Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 88

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 under ASC 350-40-35, Subsequent Measurement, on
a qualitative basis and if indicators exist, then a quantitative analysis is performed under 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.

    12

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

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 March 31, 2025 and December 31, 2024.

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