Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 86

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 factoring program that had a zero balance as of March 31, 2025 and December 31, 2024. Under the program,
the Company has the option to sell certain customer account receivables in advance of payment for 75% of the amount due. When the customer
remits payment, the Company receives the remaining balance. Interest is charged on the advanced 75% payment at a rate of 2.4% for the
first 30 days plus 1.44% for each additional ten-day period. Under the terms of the agreement, the factoring provider had full recourse
against the Company should the customer fail to pay the invoice. In accordance with ASC Topic 860 – Transfers and Servicing,
the Company has concluded that the agreement has met all three conditions identified in ASC Topic 860-10-40-5 (a) – (c) and have
accounted for this activity as a sale. Given the quality of the factored accounts, the Company does not recognize a recourse obligation.
In certain limited instances, the Company may provide collection services on the factored accounts but does not receive any fees for
acting as the collection agent, and as such.

BUSINESS
COMBINATION

The
Company accounts for business combinations in accordance with ASC 805, Business Combinations. Under this guidance, the Company
allocates the purchase price of an acquired business to the identifiable assets acquired and liabilities assumed at their estimated fair
values as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded
as goodwill.

Goodwill
represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in the business combination.
The increases or decreases in the fair value of the Company’s assets and liabilities can result from changes in fair values as
of the acquisition date as determined during the one-year measurement period under ASC 805.

    11

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

GOODWILL

Goodwill
is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company
tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The
Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company may elect to perform either
a qualitative test or a quantitative test to determine