Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 11

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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equity grants and issuances. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and
uncertainties.

CASH,
CASH EQUIVALENTS, AND RESTRICTED CASH

Beeline
considers highly liquid investments purchased with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents.
Cash equivalents include money market accounts that are readily convertible into cash.

The
Company maintains certain cash balances that are restricted under warehouse and/or master repurchase agreements, broker margin accounts
associated with its derivative instruments and other restrictions. The restricted cash balance as of March 31, 2025 was $45,584, see
Note 13 – Notes Payable-Related Parties.

    8

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

MORTGAGE
LOANS HELD FOR SALE AND GAINS ON SALE OF LOANS REVENUE RECOGNITION

Mortgage
loans held for sale are carried at fair value under the fair value option in accordance with ASC 825, Financial Instruments, with
changes in fair value recorded in gain on sale of loans, net on the consolidated statements of operations. The fair value of mortgage
loans held for sale committed to investors is calculated using observable market information such as the investor commitment, assignment
of trade or other mandatory delivery commitment prices. The fair value of mortgage loans held for sale not committed to investors is
based on quoted best execution secondary market prices. If no such quoted price exists, the fair value is determined using quoted prices
for a similar asset or assets, such as Mortgage-Backed Securities (“MBS”) prices, adjusted for the specific attributes of
that loan, which would be used by other market participants. Mortgage loans held for sale not calculated using observable market information
are based on third-party broker quotations or market bid pricing.

Gains
and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales proceeds and carrying
value of the related loans upon sale and are recorded in gain on sale of loans, net on the consolidated statements of operations. Sales
proceeds reflect the cash received from investors through the sale of the loan and servicing release premium. Gain on sale of loans,
net also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans held for sale, and
the realized and