Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 199

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 199
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 could result in interruptions or delays in access to our platform or impede our ability to grow our business and scale our
operations. If the Company’s third-party service agreements are terminated, or there is a lapse of service, interruption of internet
service provider connectivity, or damage to data centers, it could experience interruptions in access to its platform as well as delays
and additional expense in arranging new facilities and services. Any service disruption affecting its platform could damage its reputation
with current and potential customers, expose it to liability, cause it to lose customers, or otherwise materially and adversely affect
its business, financial condition, and results of operations.

Additionally, the technology and
other controls and processes the Company has created to help it identify misrepresented information in its loan production operations
were designed to obtain reasonable, not absolute, assurance that such information is identified and addressed appropriately. Accordingly,
such controls may not have detected, and may fail in the future to detect, all misrepresented information in our operations.

If our operations are disrupted
or otherwise negatively affected by a technology disruption or failure, this could result in customer dissatisfaction and damage to our
reputation and brand, and materially and adversely affect our business, financial condition, and results of operations. We do not carry
business interruption insurance sufficient to compensate us for all losses that may result from interruptions in our service as a result
of systems disruptions, failures and similar events. The Company carries $1 million in coverage of direct business interruption coverage
and contingent business interruption coverage under its cyber liability policy.

29

If the Company is not able to
protect the privacy, use, and security of customer information, it could sustain damages that may have a material adverse effect on its
business, financial condition and results of operations.

The Company receives, maintains
and stores the personal information (“PI”) of its loan applicants, customers and staff. On the customer side, the Company
captures and stores thousands of data points per customer during the loan transaction process. The storage, sharing, use, disclosure,
processing and protection of this information are governed by the privacy and data security policies maintained by the Company. Moreover,
there are federal and state laws regarding privacy and the storage, sharing, use, disclosure, processing and protection of PI, personally
identifiable information, and user data. Specifically, PI and nonpublic personal information (“NPI”) are increasingly subject
to legislation and regulations in numerous jurisdictions. For example, federal law, including the GLBA, the GLBA Safeguards Rule, and
the FC