Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 201

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 201
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 that are used to protect
consumer transaction data. In addition, the Company’s current work-from-home policy may increase the risk of security breaches,
which could result in the misappropriation or misuse of PI. As a result, the Company’s current security measures may not prevent
all security breaches. The Company may be required to expend significant capital and other resources to protect against and remedy any
potential or existing security breaches and their consequences. The Company also faces risks associated with security breaches affecting
third parties, including its third-party partners and vendors. In addition, the Company faces risks resulting from unaffiliated third
parties who attempt to defraud, and obtain personal information directly from, its customers by imitating it. Any publicized security
problems affecting the Company’s businesses and/or those of third parties, whether actual or perceived, may discourage consumers
from doing business with the Company, which could materially and adversely affect its business, financial condition, and results of operations.

There can be no assurance that
any of the above risks will not occur or, if they do occur, that they will be adequately addressed in a timely manner. If any loan applicant,
customer, or team member’s information is inappropriately accessed or acquired and used by a third party or a team member for illegal
purposes, such as identity theft, Beeline may be responsible to the affected applicant or customer for any losses he, she or they may
have incurred as a result of misappropriation or other improper use. In such an instance, we may also be subject to regulatory action,
investigation or be liable to a governmental authority for fines or penalties associated with a lapse in the integrity and security of
its loan applicants’, customers’ or team members’ information. he Company may be required to expend significant capital
and other resources to protect against and remedy any potential or existing security breaches and their consequences. In addition, our
remediation efforts may not be successful and it may not have adequate insurance to cover these losses. If the Company is unable to protect
its customers’ PI, our business, financial condition, and results of operations can be materially and adversely affected.

30

We rely heavily on third-party
software to operate our mortgage lending business, creating technological risks that it cannot mitigate.

We rely heavily on third-party
technology in running our mortgage lending business. Because we utilize third-party technology, our ability to maintain and control the
technology is limited. Such utilization of this technology creates potential risks, including service interruptions, product errors