Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 0

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
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Notes
to Consolidated Financial Statements

June
30, 2025

(Unaudited)

1.
NATURE OF BUSINESS

Beeline
Holdings, Inc. (the “Company”) was incorporated under the laws of Nevada in 2004. On March 12, 2025, the Company changed
its name from Eastside Distilling, Inc.

Merger

On
September 4, 2024, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger”) with Bridgetown
Spirits Corp. (“Bridgetown Spirits”) and Beeline Financial Holdings, Inc. (“Beeline Financial”), a Delaware corporation.
The Merger closed on October 7, 2024 and Beeline Financial became a wholly-owned subsidiary of the Company.

Beeline
Financial was incorporated in Delaware on July 1, 2020 and is the successor to a Rhode Island corporation organized in 2018. Beeline
Financial is an Artificial Intelligence (“AI”)-driven fintech mortgage lender that develops proprietary software in the form
of major enhancements and new developments in its lending platform, introducing its Chat Application Programming Interface (“API”)
“Bob” in July 2023.

Debt
Exchange Agreement

On
September 4, 2024, the Company 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 the Company 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, see Note 4 - Discontinued Operations.

Bridgetown
Spirits

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 the Company’s business of manufacturing and marketing spirits to Bridgetown Spirits. The Company owned 53%
of Bridgetown Spirits as of June 30, 2025. On July 25, 2025, the Company disposed of its 53% interest in Bridgetown Spirits in
exchange for the satisfaction of debt and as a result Bridgetown Spirits is no longer a subsidiary of the Company, see Note 4 - Discontinued