Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 584

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 584
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 assets.
The Company typically considers the above criteria to have been met upon acceptance and receipt of sales proceeds from the purchaser.

Mortgage loans sold to investors by the Company, and
which met investor underwriting guidelines at the time of sale, may be subject to repurchase in the event of specific default by the borrower
or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, indemnify the investor against
future losses on such loans. Additionally, reserves are established for estimated liabilities from the need to repay, where applicable,
a portion of the premium received from investors on the sale of certain mortgage loans if such loans are repaid in their entirety within
a specified period after the sale of the loans. The Company has established a reserve for potential losses related to these representations
and warranties. In assessing the adequacy of the reserve, management evaluates various factors including actual write-offs during the
period, historical loss experience, known delinquent and other problem loans, and economic trends and conditions in the industry. Actual
losses incurred are reflected as write-offs against the loan indemnification reserve.

Since mortgage loans held for sale have maturity dates
greater than one year from the balance sheet date but are expected to be sold in a short time frame (less than one year), they are recorded
as current assets.

Changes in the balance of mortgage loans held for
sale are included in cash flows from operating activities in the consolidated statements of cash flows in accordance with ASC 230-10-45-21,
Statement of Cash Flows.

REVENUE RECOGNITION

Gains on Sale of Loans, Net

See discussion above under “Mortgage Loans Held
for Sale and Gain on Sale of Loans Revenue Recognition” and below under “Derivative Financial Instruments and Revenue Recognition”.

Title Fees

Commissions earned at loan settlement on insurance
premiums paid to title insurance companies.

    F-11

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Loan Origination Fees and Costs

Loan origination fees represent revenue earned from
originating mortgage loans. Loan origination fees generally represent flat per-loan fee amounts based on a percentage of the original
principal loan balance and are recognized as revenue at the time the mortgage loans are funded since the loans are held for sale. Loan
origination costs are charged to operations as incurred.

Interest Income

Interest income on mortgage loans held for sale is
recognized for the period from