Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 6

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 6
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 period, historical loss experience, known delinquent and other problem loans, and economic trends
and conditions in the industry. Actual losses incurred are reflected as write-offs against the loan indemnification reserve.

Since
mortgage loans held for sale have maturity dates greater than one year from the balance sheet date but are expected to be sold in a short
time frame (less than one year), they are recorded as current assets.

Changes
in the balance of mortgage loans held for sale are included in cash flows from operating activities in the consolidated statements of
cash flows in accordance with ASC 230-10-45-21, Statement of Cash Flows.

    9

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

REVENUE
RECOGNITION

Gains
on Sale of Loans, Net

See
discussion above under “Mortgage Loans Held for Sale and Gain on Sale of Loans Revenue Recognition” and below under “Derivative
Financial Instruments and Revenue Recognition”.

Title
Fees

Settlement
fees and commissions earned at loan settlement on insurance premiums paid to title insurance companies.

Loan
Origination Fees and Costs

Loan
origination fees represent revenue earned from originating mortgage loans. Loan origination fees generally represent flat per-loan fee
amounts based on a percentage of the original principal loan balance and are recognized as revenue at the time the mortgage loans are
funded since the loans are held for sale. Loan origination costs are charged to operations as incurred.

Interest
Income

Interest
income on mortgage loans held for sale is recognized for the period from loan funding to sale based upon the principal balance outstanding
and contractual interest rates. Revenue recognition is discontinued when loans become 90 days delinquent, or when, in management’s
opinion, the recovery of principal and interest becomes doubtful and the mortgage loans held for sale are put on nonaccrual status. For
loans that have been modified, a period of six payments is required before the loan is returned to an accrual basis.

Interest
Expense

Interest
expense relating to the warehouse lines of credit is included in revenues. Other interest expense is included in other (income)/expense.

Data
and Tech

Fees
received from a marketing partner who is embedded in the Company’s point-of-sale journey for investment property customers. The
partner pays Beeline for leads they receive from a customer opting in to use their insurance company for landlord insurance during