Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 205

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 205
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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, the Gramm-Leach-Bliley Act (the “GLBA”),
and, at the state level, numerous state privacy laws such as the CCPA.

These types of laws and regulations
directly impact Beeline’s business and require ongoing compliance, monitoring and internal and external audits as they continue
to evolve and may result in ever-increasing public and regulatory scrutiny and escalating levels of enforcement and sanctions. Subsequent
changes to data protection and privacy laws and regulations could also impact how Beeline processes personal information and, therefore,
limit the effectiveness of its product offerings or