Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 95

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 for Sale and Gain on Sale of Loans Revenue Recognition” and below under “Derivative
Financial Instruments and Revenue Recognition”.

Loan
Origination Fees 

Loan
origination fees represent revenue earned from originating mortgage loans. Loan origination fees generally represent flat per-loan fee
amounts based on a percentage of the original principal loan balance and are recognized as revenue at the time the mortgage loans are
funded since the loans are held for sale.

Interest
Income

Interest
income on mortgage loans held for sale is recognized for the period from loan funding to sale based upon the principal balance outstanding
and contractual interest rates. Revenue recognition is discontinued when loans become 90 days delinquent, or when, in management’s
opinion, the recovery of principal and interest becomes doubtful and the mortgage loans held for sale are put on nonaccrual status. For
loans that have been modified, a period of six payments is required before the loan is returned to an accrual basis.

Interest
Expense

Interest
expense relating to the warehouse lines of credit is included in revenues. Other interest expense is included in other (income)/expense.

Title
Fees

Settlement
fees and commissions earned at loan settlement on insurance premiums paid to title insurance companies.

    10

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Other
Revenues

Fees
received from a marketing partner who is embedded in the Company’s point-of-sale journey for investment property customers. The
partner pays Beeline for leads they receive from a customer opting in to use their insurance company for landlord insurance during the
application process.

DERIVATIVE
FINANCIAL INSTRUMENTS AND REVENUE RECOGNITION

The
Company holds and issues derivative financial instruments such as interest rate lock commitments (IRLCs). IRLCs are subject to price
risk primarily related to fluctuations in market interest rates. To hedge the interest rate risk on certain IRLCs, the Company enters
into best effort forward sale commitments with investors, whereby certain loans are locked with a borrower and simultaneously committed
to an investor at a fixed price. If the best effort IRLC does not fund, the Company has no obligation to fulfill the investor commitment. 

ASC 815-25, Derivatives and Hedging, requires that
all derivative instruments be recognized as assets or liabilities on the consolidated balance sheets at their fair value. The Company
issues