accumulated from both COVID and the slow reopening after COVID has forced this decision to close.  

While I hate to see it close, I’m delighted to say that together we proved that an immersive circus show can work in Las Vegas, and we built one of the most successful immersive shows ever!  

When it closes at the end of this month, the show will have played over 1000 performances in its Las Vegas incarnation alone, serving over 250,000 audience members and garnering rave reviews.  

Over the years we built an extraordinarily talented team and shared a wonderful journey together. I wish there was another path that would let us keep it together, even if just for a few more years. I assure you we have been working non-stop to explore every possible option. But in the end, it was out of our control. 


Please come join us one last time.  

Tickets are available at: www.lostspirits.net

 

Sincerely,

Bryan Davis

Co-Founder / CEO



Liked by Rebecca Seamans, Conley Leung, April Moore, and 1 other

My husband and I are (minor) investors and also Los Angeles producers and entertainment professionals. We’ve seen both the LA and Las Vegas shows. Come back to LA. You have a dedicated fan base here and frankly the Vegas show lost much of the charm of the LA experience. Honor your investors and scale it down and come back to LA. Seriously.
We would LOVE to if we can make it happen!!!!
Nothing more to add, really. We were so impressed by our tour in California; the presentation, the quality spirits, and the process whereby a liquor could acheive the chemical composition of a twenty-year old spirit in a few weeks. All of that kicked to the curb for a Las Vegas Show club. So are we all out on our ass or is there perhaps a token boobie prize for the investors? Truly disappointed.
Terribly sorry to disappoint. We tried out best and got it to $9.6 million in revenue. But it was just a little too little too late.
Well shoot, this is sad to hear. Come back to Los Angeles and get back to your roots! :D
Thank you for the note! It would be wonderful.
Many out of state patrons (CA) were sad to see you guys move to a state that wouldn't let you ship bottles. Any thoughts to start small again in a state to allow out of state shipping? Will there be an opportunity to buy bottles if we stop by the store even if we don't have time for an entire tour before April 29?
We would love that. I'm not sure we can pull it off from a business point of view. But maybe... Right now I'm trying to find a deal to pay off the principal creditor and save the whole thing... If I can!!!
EDIT: I don't see a way to reply to Bryan's reply below mine but please see his clarifying comments regarding what I said below. My original comment regarding what entity holds the IP was incorrect, per Bryan. Bryan: My post was not intended to be an attack on you or really a complaint about the situation. This is just a response to many comments here expressing concern about what happens next. Trust me, I understand you are working through and have worked through some very challenging times. Of course, we all wish/ hope for a different outcome, and hopefully, there will be a way forward. In the meantime, thank you for your explanation of what entity holds the IP. Original Comment: I could be wrong, but for those asking if investors have a chance at recouping their investment via patents or other IP, do not get your hopes up. First, any creditors will be paid back out of any assets the company has. Then investors, if there is any money left over. The bulk of the asset value is likely the patents/ IP. But, the patents are owned by/ assigned to different entities: LOST SPIRITS TECHNOLOGY, LLC LOST SPIRITS DISTILLERY, LLC We are invested in LOST SPIRITS DISTILLERY, INC. I could be wrong, but I suspect the LLC licenses the technology to the INC we are all invested in to protect that underlying asset should the corporation fail. In my patent search, I do not see any patent assignment to the corp., and I also see the LLCs are currently active (though late on a filling). I do not believe the LLC(s) were converted to a corporation; thus, the IP is owned by a different company than everyone invested in here. One of their disclosures does indicate a merger with the LLCs and C-Corp and a transfer of some significant assets; however, it does not specifically state that all patents or other IP were transferred. It is possible the patents were and the assignment was never updated with the US Patent Office but at the moment, I would not say it is clear that the IP was transferred to the corp. Again, I could be wrong, so hopefully, the actual company leadership will provide a lot more transparency, given the amateur nature of this investment group.
Dear Kevin (and everyone else reading this), 1. Please remember we are in the same boat with you. We personally bought the same stock alongside you. I am working non-stop to try to find a deal to pay out the principal creditor and save Lost Spirits. It's grown into a pretty good sized operation, so this is not out of the question. 2. Lost Spirits Technology LLC (and ALL other LLCs) are wholly owned subsidiaries of Lost Spirits Distillery Inc. If we do close those patents and IP will end up for sale. 3. You are correct that the creditors do get paid first (this affects us too). I'm trying my hardest. But at this scale it is not easy. Thank you all for the support. You really mean the world to us (even when you are mad at us) and if we can find a path to your benefit we will 100% be taking it!!!!
All businesses are a gamble, you gave it your best run, I liked the product and the entertainment. I lost some money, but I only invested what I could afford. So we all just have to move forward.
Thank you Todd. We built something magical and it's going to be missed. Maybe we will pull off a last min deal to save it (still trying)!!!
Unfortunate side of business. Will there be any future notification/documentation in regard to the loss on the investment we have made through WeFunder? If the funds are truly lost then that's that. I want to at least be able to claim the capital loss on my taxes if this is the case, but I imagine we would need more official documentation from the business to date this loss? Can someone who is more informed in this area give guidance on this?
Yes. If we can't pull a deal together we will issue everyone documentation. Right now we are focused on finding a deal to save it.
Sorry to hear this, as I enjoyed your shows here in LA and in Vegas. It was really disappointing that I wasn’t able to buy any bottles once you moved to Vegas since you couldn’t ship. Any chance you could bring a truck to LA for fans to come buy some?
Ha! I wish this worked that way. Beverage laws make that impossible.
Hey Bryan. $9.6million is no small feat and it seemed like you had some momentum going. I can't imagine this does not equate to some kind of enterprise value and attraction for investors - why not push for additional fundraising rounds or some other form of cash injection? I know capital markets are not what they used to be, but there has to be options out there. There are plenty of companies with much less traction getting money thrown at them. Anyway, I'm certain you are trying every avenue. I will be in Vegas next weekend - hoping to come by and see what you guys got going on there =)
Can't wait to see you here!!! I'm working every angle, I assure you.
Hey Bryan - it was a good run! Followed ya all since original LA distillery submarine bus experience! As a spirits enthusiast any plans for the distillery side/alcohol tech/reactor aging/etc? long shot but i’m more than sure you can find a community around that
Thank you for the kind words!!!! We'll see how this all plays out in the end.