Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1089

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1089
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Bridgetown Spirits’ inventories primarily consist of bulk and bottled liquor and merchandise and are stated at the lower
of cost or market. Cost is determined using an average costing methodology, which approximates cost under the first-in, first-out method.
A portion of inventory is held by certain independent distributors on consignment until it is sold to a third party. Bridgetown Spirits
regularly monitors inventory quantities on hand and records write-downs for excess and obsolete inventories based primarily on the estimated
forecast of product demand and production requirements. Such write-downs establish a new cost basis of accounting for the related inventory.

55

Business
Combination. The Company accounts for business combinations in accordance with ASC 805, Business Combinations. Under this
guidance, the Company allocates the purchase price of an acquired business to the identifiable assets acquired and liabilities assumed
at their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets
acquired is recorded as goodwill.

Goodwill
represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in the business combination.
The increases or decreases in the fair value of the Company’s assets and liabilities can result from changes in fair values as
of the acquisition date as determined during the one-year measurement period under ASC 805.

Goodwill.
Goodwill is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations.
The Company tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment
exist. The Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company may elect to perform
either a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit
exceeds its estimated fair value. Fair value reflects the price a market participant would be willing to pay in a potential sale of the
reporting unit. If the estimated fair value of the Company exceeds its carrying value, then the Company concludes the goodwill is not
impaired. If the carrying value of the Company exceeds its estimated fair value, the Company recognizes an impairment loss in an amount
equal to the excess, not to exceed the amount of goodwill.

Intangible
assets. The Company accounts for certain finite-lived intangible assets at amortized cost and other certain indefinite-lived
intangible assets at cost. Management reviews all intangible assets for probable impairment whenever events or circumstances indicate