Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 21

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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AND ADVERTISING COSTS

Marketing
and advertising costs are expensed as incurred. For the three months ended March 31, 2025 and 2024, marketing and advertising expenses
were $0.6 million
and $0.1 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.

    14

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

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 March 31, 2025, 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 2022, 2023, and 2024 remain open for potential audit.

TROUBLED
DEBT RESTRUCTURING

The
Company evaluates all modifications to its