Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 62

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 62
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 broader product offerings. These large competitors can devote financial and other greater resources
to the development, promotion, sale and support of their products. As a result, it is possible that our competitors may either respond
to industry conditions or consumer trends more rapidly or effectively or resort to price competition to sustain market share, which could
adversely affect our sales and profitability.

We face unique risks relating
to class actions or other litigation relating to alcohol abuse or the misuse of alcohol.

Our industry faces the possibility
of class action or similar litigation alleging that the continued excessive use or abuse of beverage alcohol has caused death or serious
health problems or that we failed to adequately warn consumers of the risks of alcohol consumption. It is also possible that governments
could assert that the use of alcohol has significantly increased government-funded healthcare costs. Litigation or assertions of this
type have adversely affected companies in the tobacco industry, and it is possible that we, as well as our suppliers, could be named in
litigation of this type.

38

Lawsuits have been brought in a
number of states alleging that beverage alcohol manufacturers and marketers have improperly targeted underage consumers in their advertising.
Plaintiffs in these cases allege that the defendants’ advertisements, marketing and promotions violate the consumer protection or
deceptive trade practices statutes in each of these states and seek repayment of the family funds expended by the underage consumers.
While we have not been named in these lawsuits, we could be named in similar lawsuits in the future. Any class action or other litigation
asserted against us could be expensive and time-consuming to defend against, depleting our cash and diverting our personnel resources
and, if the plaintiffs in such actions were to prevail, our business could be harmed significantly.

We face substantial regulatory
risks including compliance with local and national laws, as well as the possibility of adverse changes in law, regulation or tax policy.

Our business is subject to extensive
government regulation. This includes regulations regarding production, distribution, marketing, advertising and labelling of beverage
alcohol products. We are required to comply with these regulations and to maintain various permits and licenses. We are also required
to conduct business only with holders of licenses to import, warehouse, transport, distribute and sell beverage alcohol products. We cannot
assure you that these and other governmental regulations applicable to our industry will not change or become more stringent. Moreover,
because these laws and regulations are subject to interpretation, we may not be able to predict when and to what extent liability may
arise.