Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 20

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 20
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 pricing and profit. Our largest distribution channel is in the state
of Oregon through the Oregon Liquor Control Commission. Sales to the Oregon Liquor Control Commission, accounted for approximately 75%
and 55% of our consolidated sales for the years ended December 31, 2024 and 2023, respectively.

We hold the federal importer and wholesaler license
required by the Alcohol and Tobacco Tax and Trade Bureau of the U.S. Treasury Department and the requisite state licenses within the states
in which we conduct business.

Our inventory is maintained in offsite bonded warehouses
at our producers, our bonded warehouse in Milwaukie, Oregon, and at bonded warehouses managed by Park Street, our fulfillment and logistics
partner. We also typically have inventory in transit that we ship nationally through our network of licensed and bonded carriers.

Spirits Intellectual Property

Trademarks are an important aspect of our business.
We sell our products under a number of trademarks which we own. Our brands are protected by trademark registrations or are the subject
of pending applications for trademark registration in the U.S. where we distribute our brands. The trademarks may be registered in the
names of our subsidiaries. In the U.S., trademark registrations need to be renewed every 10 years. We expect to register our trademarks
in additional markets as we expand our distribution territories.

15

Spirits Competition

Over the past 10 years, the U.S. wine and spirits
industry has undergone dramatic consolidation and realignment of brands and brand ownership. The number of major importers in the U.S.
has declined significantly. Today, large major companies dominate the market: Diageo PLC, Pernod Ricard S.A., Bacardi Limited, Brown-Forman
Corporation, Beam Suntory Inc., Davide Campari-Milano S.p.A., and Rémy Cointreau S.A. These competitors have substantially greater
resources than we have due to their scale and ability to more effectively leverage the national distribution system. Spirits has been
repositioned to compete regionally in key markets where we believe we have the greatest competitive advantage.

Government Regulation Applicable to Spirits

We are subject to the jurisdiction of the Federal
Alcohol Administration Act, U.S. Customs laws, and the Alcoholic Beverage Control laws of the states where our products are distributed,
among many other regulations. The U.S. Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau regulates the production,
blending, bottling, sales and advertising and transportation of alcohol