Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 970

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 970
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 solutions.

Technological
innovation remains central to Beeline’s strategy. Beeline’s proprietary technology enhances efficiency, reduces costs, and
improves loan processing quality. By automating key origination tasks, Beeline streamlines interactions for consumers, employees, and
partners. Its intuitive digital interface minimizes reliance on paper applications and manual processes, enabling faster and more efficient
loan transactions. Continued investment in automation and technology development will further reduce production costs and enhance customer
acquisition efforts.

Customer
acquisition is another critical component of Beeline’s success. Beeline aims to expand its reach while providing a highly personalized
digital experience. If traditional customer acquisition methods prove insufficient, especially in challenging market conditions, Beeline
may need to invest additional resources in sales and marketing to maintain growth. Increased marketing expenditures could elevate service
costs, making it essential to balance customer acquisition efforts with cost efficiency.

In
the ordinary course of Beeline’s operations, it finances the majority of its loan volume on a short-term basis, typically less
than 10 days, mainly utilizing a warehouse line of credit with a capacity of $5.0 million. The repayments of Beeline’s borrowings
come from the revenue generated by selling its loans to a network of purchasers. 

47

In
2024, Beeline made significant investments in its platform to leverage mortgage origination opportunities, despite overall lower volumes
compared to 2020 and 2021 due to fluctuating interest rates. In the fourth quarter, a temporary decline in the 10-year Treasury rate
drove a notable increase in loan originations, reinforcing our belief that interest rates, housing supply, and affordability will remain
key factors influencing future volume. Additionally, Beeline has expanded its focus on its B2B SaaS strategy, which is also subject to
macroeconomic conditions.

To
measure operational efficiency and growth, we track a range of performance metrics in our lending and title businesses, including production
data. Beeline Loans, the principal operating subsidiary of Beeline, uses data to track margin and gain-on-sale revenue. The title companies
use data to track file revenue. Beeline uses industry tools to benchmark its margin and note rates against the broader mortgage origination
market. We also evaluate key business drivers for Beeline subsidiaries, such as Beeline Labs, by monitoring revenue, unit sales, and
SaaS (B2B) growth potential. Additionally, we assess customer acquisition costs and profitability per loan to optimize financial performance.
These