DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

4. DISCONTINUED OPERATIONS

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.

Craft C+P

The operating results of Craft C+P have been classified as discontinued operations during the six months ended June 30, 2024. The consolidated financial statements for the prior periods have been adjusted to reflect comparable information.

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

Income and expense related to Craft C+P were as follows for the six months ended June 30, 2024:

(Dollars in thousands)	2024
Sales	$	4,225
Less customer programs and excise taxes		79
Net sales		4,146
Cost of sales		4,108
Gross profit		38
Operating expenses:
Sales and marketing expenses		32
General and administrative expenses		1,543
Gain on disposal of property and equipment		(199	)
Total operating expenses		1,376
Loss before income taxes		(1,338	)
Provision for income taxes		3
Net loss from discontinued operations	$	(1,335	)

Bridgetown Spirits

The assets and liabilities of Bridgetown Spirits and the spirits segment have been classified as held for sale as of June 30, 2025 and December 31, 2024, respectively. The operating results of Bridgetown Spirits and the spirits segment have been classified as discontinued operations during the three and six months ended June 30, 2025 and 2024, respectively. The consolidated financial statements for the prior periods have been adjusted to reflect comparable information.

Assets and liabilities related to Bridgetown Spirits and the spirits segment were as follows as of June 30, 2025 and December 31, 2024, respectively:

(Dollars in thousands)	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	116	$	310
Inventories		1,314		1,493
Prepaid expenses and other current assets		17		75
Accounts receivables, net		165		134
Current assets of discontinued operations held for sale		1,612		2,012
Intangible assets, net		822		822
Right-of-use assets		275		372
Property and equipment, net		65		95
Other assets, net		74		180
Total Assets	$	2,848	$	3,481
Liabilities
Current liabilities:
Accounts payable	$	192	$	136
Accrued liabilities		122		170
Current portion of lease liabilities		192		186
Total current liabilities		506		492
Lease liabilities, net of current portion		67		163
Total liabilities	$	573	$	655

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

Income and expense related to Bridgetown Spirits and the spirits segment were as follows for the six months ended June 30, 2025 and 2024, respectively:

	2025			2024
(Dollars in thousands)
Net sales, spirits	$	1,036		$	1,217
Cost of sales, spirits (inclusive of depreciation)		843			916
Salaries and benefits		310			307
Marketing and advertising		245			173
Total operating expenses		1,398			1,396
Loss from operations		(362	)		(179	)
Other income		-			3
Net loss	$	(362	)	$	(176	)

There is a 47% non-controlling interests in Bridgetown Spirits. All of the net loss attributable to non-controlling interests in the consolidated statements of operations is related to Bridgetown Spirits.