Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 70

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 70
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, disclosure of management’s
assessment of our internal controls over financial reporting may have an adverse impact on the price of our common stock. With the addition
of Old Beeline and the integration of that business we may experience issues with our disclosure controls and internal controls including
experiencing material weaknesses.

If we raise capital in the future,
it is likely to dilute our existing stockholders’ ownership and/or have other adverse effects on us, our securities or our operations.

Because we must raise capital principally
through the sale of equity including securities convertible into common stock, if we are successful our existing stockholders’ percentage
ownership will decrease, and these stockholders may experience substantial dilution. Additionally, the issuance of additional shares of
common stock or other securities could result in a decline in our stock price. Further, if we are required to raise additional funds by
issuing debt instruments, these debt instruments could impose significant restrictions on our operations, including liens on our assets
and negative covenants prohibiting us from engaging in certain transactions or corporate actions that may have the effect of limiting
our ability to pursue our business strategy and growth objectives. Our ability to raise debt, however, is subject to complying the Nasdaq
Stockholders’ Equity Rule.

Common stock eligible for future
sale may adversely affect the market.

We have a substantial number of
shares of common stock issuable upon conversion or exercise of our outstanding preferred stock and warrants. In addition, certain of these
outstanding derivative securities are subject to adjustment provisions which may result in increased shares of common stock underlying
such securities and/or lower conversion or exercise prices based on security issuances we have made and may undertake in the future.

Future sales of substantial amounts
of our common stock in the public market, or the anticipation of these sales, could materially and adversely affect market prices prevailing
from time-to-time, and could impair our ability to raise capital through sales of equity or equity-related securities. In addition, the
market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market or the
perception that these sales may occur.

Our Board may authorize and
issue shares of new series of preferred stock that could be superior to or adversely affect current holders of our common stock.

Our Board has the power to authorize
and issue shares of classes of stock, including preferred stock that have voting powers, designations, preferences, limitations and special
rights, including preferred distribution rights, conversion rights, redemption rights