Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 173

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 2
Chunk 173
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in the Company’s revenue and financial performance.

Limited
housing supply has constrained home purchase activity. Rising interest rates have further exacerbated this issue by increasing home prices,
reducing affordability, and discouraging transactions. However, the Company believes that persistent imbalances between supply and demand
will ultimately drive greater home construction, expanding housing inventory and stimulating future mortgage activity.

The
Company’s ability to attract and retain customers depends on delivering a seamless and competitive digital mortgage experience.
The shift toward digital transactions, accelerated by the COVID-19 pandemic, has increased consumer willingness to engage in high-value
online purchases, including mortgage applications. The Company’s platform is designed to provide a convenient and efficient digital
experience, positioning it favorably against traditional mortgage origination methods. With Millennial and Generation Z homeownership
rates on the rise, The Company anticipates continued growth in demand for digital mortgage solutions.

Technological
innovation remains central to the Company’s strategy. The Company’s proprietary technology enhances efficiency, reduces costs,
and improves loan processing quality. By automating key origination tasks, the Company streamlines interactions for consumers, employees,
and partners. Its intuitive digital interface minimizes reliance on paper applications and manual processes, enabling faster and more
efficient loan transactions. Continued investment in automation and technology development will further reduce production costs and enhance
customer acquisition efforts.

Customer
acquisition is another critical component of the Company’s success. The Company aims to expand its reach while providing a highly
personalized digital experience. If traditional customer acquisition methods prove insufficient, especially in challenging market conditions,
the Company may need to invest additional resources in sales and marketing to maintain growth. Increased marketing expenditures could
elevate service costs, making it essential to balance customer acquisition efforts with cost efficiency.

35

In
the ordinary course of the Company’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing three warehouse lines of credit with a capacity of $25.0 million. The repayments of the Company’s
borrowings come from the revenue generated by selling its loans to a network of purchasers.

In
2024, the Company made significant investments in its platform to leverage mortgage origination opportunities, despite overall lower
volumes compared to 2020 and 2021 due to fluctuating interest rates. In the fourth quarter, a temporary decline in the 10-year Treasury
rate drove a notable increase in loan originations, reinforcing the Company’s belief that interest rates, housing supply,