Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 865

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 865
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 ongoing housing supply constraints disrupted these seasonal trends. Despite steady consumer demand for credit, high interest rates
and economic uncertainty may cause borrowers to delay financing decisions, leading to fluctuations in Beeline’s revenue and financial
performance.

Limited housing supply has constrained home purchase
activity. Rising interest rates have further exacerbated this issue by increasing home prices, reducing affordability, and discouraging
transactions. However, Beeline believes that persistent imbalances
between supply and demand will ultimately drive greater home construction, expanding housing inventory and stimulating future mortgage
activity.

Beeline’s
ability to attract and retain customers depends on delivering a seamless and competitive digital mortgage experience. The shift toward
digital transactions, accelerated by the COVID-19 pandemic, has increased consumer willingness to engage in high-value online purchases,
including mortgage applications. Beeline’s platform is designed to provide a convenient and efficient digital experience, positioning
it favorably against traditional mortgage origination methods. With Millennial and Generation Z homeownership rates on the rise, Beeline
anticipates continued growth in demand for digital mortgage solutions.

Technological
innovation remains central to Beeline’s strategy. Beeline’s proprietary technology enhances efficiency, reduces costs, and
improves loan processing quality. By automating key origination tasks, Beeline 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 Beeline’s success. Beeline aims to expand its reach while providing a highly personalized
digital experience. If traditional customer acquisition methods prove insufficient, especially in challenging market conditions, Beeline
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.

In
the ordinary course of Beeline’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing a warehouse line of credit with a capacity of $5.0 million. The repayments of Beeline’s borrowings
come from the revenue generated by selling its loans to a network of purchasers. 

47

In
2024, Beeline made significant investments in its platform to leverage mortgage origination opportunities, despite overall lower volumes
compared to 2020 and 2021 due to fluctuating