Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 37

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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5 with payments made in nine equal
monthly installments of $0.4 million beginning January 2025. During September 2025, the principal balance and accrued interest was fully
repaid. As of September 30, 2025, the debt discount was fully amortized.

14.
LEASE OBLIGATIONS

Beeline
Financial leases office space under various operating lease agreements, including an office for its headquarters, for branch location
and licensing purposes under non-cancelable lease arrangements that provide for payments on a graduated basis with various expiration
dates. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs,
and vary by lease. Beeline Financial has leased approximately 9,809 square feet of space in Rhode Island and Australia that expires at
various dates through 2030. The Company does not have any financing leases.

As
the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate of 10% based on information
available at commencement to determine the present value of the lease payments. Right-of-use assets and lease liabilities are recognized
at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less
(“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term.
As of September 30, 2025, the amount of right-of-use assets and lease liabilities were $0.9 million and $1.1 million, respectively. Lease
expense for operating leases is recognized on a straight-line basis over the lease term. Aggregate lease expense for the nine months
ended September 30, 2025 was $0.2 million.

    23

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Maturities
of lease liabilities as of September 30, 2025 were as follows:

 SCHEDULE OF MATURITIES OF OPERATING LEASE LIABILITIES

    (Dollars
    in thousands) 
    Operating
    Leases  
    Weighted-Average
    Remaining Term in Years 
  
    2025-Remainder of year 
    $71  

    2026 
     294  

    2027 
     301  

    2028 
     272