Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 53

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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the “FHA”), the Federal Trade Commission (the “FTC”), and
others subject Beeline Financial to periodic reviews and audits. This broad and extensive supervisory and enforcement oversight will
continue to occur in the future.

    31

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Beeline
Financial 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.

17.
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 September 30, 2025, there was one account that exceeded the limit by $1.0 million. As of December 31, 2024, there
was one account that exceeded the limit by $0.5 million.

The
Company relied on one lender for the warehouse line it uses to fund the mortgage loans it makes to its customers, which was limited to
a maximum of $5.0 million, see Note 10 – Warehouse Line of Credit. In October 2025, the Company expanded its warehouse lines
to $25.0 million tripling its prior $5.0 million line to $15.0 million and adding two new $5.0 million lines with new lenders, see
Note 20 – Subsequent Events.

The
Company sold its mortgage loans to six investors for the nine months ended September 30, 2025.

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 $1.1 million as of September 30, 2025. 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.

18.
NET INCOME (LOSS) PER COMMON SHARE

Basic
income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding
during the period, without considering any dilutive items. Potentially dilutive securities consist of the incremental