Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 102

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 interest rate, and dividend rates, if applicable. Stock-based awards issued to non-employees are recorded
at fair value on the measurement date and recognized over the service periods.

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 of assets and liabilities for financial statement and income tax purposes. The deferred tax assets
and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the
assets and liabilities are recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to
the amount expected to be realized.

    14

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

The
Company evaluates all significant tax positions as required by ASC 740. As of September 30, 2025, the Company does not believe that it
has taken any positions that would require the recording of any additional tax liability, nor does it believe that there are any unrealized
tax benefits that would either increase or decrease within the next year.

Any
penalties and interest assessed by income taxing authorities are included in operating expenses.

The
federal and state income tax returns of the Company are subject to examination by the IRS and state taxing authorities, generally for
three years after they were filed. Tax years 2022, 2023, and 2024 remain open for potential audit.

TROUBLED
DEBT RESTRUCTURING

The
Company evaluates all modifications to its debt agreements in accordance with ASC 470-60, Debt – Troubled Debt Restructurings
by Debtors. A debt restructuring is considered a troubled debt restructuring (“TDR”) if the creditor, for economic or
legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider.

Concessions
may include, but are not limited to:

    ●
    A
    reduction in the stated interest rate,

    ●
    An
    extension of the maturity date,

    ●
    A
    reduction in the principal amount or accrued interest, or

    ●
    A
    combination of the above.

When
a debt restructuring qualifies as a TDR, the Company evaluates whether the restructuring represents a modification or an extinguishment
of debt. If the future undiscounted cash flows of