Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1428

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1428
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2024 and 2023, marketing and advertising expenses were $0.8 million and $0.2 million, respectively.

STOCK-BASED COMPENSATION

The Company recognizes as compensation expense all
stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair value of the related stock-based
awards and is recognized over the service period of stock-based awards, which is generally the same as the vesting period. The fair value
of stock options is determined using the Black-Scholes valuation model, which estimates the fair value of each award on the date of grant
based on a variety of assumptions including expected stock price volatility, expected terms of the awards, risk-free interest rate, and
dividend rates, if applicable. Stock-based awards issued to nonemployees are recorded at fair value on the measurement date and recognized
over the service periods.

    F-16

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

INCOME TAXES

The Company accounts for income taxes in accordance
with ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets
and liabilities for financial statement and income tax purposes. The deferred tax assets and liabilities represent the future tax return
consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled.
Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company evaluates all significant tax positions
as required by ASC 740. As of December 31, 2024, the Company does not believe that it has taken any positions that would require the recording
of any additional tax liability, nor does it believe that there are any unrealized tax benefits that would either increase or decrease
within the next year.

Any penalties and interest assessed by income taxing
authorities are included in operating expenses.

The federal and state income tax returns of the Company
are subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. Tax years 2021, 2022,
and 2023 remain open for potential audit.

TROUBLED
DEBT RESTRUCTURING

The
Company evaluates all modifications to its debt agreements in accordance with ASC 470-60, Debt – Troubled Debt Restructurings
by Debtors. A debt restructuring is considered a troubled debt restructuring (“TDR”)