Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 48

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 48
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 successful and it may not have adequate insurance to cover these losses. If the Company is unable to protect
its customers’ PI, our business, financial condition, and results of operations can be materially and adversely affected.

30

We rely heavily on third-party
software to operate our mortgage lending business, creating technological risks that it cannot mitigate.

We rely heavily on third-party
technology in running our mortgage lending business. Because we utilize third-party technology, our ability to maintain and control the
technology is limited. Such utilization of this technology creates potential risks, including service interruptions, product errors, or
failure, all of which could cause us reputational harm, create financial losses, and harm our business operations. The cybersecurity risks
we face can also impact our business partners and vendors.

We depend, in part, on third party
vendor relationships, and our ability to become profitable and service our customer base is dependent on the continuation of those relationships.

In addition to the third-party
technology platforms described above, there are other vendors who provide other products and services required for mortgage origination
fulfillment, like credit reporting companies, title companies, appraisal management companies and other data providers. If these providers
stop providing services to us on acceptable terms or at all, or if the relationship is terminated, we may be unable to replace that vendor
in a timely manner on acceptable terms, or at all. This could result in service disruptions and materially and adversely affect our business,
financial condition and operating results.

If the Company is unable to
protect its intellectual property rights, it may be unable to effectively compete with its competitors

The Company’s intellectual
property, principally its trade secrets and licensed technology, is a key asset. The Company regards the protection of its intellectual
property as critical to its success. The Company has taken steps to protect its intellectual property by entering into confidentiality
agreements with its employees, third-party partners, and third-party vendors. These agreements may not be enforceable or may not effectively
prevent disclosure of confidential information, including trade secrets, and may not provide an adequate remedy in the event of an unauthorized
disclosure. Monitoring and protecting the Company’s intellectual property is difficult and may not be adequate. Costly and time-consuming
litigation could be necessary to enforce and determine the scope of the Company’s intellectual property rights, and failure to obtain
or maintain protection of its intellectual property rights could materially and adversely affect its business and financial results.

Beeline’s Mortgage Regulatory Risks

Beeline’s mortgage business
is a