Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1001

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1001
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 2023.

Debt Exchange Agreement

On September 4, 2024, Eastside 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 Eastside 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
5 - Debt Exchange Agreement and Note 6 - Discontinued Operations.

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 Eastside’s business
of manufacturing and marketing spirits to Bridgetown Spirits, which manufactures, acquires, blends, bottles, imports, markets and sells
a wide variety of alcoholic beverages under recognized brands. Bridgetown Spirits’ brands span several alcoholic beverage categories,
including whiskey, vodka, rum, and tequila. Bridgetown Spirits sells products on a wholesale basis to distributors in open states and
through brokers in control states. The Company owns 53% of Bridgetown Spirits as of December 31, 2024, see Note 5 - Debt Exchange Agreement.

Reverse Stock Split

All shares and per share information in these
consolidated financial statements were adjusted to give effect to the 1-for-20
reverse stock split of the Company’s common stock effected on May 12, 2023 and has also been retrospectively adjusted to give
effect to the one-for-ten reverse stock split of the Company’s common stock effected on March 12, 2025.

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, uncertainty of regulatory approval, 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,