Company: BLNE
Filing Date: 2025-01-03
Form Type: S-1/A
Source: 0001493152-25-000284
Chunk: 6

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-03
Form: S-1/A
Chunk 6
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 as a going concern, we may not be successful and our ability to continue our operations is in doubt unless we can access sufficient working capital within the timeframe needed.

The Company has limited capital and substantial accumulated deficit as of the date of this Prospectus. We do not have sufficient working capital and cash flows for continued operations for at least the next 12 months, which raises a risk of our potential inability to continue as a going concern. Our continued existence is dependent upon our obtaining the necessary capital to meet our expenditures, and we can provide no assurance that we will be able to raise adequate capital to meet our future working capital needs.

We have substantial indebtedness which becomes due and payable in the near future, and if we are unable to repay this indebtedness as and when it comes due, it could materially adversely affect our business and your investment in us.

We presently have a total of $9,553,333 of outstanding indebtedness, which includes $2,386,333 of indebtedness outstanding under the November Notes due March 13, 2025 and $3,600,000 of indebtedness outstanding under the Beeline 10% Senior Secured Debentures (the “Debentures”). In addition, Beeline has approximately $265,000 of other indebtedness as of November 30, 2024, not including sums due under its warehouse line which it uses to place mortgage loans, which mortgage loans are then resold to third parties. The November Notes are secured by our Spirits assets. If we are unable to repay the November Notes when they come due, we could lose the Spirits business. Further, if we are unable to repay the November Notes within 180 days of November 14, 2024, the November Notes will accrue a special one-time interest payment of 30% which will increase the principal of each November Note in addition to 18% default interest. In January 2025, Beeline will begin to make monthly installment payments of $440,328 through September 2025 under the Beeline Debentures. These Debentures are secured by Beeline’s assets, and if we are unable to meet these obligations, it could jeopardize that business. If we are unable to meet these obligations with respect to the indebtedness described above, it would have a material adverse effect on our business and financial condition, and you could lose all or most of your investment as a result.

We have a very limited operating history since our Merger with Beeline in October 2024 which