Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1054

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1054
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 (the “FHA”),
the Federal Trade Commission (the “FTC”), and others subject Beeline to periodic reviews and audits. This broad and extensive
supervisory and enforcement oversight will continue to occur in the future.

    F-36

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Beeline maintains dedicated staff on the legal and
compliance team to ensure timely responses to regulatory examination requests and to investigate consumer complaints in accordance with
regulatory regulations and expectations.

21. CONCENTRATIONS

The Company maintains cash balances with several regional
banks. The deposits are insured by the Federal Deposit Insurance Corporation up to $250,000 per depositor per bank. At various times throughout
the year, cash balances held within these accounts may exceed the maximum insured amounts. As of December 31, 2024, there was one account
that exceeded the limit by $0.5 million. There were no balances that exceeded insured limits as of December 31, 2023.

The Company relies on one lender for the warehouse
line it uses to fund the mortgage loans it makes to its customers, which is limited to a maximum of $5.0 million.

The Company sold its mortgage loans to seven investors
for the period October 8, 2024 – December 31, 2024.

Escrows Payable

As a service to its clients, the Company administers
escrow deposits representing undisbursed amounts received for payment of settlement and title services. Escrow deposits held by the Company
was $0.6 million as of December 31, 2024. The Company held $0.1 million in escrow as of December 31, 2024. These amounts are not considered
assets of the Company and, therefore, are excluded from the consolidated balance sheets. The Company remains contingently liable for the
disposition of these deposits.

Exclusive Supplier Agreement 

The Company has a long-term exclusive agreement with Agaveros Unidos de Amatitan, SA. de CV (“Agaveros Unidos”)
for the Azuñia Tequila brand. The termination of this relationship or an adverse change in the terms of this arrangement with
Agaveros Unidos could have a negative impact on the Company’s business. If Agaveros Unidos increases its prices, the Company may
not be able to secure alternative suppliers, and may not be able to raise the prices of its products to cover all or