Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 10

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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following is a description of measurement techniques for items recorded at fair value on a recurring basis. There was no material items
recorded at fair value on a nonrecurring basis as of June 30, 2025 and December 31, 2024.

Mortgage
loans held for sale: Loans held for sale that are valued using Level 2 measurements derived from observable market data, including
market prices of securities backed by similar mortgage loans adjusted for certain factors to approximate the fair value of a whole mortgage
loan, including the value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable
trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes and internal models.

IRLCs:
The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage
loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor.”
Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3.

Forward
commitments: Beeline’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs
that are observable and are classified within Level 2 of the valuation hierarchy. There were no open forward contracts as of June 30,
2025.

DEBT
DISCOUNT

Beeline’s
debt instruments are recorded net of issuance costs (debt discount). The resulting debt discount is amortized over the term of the term
loan using the straight-line method, which approximates the effective interest method, and the amortization of debt discount is included
in interest expense in the consolidated statements of operations and comprehensive loss.

    12

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

FOREIGN
CURRENCY TRANSLATION AND TRANSACTIONS

The
reporting currency of the company is the U.S. dollar. Except for Beeline Loans Pty Ltd, the functional currency of the Company is the
U.S. dollar. The functional currency of Beeline Loans Pty Ltd is the Australian dollar. For Beeline Loans Pty Ltd, results of operations
and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate
at the end of the period, and equity is translated at historical exchange rates.