Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 19

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 19
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-operated estate, bursting with authentic flavor from the local terroir of Tequila Valley, Mexico. 100% pure Weber Blue Agave is harvested by hand, roasted in traditional clay hornos, and finished with a natural, open-air fermentation process. It is bottled on-site in small batches using a consistent process to deliver consistent field-to-bottle quality and exclusively exported by Agaveros Unidos de Amatitán.

Production and Supply

 Spirits’ production and supply chain involves several
important stages, including bottle and label design, raw materials procurement, production and packaging in various configurations for
shipment. To achieve a unique flavor profile for each brand, we use one or more of the following techniques: infusion of fruit, addition
of natural flavorings, blending of products, and aging in selected casks. Once the final profile is approved and quality control standards
are met, we filter the liquid as needed and bottle the product.

We rely on a limited number of suppliers for the sourcing
of our spirit products and raw materials, including our distillate products and other ingredients. These suppliers consist of third-party
producers in the U.S. and Mexico. One key supplier is Agaveros Unidos de Amatitan, SA. de CV., which supplies tequila to us. In 2024, we
entered into production agreement with Rose City Distilling. We do not have long-term, written agreements with any of our other suppliers
for the production of raw materials. However, we believe that we have consistent and reliable third-party sources for the needed materials.

Distribution Network

In the United States, we are required by law to use
state-licensed distributors or, in the control states, state-owned agencies performing this function, to sell our brands to retail outlets.
In the 14 open states, the distributors are generally large, privately held companies. The distributors and wholesalers in turn sell to
individual retailers, such as liquor stores, restaurants, bars, supermarkets and other outlets licensed to sell alcoholic beverages. Through
our internal sales team, we have established relationships for our brands with wholesale distributors in six open states: California,
Arizona, Colorado, Texas, Washington and Florida.

We operate in one control state, Oregon, where the
state functions as the distributor, and regulates suppliers, including our Company. In control states, producers and importers sell their
products directly to state liquor authorities, which distribute the products and either operate retail outlets or license the retail sales
function to private companies, while maintaining strict control over