Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 142

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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experience, positioning it favorably against traditional mortgage origination methods. With Millennial and Generation Z homeownership
rates on the rise, The Company anticipates continued growth in demand for digital mortgage solutions.

Technological
innovation remains central to the Company’s strategy. The Company’s proprietary technology enhances efficiency, reduces costs,
and improves loan processing quality. By automating key origination tasks, the Company streamlines interactions for consumers, employees,
and partners. Its intuitive digital interface minimizes reliance on paper applications and manual processes, enabling faster and more
efficient loan transactions. Continued investment in automation and technology development will further reduce production costs and enhance
customer acquisition efforts.

Customer
acquisition is another critical component of the Company’s success. The Company aims to expand its reach while providing a highly
personalized digital experience. If traditional customer acquisition methods prove insufficient, especially in challenging market conditions,
the Company may need to invest additional resources in sales and marketing to maintain growth. Increased marketing expenditures could
elevate service costs, making it essential to balance customer acquisition efforts with cost efficiency.

35

In
the ordinary course of the Company’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing three warehouse lines of credit with a capacity of $25.0 million. The repayments of the Company’s
borrowings come from the revenue generated by selling its loans to a network of purchasers.

In
2024, the Company 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 the Company’s belief that interest rates, housing supply, and affordability
will remain key factors influencing future volume. Additionally, the Company has expanded its focus on its B2B SaaS strategy, which is
also subject to macroeconomic conditions.

To
measure operational efficiency and growth, the Company tracks a range of performance metrics in its lending and title businesses, including
production data. Beeline Loans, the principal operating subsidiary of the Company, uses data to track margin and gain-on-sale revenue.
The title companies use data to track file revenue. The Company uses industry tools to benchmark its margin and note rates against the
broader mortgage origination market. The Company also evaluates key business drivers for its subsidiaries by monitoring revenue, unit
sales,