Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 562

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 562
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) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction
price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Bridgetown
Spirits recognizes spirits sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of
a consignment sale). For consignment sales, which include sales to the Oregon Liquor Control Commission, sales are recognized upon the
consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment
of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of
shipment or purchase by customers at a retail location. For consignment sales, title passes to the consignee concurrent with the consignee’s
shipment to the customer. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than
customary rights of return.

Excise
Taxes - Bridgetown Spirits is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau (“TTB”)
regulations, which includes making timely and accurate excise tax payments. Bridgetown Spirits is subject to periodic compliance audits
by the TTB. Individual states also impose excise taxes on alcoholic beverages in varying amounts. Bridgetown Spirits calculates its excise
tax expense based upon units produced and on its understanding of the applicable excise tax laws, and these amounts are recorded as reductions
to net sales.

Customer
Programs - Customer programs, which include customer promotional discount programs, are a common practice in the alcoholic beverage
industry. Bridgetown Spirits reimburses wholesalers for an agreed amount to promote sales of products and to maintain competitive pricing.
Amounts paid in connection with customer programs are recorded as reductions to net sales in accordance with ASC 606.

Derivative
financial instruments and revenue recognition. The Company holds and issues derivative financial instruments such as IRLCs. IRLCs
are subject to price risk primarily related to fluctuations in market interest rates. To hedge the interest rate risk on certain IRLCs,
the Company enters into best effort forward sale commitments with investors, whereby certain loans are locked with a borrower and simultaneously
committed to an investor at a fixed price. If the best effort IRLC does not fund, the Company has no obligation to fulfill the investor
commitment.

ASC
815-25, Derivatives