Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 17

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 17
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 laws and
other federal, state and local laws in the jurisdictions in which Beeline operates.

As states and possibly the federal government start
to enact laws and regulations relating to AI, we will be subject to such changes.

Seasonality

The consumer lending sector, particularly with regard
to mortgage loan origination volumes, is shaped by broader economic factors such as interest rates, inflation, unemployment levels, home
price trends, and consumer sentiment. Additionally, seasonality plays a key role, as home sales generally experience an uptick in the
second and third quarters and see a decline in the first and fourth quarters of the calendar year. This seasonal pattern arises from homebuyers
with children preferring to make purchases during the spring and summer months in order to move before the school year begins.

Refinancing mortgage loans are particularly influenced
by current levels as well as expected trends in interest rates. Nevertheless, the traditional patterns of seasonality seen in the housing
market were less pronounced in 2021, 2022 and 2023 largely due to rising interest rates and a tight housing supply. Currently, Beeline
is observing a continued weakening of seasonality’s impact on its operations.

Beeline Business Initiatives

Beeline’s business initiatives include adding
lending products to its current suite. This may include VA and FHA originated and underwritten fully in-house at Beeline. Additionally,
it anticipates expansion of its commercial loan offerings.

Beeline also plans to have direct seller approval
with Fannie Mae and Freddie Mac in the second half of 2025. During this timeframe, Beeline may also engage in a holistic hedging strategy
to increase the revenue per file by selling loans on a mandatory basis to its investors.

To diversify revenue, Beeline plans to offer SaaS
products to the mortgage industry - the MagicBlocks and BlinkQC products referenced previously.

There may be time, resource or other constraints that
impede Beeline’s ability to execute on these initiatives which may delay them or prevent them from occurring.

13

Warehouse Line of Credit

In addition to traditional equity and debt financing,
Beeline uses a warehouse line of credit to provide the capital for it to originate mortgage loans. Generally, warehouse lines of credit
are used as interim, short-term financing which bears interest at a fixed margin over an industry index rate. The outstanding balance
of the Company’s warehouse line of credit will fluctuate based on its lending volume. The advances received under the warehouse
lines of credit are based upon a percentage of the