Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 99

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 value attributable to mortgage servicing and credit risk. Loans held for sale for which there is little to no observable
trading activity of similar instruments are valued using Level 3 measurements based upon dealer price quotes and internal models.

IRLCs:
The fair value of IRLCs is based on current market prices of securities backed by similar mortgage loans (as determined above under mortgage
loans held for sale), net of costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor.”
Given the significant and unobservable nature of the pull-through factor, IRLCs are classified as Level 3.

Forward
commitments: Beeline’s forward commitments are valued based on quoted prices for similar assets in an active market with inputs
that are observable and are classified within Level 2 of the valuation hierarchy. There were no open forward contracts as of September
30, 2025.

DEBT
DISCOUNT

Beeline’s
debt instruments are recorded net of issuance costs (debt discount). The resulting debt discount is amortized over the term of the term
loan using the straight-line method, which approximates the effective interest method, and the amortization of debt discount is included
in interest expense in the consolidated statements of operations and comprehensive loss.

FOREIGN
CURRENCY TRANSLATION AND TRANSACTIONS

The
reporting currency of the company is the U.S. dollar. Except for Beeline Loans Pty Ltd, the functional currency of the Company is the
U.S. dollar. The functional currency of Beeline Loans Pty Ltd is the Australian dollar. For Beeline Loans Pty Ltd, results of operations
and cash flows are translated at average exchange rates during the period, assets and liabilities are translated at the exchange rate
at the end of the period, and equity is translated at historical exchange rates. As a result, amounts related to assets and liabilities
reported on the statements of cash flows may not necessarily agree with the changes in the corresponding balances on the balance sheets.
Translation adjustments resulting from the process of translating the local currency financial statements into U.S. dollars are included
in determining comprehensive loss. The translation adjustment for the nine months ended September 30, 2025 was $12,626.

Transactions
denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing on the transaction dates
with any transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than
the functional currency included in the results of operations as incurred. These