Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 443

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 443
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 additional resources in sales and marketing to maintain growth. Increased marketing expenditures could elevate service
costs, making it essential to balance customer acquisition efforts with cost efficiency.

In
the ordinary course of Beeline’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing a warehouse line of credit with a capacity of $5.0 million. The repayments of Beeline’s borrowings
come from the revenue generated by selling its loans to a network of purchasers. 

47

In
2024, Beeline 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 our belief that interest rates, housing supply, and affordability will remain
key factors influencing future volume. Additionally, Beeline has expanded its focus on its B2B SaaS strategy, which is also subject to
macroeconomic conditions.

To
measure operational efficiency and growth, we track a range of performance metrics in our lending and title businesses, including production
data. Beeline Loans, the principal operating subsidiary of Beeline, uses data to track margin and gain-on-sale revenue. The title companies
use data to track file revenue. Beeline uses industry tools to benchmark its margin and note rates against the broader mortgage origination
market. We also evaluate key business drivers for Beeline subsidiaries, such as Beeline Labs, by monitoring revenue, unit sales, and
SaaS (B2B) growth potential. Additionally, we assess 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.

Bridgetown
Spirits

Bridgetown
Spirits operates in a highly competitive, heavily regulated industry across multiple states, where both operations and distributor importance
vary by location. Following a period of declining distribution, Bridgetown Spirits has focused on refining its distribution strategy.
While Bridgetown Spirits has lost distribution in some key states, it has strengthened its presence in others. Restoring and optimizing
distribution remains a critical challenge, impacting volumes and future sales.

In
2024, Bridgetown Spirits completed a restructuring aimed at streamlining operations by focusing on core business activities while outsourcing
non-core functions, including production. As a result, its overall