Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1195

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7A
Chunk 1195
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, 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

Commissions earned at loan settlement on insurance
premiums paid to title insurance companies.

    F-11

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

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 the application process.

Net Sales, Spirits

Net sales include product sales, less excise taxes
and customer programs and incentives. Bridgetown Spirits recognizes revenue by applying the following steps in accordance with ASC 606
– Revenue from Contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations
in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract;
and (5) recognize revenue when each performance obligation is satisfied.

Bridgetown Spirits recognizes spirits sales when merchandise
is shipped from a warehouse directly to wholesale customers (except in the case of a consignment sale). For consignment sales, which include
sales to the Oregon Liquor Control Commission, sales