Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 377

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 377
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 ASC 360.

FAIR VALUE MEASUREMENTS

Fair value is the price that would be received if
an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants
at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level
1, Level 2, and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance
of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated
with externally available market information. Unobservable inputs represent the estimates of market participants’ assumptions.

    F-14

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Fair value measurements are classified in the following
manner:

Level 1—Valuation is based on quoted prices
in active markets for identical assets or liabilities at the measurement date.

Level 2—Valuation is based on either observable
prices for identical assets or liabilities in inactive markets, observable prices for similar assets or liabilities, or other inputs that
are derived directly from, or through correlation to, observable market data at the measurement date.

Level 3—Valuation is based on the internal models
using assumptions at the measurement date that a market participant would use.

In determining fair value measurement, Beeline uses
observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input
that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available
for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date,
judgment is required to measure fair value.

The following is a description of measurement techniques
for items recorded at fair value on a recurring basis. There was no material items recorded at fair value on a nonrecurring basis as of
December 31, 2024 and 2023.

Mortgage loans held for sale: Loans held for
sale that are valued using Level 2 measurements derived from observable market data, including market prices of securities backed by similar
mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to
mortgage servicing and credit risk. Loans held for sale for which there is little to no observable trading activity of similar