Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 56

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 56
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 Beeline Financial made significant investments in its platform to leverage mortgage origination opportunities, despite overall
lower volumes compared to 2020 and 2021 due to fluctuating interest rates. In the fourth quarter, a temporary decline in the 10-year
Treasury rate drove a notable increase in loan originations, reinforcing our belief that interest rates, housing supply, and affordability
will remain key factors influencing future volume. Additionally, Beeline Financial has expanded its focus on its B2B SaaS strategy, which
is also subject to macroeconomic conditions.

To
measure operational efficiency and growth, we track a range of performance metrics in our lending and title businesses, including production
data. Beeline Loans, the principal operating subsidiary of Beeline Financial, uses data to track margin and gain-on-sale revenue. The
title companies use data to track file revenue. Beeline uses industry tools to benchmark its margin and note rates against the broader
mortgage origination market. We also evaluate key business drivers for Beeline Financial subsidiaries, such as Beeline Labs, by monitoring
revenue, unit sales, and SaaS (B2B) growth potential. Additionally, we assess customer acquisition costs and profitability per loan to
optimize financial performance. These key indicators help gauge progress toward our strategic and long-term growth objectives.

Bridgetown
Spirits

Bridgetown
Spirits operates in a highly competitive, heavily regulated industry across multiple states, where both operations and distributor importance
vary by location. Following a period of declining distribution, Bridgetown Spirits has focused on refining its distribution strategy.
While Bridgetown Spirits has lost distribution in some key states, it has strengthened its presence in others. Restoring and optimizing
distribution remains a critical challenge, impacting volumes and future sales.

In
2024, Bridgetown Spirits completed a restructuring aimed at streamlining operations by focusing on core business activities while outsourcing
non-core functions, including production. As a result, its overall expenses decreased related to manufacturing, distribution, and sales
activities. To further enhance efficiency, Bridgetown Spirits established key partnerships with external resources to achieve lower costs
and improved sales performance. The impact of these changes was partially reflected in the fourth quarter of 2024, but full-year results
do not yet capture their complete effect.

34

Results
of Operations

The Merger was structured and accounted for as
a business combination with the Company as the acquirer of 100% of the controlling equity interests of Beeline Financial and