Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 59

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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+P”), entered into a Debt Exchange Agreement,
which closed on October 7, 2024, resulting in the assignment by the Company of 720 barrels of spirits to Craft C+P, followed by the merger
of Craft C+P into a limited liability company owned by certain creditors of the Company and the deconsolidation of Craft C+P. The Company
accounted for the asset and equity transfers associated with the various transactions at fair value in accordance with ASC 470-60, Debt
- Troubled Debt Restructurings by Debtors.

Subsequent
to the execution of the Debt Exchange Agreement, the Company organized a subsidiary, Bridgetown Spirits, which was incorporated on October
3, 2024, and assigned the Company’s business of manufacturing and marketing spirits to Bridgetown Spirits. On July 25, 2025, the
Company disposed of its 53% interest in Bridgetown Spirits in exchange for the satisfaction of debt and as a result Bridgetown Spirits
is no longer a subsidiary of the Company.

Upon
completion of the debt exchange agreements, the Company was no longer involved in the business of spirits, and digital printing and mobile
canning. The Company reports discontinued operations by applying the following criteria in accordance with ASC 205-20, Presentation
of Financial Statements – Discontinued Operations: (1) Component of an entity; (2) Held for sale criteria; and (3) Strategic
shift. Given that the effect of the debt exchange agreements meet all the criteria for classification of held for sale, the assets and
liabilities of Bridgetown Spirits and Craft C+P were disposed of on July 25, 2025 and October 7, 2024, respectively. The assets and liabilities
of Bridgetown Spirits have been classified as held for sale as of December 31, 2024. The operating results of Bridgetown Spirits and
the spirits segment have been classified as discontinued operations for the three and nine months ended September 30, 2025 and 2024.
The operating results of Craft C+P have been classified as discontinued operations during the three and nine months ended September 30,
2024.

The
consolidated financial statements include the consolidated accounts of the Company and its wholly-owned subsidiaries, Beeline Financial
Holdings, Inc. (“Beeline Financial”), Beeline Title Holdings, Inc. (“Beeline Title Holdings”), Beeline Mortgage
Holdings, Inc. (“Beeline Mortgage”),