Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 131

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 131
---
 protection adjustment of the Warrants. The Company recorded
an additional deemed dividend related to the Warrants price protection of $5.2 million for the nine months ended September 30, 2025.

Beeline
Warrants

In
the Merger Agreement, the Company agreed to assume 5,868 outstanding Beeline Warrants with an exercise price of $231.20 per share. The
new Warrants have not been issued as of the date of this Report.

16.
COMMITMENTS AND CONTINGENCIES

Legal
Matters

Except
as set forth below, the Company is not currently subject to any other material legal proceedings; however, it could be subject to legal
proceedings and claims from time to time in the ordinary course of its business, or legal proceedings it considered immaterial may in
the future become material. Regardless of the outcome, litigation can, among other things, be time consuming and expensive to resolve,
and can divert management resources.

On
October 7, 2025, Mendez et. al. v. Optimal Blue, LLC, et. al. filed a class action complaint in the US District Court, Middle District
of Tennessee alleging the Company’s use of Optimal Blue’s pricing software violated federal antitrust laws against 28 defendants,
of which the Company is included as a defendant. The Company intends to defend the case vigorously.

    30

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Government
Regulations Affecting Mortgage Loan Origination

Beeline
Financial operates in a heavily regulated industry that is highly focused on consumer protection. The extensive regulatory framework
to which Beeline Financial is subject includes U.S. federal and state laws and regulations.

Governmental
authorities and various U.S. federal and state agencies have broad oversight and supervisory authority over all aspects of Beeline Financial’s
business.

Under
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Consumer Financial Protection Bureau
(the “CFPB”) was established to ensure, among other things, that consumers receive clear and accurate disclosures regarding
financial products and to protect consumers from hidden fees and unfair, deceptive or abusive acts or practices. The CFPB’s jurisdiction
includes those persons producing or brokering residential mortgage loans. It also extends to Beeline Financial’s other lines of
business title insurance. The CFPB has broad