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

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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, valuation of derivative instruments,
valuation of software, valuation of intangible assets, valuation of goodwill, 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 September 30, 2025 was $45,472.

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
based on the investor commitment.

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 unrealized gains and losses from derivative instruments.

Mortgage
loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is considered to have
been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors;
the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the
transferred assets; and the Company does not maintain effective control over the transferred assets through either an agreement that
both entitles and obligates the Company to repurchase or redeem the