Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 64

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 largely dependent on our operating success, including improved gross
margins as well as operational improvements, which will be necessary to attract investors.

The
Company intends to continue raising capital through a combination of equity and debt financing to meet its internal cash requirements
and to refinance its existing obligations. However, there can be no assurance that the Company will be successful in securing the necessary
capital on favorable terms, or at all. The Company has no material off-balance sheet arrangements as of the date of this filing.

Statements
of Cash Flows. For 2025, our primary capital requirements have been for cash used in operating activities and for the repayment
of debt. Funds for our cash and liquidity needs have historically not been generated from operations but rather from short-term credit
in the form of extended payment terms from suppliers as well as proceeds from loans and the sale of convertible debt and equity. We have
been dependent on raising capital from debt and equity financing to meet our operating needs.

For
the three months ended March 31, 2025, net cash used in operating activities of continuing operations was $1.5 million compared to net
cash provided by operating activities of $0.1 million for the three months ended March 31, 2024 primarily due to the inclusion of Beeline’s
net loss of $2.3 million for the three months ended March 31, 2025.

For
the three months ended March 31, 2025, net cash used in investing activities of continuing operations was $0.1 million. For the three
months ended March 31, 2024, investing activities were nil.

For
the three months ended March 31, 2025, net cash provided by financing activities of continuing operations was $1.8 million primarily
from equity transactions and repayments of warehouse line and secured credit facilities. For the three months ended March 31, 2024, financing activities were nil.

39

Critical
Accounting Policies and Estimates

Critical
accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition
and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates
about the effects of matters that are inherently uncertain. The critical accounting policies and practices used by the Company in the
financial statements for three months ended March 31, 2025 relate to the policies and practices the Company uses to account for:

Mortgage