Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 217

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 217
---
 it necessary to raise our prices in order to maintain profit margins, which could lower the demand for our products and reduce our
sales and increase our losses.

Also, the distribution of beverage
alcohol products is subject to extensive taxation (at both the federal and state government levels), and beverage alcohol products themselves
are the subject of national import and excise duties in most countries around the world. An increase in taxation or in import or excise
duties could also significantly harm our sales revenue and margins, both through the reduction of overall consumption and by encouraging
consumers to switch to lower-taxed categories of beverage alcohol.

We are exposed to product liability
or other related liabilities which could have significant negative financial repercussions on Spirits’ solvency.

Although we maintain liability
insurance and will attempt to limit contractually our liability for damages arising from consumer, stakeholder and other lawsuits, these
measures may not be sufficient for us to successfully avoid or limit product liability or other related liabilities. Our general liability
insurance coverage is limited to $1 million per occurrence and $3 million in the aggregate and $2 million products/completed operations
aggregate, and our general liability umbrella policy is limited to $5 million per occurrence and $5 million in the aggregate and $5 million
products/completed operations aggregate. We do not have insurance covering employee lawsuits. Further, any contractual indemnification
and insurance coverage we have from parties supplying our products is limited, as a practical matter, to the creditworthiness of the indemnifying
party and the insured limits of any insurance provided by these suppliers. Extensive product liability claims could be costly to defend
and/or costly to resolve and could harm our reputation or business.

We could face issues including
the risk of contamination of our products and/or counterfeit or confusingly similar products.

The success of our brands depends
upon the positive image that consumers have of them. Contamination, whether arising accidentally or through deliberate third-party action,
or other events that harm the integrity or consumer support for our brands, could affect the demand for our products. Contaminants in
raw materials purchased from third parties and used in the production of our products or defects in the distillation and fermentation
processes could lead to low beverage quality, as well as illness among, or injury to, consumers of our products and could result in reduced
sales of the affected brand or all of our brands and potentially serious damage to our reputation for product quality, as well as product
liability claims. Also, to the extent