Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 192

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 192
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that the carrying amount of such assets may not be recoverable. If there is an indication of impairment, management would prepare an
estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual
disposition. If these estimated cash flows were less than the carrying amount of the asset, an impairment loss would be recognized to
write down the asset to its estimated fair value.

Property
and equipment, net. Property and equipment, including leasehold improvements and internal-use software, are recorded at cost,
and are depreciated or amortized using the straight-line method over the estimated useful lives of the related assets, which range from
three to five years. Leasehold improvements are amortized over the shorter of the lease term or the improvement’s estimated useful
life. Depreciation is not recorded on projects-in-process until the project is complete and the associated assets are placed into service
or are ready for the intended use. Impairment of property and equipment than the internal-use software is evaluated under ASC 360, Property,
Plant, and Equipment.

Under
ASC 350-40, Internal-Use Software, the Company capitalizes certain qualifying costs incurred during the application development
stage in connection with the development of internal-use software. Costs related to preliminary project activities are expensed as incurred
and post-implementation activities will be expensed as incurred. Capitalized software costs are amortized over the useful life of the
software, which is five years. Impairment of internal-use software is evaluated under ASC 350-40-35, Subsequent Measurement, on
a qualitative basis and if indicators exist, then a quantitative analysis is performed under ASC 360.

Stock-based
compensation. The Company recognizes as compensation expense all stock-based awards issued to employees. The compensation cost
is measured based on the grant-date fair value of the related stock-based awards and is recognized over the service period of stock-based
awards, which is generally the same as the vesting period. The fair value of stock options is determined using the Black-Scholes valuation
model, which estimates the fair value of each award on the date of grant based on a variety of assumptions including expected stock price
volatility, expected terms of the awards, risk-free interest rate, and dividend rates, if applicable. Stock-based awards issued to nonemployees
are recorded at fair value on the measurement date and recognized over the service periods.

ITEM
3 – QUANTITATIVE AND QUAL