Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 196

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 196
---
 its production volume, which could materially and adversely affect its business. We cannot predict
whether the impact of any proposals to move Fannie Mae and Freddie Mac out of conservatorship would require them to increase their fees.

27

Risks Related to Our Debt and Warehouse Credit
Lines

Because we rely on indebtedness
to fund our mortgage operations and growth objectives, its future results of operations and financial condition are subject to numerous
risks arising from its incurring this indebtedness.

Old Beeline has incurred in the
past, and we expect to incur in the future, a high level of indebtedness to finance operations. We may be unable to timely repay our debt
in accordance with the terms of the debt, which could lead to legal proceedings being instituted against our subsidiary. In particular,
we engage in warehouse borrowing to provide the capital to originate loans. Warehouse lending is essentially a line of credit issued by
a lender that permits us to borrow funds on a short-term basis. We use the warehouse loan to originate loans which we resell on the secondary
market and then use the proceeds of the sale to reduce the line of credit as well as provide working capital.

Borrowings under the warehouse
lines of credit are at variable rates of interest, which also expose us to interest rate risk. If interest rates increase, our debt service
obligations on certain of its variable-rate indebtedness will increase even though the amount borrowed remains the same, and our net losses
will increase and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease, which will negatively
impact our financial condition and potential business operations.

For more information on our other
debt, see the risk factor titled “We have substantial indebtedness which becomes due and payable in the near future, and if we are
unable to repay this indebtedness as and when it comes due, it could materially adversely affect our business and your investment in us”
on page 20. Our debt obligations could materially and adversely impact us. For example, these obligations could:

    ●
    require us to use a large portion of our cash to pay principal and interest on debt, which will reduce the amount of cash flow available to fund mortgage loan originations, working capital and other expenditures, and other business activities;

    ●
    result in certain of our debt instruments being accelerated to be immediately due and payable or being deemed to be in default if certain terms of default are triggered, such as applicable cross-default and/or cross-acceleration provisions;