Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 58

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 58
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 to working conditions, wage-hour pay, over-time pay, employee benefits, anti-discrimination, and
termination of employment. Noncompliance with applicable laws or regulations could subject Beeline to investigations, sanctions, enforcement
actions, disgorgement of profits, fines, damages, civil and criminal penalties, or injunctions. An adverse outcome in any such litigation
could require Beeline to pay contractual damages, compensatory damages, punitive damages, attorneys’ fees and costs.

Claims, enforcement actions, or
other proceedings could harm Beeline’s reputation, business, financial condition and results of operations. Beeline could be materially
and adversely affected by any such litigation. In addition, responding to any action will likely result in a significant diversion of
management’s attention and resources and an increase in professional fees.

Risks Relating to our Spirits Business

We are susceptible to cybersecurity
breaches and cyber-related fraud.

We depend on information technology
(“IT”) systems, networks, and services, encompassing internet sites, data hosting and processing facilities, as well as hardware
(including laptops and mobile devices), along with software and technical applications and platforms. Some of these are overseen, hosted,
supplied, and/or utilized by third parties or their vendors, supporting us in the administration of our business.

The escalation of IT security threats
and the increasing sophistication of cyber-crime pose a potential hazard to the security of our IT systems, networks, and services, as
well as to the confidentiality, availability, and integrity of our data. Should the IT systems, networks, or service providers we rely
on encounter malfunctions or if we experience a loss or disclosure of sensitive information due to various causes such as catastrophic
events, power outages, or security breaches, and our business continuity plans fail to address these issues promptly, we could face disruptions
in managing operations. This may result in reputational, competitive, and/or business harm, potentially adversely impacting our business
operations and financial condition. Furthermore, such incidents could lead to the unauthorized disclosure of critical confidential information,
causing financial and reputational damage due to the loss or misappropriation of confidential information belonging to us, our partners,
employees, customers, suppliers, or consumers, particularly with Beeline’s storage of confidential consumer information including
social security numbers. In such scenarios, significant financial and other resources might be required to rectify the damage caused by
a security breach or to repair and replace networks and IT systems.

36

We must maintain adequate terms
from our