Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 50

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 50
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 majority of the loans
Beeline originates are non-conforming, Beeline does originate conforming loans which must comply with guidelines of the GSEs and government-backed
programs. It is possible that the federal government may change the rules and regulations regarding GSEs and other government-backed programs.
Beeline cannot guarantee that the federal government will maintain the GSEs and government-backed programs on which it relies. Any such
changes could negatively impact Beeline’s ability to do business with such entities and its ability to originate loans. Further,
any changes in these entities’ roles or structures could significantly impact Beeline’s business operations and financial
condition.

Future AI or technology characteristics
and regulations could negatively impact Beeline’s business and use of technology.

Beeline’s business model
and competitive edge requires the use of AI and various technologies to process loans and service its customers. While there is currently
no federal legislation regarding AI, it is possible that new federal legislation regarding AI may be adopted, which could negatively impact
Beeline’s business operations. Further, any new regulations regarding technology or AI that impact Beeline’s business would
increase its compliance costs and risks of regulatory proceedings against it. Should Beeline be unable to comply with any applicable technology
or AI regulations, its business operations, financial condition and results of operation will be adversely affected. In addition, Beeline
uses an AI product developed by MagicBlocks, a company in which Beeline has a minority interest. If Beeline is unable to use this AI product
in the future, Beeline may experience additional costs and business disruptions.

In addition, the emergent nature
of AI presents numerous risks and uncertainties, including the potential for defects in the design and development of the technologies
used to automate processes, misapplication of technologies, the reliance on data, rules or assumptions that may prove inaccurate, incomplete
or inadequate, information security vulnerabilities and failure to meet customer expectations. For example, the use of AI algorithms may
give rise to operational or legal issues due to perceived or actual unintentional bias in the processing and servicing of mortgage loans.
While we aim to use and to partner with organizations that use AI responsibly, we or organizations with whom we do business may be unsuccessful
in identifying or resolving issues before they arise or navigating the complex and evolving landscape inherent in AI and other novel technologies,
including regulatory implications and competitive forces. We and many of our competitors and other market participants are beginning to
deploy AI and machine learning technology into a growing number of systems and processes. As such,