Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 94

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 are recognized based upon the difference between the sales proceeds and carrying
value of the related loans upon sale and are recorded in gain on sale of loans, net on the consolidated statements of operations. Sales
proceeds reflect the cash received from investors through the sale of the loan and servicing release premium. Gain on sale of loans,
net also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans held for sale, and
the realized and unrealized gains and losses from derivative instruments.

Mortgage
loans held for sale are considered sold when the Company surrenders control over the financial assets. Control is considered to have
been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors;
the purchaser obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the
transferred assets; and the Company does not maintain effective control over the transferred assets through either an agreement that
both entitles and obligates the Company to repurchase or redeem the transferred assets before their maturity or the ability to unilaterally
cause the holder to return specific financial assets. The Company typically considers the above criteria to have been met upon acceptance
and receipt of sales proceeds from the purchaser.

    9

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Mortgage loans sold to investors by the Company, and which
met investor underwriting guidelines at the time of sale, may be subject to repurchase in the event of specific default by the borrower
or subsequent discovery that underwriting standards were not met. The Company may, upon mutual agreement, indemnify the investor against
future losses on such loans. Actual losses incurred are reflected as a reduction in gains on sale of loans, net in the consolidated statements
of operations.

Since
mortgage loans held for sale have maturity dates greater than one year from the balance sheet date but are expected to be sold in a short
time frame (less than one year), they are recorded as current assets.

Changes
in the balance of mortgage loans held for sale are included in cash flows from operating activities in the consolidated statements of
cash flows in accordance with ASC 230-10-45-21, Statement of Cash Flows.

REVENUE
RECOGNITION

Gains
on Sale of Loans, Net

See
discussion above under “Mortgage Loans Held