Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 0

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 0
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We are a Nevada corporation organized in 2004. Prior
to October 7, 2024, we operated two businesses, the business which Spirits is now engaged in as a subsidiary and our digital printing
can operation which we called our “craft business.”

As we were negotiating the acquisition of Old
Beeline, we understood that we had to eliminate the substantial debt on our balance sheet. This led to discussions with our creditor
where the craft business would be sold and 47% of the Spirits business would also be sold to these creditors and other third
parties. On September 4, 2024, we entered into a Merger Agreement with Old Beeline and ultimately closed the merger on October 7,
2024. The merger occurred immediately after the closing of the Debt Exchange Agreement described below. In the merger, we issued the
shareholders of Old Beeline 517,771 shares of Series F-1 Preferred Stock (“Series F-1”) and 69,482,229 shares of Series
F Preferred Stock (“Series F), both of which were non-voting and convertible only upon a post-merger shareholder approval.
Because the merger would ultimately result in a change of control upon post-merger shareholder approval, we were required to obtain approval from the Nasdaq Stock
Market, LLC (“Nasdaq”) and our shareholders before more than 19.99% of our Common Stock could be issued to the former
Old Beeline shareholders as well as investors who provided financing during the following six months. Those approvals subsequently
occurred with our shareholders approving the voting and conversion of the Series F and Series F-1 on March 7, 2025 and Nasdaq
approving the change of control on March 5, 2025. Due to the Nasdaq rules, Old Beeline appointed two directors out of the six
directors serving following the merger and our Chief Executive Officer remained as Chief Executive Officer until March 7, 2025. Old
Beeline’s Chief Financial Officer became our Chief Financial Officer since our Chief Executive Officer had been serving in
both roles prior October 7, 2024.

Debt Exchange Agreement

On September 4, 2024, the Company and its new subsidiary,
Craft, entered into a Debt Exchange Agreement, which closed on October 7, 2024, resulting in the assignment by the Company of 720 barrels
of spirits to Craft, followed by the merger of Craft into a limited liability company owned by certain creditors