Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 163

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 163
---
 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 net revenues. Other interest expense is included in other (income)/expense.

Data
and Tech

Fees received from a marketing partner that 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.

Net
Sales, Spirits

Net
sales include product sales, less excise taxes and customer programs and incentives. Bridgetown Spirits recognizes revenue by applying
the following steps in accordance with ASC 606 – Revenue from Contracts with Customers: (1) identify the contract with a
customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction
price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Bridgetown
Spirits recognizes spirits sales when merchandise is shipped from a warehouse directly to wholesale customers (except in the case of
a consignment sale). For consignment sales, which include sales to the Oregon Liquor Control Commission, sales are recognized upon the
consignee’s shipment to the customer. Postage and handling charges billed to customers are also recognized as sales upon shipment
of the related merchandise. Shipping terms are generally FOB shipping point, and title passes to the customer at the time and place of
shipment or purchase by customers at a retail location. For consignment sales, title passes to the consignee concurrent with the consignee’s
shipment to the customer. The customer has no cancellation privileges after shipment or upon purchase at retail locations, other than
customary rights of return.

41

Excise
Taxes - Bridgetown Spirits is responsible for compliance with the Alcohol and Tobacco Tax and Trade Bureau (“TTB”)
regulations, which includes making timely and accurate excise tax payments. Bridgetown Spirits is subject to periodic compliance audits
by the TTB. Individual