Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 96

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 IRLCs to originate mortgage loans and the fair value of the IRLCs, adjusted for the probability that a given IRLC will close
and fund, is recognized in gain on sale of loans, net on the consolidated statements of operations. Subsequent changes in the fair value
of the IRLC are measured at each reporting period within gain on loans, net until the loan is funded. The Company accounts for all derivative
instruments as free-standing derivative instruments and does not designate any for hedge accounting.

ACCOUNTS
RECEIVABLE

Accounts
receivable consist primarily of amounts due from customers for services provided. Accounts receivable are stated at their gross outstanding
balance, net of an allowance for credit losses. The allowance for credit losses is based on a combination of factors, including historical
loss experience, aging of receivables, specific customer creditworthiness, current economic conditions, and reasonable and supportable
forecasts. The Company writes off accounts receivable when they are deemed uncollectible, and any recoveries of previously written-off
balances are recorded as a reduction to the provision for credit losses.

BUSINESS
COMBINATION

The
Company accounts for business combinations in accordance with ASC 805, Business Combinations. Under this guidance, the Company
allocates the purchase price of an acquired business to the identifiable assets acquired and liabilities assumed at their estimated fair
values as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded
as goodwill.

Goodwill
represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in the business combination.
The increases or decreases in the fair value of the Company’s assets and liabilities can result from changes in fair values as
of the acquisition date as determined during the one-year measurement period under ASC 805.

GOODWILL

Goodwill
is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company
tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The
Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company may elect to perform either
a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit exceeds
its estimated fair value. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting
unit. If the estimated fair