Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 176

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 176
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 the company minting the token and offering
the equity exchange transaction. Beeline Loans receives 3.5% of the amount of equity sold and markets the product through its website
as BeelineEQUITY. Beeline Title provides the title and closing services for each transaction—unless borrowers elect to use an
outside title company.

As
cryptocurrency adoption accelerates and becomes regulated by federal and state governments, the Company is positioning itself as a leader
in this fast-moving ecosystem, offering trusted infrastructure to help lenders scale into a future where crypto and compliance go hand-in-hand.
The Company collaborates with a related party company which is co-owned by the Company’s Chief Executive Officer, Nicholas Liuzza,
by which the company funds the transactions through the sale of a cryptocurrency token which is backed by real property. See Note 19
– Related Party Transactions, in the footnotes to the financial statements contained in this report.

Through
September 30, 2025, the Company has derived $12,377 of revenue from this business. The Company provides title insurance services and
an owner’s title policy to the Company’s partner as the buyer of the fractional equity. Beeline Title does not assume any
unusual liability in favor of the related party. Beeline Title simply transacts in the normal course of business on these purchase transactions,
issuing the owner’s title insurance policy and acting as settlement/escrow agent. In any title transaction, the title agency will
incur liability for potential losses under the title policy if the underlying title work is faulty for any reason or fraud or other errors
exist that could not have been discovered at the time of policy issuance. Beeline Title has Errors and Omissions insurance in addition
to other insurance coverages for any such issues.

Results
of Operations

The
Merger was structured and accounted for as a business combination with the Company as the acquirer of 100% of the controlling equity
interests of Beeline and its subsidiaries. The Company’s consolidated financial statements for the nine months ended September
30, 2024 do not include Beeline’s results of operations. The Company’s consolidated financial statements reflect the final
purchase accounting adjustments in accordance with ASC 805, Business Combinations, whereby the purchase price was allocated to
the assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. Due to the Merger, management
believes that the consolidated results of operations for 2025 are not directly comparable to those of 2024