Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 665

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 665
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 million, respectively,
and the increase was primarily from equity and debt transactions in 2024.

53

Critical
Accounting Policies and Estimates

Critical
accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition
and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates
about the effects of matters that are inherently uncertain. The critical accounting policies and practices used by the Company for the
year ended December 31, 2024 financial statements relate to the policies and practices the Company uses to account for:

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-Backed
Securities (“MBS”) prices, adjusted for the specific attributes of that loan, which would be used by other market participants.
Mortgage loans held for sale not calculated using observable market information are based on third-party broker quotations or market
bid pricing.

Gains
and losses from the sale of mortgage loans held for sale are recognized based upon the difference between the sales proceeds and carrying
value of the related loans upon sale and are recorded in gain on sale of loans, net on the consolidated statements of operations. Sales
proceeds reflect the cash received from investors through the sale of the loan and servicing release premium. Gain on sale of loans,
net also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans held for sale, and
the realized and unrealized gains and losses from derivative instruments.

Mortgage
loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is considered to have
been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors;
the purchaser obtains the right (free of