Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 198

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 198
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 | 30,757 |

A roll forward of the level 3 valuation financial instruments was as follows:

Schedule of Roll Forward for Valuation of Financial Instruments

|                                                | Balance at beginning of year | For                          
 the years ended December 31, |   2023 |     |   |   2022 |
|:-----------------------------------------------|:-----------------------------|:-----------------------------|-------:|:----|:--|-------:|
| Initial valuation                              |                              | $                            | 30,757 |     | $ |      - |
| Change in fair value in gain on sale of loans, 
 net                                            |                              |                              | 26,748 |     |   | 30,757 |
| Balance at end of year                         |                              | $                            | 57,505 |     | $ | 30,757 |

DEBT ISSUANCE COSTS

Beeline’s notes or loans payable agreements are recorded net of issuance costs (debt discount). The resulting debt discount is being amortized over the term of the term loan using the straight-line method, which approximates the effective interest method, and the amortization of debt discount is included in interest expense in the Other (Income)/Expense category in the statement of operations.

MARKETING AND ADVERTISING COSTS

Marketing and advertising costs are expensed as incurred.

For the year ended December 31, 2023, marketing and advertising expenses were $ 1,891,128. For the year ended December 31, 2022, they were $ 1,788,458.

STOCK-BASED COMPENSATION EXPENSE

Beeline measures and recognizes compensation expense for restricted stock awards and options granted to employees based on the fair value of the award on the grant date and recognized as expense over the related service or performance period. Beeline elected to account for forfeitures as they occur.

Stock-based compensation expense totaled $ 374,746for the year ended December 31, 2023, and $ 364,191for the year ended December 31, 2022.

| F-65 |

Beeline Financial Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2023 and 2022

Foreign Currency TranslatioN AND TRANSACTIONS

The reporting currency of the company is the U.S. dollar. Except for Beeline Loans Pty Ltd, the functional currency of the company is the U.S. dollar. The functional currency of Beeline Loans Pty Ltd is the Australian