Company: BLNE
Filing Date: 2025-01-14
Form Type: 424B3
Source: 0001493152-25-002137
Chunk: 6

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-14
Form: 424B3
Chunk 6
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 of your investment.

At September 30, 2024, we had an accumulated deficit of $86,959,000 which reflects our history of continued operating losses. On a pro forma basis assuming we acquired Beeline on September 30, 2024, our accumulated deficit would have been $78,993,141. Beeline was organized in 2019, has a limited operating history and has generated substantial ongoing losses since inception. It recorded net losses of $10,899,722 and $10,552,236 for 2023 and 2022, respectively. For 2023, salaries expense was $6,418,989 on total revenues of $3,793,946. Interest expense was $1,253,728. For the nine months ended September 30, 2024, Beeline generated net income of $1,038,808, including approximately $1,430,412 of interest expense and salary expenses of $4,885,059 on revenues of $3,637,207. In June 2024, Beeline restructured its indebtedness, which accounted for the $11,344,207 gain on extinguishment of debt. We expect will we continue to incur losses and experience negative cash flows from operations for the foreseeable future. If we cannot achieve positive cash flow from operations or net income, we will need to raise additional capital, which we may not be able to do on favorable terms, if at all. Our and Beeline’s ongoing losses raise substantial uncertainty about its future profitability and success.

Special Risks Related to our Common Stock

Because the Company received two non-compliance letters from Nasdaq, its failure to maintain its Nasdaq listing, and any delisting could negatively impact our future capital-raising abilities.

In 2024, the Company failed to comply with two applicable Nasdaq Listing Rules, and received non-compliance letters. One letter is financial in nature. The Company has been notified that Nasdaq is continuing to monitor its compliance with Nasdaq Listing Rule 5550(b)(1), which requires a listed company to maintain stockholders’ equity of at least $2.5 million (the “Stockholders’ Equity Rule”). While the Company believes it has regained compliance with the Stockholders Equity Rule as the result of its Merger with Beeline, there can be no assurances that Nasdaq will ultimately agree. The second deficiency relates to the minimum bid price being below $1.00. While we have a stockholders meeting scheduled for December 23,