Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 149

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 149
---
0 via a merger with Beeline Financial Holdings, Inc., a Rhode Island corporation
founded on September 20, 2018.

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. The Company accounted for the asset and equity transfers associated with the various transactions
at fair value in accordance with ASC 470-60, Debt - Troubled Debt Restructurings by Debtors.

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.

32

Upon
completion of the Debt Exchange Agreement, the Company was no longer involved in the business of digital printing and mobile canning.
The Company reports discontinued operations by applying the following criteria in accordance with ASC 205-20, Presentation of Financial
Statements – Discontinued Operations: (1) Component of an entity; (2) Held for sale criteria; and (3) Strategic shift. Given
that the effect of the Debt Exchange Agreement meets all the criteria for classification of held for sale, the assets and liabilities
of Craft C+P were disposed of on October 7, 2024. The operating results of Craft C+P have been classified as discontinued operations
during the three months ended March 31, 2024.

The
consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, Beeline Financial
Holdings, Inc. (“Beeline Financial”), Beeline Title Holdings, Inc. (“Beeline Title Holdings”), Beeline Mortgage
Holdings, Inc. (“Beeline Mortgage”), Beeline Labs, Inc., and Beeline Loans Pty Ltd. (“Australian Subsidiary”).

Beeline
Title Holdings has four subsidiaries, Beeline Title, LLC (“Beeline Title”), Beeline Texas Title, LLC (“Beeline Texas
Title”), Beeline Settlement Services, LLC (“Beeline Settlement Services”), and Beeline