Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 62

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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In
the ordinary course of the Company’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing three warehouse lines of credit with a capacity of $25.0 million. The repayments of the Company’s
borrowings come from the revenue generated by selling its loans to a network of purchasers.

In
2024, the Company made significant investments in its platform to leverage mortgage origination opportunities, despite overall lower
volumes compared to 2020 and 2021 due to fluctuating interest rates. In the fourth quarter, a temporary decline in the 10-year Treasury
rate drove a notable increase in loan originations, reinforcing the Company’s belief that interest rates, housing supply, and affordability
will remain key factors influencing future volume. Additionally, the Company has expanded its focus on its B2B SaaS strategy, which is
also subject to macroeconomic conditions.

To
measure operational efficiency and growth, the Company tracks a range of performance metrics in its lending and title businesses, including
production data. Beeline Loans, the principal operating subsidiary of the Company, uses data to track margin and gain-on-sale revenue.
The title companies use data to track file revenue. The Company uses industry tools to benchmark its margin and note rates against the
broader mortgage origination market. The Company also evaluates key business drivers for its subsidiaries by monitoring revenue, unit
sales, and SaaS (B2B) growth potential. Additionally, the Company assesses customer acquisition costs and profitability per loan to optimize
financial performance. These key indicators help gauge progress toward our strategic and long-term growth objectives.

Recent
Developments

Business
Trends

From
January through September 2025, inflation had been steadily moderating from earlier high levels, aided by improved supply chains,
softer commodity and energy prices, and some cooling in housing-related costs. But by the late summer and into September, the pace
of disinflation slowed and even reversed slightly: the jump to a 3.0% annual rate in September signals that inflation remains more
persistent than many hoped. Early in the year, the decline was fairly smooth: energy-led relief, moderate food inflation, and some
relief in goods prices especially as supply chains stabilized. However, services inflation, especially in housing (shelter), medical
care, and insurance, remained resilient. The rebound in gasoline and energy prices in September (month-over-month) was a reminder
that commodity risk remains