Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 652

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 652
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 founded on September 20, 2018. 

Debt Exchange Agreement

On September 4, 2024, Eastside and its subsidiary,
Craft Canning + Printing (“Craft C+P”), entered into a Debt Exchange Agreement (the “Debt Exchange Agreement”),
which closed on October 7, 2024, resulting in the assignment by Eastside of 720 barrels of spirits to Craft C+P, followed by the merger
of Craft C+P into a limited liability company owned by certain creditors of the Company and the deconsolidation of Craft C+P. The Company
accounted for the asset and equity transfers associated with the various transactions at fair value in accordance with ASC 470-60, Debt
- Troubled Debt Restructurings by Debtors. See Note 5 - Debt Exchange Agreement and Note 6 - Discontinued Operations
in the Notes to Consolidated Financial Statements.

Subsequent to the execution of the Debt Exchange
Agreement, the Company organized a subsidiary, Bridgetown Spirits, which was incorporated on October 3, 2024, and assigned Eastside’s
business of manufacturing and marketing spirits to Bridgetown Spirits. See
Note 5 - Debt Exchange Agreement in the Notes
to Consolidated Financial Statements.

Upon completion of the Debt Exchange Agreement, Eastside
was no longer involved in the business of digital printing and mobile canning. The Company reports discontinued operations by applying
the following criteria in accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations: (1)
Component of an entity; (2) Held for sale criteria; and (3) Strategic shift. Given that the effect of the Debt Exchange Agreement meets
all the criteria for classification of held for sale, the assets and liabilities of Craft C+P have been classified as held for sale as
of December 31, 2023 and were disposed of on October 7, 2024. The operating results of Craft C+P have been classified as discontinued
operations during the years ended December 31, 2024 and 2023.

The consolidated financial statements include the
consolidated accounts of Beeline Holdings, Inc. and its wholly-owned subsidiaries, Beeline Financial Holdings, Inc., Beeline Title Holdings,
Inc. (“Beeline Title Holdings”), Beeline Mortgage Holdings, Inc. (“Beeline Mortgage”), and Beeline Loans Pty
Ltd. (“Australian Subsidiary”). Intercompany transactions and balances have been eliminated.

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