Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 58

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 of credit, was $1.9 million and $0.2 million for the three months
ended March 31, 2025 and 2024, respectively, primarily related to the amortization of debt and warrant related expenses.

Preferred
stock dividends. Preferred stock dividends for 2025 were unchanged compared to 2024 at $37,500.

Deemed dividend - preferred stock
Series G and warrant price protection. On March 25, 2025, the Company sold shares under the ELOC at $1.67 per share, which
was less than the Series G Preferred Stock original conversion price of $5.10 per share, resulting in the reduction of the
conversion price of the Series G Preferred Stock to $1.67 per share as a result of the price protection adjustment related to the
conversion of the Series G Preferred Stock. Additionally, the Warrants issued in the Series G Preferred Stock offering had their
exercise price reduced to $1.67 and resulted in an increase in common shares issuable upon exercise of 1,774,986 under the full
price protection adjustment of the Warrants. The Company recorded a deemed dividend of $4.6 million for the three months ended March
31, 2025.

35

Segment
Reporting

The
following discussion provides an analysis of the financial performance of each of our reportable segments consisting of Beeline Financial,
Bridgetown Spirits and Corporate. We evaluate segment performance based on key financial and operational metrics, including revenue,
operating income, and margin trends. The results of each segment are presented in accordance with our internal management reporting structure.

Beeline
Financial is a full service Direct-to-Consumer lender specializing in conventional conforming and non-conforming residential first-lien
mortgages and providing title services. Beeline Financial also has an emerging business in anonymized data sales and technology licensing.

Bridgetown Spirits manufactures (through
sub-contractors), acquires, blends, bottles, imports, markets and sells a variety of alcoholic beverages under recognized brands. Bridgetown
Spirits’ brands span several alcoholic beverage categories, including whiskey, vodka, and tequila. Bridgetown Spirits sells products
on a wholesale basis to distributors in one open states and through brokers in control states.

Corporate
primarily consists of general corporate expenses, including public company costs, executive compensation, legal and regulatory compliance,
and other administrative functions that support the overall business. This segment also includes holding company expenses, such as financing
cost