Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 704

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 704
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 of common stock to Esping, WPE and Grammen, and those Investors released Eastside from liability for $0.2 million of unsecured debt.

    F-19

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

In accordance with the Debt Exchange
Agreement, on November 7, 2024, Eastside transferred a total of 361,101
common shares of Bridgetown Spirits to Aegis, Bigger, District 2 and LDI, representing an additional 36%. In consideration for those shares, those four Investors
surrendered to Eastside a total of 58,090
shares of Eastside common stock valued at $2.2
million, securing a total non-controlling interest of 47%
valued at $2.8
million.

Upon completion of the transaction contemplated by
the Debt Exchange Agreement, Eastside was no longer involved in the business of digital printing and mobile canning, and presently owns
53% of the common stock of Bridgetown Spirits, which is in the business of manufacturing and marketing spirits.

Effective on the completion of the Debt Exchange Agreement,
all liabilities including accrued and unpaid interest due to the Investors were released.

The Company accounted for
the asset and equity transfers associated with the various transactions described above at fair value in accordance with ASC 470-60.
As a result, the Company recognized a gain on the transfer of assets of $4,271
and a gain of $4.5
million on TDR.

Letter Agreement

On September 27, 2024, the Company signed a Letter
Agreement concerning amounts due and owing to a legal firm that provided the Company services under an engagement letter predating 2021.
In anticipation of closing the Merger, the legal firm released the Company from prior invoiced amounts billed for services, late fees
and adjustments of $0.6 million upon the closing of the Merger and Debt Exchange Agreement, and for payment of $0.1 million before October
7, 2024. The Company recorded $0.6 million to gain on extinguishment of debt in the consolidated statements of operations and comprehensive
loss for the year ended December 31, 2024.

6. DISCONTINUED OPERATIONS

Eastside reports discontinued
operations by applying the following criteria in accordance with ASC 205-20, Presentation of Financial Statements –
Discontinued Operations: (1) Component