Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 248

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 248
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 through uploading documents and accessing key information of their loan.

Additional functionality was added to the system in “Version 3”. This version will allow proprietary technologies to process underwriting conditions and automating major functions of the business. The basics of Beeline’s “Automation Condition Resolution Engine” was substantially completed in this Version.

“Version 4” was released in May 2022. It significantly changed the loan options user interface and experience for customers. It also introduced a dedicated flow for new loan types and channels. Other changes in Version 4 included additional build out of the Automation Condition Resolution Engine. Version 4 was completed by December 31, 2022, with development starting on Version 5 in early 2023.

As of September 30, 2024 and December 31, 2023, capitalized software development costs consisted of the following:

Schedule of Capitalized Software Development Costs

|                                        |     |   | September 30, 2024 |   |     |   | December 31, 2023 |   |
|:---------------------------------------|:----|:--|-------------------:|:--|:----|:--|------------------:|:--|
| Software development costs capitalized |     | $ |          8,459,328 |   |     | $ |         8,079,821 |   |
| Less accumulated amortization          |     |   |         (4,428,704 | ) |     |   |        (3,216,731 | ) |
| Software development costs, net        |     | $ |          4,030,624 |   |     | $ |         4,863,090 |   |

Amortization expense totaled $1,211,973 and $1,074,109 for the nine months ended September 30, 2024 and 2023, respectively.

| F-97 |

<div align='center'>BEELINE FINANCIAL HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENT

September 30, 2024

(Unaudited)</div>

NOTE 7 - WAREHOUSE LINES OF CREDIT

Warehouse Lines of Credit

Beeline engaged with one bank for a line of credit to fund originated loans in the normal course of business. The agreement contains specific financial covenants and requirements that Beeline must analyze on a quarterly basis in order to be compliant with the agreement. The aggregate potential borrowing capacity under the warehouse line of credit is