Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 234

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 234
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 from $4.8 million for the year ended
December 31, 2023, reflecting the inclusion of Beeline’s results of operations from the period October 8, 2024 through December
31, 2024, as well as an impairment loss related to spirits and increased professional fees.

Interest
Expense. Interest expense, exclusive of the warehouse line of credit, was $2.2 million and $1.1 million for the years ended December
31, 2024 and 2023, respectively, primarily related to debt and warrant related expenses.

Gain
on extinguishment of debt. Gain on extinguishment of debt was $0.6 million for the year ended December 31, 2024 related to prior
invoiced amounts billed for services, late fees and adjustments from a legal firm that provided the Company services under an engagement
letter predating 2021.

Gain on troubled debt restructuring. Gain on troubled debt restructuring was $4.5 million for the year ended December
31, 2024 related to the Debt Exchange Agreement.

Loss on debt to equity
conversion. During the year ended December 31, 2023, the Company recognized a loss on the debt to equity conversion of $1.3 million
that occurred on September 29, 2023.

Impairment
loss. Impairment loss was $3.4 million and $0.4 million for the years ended December 31, 2024 and 2023, respectively,
related to the write down of certain assets in the Spirits business.

Preferred
stock dividends. Preferred stock dividends for 2024 were unchanged compared to the prior year at $0.2 million.

Segment
Reporting

The
following discussion provides an analysis of the financial performance of each of our reportable segments consisting of Beeline, Bridgetown Spirits and Corporate. We evaluate segment
performance based on key financial and operational metrics, including revenue, operating income, and margin trends. The results of
each segment are presented in accordance with our internal management reporting structure.

For
additional details on segment definitions and financial disclosures, see Note 7– Business Segments in the Notes to
Consolidated Financial Statements.

49

Beeline
is a full service Direct-to-Consumer lender specializing in conventional conforming and non-conforming residential first-lien
mortgages and providing title services. Beeline also has an emerging business in anonymized data sales and technology
licensing.

Bridgetown
Spirits manufactures