Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1418

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 1418
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, valuation of lease liabilities and related right of
use assets, contingent liability for loan repurchases, and valuation of non-cash 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 December 31, 2024 was $0.8 million, see Note 15 – Notes Payable-Related
Parties.

    F-10

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

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