Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1285

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1285
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 December 31, 2024.

DEBT DISCOUNT

Beeline’s debt instruments are recorded net
of issuance costs (debt discount). The resulting debt discount is 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 consolidated
statements of operations and comprehensive loss.

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 dollar. For Beeline Loans Pty Ltd, results of operations and cash flows are translated at average exchange
rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated
at historical exchange rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows may not
necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process
of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The translation
adjustment for the period October 8, 2024 through December 31, 2024 was $(33,570).

    F-15

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Transactions denominated in foreign currencies are
translated into the functional currency at the exchange rates prevailing on the transaction dates with any transaction gains and losses
that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency included in the
results of operations as incurred. These  transactions were de minimis 2024.

As of December 31, 2024, the exchange rate used to
translate balance sheet amounts from Australian dollars into U.S. dollars was $0.63, and the average exchange rate used to translate operation
amounts from Australian dollars into U.S. dollars was $0.65.

DEFERRED OFFERING COSTS

The Company complies with the
requirements of ASC 340, Other Assets and Deferred Costs, with regards to offering costs. Prior to the completion of an
offering, offering costs are capitalized as non-current other assets in the consolidated balance sheets and consist principally of
professional, underwriting and other expenses incurred