Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 587

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 587
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 excess and obsolete inventories based primarily on the estimated forecast of product demand and production requirements. Such write-downs
establish a new cost basis of accounting for the related inventory.

ACCOUNTS RECEIVABLE

Accounts receivable consist primarily of amounts due
from customers for goods shipped or 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 recorded as a reduction
to the provision for credit losses.

ACCOUNTS RECEIVABLE FACTORING PROGRAM

The Company has an accounts receivable factoring program
that had a zero balance as of December 31, 2024 and 2023. Under the program, the Company has the option to sell certain customer account
receivables in advance of payment for 75% of the amount due. When the customer remits payment, the Company receives the remaining balance.
Interest is charged on the advanced 75% payment at a rate of 2.4% for the first 30 days plus 1.44% for each additional ten-day period.
Under the terms of the agreement, the factoring provider had full recourse against the Company should the customer fail to pay the invoice.
In accordance with ASC Topic 860 – Transfers and Servicing, the Company has concluded that the agreement has met all three
conditions identified in ASC Topic 860-10-40-5 (a) – (c) and have accounted for this activity as a sale. Given the quality of the
factored accounts, the Company does not recognize a recourse obligation. In certain limited instances, the Company may provide collection
services on the factored accounts but does not receive any fees for acting as the collection agent, and as such.

BUSINESS COMBINATION

The Company accounts for business combinations in
accordance with ASC 805, Business Combinations. Under this guidance, the Company allocates the purchase price of an acquired business
to the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The excess of the
purchase price over the estimated fair value of net assets acquired is recorded as goodwill.

    F-13

Beeline Holdings, Inc.

Notes to