Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 661

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 661
---
  
     57  
     (12)
  
    Other operating expenses 
     1  
     3  
     (2)
  
    Impairment loss 
     3,356  
     364  
     2,992 
  
    Total operating expenses 
     6,417  
     4,449  
     1,968 
  
    Loss from operations 
     (3,840) 
     (662) 
     (3,178)
  
    Other income 
     -  
     61  
     (61)
  
    Net loss 
    $(3,840) 
    $(601) 
    $(3,239)
  
    Gross profit 
    $496  
    $1,178  
    $(682)
  
    Gross margin 
     19% 
     31% 
     -12%

51

Net sales. Net sales were $2.6 million
and $3.8 million for the years ended December 31, 2024 and 2023, respectively, due to less bulk spirits sales and lower sales of spirits.
In 2024, Spirits sold 23,261 9-liter equivalent cases compared to 26,004 cases in the prior year, a decline of 11%. Bulk sales were $0.2
million in 2024 compared to $0.8 million in 2023. Spirits has substantially reduced its inventory of raw materials, specifically bourbon
barrels, primarily from prior year bulk sales and the transfer of 720 barrels to Craft C+P in accordance with Debt Exchange Agreement.

Cost of sales. Cost of sales declined
to $2.1 million for the year ended December 31, 2024 from $2.6 million for the year ended December 31, 2023 related to the decrease in
net sales.

Gross profit and Gross margin. Gross
profit is calculated by subtracting the cost of products sold and services rendered from net sales. Gross margin is gross profit stated
as a percentage of net sales.

Gross profit was $0.5 million for the year ended December
31, 2024 and $1.2 million for the year ended December 31, 2023; and gross margin as a percentage of sales was 19% for the year ended December
31, 2024 and 31% for the year ended December 31,