Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 58

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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reduce the usefulness of our non-GAAP financial measures as tools for comparison.

38

We
include a reconciliation of adjusted EBITDA to GAAP net loss, its most closely comparable GAAP measure. We encourage investors
and others to review our condensed consolidated financial statements and notes thereto in their entirety included elsewhere in this quarterly
report on Form 10-Q, not to rely on any single financial measure, and to consider adjusted EBITDA only in conjunction with its respective
most closely comparable GAAP financial measure.

We
believe this non-GAAP financial measure is useful to investors for supplemental period-to-period comparisons of our business and understanding
and evaluating our operating results for the following reasons:

●
Adjusted EBITDA is widely used by investors and securities analysts to measure a company’s operating performance without
regard to items such as depreciation and amortization expense, interest and amortization on non-funding debt, income tax expense,
stock-based compensation expense, and costs that are unique or non-recurring in nature or otherwise unrelated to our ongoing
revenue-generating operations, all of which can vary substantially from company to company depending on their financing and capital
structures;

●
We use adjusted EBITDA in conjunction with financial measures prepared in accordance with GAAP for adjusted purposes, including the
preparation of our annual operating budget , as a measure of our core operating results and the effectiveness of our business
strategy, and in evaluating our financial performance; and

●
Adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons
of our core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP
financial measures to supplement their GAAP results.

Further,
although we use this non-GAAP measure to assess the financial performance of our business, it has limitations as an analytical tool,
and should not be considered in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these
limitations are, or may in the future be, as follows:

●
Although depreciation and amortization expense is a non-cash charge, the assets being depreciated and amortized may have to be
replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new
capital expenditure requirements;

●
Adjusted EBITDA excludes stock-based compensation expense which is a significant recurring expense for our business and an important
part of our compensation strategy;

●
Adjusted