Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 81

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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ble Title Agency, LLC (“Nimble Title Agency”),
Nimble Texas Title, LLC (“Nimble Texas Title”), and Nimble Settlement Services, LLC (“Nimble Settlement Services”).

USE
OF ESTIMATES

Preparing
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues, and expenses. Significant estimates and assumptions in these consolidated statements include: the fair
value of mortgage loans held for sale, valuation of inventory, valuation of investments, valuation of accounts receivable, valuation
of derivative instruments, valuation of software, valuation of intangible assets, valuation of goodwill, valuation of lease liabilities and related right of use assets, contingent liability for loan repurchases, and valuation of non-cash
equity grants and issuances. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and
uncertainties.

CASH,
CASH EQUIVALENTS, AND RESTRICTED CASH

Beeline
considers highly liquid investments purchased with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents.
Cash equivalents include money market accounts that are readily convertible into cash.

The
Company maintains certain cash balances that are restricted under warehouse and/or master repurchase agreements, broker margin accounts
associated with its derivative instruments and other restrictions. The restricted cash balance as of March 31, 2025 was $45,584, see
Note 13 – Notes Payable-Related Parties.

    8

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

MORTGAGE
LOANS HELD FOR SALE AND GAINS ON SALE OF LOANS REVENUE RECOGNITION

Mortgage
loans held for sale are carried at fair value under the fair value option in accordance with ASC 825, Financial Instruments, with
changes in fair value recorded in gain on sale of loans, net on the consolidated statements of operations. The fair value of mortgage
loans held for sale committed to investors is calculated using observable market information such as the investor commitment, assignment
of trade or other mandatory delivery commitment prices. The fair value of mortgage loans held for sale not committed to investors is
based on quoted best execution secondary market prices. If no such quoted price exists, the fair value is determined using quoted prices
for a similar asset or assets, such as Mortgage-Back