Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 162

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 162
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 mortgage loans it makes to its customers, which is limited to a maximum of $5.0 million.

The Company sold its mortgage loans to seven investors
for the period October 8, 2024 – December 31, 2024.

Escrows Payable

As a service to its clients, the Company administers
escrow deposits representing undisbursed amounts received for payment of settlement and title services. Escrow deposits held by the Company
was $0.6 million as of December 31, 2024. The Company held $0.1 million in escrow as of December 31, 2024. These amounts are not considered
assets of the Company and, therefore, are excluded from the consolidated balance sheets. The Company remains contingently liable for the
disposition of these deposits.

Exclusive Supplier Agreement 

The Company has a long-term exclusive agreement with Agaveros Unidos de Amatitan, SA. de CV (“Agaveros Unidos”)
for the Azuñia Tequila brand. The termination of this relationship or an adverse change in the terms of this arrangement with
Agaveros Unidos could have a negative impact on the Company’s business. If Agaveros Unidos increases its prices, the Company may
not be able to secure alternative suppliers, and may not be able to raise the prices of its products to cover all or even a portion of
the increased costs. Also, any failure by Agaveros Unidos to perform satisfactorily or handle increased orders, or delays in shipping,
could cause the Company to fail to meet orders for its products, lose sales, incur additional costs and/or expose the Company to product
quality issues. In turn, this could cause the Company to lose credibility in the marketplace and damage its relationships with distributors,
ultimately leading to a decline in our business and results of operations. If the Company is not able to renegotiate these contracts
on acceptable terms or find suitable alternatives, its business, financial condition or results of operations could be negatively impacted.

22. INCOME TAXES

The Company maintains deferred tax assets and liabilities
that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The deferred tax assets (liabilities) as of December 31, 2024 and 2023 consist
of net operating loss carryforwards and differences in the book basis and tax basis of intangible assets, investments, and mortgage loans.

The items accounting for