Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 51

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 51
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 our ability to successfully adopt,
implement, maintain and oversee AI and other technological advancements into our processes efficiently and effectively, and to establish
systems and protocols and otherwise prepare for and address the myriad of potential issues that could arise with respect thereto, will
impact our future competitiveness and operating results and capabilities, and any failure to do so by us and our strategic partners could
materially adversely affect our business and prospects.

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Further, if the content, analyses,
or recommendations that the AI uses to assist Beeline in processing loans and servicing customers are or are alleged to be deficient,
inaccurate, or biased, Beeline could be subject to reputational harm and legal liability, either of which could result in a diversion
of management’s attention. The use of AI in Beeline’s business may also result in cybersecurity incidents. Because Beeline’s
use of AI involves the collection of its customers’ personal information and data, it is possible that cybersecurity incidents or
breaches of the AI Beeline uses could result in the exposure of its customers’ personal information and data. Any such cybersecurity
incident could adversely affect its business, create legal liability, result in operational downtime, result in reputational harm, and
negatively impact Beeline’s financial condition. State and federal legislation or regulations regarding AI which may be adopted
or enforced in the future could negatively impact Beeline’s business operations. Any new regulations or the occurrence of one or
more of the risks and uncertainties described above regarding technology or AI that impact Beeline’s business would increase its
compliance costs and risks of regulatory proceedings against it, which could materially harm our operating results and financial condition.
A majority of states have enacted either some form of AI legislation or created a task force or committee. We are not certain how present,
or future AI legislation will affect us.

Because Beeline’s mortgage
lending business is subject to various telecommunications, data protection and privacy laws and regulations, as well as various consumer
protection laws, including predatory lending laws, its failure to comply with such laws can result in material adverse effects and financial
losses.

Beeline’s mortgage business
is currently subject to a variety of, and may in the future become subject to additional U.S. federal, state, and local laws and regulations
that are continuously evolving and developing, including laws on advertising, as well as privacy laws and regulations, such as the Telephone
Consumer Protection Act (the “TCPA”), the Telemarketing Sales Rule, the CAN-SPAM Act