Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 266

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 266
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 assets have
been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right (free of conditions
that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and the Company does not maintain
effective control over the transferred assets through either an agreement that both entitles and obligates the Company to repurchase or
redeem the transferred assets before their maturity or the ability to unilaterally cause the holder to return specific financial 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