Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1253

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7A
Chunk 1253
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’s Report on Internal Control Over Financial Reporting.”

57

Management’s Report on Internal Control Over
Financial Reporting

The Company’s management is responsible for
establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f)
and 15d-15(f). Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2024 using
the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of
the Treadway Commission (“COSO”). With the participation of our Chief Executive Officer and Chief Financial Officer (principal
financial and accounting officer), our management conducted an evaluation of the effectiveness of our internal control over financial
reporting as of December 31, 2024 based on the framework in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”). This assessment of internal control over financial reporting includes an
evaluation of policies and procedures that:

    ●
    pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

    ●
    provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

    ●
    provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

The Company’s management has determined that
the Company does not have sufficient segregation of duties within accounting functions due to its limited accounting personnel following
its recent acquisition and ongoing integration of Beeline Financial, as well as related challenges in connection with preparation and
audit of financial statements after the October 7th Transactions. Our management assessed the effectiveness of our internal
control over financial reporting based on the parameters referred to above and has concluded that as of December 31, 2024, our internal
control over financial reporting was not effective to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with GAAP as a result of the following material weaknesses:

    ●
    The Company does not have sufficient segregation of duties within accounting functions