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

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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completion of an offering, offering costs are capitalized as non-current other assets in the consolidated balance sheets and consist
principally of professional, underwriting and other expenses incurred through the consolidated balance sheet date that are directly related
to the Company’s proposed public offering. The deferred offering costs are charged to additional paid-in capital or as a discount
to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed.

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 three months ended March 31, 2025 was $0.1 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 March 31, 2025, the Company recorded a loss on equity method
investment of $0.1
million.

DEPOSITS

Deposits
are included in other assets and include security deposits for leased office spaces, which are refundable to the Company upon expiration
of the lease agreements.

MARKETING