Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 26

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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July 25, 2025, the Company entered into a Debt Satisfaction Agreement (the “DSA”) with Bridgetown Spirits and three individuals
(the “Buyers”) including Geoffrey Gwin, the President of Bridgetown Spirits, pursuant to which the Company transferred to
the Buyers all 530,000 shares of its Bridgetown Spirits common stock held by the Company in exchange for the satisfaction of outstanding
amounts payable by the Company to the Buyers totaling $0.4 million As a result of the foregoing, Bridgetown Spirits is no longer a subsidiary
of the Company. The Company recorded $0.7 million to loss on extinguishment of debt in the consolidated statements of operations and
comprehensive loss for the three and nine months ended September 30, 2025.

In
connection with the DSA, Bridgetown Spirits issued a Senior Secured Original Issue Discount Promissory Note and Security Agreement (the
“Note”) in the principal amount of $0.1 million payable to the Company with an original issue discount of $25,000. The Note
is receivable as follows: (i) $50,000 is receivable on April 24, 2026, and the remaining $50,000 is receivable on July 25, 2026. The
Note is secured by the assets of Bridgetown Spirits. The Note is included in prepaid expenses and other current assets on the consolidated
balance sheet as of September 30, 2025.

The
assets and liabilities of Bridgetown Spirits have been classified as held for sale as of December 31, 2024. The operating results of
Bridgetown Spirits and the spirits segment have been classified as discontinued operations during the three and nine months ended September
30, 2025 and 2024, respectively. The consolidated financial statements for the prior periods have been adjusted to reflect comparable
information.

Assets
and liabilities related to Bridgetown Spirits were as follows as of December 31, 2024:

    (Dollars
    in thousands) 
    2024 
  
    Assets 

    Current
    assets: 

    Cash
    and cash equivalents 
    $310 
  
    Inventories 
     1,493 
  
    Prepaid
    expenses and other current assets 
     75 
  
    Accounts
    receivables, net 
     134 
  
    Current
    assets of discontinued operations held for sale