Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 16

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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. Other interest expense is included in other (income)/expense.

Title
Fees

Settlement
fees and commissions earned at loan settlement on insurance premiums paid to title insurance companies.

    10

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Other
Revenues

Fees
received from a marketing partner who is embedded in the Company’s point-of-sale journey for investment property customers. The
partner pays Beeline for leads they receive from a customer opting in to use their insurance company for landlord insurance during the
application process.

DERIVATIVE
FINANCIAL INSTRUMENTS AND REVENUE RECOGNITION

The
Company holds and issues derivative financial instruments such as interest rate lock commitments (IRLCs). IRLCs are subject to price
risk primarily related to fluctuations in market interest rates. To hedge the interest rate risk on certain IRLCs, the Company enters
into best effort forward sale commitments with investors, whereby certain loans are locked with a borrower and simultaneously committed
to an investor at a fixed price. If the best effort IRLC does not fund, the Company has no obligation to fulfill the investor commitment. 

ASC 815-25, Derivatives and Hedging, requires that
all derivative instruments be recognized as assets or liabilities on the consolidated balance sheets at their fair value. The Company
issues IRLCs to originate mortgage loans and the fair value of the IRLCs, adjusted for the probability that a given IRLC will close
and fund, is recognized in gain on sale of loans, net on the consolidated statements of operations. Subsequent changes in the fair value
of the IRLC are measured at each reporting period within gain on loans, net until the loan is funded. The Company accounts for all derivative
instruments as free-standing derivative instruments and does not designate any for hedge accounting.

ACCOUNTS
RECEIVABLE

Accounts
receivable consist primarily of amounts due from customers for services provided. Accounts receivable are stated at their gross outstanding
balance, net of an allowance for credit losses. The allowance for credit losses is based on a combination of factors, including historical
loss experience, aging of receivables, specific customer creditworthiness, current economic conditions, and reasonable and supportable
forecasts. The Company writes off accounts receivable when they are deemed uncollectible, and any recoveries of previously written-off
balances are