Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 21

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 21
---
Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

NON-CONTROLLING
INTERESTS

Beeline
follows ASC 810, Consolidation, governing the accounting for and reporting of non-controlling interests (“NCI”) in
partially owned consolidated subsidiaries and the loss of control of subsidiaries. Certain provisions of this standard indicate, among
other things, that NCI be treated as a separate component of equity, not as a liability, that increases and decreases in the parent’s
ownership interest that leave control intact be treated as equity transactions rather than step acquisitions or dilution gains or losses,
and that losses of a partially-owned subsidiary be allocated to non-controlling interests even when such allocation might result in a
deficit balance. The net loss attributed to NCI was separately designated in the accompanying consolidated statements of operations and
comprehensive loss. Losses attributable to NCI in a subsidiary may exceed NCI’s interests in the subsidiary’s equity. The
excess attributable to NCI is attributed to those interests. NCI shall continue to be attributed their share of losses even if that attribution
results in a deficit NCI balance. Net loss attributable to NCI for the nine months ended September 30, 2025 was $0.2 million.

INVESTMENT
IN EQUITY METHOD INVESTEE

On
February 7, 2024, MagicBlocks, Inc., a Delaware corporation, was incorporated by a third party. On July 31, 2024, the Company was issued
4.3 million shares of Magic Blocks representing ownership interest of 47.6%. The Company has determined that its investment in MagicBlocks
is subject to the equity method of accounting in accordance with ASC 825-10, Financial Instruments. As of September 30, 2025,
the Company had an equity method investment of $0.

The
Company entered into Simple Agreements for Future Equity (“SAFEs”) with MagicBlocks. These SAFEs provide the Company with
the right to receive equity in MagicBlocks upon the occurrence of specified future events, such as a qualified financing, change in control,
or liquidation, as defined in the Agreements. The Company’s investment of $0.5 million has been recorded based on the cost method
of accounting and included in other assets on the consolidated balance sheet as of September 30, 2025. The Company evaluates the investments
for any indications of impairment in value on a quarterly basis and