Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 198

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 198
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 dependent on the secure,
efficient, and uninterrupted operation of our technology infrastructure, including computer systems, and related software applications,
as well as those of certain third parties. Its website and computer/telecommunication networks must accommodate a high volume of traffic
and deliver frequently updated information, the accuracy and timeliness of which is critical to its business. Our technology must provide
a loan application experience that equals or exceeds the experience provided by its competitors.

We may experience service disruptions
and failures caused by system or software failure, fire, power loss, telecommunications failures, including those of internet service
providers, team member misconduct, human error, denial of service or information, cyberattacks, and phishing emails, including computer
hackers, computer viruses and disabling devices, malicious or destructive code, as well as natural disasters, health pandemics and other
similar events. Any such disruption could interrupt or delay our ability to provide our services to our customers and could also impair
the ability of third parties to provide critical services to us. Although we have undertaken measures intended to protect the safety and
security of our information systems, there can be no assurance that disruptions, failures, and cyberattacks will not occur or, if they
do occur, that they will be adequately addressed in a timely manner. Such measures may in the future fail to prevent or detect unauthorized
access to our team member, customer, and loan applicant information, and our disaster recovery planning may not be sufficient to address
all technology-related risks, which are constantly evolving. We may also incur significant costs for using alternative equipment or taking
other actions in preparation for, or in reaction to, events that damage, interrupt, or otherwise disrupt the third-party resources or
services we use.

Any prolonged service disruption
affecting our platform could damage the Company’s 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. In the
event of damage or interruption, the Company’s insurance policies may not adequately compensate it for any losses, although the
Company does have coverage under a cyber liability insurance policy. It may not cover all business losses or costs of reporting to consumers
and/or state regulatory bodies

As our customer base and range
of product offerings continue to expand, we may not be able to scale our technology to accommodate the increased capacity requirements,
which may result in interruptions or delays in service. In addition, the failure of third-party service providers to meet our capacity
requirements