Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 355

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 355
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 the consolidated financial statements
that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are
material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole,
and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the
accounts or disclosures to which they relate.

2295 NW Corporate Blvd., Suite 240 ● Boca Raton, FL 33431-7326

Phone: (561) 995-8270 ● Toll Free: (866) CPA-8500 ● Fax:
(561) 995-1920

www.salbergco.com ● info@salbergco.com

Member
National Association of Certified Valuation Analysts ● Registered with the PCAOB

Member
CPAConnect with Affiliated Offices Worldwide ● Member AICPA Center for Audit Quality

F-2

Business
Combination

As
described in footnote 3 “Business Combinations” and in footnote 4 “Merger”, to the consolidated financial statements,
the Company closed on a business acquisition in October 2024. The determination of fair values for assets acquired and liabilities assumed
and the fair value of the equity-based purchase consideration involved significant judgement from management. This included the selection
of appropriate valuation methodologies and the development of key assumptions and estimates within the selected methodology.

Management
utilized the Option Pricing Model (OPM) method to determine the fair value of the equity-based purchase consideration. The application
of the OPM required the use of significant estimates and assumptions including volatility, probability estimates, and expected term.
In addition, the fair value of certain identifiable intangible assets acquired were determined using various valuation methodologies
including the cost approach, multi-period excess earnings method, and relief-from-royalty method. These methods required significant
estimates and assumptions by management including projected future cash flows, discount rates, royalty rates and attrition rates. Changes
in these estimates and assumptions could have a significant impact on the fair values.

We
identified the business combination as a critical audit matter. Auditing management’s judgments regarding the above estimates and
assumptions involved a high degree of subjectivity.

The
primary procedures we performed to address this critical audit matter included (a) evaluated management’s process for developing
its estimates, (b)