Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 21

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 21
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 products. Also, each state regulates the advertising, promotion,
transportation, sale and distribution of alcohol products within its jurisdiction. We are also required to conduct business in the U.S.
only with holders of licenses to import, warehouse, transport, distribute and sell spirits. The distribution of alcohol-based beverages
is also subject to extensive federal and state taxation.

We are subject to U.S. regulations on spirits marketing
and advertising, such as style, media and messages. Labeling of spirits is also regulated in many markets, varying from health warning
labels to importer identification, alcohol strength and other consumer information. All beverage alcohol products sold in the U.S. must
include warning statements related to risks of drinking beverage alcohol products.

In the U.S. control states, the state liquor commissions
act in place of distributors and decide which products are to be purchased and offered for sale in their respective states. Products are
selected for purchase and sale through listing procedures which are generally made available to new products only at periodically scheduled
listing interviews. Consumers may purchase products not selected for listings only through special orders, if at all.

We are currently subject to newly implemented U.S.
import tariffs, which are expected to have the greatest impact on two key areas: the importation of European ethanol and tequila from
Mexico. If the Company is unable to secure an alternative source for its potato-based ethanol, it could face a significant negative impact
on its operations. In addition, the tariffs on Mexican import of tequila—if not offset through price increases to consumers—could
also materially affect the business.

Beeline Employees

As of December 31, 2024 Beeline has 76 employees.
Certain of its employees serve in dual roles such as Beeline’s Chief Operating Officer who also serves as General Counsel and plays
a key role in compliance. Beeline also uses certain third parties who operate as independent contractors. Additionally, Beeline leverages
independent contractors in marketing and technology/development.

Spirits Employees

Spirits has five employees, who are engaged in production,
sales, marketing and executive management. Most of our administrative functions are carried out by employees of the Company.

Recent Financings

Equity Line of Credit

On March 7, 2025, the Company entered into an Amended
and Restated Common Stock Purchase Agreement and an Amended and Restated Registration Rights Agreement (collectively the “ELOC Agreement”)
in connection with an equity line of credit transaction (the “ELOC”) with C