Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 12

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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 attributable to NCI in a subsidiary may exceed NCI’s interests in the subsidiary’s equity. The
excess attributable to NCI is attributed to those interests. NCI shall continue to be attributed their share of losses even if that attribution
results in a deficit NCI balance. Net loss attributable to NCI for the six months ended June 30, 2025 was $0.2 million.

INVESTMENT
IN EQUITY METHOD INVESTEE

On
February 7, 2024, MagicBlocks, Inc., a Delaware corporation, was incorporated by a third party. On July 31, 2024, the Company was
issued 4.3
million shares of Magic Blocks representing ownership interest of 47.6%.
The Company has determined that its investment in MagicBlocks is subject to the equity method of accounting in accordance with ASC
825-10, Financial Instruments. As of June 30, 2025, the Company had an equity method investment of $0
million and advances to MagicBlocks of $0.3 million included as other receivable
on the consolidated balance sheet.

DEPOSITS

Deposits
are included in other assets and include security deposits for leased office spaces, which are refundable to the Company upon expiration
of the lease agreements.

MARKETING
AND ADVERTISING COSTS

Marketing
and advertising costs are expensed as incurred. For the six months ended June 30, 2025 and 2024, marketing and advertising expenses were
$1.3 million and $0 million, respectively.

    13

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

STOCK-BASED
COMPENSATION

The
Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost is measured based on the
grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based awards, which is generally
the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation model, which estimates
the fair value of each award on the date of grant based on a variety of assumptions including expected stock price volatility, expected
terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded
at fair value on the measurement date and recognized over the service periods.

INCOME
TAXES