Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 51

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 51
---
 Title closed, what it believes to be one of the first-ever fractional sale of home real
estate transactions funded through the sale of a cryptocurrency with a partner who will fund these transactions for us through the
sale of a crypto token which is backed by real property. While neither the Company, nor its subsidiaries, mints the token, Beeline
Title will handle the settlement and title portions of these transactions for its client, who is minting the token (see below for
more information about this company). The June transaction marked a major milestone in the evolution of blockchain-driven real
estate finance, bridging decentralized finance with traditional title and escrow services. In the third quarter of 2025, Beeline
Loans will provide customer acquisition services and support to the company minting the token and offering the equity exchange and
Beeline Title will provide the title and closing services for each transaction—unless borrowers elect to use an outside title
company. Importantly, Beeline Title will open this platform to all mortgage lenders, giving them access to a proven solution for
cryptocurrency token transaction reconciliation, compliance, and disbursement. 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. Passing of the GENIUS Act in June 2025 has delayed the full launch of Beeline Equity to early quarter four of 2025. Prior to a full launch,
Beeline Loans and Beeline Title will close many transactions as the product and process are perfected.

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 Financial and its subsidiaries. The Company’s consolidated financial statements for the six months ended June
30, 2024 do not include Beeline Financial’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