Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1118

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1118
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 attributed to those interests. NCI
shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. Net loss attributable to
NCI for the year ended December 31, 2024 was $1.7 million.

INVESTMENT IN EQUITY METHOD INVESTEE

On February 7, 2024, MagicBlocks, Inc., a Delaware
corporation, was incorporated by a third party. On July 31, 2024, the Company was issued 4.3 million shares of Magic Blocks representing
47.6% of ownership. The Company has determined that its investment in MagicBlocks is subject to the equity method of accounting in accordance
with ASC 825-10, Financial Instruments. As of December 31, 2024, the Company had invested $0.1 million in MagicBlocks with a balance
of $0.1 million, including the proportionate loss of $0.1 million.

DEPOSITS

Deposits are included in other assets, and include
security deposits for leased office spaces, which are refundable to the Company upon expiration of the lease agreements.

MARKETING AND ADVERTISING COSTS

Marketing and advertising costs are expensed as incurred.
For the years ending December 31, 2024 and 2023, marketing and advertising expenses were $0.8 million and $0.2 million, respectively.

STOCK-BASED COMPENSATION

The Company recognizes as compensation expense all
stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based
awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value
of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant
based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and
dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and recognized
over the service periods.

    F-16

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

INCOME TAXES

The Company accounts for income taxes in accordance
with ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis