Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 115

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 115
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 at a fixed price. If the best effort IRLC
does not fund, the Company has no obligation to fulfill the investor commitment.

ASC 815-25, Derivatives and Hedging, requires
that all derivative instruments be recognized as assets or liabilities on the consolidated balance sheets at their fair value. Changes
in the fair value of the derivative instruments are recognized in gain on sale of loans, net on the consolidated statements of operations
in the period in which they occur. The Company accounts for all derivative instruments as free-standing derivative instruments and does
not designate any for hedge accounting.

INVENTORIES

Bridgetown Spirits’ inventories primarily consist
of bulk and bottled liquor and merchandise and are stated at the lower of cost or market. Cost is determined using an average costing
methodology, which approximates cost under the first-in, first-out method. A portion of inventory is held by certain independent distributors
on consignment until it is sold to a third party. Bridgetown Spirits regularly monitors inventory quantities on hand and records write-downs
for excess and obsolete inventories based primarily on the estimated forecast of product demand and production requirements. Such write-downs
establish a new cost basis of accounting for the related inventory.

ACCOUNTS RECEIVABLE

Accounts receivable consist primarily of amounts due
from customers for goods shipped or 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.

ACCOUNTS RECEIVABLE FACTORING PROGRAM

The Company has an accounts receivable factoring program
that had a zero balance as of December 31, 2024 and 2023. Under the program, the Company has the option to sell certain customer account
receivables in advance of payment for 75% of the amount due. When the customer remits payment, the Company receives the remaining balance.
Interest is charged on the advanced 75% payment at a rate of 2.4% for the first 30 days plus 1.44% for each additional ten-day period.
Under the terms of the agreement, the factoring provider had full