Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 117

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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CONCENTRATIONS

The
Company maintains cash balances with several regional banks. The deposits are insured by the Federal Deposit Insurance Corporation
up to $250,000 per
depositor per bank. At various times throughout the year, cash balances held within these accounts may exceed the maximum insured
amounts. As of March 31, 2025, there was one account that exceeded the limit by $1.0
million. As of December 31, 2024, there was one account that exceeded the limit by $0.5
million.

The
Company relies on one lender for the warehouse line it uses to fund the mortgage loans it makes to its customers, which is limited to
a maximum of $5.0 million.

The
Company sold its mortgage loans to seven investors for the three months ended March 31, 2025.

Escrows
Payable

As
a service to its clients, the Company administers escrow deposits representing undisbursed amounts received for payment of settlement
and title services. Escrow deposits held by the Company was $1.3
million as of March 31, 2025. These amounts are
not considered assets of the Company and, therefore, are excluded from the consolidated balance sheets. The Company remains contingently
liable for the disposition of these deposits.

    29

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

Exclusive
Supplier Agreement 

The
Company has a long-term exclusive agreement with Agaveros Unidos de Amatitan, SA. de CV (“Agaveros Unidos”) for the Azuñia
Tequila brand. The termination of this relationship or an adverse change in the terms of this arrangement with Agaveros Unidos could
have a negative impact on the Company’s business. If Agaveros Unidos increases its prices, the Company may not be able to secure
alternative suppliers, and may not be able to raise the prices of its products to cover all or even a portion of the increased costs.
Also, any failure by Agaveros Unidos to perform satisfactorily or handle increased orders, or delays in shipping, could cause the Company
to fail to meet orders for its products, lose sales, incur additional costs and/or expose the Company to product quality issues. In turn,
this could cause the Company to lose credibility in the marketplace and damage its relationships with distributors, ultimately leading
to a decline in our business and results of