Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 96

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 96
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| ● | Azuñia                                                                                                                                         
 Tequilas – Smooth, clean, additive-free tequilas crafted by Rancho Miravalle, a second generation, family-owned-and-operated                   
 estate, bursting with authentic flavor from the local terroir of Tequila Valley, Mexico. 100% pure Weber Blue Agave is harvested               
 by hand, roasted in traditional clay hornos, and finished with a natural, open-air fermentation process. It is bottled on-site in              
 small batches using a consistent process to deliver consistent field-to-bottle quality and exclusively exported by Agaveros Unidos             
 de Amatitán.                                                                                                                                   |
| ● | Eastside                                                                                                                                       
 Brands – Craft inspired high-quality limited-edition products, which focus on innovation, craftsmanship and curiosity,                         
 and creativity.                                                                                                                                |

Recent Developments

Spirits reduced its sale of bulk barrels in the third quarter of 2024 and saw total volume decline by 12% in the quarter. The majority of the decline was driven by the reduction in distribution of Azuñia tequila as we realigned the brand with new distribution partners. Spirits case shipments in the quarter were down 12% with Portland Potato Vodka down 6% and Burnside down 17%.

The following management discussion and analysis includes the results of operations, cash flow activities and liquidity and capital resources for each of Eastside and Beeline and are marked accordingly below.

Eastside Results of Operations

Nine Months ended September 30, 2024 Compared to the Nine Months ended September 30, 2023

Spirits sales were $2.1 million and $3.1 million for the nine months ended September 30, 2024 and 2023, respectively. The primary factor in the year-to-year reduction was tactical: we rationalize our barrel inventory by repositioning our bulk spirits portfolio for anticipated future products and forecasted demand. For example, during the nine months ended September 30, 2024 we sold 65 barrels for gross proceeds of $0.1 million. By comparison, during the nine months ended September 30, 2023, we sold 250 barrels for gross proceeds of $0.6 million. The remainder of the reduction in sales was primarily attributable to lower sales of tequila and bourbon during the 2024 period. For the nine months ended September 30, 2024, spirits sold 17,431 cases compared to 19,485 cases in the prior year.

Cost