Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 73

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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BITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons
of our core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial
measures to supplement their GAAP results.

Further,
although we use this non-GAAP measure to assess the financial performance of our business, it has limitations as an analytical tool,
and should not be considered in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these
limitations are, or may in the future be, as follows:

●
Although depreciation and amortization expense is a non-cash charge, the assets being depreciated and amortized may have to be replaced
in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure
requirements;

●
Adjusted EBITDA excludes stock-based compensation expense which is a significant recurring expense for our business and an important
part of our compensation strategy;

●
Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

●
Adjusted EBITDA does not reflect interest expense, or the cash requirements necessary to service interest or principal payments on our
non-funding debt, which reduces cash available to us; and

42

●
The expenses and other items that we exclude in the calculation of adjusted EBITDA may differ from the expenses and other items, if any,
that other companies may exclude from similarly titled non-GAAP measures when they report their operating results, and we may, in the
future, exclude other significant, unusual or non-recurring expenses or other items from these financial measures.

Because
of these limitations, adjusted EBITDA should be considered along with other financial performance measures presented in accordance with
GAAP, and not as an alternative or substitute for our financial results prepared and presented in accordance with GAAP.

Adjusted
EBITDA

We
calculate adjusted EBITDA as net income (loss) adjusted for the impact of interest expense, depreciation and amortization expense, loss
on extinguishment of debt, net loss from discontinued operations, stock-based compensation expense, and other non-recurring or non-core
operational expenses.

The
following table presents a reconciliation of net income (loss) to adjusted EBITDA:

    Three
                                            Months Ended
                                                                  September
                                            30,  
    Nine
                                            Months Ended
                                                                  September
                                            30, 
  
    (D