Company: BLNE
Filing Date: 2025-01-14
Form Type: 424B3
Source: 0001493152-25-002137
Chunk: 195

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-14
Form: 424B3
Chunk 195
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--------|-------:|:----|:--------|:--|:----|:--------|----------:|:----|:--------|-------:|
| Mortgage loans held for sale  |     | $       | - |     | $       | 2,301,012 |     | $       |      - |     | $       | - |     | $       | 3,022,969 |     | $       |      - |
| Interest rate lock derivative |     | $       | - |     | $       |         - |     | $       | 57,505 |     | $       | - |     | $       |         - |     | $       | 30,757 |

A roll forward of the level 3 valuation financial instruments was as follows:

Schedule of Roll Forward for Valuation of Financial Instruments

|                                                | Balance at beginning of year | For                          
 the years ended December 31, |   2023 |     |   |   2022 |
|:-----------------------------------------------|:-----------------------------|:-----------------------------|-------:|:----|:--|-------:|
| Initial valuation                              |                              | $                            | 30,757 |     | $ |      - |
| Change in fair value in gain on sale of loans, 
 net                                            |                              |                              | 26,748 |     |   | 30,757 |
| Balance at end of year                         |                              | $                            | 57,505 |     | $ | 30,757 |

DEBT ISSUANCE COSTS

Beeline’s notes or loans payable agreements are recorded net of issuance costs (debt discount). The resulting debt discount is being amortized over the term of the term loan using the straight-line method, which approximates the effective interest method, and the amortization of debt discount is included in interest expense in the Other (Income)/Expense category in the statement of operations.

MARKETING AND ADVERTISING COSTS

Marketing and advertising costs are expensed as incurred.

For the year ended December 31, 2023, marketing and advertising expenses were $1,891,128. For the year ended December 31, 2022, they were $1,788,458.

STOCK-BASED COMPENSATION EXPENSE

Beeline measures and recognizes compensation expense for restricted stock awards and options granted to employees based on the fair value of the award on the grant date and recognized as expense over the related service or performance