Beeline Holdings, Inc. Q2 FY2024 earnings call

• Consolidated sales were up 11% in the quarter, with improved gross margin compared to prior year.
• Craft saw nearly 50% increase in digital printing revenue, setting records in can sales; plan to boost digital can printing capacity.
• Craft needs to address issues like improving gross margins, reducing machine downtime, minimizing scrap.
• Spirit business making progress towards positive cash flow, with tequila go-to-market strategy reset, seeing better performance in states like Oregon and Arizona.
• Corporate expenses decreased quarter-over-quarter for the last two years, working to build sustainable and growing company.

Consolidated gross sales for Q2 '24 were $3.1 million, up from $2.8 million in Q2 '23. Craft sales were $2.4 million in Q2 '24 vs $1.9 million in Q2 '23, with Craft printing a record 6 million cans in Q2 '24. Spirit sales were $700,000 in Q2 '24 vs $800,000 in Q2 '23. Consolidated gross profit was $200,000 in Q2 '24 vs $26,000 in Q2 '23. Consolidated gross margins were 5% in Q2 '24 vs 1% in Q2 '23. Craft had no reportable profit margin in 2024 vs negative 3% in 2023. Spirit's margins were 26% in Q2 '24 vs 12% in Q2 '23.

• Expect more progress in Q3.
• Plan to continue building a sustainable and growing company.
• Focus on executing the plan to boost digital can printing capacity.

• Forward-looking statements subject to risks including market acceptance of products, success in obtaining new customers, product development, ability to execute business model, integrating acquired entities, obtaining capital, and going concern, as detailed in SEC filings.

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