Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 105

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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    2024 
  
    Sales 
    $6,775 
  
    Less
    customer programs and excise taxes 
     117 
  
    Net
    sales 
     6,658 
  
    Cost
    of sales 
     6,322 
  
    Gross
    profit 
     336 
  
    Operating
    expenses: 

    Sales
    and marketing expenses 
     45 
  
    General
    and administrative expenses 
     2,355 
  
    Gain
    on disposal of property and equipment 
     (195)
  
    Total
    operating expenses 
     2,205 
  
    Loss
    from operations 
     (1,869)
  
    Other
    income 
     3 
  
    Net
    loss 
    $(1,866)

    16

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Bridgetown
Spirits

On
July 25, 2025, the Company entered into a Debt Satisfaction Agreement (the “DSA”) with Bridgetown Spirits and three individuals
(the “Buyers”) including Geoffrey Gwin, the President of Bridgetown Spirits, pursuant to which the Company transferred to
the Buyers all 530,000 shares of its Bridgetown Spirits common stock held by the Company in exchange for the satisfaction of outstanding
amounts payable by the Company to the Buyers totaling $0.4 million As a result of the foregoing, Bridgetown Spirits is no longer a subsidiary
of the Company. The Company recorded $0.7 million to loss on extinguishment of debt in the consolidated statements of operations and
comprehensive loss for the three and nine months ended September 30, 2025.

In
connection with the DSA, Bridgetown Spirits issued a Senior Secured Original Issue Discount Promissory Note and Security Agreement (the
“Note”) in the principal amount of $0.1 million payable to the Company with an original issue discount of $25,000. The Note
is receivable as follows: (i) $50,000 is receivable on April 24, 2026, and the remaining $50,000 is receivable on July 25, 2026. The
Note is secured by the assets of Bridgetown Spirits. The Note is included in prepaid expenses and other current assets on the