Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 10

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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.

Bridgetown
Spirits

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. 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, see Note 4 - Discontinued Operations.

2.
GOING CONCERN, LIQUIDITY, AND MANAGEMENT’S PLANS 

These
consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates
the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. The Company is subject
to a number of risks common to emerging companies stemming from, among other things, a limited operating history, rapid technological
change, uncertainty of market acceptance and products, regulatory uncertainty, competition from substitute products and larger companies,
the need to obtain additional financing, compliance with government regulation, protection of proprietary technology, interest rate fluctuations,
product liability, and the dependence on key individuals. The Company has incurred recurring losses and negative cash flows from operations
since its inception, and is dependent on debt and equity financing. These factors raise substantial doubt about the Company’s ability
to continue as a going concern for the twelve months following the issuance of these financial statements. The consolidated financial
statements do not include any adjustments to the carrying amounts and classification of assets, liabilities, and reported expenses that
may be necessary if assumes Company were unable to continue as a going concern.

Management
believes