Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 947

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 947
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 damages of $245,000,
plus a judicial declaration, due to Eastside’s failure to pay for the services. Eastside believes that it paid for services
rendered. On October 28, 2024, Eastside signed a term sheet to settle the case for $0.1
million paid in 2024 and $0.1
million in stock to be paid of 13,115
shares of common stock that was subsequently issued in February 2025. These settlement expenses are included in general and
administrative expenses in the consolidated statements of operations and comprehensive loss for the year ended December 31,
2024.

On December 15, 2020, Grover Wickersham filed a complaint
in the United States District Court for the District of Oregon against Eastside. Mr. Wickersham, the former CEO and Chairman of the Board
of Eastside, has asserted causes of action for fraud in the inducement, breach of contract, breach of the implied covenant of good faith
and fair dealing, defamation, interference with economic advantage, elder financial abuse, and dissemination of false and misleading proxy
materials. During June 2024, this case was settled for $0.3 million that was subsequently paid in September 2024.

    F-35

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

The Company is not currently subject to any other
material legal proceedings; however, it could be subject to legal proceedings and claims from time to time in the ordinary course of its
business, or legal proceedings it considered immaterial may in the future become material. Regardless of the outcome, litigation can,
among other things, be time consuming and expensive to resolve, and can divert management resources.

Government Regulations Affecting Mortgage Loan
Origination

Beeline operates in a heavily regulated industry that
is highly focused on consumer protection. The extensive regulatory framework to which Beeline is subject includes U.S. federal and state
laws and regulations.

Governmental authorities and various U.S. federal
and state agencies have broad oversight and supervisory authority over all aspects of Beeline’s business.

Under the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the “Dodd-Frank Act”), the Consumer Financial Protection Bureau (the “CFPB”) was established to
ensure, among other things, that consumers receive clear and accurate disclosures regarding financial products and to protect consumers
from hidden fees and unfair, deceptive