Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 189

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 189
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 loans in
2024 were non-conforming loans, specifically non-qualified mortgage loans (“Non-QM loans”). If Beeline is unable to sell such
loans to private investors, it may be required to hold such loans for an extended period, which exacerbates working capital needs. For
these loans, a customer’s ability to repay may be adversely impacted by numerous factors, including a healthcare event of the borrower,
a change in the borrower’s financial condition, or other negative local or more general economic conditions. Deterioration in a
customer’s financial condition and prospects may be accompanied by deterioration in the value of the collateral. These risks will
increase in prevalence and impact if general economic conditions deteriorate in the U.S., such as due to a recession.

In addition, some loans that Beeline
produces that it believes will be conforming loans may not meet Fannie Mae or Freddie Mac guidelines, or the guidelines of the FHA or
VA, in which case Beeline would be subject to a high degree of business and financial risk.

Because we rely on highly-skilled
personnel with knowledge of the mortgage industry, the loss of key personnel which may negatively impact its business.

Our future success depends on its
ability to attract, hire, train, and retain a number of highly skilled employees and management that have knowledge of the mortgage industry.
The loss of the services of our Chief Executive Officer, Nicholas Liuzza, Jr., Old Beeline’s Chief Operating Officer, Jessica Kennedy,
Esq., or other key employees could cause substantial disruption to our business operations, which would adversely affect its business.
Competition for qualified employees in the mortgage industry remains high, and we may fail to attract or retain the employees necessary
to execute its business model successfully. Further, as a smaller company with a limited operating history, we rely on a smaller workforce,
particularly in its accounting, legal, and compliance departments, which places us at a disadvantage in attracting and retaining experienced
talent.

If we encounter material fraud,
it could result in significant financial losses and harm to our reputation.

In deciding whether to approve
loans or to enter into other transactions with its customers or counterparties, we rely on information furnished to it by or on behalf
of customers and such counterparties, including credit applications, property appraisals, title information and valuation, employment
and income documentation, and other financial information. We also rely on representations of customers and such counterparties as to
the accuracy and completeness of that information. If any