Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 164

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 164
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 was not known whether future taxable income will be sufficient to utilize the loss carryforward and other
deferred tax assets.

Additionally, the future utilization of the net operating
loss carryforward to offset future taxable income is subject to an annual limitation as a result of ownership or business changes that
may occur in the future. The Company has not conducted a study to determine the limitations on the utilization of these net operating
loss carryforwards. If necessary, the deferred tax assets will be reduced by any carryforward that may not be utilized or expires prior
to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.

The Company does not have any uncertain tax positions
or events leading to uncertainty in a tax position. The Company’s 2021, 2022, and 2023 Corporate Income Tax Returns are subject
to Internal Revenue Service examination.

23. NET INCOME (LOSS) PER COMMON SHARE

Basic income (loss) per common share
is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period, without
considering any dilutive items. Potentially dilutive securities consist of the incremental common stock issuable upon exercise of
preferred stock, stock options, and warrants. Potentially dilutive securities are excluded from the computation if
their effect is anti-dilutive. There were no
anti-dilutive common shares included in the calculation of income (loss) per common share as of December 31, 2024 and 2023. As of
December 31, 2024, there were 8.5
million shares of common stock equivalents that were antidilutive due to the Company’s net loss.

24. RELATED PARTY TRANSACTIONS

The Company issued a note to a private company in
which Joseph Freedman, a Board member of the Company, has an ownership interest. This note was for $0.1 million, accrues interest at 7%
per annum and is due on demand. This note was subsequently repaid in January 2025.

Aegis Security Insurance Company

On October 7, 2022, the Company entered into a Note
Purchase Agreement with Aegis. Pursuant to the Note Purchase Agreement, Aegis purchased from the Company a secured promissory note in
the principal amount of $4.5 million (the “Aegis Note”). $3.3 million of the purchase price was paid to TQLA, LLC to satisfy
a Note purchased from T