Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 78

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 typically considers the above criteria to have been met upon acceptance
and receipt of sales proceeds from the purchaser.

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 for Sale and Gain on Sale of Loans Revenue Recognition” and below under “Derivative
Financial Instruments and Revenue Recognition”.

Loan
Origination Fees 

Loan
origination fees represent revenue earned from originating mortgage loans. Loan origination fees generally represent flat per-loan fee
amounts and are recognized as revenue at the time the mortgage loans are funded since the loans are held for sale.

45

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 net revenues. Other interest expense is included in other (income)/expense.

Title
Fees

Settlement
fees and commissions earned at loan settlement on insurance premiums paid to title insurance companies.

Other
Revenues

Fees
received from a marketing partner that is embedded in the Company’s point-of-sale journey for investment property customers. The