Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 63

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 63
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 Additionally, due to increasing public concern over alcohol-related societal problems, including driving while intoxicated, underage
drinking, alcoholism and health consequences from the abuse of alcohol, various levels of government may seek to impose additional restrictions
or limits on advertising or other marketing activities promoting beverage alcohol products. Failure to comply with any of the current
or future regulations and requirements relating to our industry and products could result in monetary penalties, suspension or even revocation
of our licenses and permits. Costs of compliance with changes in regulations could be significant and could harm our business, as we could
find it necessary to raise our prices in order to maintain profit margins, which could lower the demand for our products and reduce our
sales and increase our losses.

Also, the distribution of beverage
alcohol products is subject to extensive taxation (at both the federal and state government levels), and beverage alcohol products themselves
are the subject of national import and excise duties in most countries around the world. An increase in taxation or in import or excise
duties could also significantly harm our sales revenue and margins, both through the reduction of overall consumption and by encouraging
consumers to switch to lower-taxed categories of beverage alcohol.

We are exposed to product liability
or other related liabilities which could have significant negative financial repercussions on Spirits’ solvency.

Although we maintain liability
insurance and will attempt to limit contractually our liability for damages arising from consumer, stakeholder and other lawsuits, these
measures may not be sufficient for us to successfully avoid or limit product liability or other related liabilities. Our general liability
insurance coverage is limited to $1 million per occurrence and $3 million in the aggregate and $2 million products/completed operations
aggregate, and our general liability umbrella policy is limited to $5 million per occurrence and $5 million in the aggregate and $5 million
products/completed operations aggregate. We do not have insurance covering employee lawsuits. Further, any contractual indemnification
and insurance coverage we have from parties supplying our products is limited, as a practical matter, to the creditworthiness of the indemnifying
party and the insured limits of any insurance provided by these suppliers. Extensive product liability claims could be costly to defend
and/or costly to resolve and could harm our reputation or business.

We could face issues including
the risk of contamination of our products and/or counterfeit or confusingly similar products.

The success of our brands depends
upon the positive image that consumers have of them. Contamination, whether arising accidentally or through deliberate third