Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 62

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 to the inclusion of Beeline’s net loss of $3.9 million for the six
months ended June 30, 2025.

For
the six months ended June 30, 2025, net cash used in investing activities of continuing operations was $0.1 million related to internal-use software development costs. For the six
months ended June 30, 2024, investing activities were nil.

For
the six months ended June 30, 2025, net cash provided by financing activities of continuing operations was $10.9 million primarily
from $15.8 million raised from equity transactions, offset by repayments of $0.9 million of the warehouse line and $4.1 million of
secured credit facilities. For the six months ended June 30, 2024, net cash provided by financing activities of continuing
operations was $1.1 million.

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 six months ended June 30, 2025 relate to the policies and practices the Company uses to account for:

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
using observable market information such as the investor commitment, assignment of trade or other mandatory delivery commitment prices.
The fair value of mortgage loans held for sale not committed to investors is based on quoted best execution secondary market prices.
If no such quoted price exists, the fair value is determined using quoted prices for a similar asset or assets, such as Mortgage-Backed
Securities (“MBS”) prices, adjusted for the specific attributes of that loan, which would be used by other market participants.
Mortgage loans held for sale not calculated using observable market information are based on third-party broker quotations or market
bid pricing.

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