Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 46

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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 (“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.

32

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. The assets and liabilities
of Bridgetown Spirits have been classified as held for sale as of June 30, 2025 and December 31, 2024. The operating results of Bridgetown
Spirits have been classified as discontinued operations for the three and six months ended June 30, 2025 and 2024.

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 and six months ended June 30, 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. (“