Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 77

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 as well as operational improvements, which will be necessary to attract investors. However, there can
be no assurance that the Company will be successful in securing the necessary capital on favorable terms, or at all. The Company has no
material off-balance sheet arrangements as of the date of this filing.

Critical
Accounting Policies and Estimates

Critical
accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition
and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates
about the effects of matters that are inherently uncertain. The critical accounting policies and practices used by the Company in the
financial statements for the nine months ended September 30, 2025 relate to the policies and practices the Company uses to account for:

44

Mortgage loans held for sale and gains on sale of loans
revenue recognition. Mortgage loans held for sale are carried at fair value under the fair value option in accordance with ASC
825, Financial Instruments, with changes in fair value recorded in gain on sale of loans, net on the consolidated statements of
operations. The fair value of mortgage loans held for sale committed to investors is calculated based on the investor commitment.

Gains
and losses from the sale of mortgage loans held for sale 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