LEASE OBLIGATIONS

3 Months Ended

Mar. 31, 2025

Lease Obligations

LEASE OBLIGATIONS

15. LEASE OBLIGATIONS

Beeline Financial leases office space under various operating lease agreements, including an office for its headquarters, for branch location and licensing purposes under non-cancelable lease arrangements that provide for payments on a graduated basis with various expiration dates. Bridgetown Spirits has an operating lease for its warehouse. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. Beeline Financial has leased approximately 27,381 square feet of space in Rhode Island, Australia and Oregon that expires at various dates through 2030. The Company does not have any financing leases.

As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate of 10% based on information available at commencement to determine the present value of the lease payments. Right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of March 31, 2025, the amount of right-of-use assets and lease liabilities were $1.3 million and $1.5 million, respectively. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Aggregate lease expense for the three months ended March 31, 2025 was $0.1 million.

Maturities of lease liabilities as of March 31, 2025 were as follows:

(Dollars in thousands)	Operating Leases			Weighted-Average Remaining Term in Years
2025	$	423
2026		450
2027		228
2028		234
2029		242
Thereafter		249
Total lease payments		1,826
Less imputed interest (based on 9.0% weighted-average discount rate)		(357	)
Present value of lease liability		1,469			3.76
Less current portion		439
Lease liabilities, net of current portion	$	1,030

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

March 31, 2025

(Unaudited)