Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 55

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 55
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 the acquiring company records the target company’s assets and liabilities at their fair market value on the acquisition date, resulting in the recognition of goodwill if the purchase price exceeds the net fair value of identifiable assets acquired, effectively “absorbing” the target company and reflecting its assets and liabilities on the acquirer’s balance sheet.

Key points about forward merger accounting:

● Acquisition accounting:

This is the primary method used for forward mergers, requiring the acquirer to measure all identifiable assets and liabilities of the target company at fair value.

● Goodwill calculation:

If the purchase price exceeds the net fair value of identifiable assets acquired, the difference is recorded as goodwill on the acquirer’s balance sheet.

● No pooling of interests:

Unlike the now-obsolete “pooling of interests” method, a forward merger is always treated as an acquisition, requiring fair value accounting.

How it works:

● Identify the acquirer and target:

In a forward merger, the acquiring company, Eastside, is the entity that survives and absorbs the target company, Beeline.

● Fair value assessment:

The acquirer must determine the fair value of all the target company’s assets and liabilities on the acquisition date.

● Balance sheet adjustments:

The target company’s assets and liabilities are recorded on the acquirer’s balance sheet at their fair value, with any difference reflected as goodwill.

Important considerations:

● Transaction costs:

Costs incurred during the merger process, such as legal and accounting fees, are typically expensed as incurred.

● Contingent liabilities:

Any potential liabilities of the target company should be carefully evaluated and accounted for appropriately.

● Intangible assets:

Depending on the circumstances, certain intangible assets of the target company may need to be recognized and amortized on the acquirer’s balance sheet.

| 45 |

Executive Officers and Board of Directors of Eastside After Approval of Proposal 1

The following table sets forth information on our executive officers and directors after the closing of the Merger and approval of Proposal 1, including their background and changes to their roles in connection with the Merger, as applicable.

| Name        
 Nicholas    
 Liuzza      
 Christopher 
 Moe         |     | Age 
  59 
  69 |     | Position                                                    
 with Eastside After the                                     
 Proposal 1                                                  
 Chief                                                       
 Executive Officer of Eastside                               
 Chief                                                       
 Financial Officer of Eastside                               |     | Position                                                                                                                        
 with Eastside After the                                                                                                         
 Merger                                                                                                                          
 Chief                                                                                                                           
 Executive Officer of Beeline