INCOME TAXES

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

22. INCOME TAXES

The Company maintains deferred tax assets and liabilities that reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred tax assets (liabilities) as of December 31, 2024 and 2023 consist of net operating loss carryforwards and differences in the book basis and tax basis of intangible assets, investments, and mortgage loans.

The items accounting for the difference between income taxes at the effective statutory rate and the provision for income taxes for the years ended December 31, 2024 and 2023 were as follows:

(Dollars in thousands)	2024			2023
Expected federal income tax benefit	$	(2,139	)	$	(1,478	)
State income taxes after credits		(1,145	)		(497	)
Change in allowance		3,284			1,975
Total provision for income taxes	$	-		$	-

The Company’s approximate net deferred tax assets as of December 31, 2024 and 2023 were as follows:

(Dollars in thousands)	2024			2023
Deferred tax assets
Net operating loss carryforwards	$	34,853		$	23,673
Property and equipment		42			-
Stock-based compensation		947			896
Total deferred tax assets		35,842			24,569
Deferred tax liability
Mortgage loans held for sale	$	(57	)	$	-
Intangible assets		(4,709	)		-
Equity method investment		(129	)		-
Depreciation and amortization		(2,411	)		(2,444	)
Total deferred tax liability		(7,306	)		(2,444	)
Valuation Allowance		(28,536	)		(22,125	)
Net deferred tax assets	$	-		$	-

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

The gross operating loss carryforward was $85.0 million as of December 31, 2024. The Company provided a valuation allowance equal to the net deferred income tax assets for the years ended December 31, 2024 and 2023 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward and other deferred tax assets.

Additionally, the future utilization of the net operating loss carryforward to offset future taxable income is subject to an annual limitation as a result of ownership or business changes that may occur in the future. The Company has not conducted a study to determine the limitations on the utilization of these net operating loss carryforwards. If necessary, the deferred tax assets will be reduced by any carryforward that may not be utilized or expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.

The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2021, 2022, and 2023 Corporate Income Tax Returns are subject to Internal Revenue Service examination.