Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 379

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 379
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 included in the
results of operations as incurred. These  transactions were de minimis 2024.

As of December 31, 2024, 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 $0.65.

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 completion of an
offering, offering costs are capitalized as non-current other assets in the consolidated balance sheets and consist principally of
professional, underwriting and other expenses incurred through the consolidated balance sheet date that are directly related to the
Company’s proposed public offering. The deferred offering costs are charged to additional paid-in capital or as a discount to
debt, as applicable, upon the completion of an offering or to expense if the offering is not completed.

NON-CONTROLLING INTERESTS

Beeline follows ASC 810, Consolidation, governing
the accounting for and reporting of non-controlling interests (“NCI”) in partially owned consolidated subsidiaries and the
loss of control of subsidiaries. Certain provisions of this standard indicate, among other things, that NCI be treated as a separate component
of equity, not as a liability, that increases and decreases in the parent’s ownership interest that leave control intact be treated
as equity transactions rather than step acquisitions or dilution gains or losses, and that losses of a partially-owned subsidiary be allocated
to non-controlling interests even when such allocation might result in a deficit balance. The net loss attributed to NCI was separately
designated in the accompanying consolidated statements of operations and comprehensive loss. Losses attributable to NCI in a subsidiary
may exceed NCI’s interests in the subsidiary’s equity. The excess attributable to NCI is attributed to those interests. NCI
shall continue to be attributed their share of losses even if that attribution results in a deficit NCI balance. Net loss attributable to
NCI for the year ended December 31, 2024 was $1.7 million.

INVESTMENT IN EQUITY METHOD INVESTEE

On February 7, 2024, MagicBlocks, Inc., a Delaware
corporation, was incorporated by a third party. On July 31, 2024, the Company was issued 4.3 million shares of Magic