Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 126

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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 Beeline Financial’s success. Beeline Financial aims to expand its reach while providing
a highly personalized digital experience. If traditional customer acquisition methods prove insufficient, especially in challenging market
conditions, Beeline Financial may need to invest additional resources in sales and marketing to maintain growth. Increased marketing
expenditures could elevate service costs, making it essential to balance customer acquisition efforts with cost efficiency.

In
the ordinary course of Beeline Financial’s operations, it finances the majority of its loan volume on a short-term basis, typically
less than 10 days, mainly utilizing a warehouse line of credit with a capacity of $5.0 million. The repayments of Beeline Financial’s
borrowings come from the revenue generated by selling its loans to a network of purchasers.

In
2024, Beeline Financial made significant investments in its platform to leverage mortgage origination opportunities, despite overall
lower volumes compared to 2020 and 2021 due to fluctuating interest rates. In the fourth quarter, a temporary decline in the 10-year
Treasury rate drove a notable increase in loan originations, reinforcing our belief that interest rates, housing supply, and affordability
will remain key factors influencing future volume. Additionally, Beeline Financial has expanded its focus on its B2B SaaS strategy, which
is also subject to macroeconomic conditions.

To
measure operational efficiency and growth, we track a range of performance metrics in our lending and title businesses, including production
data. Beeline Loans, the principal operating subsidiary of Beeline Financial, uses data to track margin and gain-on-sale revenue. The
title companies use data to track file revenue. Beeline uses industry tools to benchmark its margin and note rates against the broader
mortgage origination market. We also evaluate key business drivers for Beeline Financial subsidiaries, such as Beeline Labs, by monitoring
revenue, unit sales, and SaaS (B2B) growth potential. Additionally, we assess customer acquisition costs and profitability per loan to
optimize financial performance. These key indicators help gauge progress toward our strategic and long-term growth objectives.

Bridgetown
Spirits

Bridgetown
Spirits operates in a highly competitive, heavily regulated industry across multiple states, where both operations and distributor importance
vary by location. Following a period of declining distribution, Bridgetown Spirits has focused on refining its distribution strategy.
While Bridgetown Spirits has lost distribution in some key states, it has strengthened its presence in others. Restoring and optimizing