Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 78

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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Notes
to Consolidated Financial Statements

March
31, 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.

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, which manufactures (through sub-contractors), acquires, blends,
bottles, imports, markets and sells a wide variety of alcoholic beverages under recognized brands. Bridgetown Spirits’ brands span
several alcoholic beverage categories, including whiskey, vodka, rum, and tequila. Bridgetown Spirits sells products on a wholesale basis
to distributors in open states and through brokers in control states. The Company