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

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 25
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, which could have a material adverse effect.

    ●
    Material fraud could result in significant financial losses and reputational harm.

    ●
    Beeline markets its services through advertising via online sources, and it may need to incur substantial costs to drive future sales and may be unsuccessful in doing so.

    ●
    New TCPA regulations which went into effect in early 2025 will impact Beeline’s compliance costs and give rise to new regulatory and legal risks.

Risks Related to Beeline’s Operations and
Financial Results

    ●
    Old Beeline has a history of operating losses and has not yet been able to maintain profitability, and it may not achieve or maintain profitability in the future.

    ●
    If the United States experiences rising mortgage interest rates, it may continue to negatively impact Beeline’s business and loan origination volumes.

    ●
    Beeline’s business is subject to underwriting limitations and the potential of mortgage defaults.

    ●
    Failure to comply with underwriting guidelines of aggregators or GSEs could materially and adversely impact Beeline’s business.

    ●
    Changes in the GSEs’, the FHA’s or the VA’s requirements or guidelines could materially and adversely affect Beeline’s business.

Risks Related to Beeline’s Debt and Warehouse
Credit Lines

    ●
    Beeline relies on indebtedness to fund its operations and growth objectives, which subjects it to numerous risks arising from its incurring this indebtedness.

    ●
    Beeline relies on warehouse lines to fund the loans it originates and without these lines, Beeline would be unable to originate loans as a correspondent lender to its investors who purchase its loans.

Risks Related to Beeline’s Products, Technology,
and Intellectual Property

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    Beeline’s business relies on technology infrastructure, which exposes it to cybersecurity and technology infrastructure risks.

    ●
    If Beeline is not able to protect the privacy, use, and security of customer information, it could sustain damages.

    ●
    Beeline heavily relies on third-party software to operate its business.

    ●
    Beeline faces risks with respect to its ability to protect its intellectual property rights.

18

Regulatory Risks

    ●
    We and Beeline each operate in a heavily regulated industry, and our business operations expose it to risks of noncompliance, including due to any future changes in the regulations applicable to it.

    ●
    Future artificial intelligence (“AI”) or technology characteristics and regulations could negatively impact our