Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 19

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 active market with inputs that are observable
and are classified within Level 2 of the valuation hierarchy. There were no open forward contracts as of March 31, 2025.

DEBT
DISCOUNT

Beeline’s
debt instruments are recorded net of issuance costs (debt discount). The resulting debt discount is amortized over the term of the term
loan using the straight-line method, which approximates the effective interest method, and the amortization of debt discount is included
in interest expense in the consolidated statements of operations and comprehensive loss.

FOREIGN
CURRENCY TRANSLATION AND TRANSACTIONS

The
reporting currency of the company is the U.S. dollar. Except for Beeline Loans Pty Ltd, the functional currency of the Company is the
U.S. dollar. The functional currency of Beeline Loans Pty Ltd is the Australian dollar. For Beeline Loans Pty Ltd, results of operations
and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate
at the end of the period, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities
reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets.
Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included
in determining comprehensive loss. The translation adjustment for the three months ended March 31, 2025 was $17,019.

Transactions
denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates
with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than
the functional currency included in the results of operations as incurred. These transactions were de minimis for the three months ended
March 31, 2025.

As
of March 31, 2025, the exchange rate used to translate balance sheet amounts from Australian dollars into U.S. dollars was $0.63, and
the average exchange rate used to translate operation amounts from Australian dollars into U.S. dollars was $0.63.

    13

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

DEFERRED
OFFERING COSTS

The
Company complies with the requirements of ASC 340, Other Assets and Deferred Costs, with regards to offering costs. Prior to the