Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 274

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 274
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ROLLING INTERESTS

Beeline follows ASC 810, Consolidation, governing
the accounting for and reporting of non-controlling interests (“NCI”) in partially owned consolidated subsidiaries and the
loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI be treated as a separate component
of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated
as equity transactions rather than step acquisitions or dilution gains or losses, and that losses of a partially-owned subsidiary be allocated
to non-controlling interests even when such allocation might result in a deficit balance. The net loss attributed to NCI was separately
designated in the accompanying consolidated statements of operations and comprehensive loss. Losses attributable to NCI in a subsidiary
may exceed NCI’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. NCI
shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. Net loss attributable to
NCI for the year ended December 31, 2024 was $1.7 million.

INVESTMENT IN EQUITY METHOD INVESTEE

On February 7, 2024, MagicBlocks, Inc., a Delaware
corporation, was incorporated by a third party. On July 31, 2024, the Company was issued 4.3 million shares of Magic Blocks representing
47.6% of ownership. The Company has determined that its investment in MagicBlocks is subject to the equity method of accounting in accordance
with ASC 825-10, Financial Instruments. As of December 31, 2024, the Company had invested $0.1 million in MagicBlocks with a balance
of $0.1 million, including the proportionate loss of $0.1 million.

DEPOSITS

Deposits are included in other assets, and include
security deposits for leased office spaces, which are refundable to the Company upon expiration of the lease agreements.

MARKETING AND ADVERTISING COSTS

Marketing and advertising costs are expensed as incurred.
For the years ending December 31, 2024 and 2023, marketing and advertising expenses were $0.8 million and $0.2 million, respectively.

STOCK-BASED COMPENSATION

The Company recognizes as compensation expense all
stock-based awards issued to employees. The compensation cost is measured based on the grant-date fair