Company: BLND
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001855747-25-000069
Chunk: 163

Company: Blend Labs, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 3
Chunk 163
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 subject to an 80% of taxable income limitation (as calculated before taking the NOLs into account). Our state NOLs and our tax credits may also be subject to limitations. For example, California legislation enacted in June 2024 limits the use of California state net operating loss carryforwards and tax credits for tax years beginning on or after January 1, 2024 and before January 1, 2027, which may adversely affect us if we earn taxable income in the impacted tax years. In future years, if and when a net deferred tax asset is recognized related to our NOLs, the changes in the carryforward/carryback periods as well as the new limitation on use of NOLs may significantly impact our valuation allowance assessments for NOLs and tax credits. 

Risks Related to Our Title365 Business

We have entered into an agreement to sell our Title365 business, and we face a number of risks related to such proposed sale.

On June 6, 2025, we entered into a Stock Purchase Agreement (the “Agreement”) with Covius Services, LLC (“Purchaser”). On the terms and subject to the conditions set forth in the Agreement, among other things, (i) Purchaser will purchase from us all of the issued and outstanding shares of capital stock of Title365 Holding Co. (“Title365”) and (ii) we, Purchaser, and Title365 are entering into certain commercial agreements (collectively, the “Transactions”).

The Transactions may be delayed, and may ultimately not be completed, due to a number of factors, including the failure to obtain regulatory approvals from the requisite government entities or the failure to satisfy the other conditions to the completion of the Transactions. If the Transactions are terminated or otherwise not completed, we would not realize any of the expected benefits of the Transactions and may suffer other consequences that could adversely affect our business, results of operations and stock price, including, among others:

•we will have incurred and may continue to incur costs relating to the Transactions, many of which are payable by us whether or not the Transactions are completed;

•matters related to the Transactions require substantial commitments of time and resources by our management team and numerous others throughout our organization, which could otherwise have been devoted to other opportunities;

•we may be subject to legal proceedings related to the Transactions or the failure to complete the Transactions, which could be time consuming and expensive, could divert our management’s attention away from our regular business and, if any lawsuit is adversely resolved against