Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 378

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 378
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 instruments
are valued using Level 3 measurements based upon dealer price quotes and internal models.

IRLCs: The fair value of IRLCs is based on
current market prices of securities backed by similar mortgage loans (as determined above under mortgage loans held for sale), net of
costs to close the loans, subject to the estimated loan funding probability, or “pull-through factor.” Given the significant
and unobservable nature of the pull-through factor, IRLCs are classified as Level 3.

Forward commitments: Beeline’s forward
commitments are valued based on quoted prices for similar assets in an active market with inputs that are observable and are classified
within Level 2 of the valuation hierarchy. There were no open forward contracts as of December 31, 2024.

DEBT DISCOUNT

Beeline’s debt instruments are recorded net
of issuance costs (debt discount). The resulting debt discount is amortized over the term of the term loan using the straight-line method,
which approximates the effective interest method, and the amortization of debt discount is included in interest expense in the consolidated
statements of operations and comprehensive loss.

FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS

The reporting currency of the company is the U.S.
dollar. Except for Beeline Loans Pty Ltd, the functional currency of the company is the U.S. dollar. The functional currency of Beeline
Loans Pty Ltd is the Australian dollar. For Beeline Loans Pty Ltd, results of operations and cash flows are translated at average exchange
rates during the period, assets and liabilities are translated at the exchange rate at the end of the period, and equity is translated
at historical exchange rates. As a result, amounts related to assets and liabilities reported on the statements of cash flows may not
necessarily agree with the changes in the corresponding balances on the balance sheets. Translation adjustments resulting from the process
of translating the local currency financial statements into U.S. dollars are included in determining comprehensive loss. The translation
adjustment for the period October 8, 2024 through December 31, 2024 was $(33,570).

    F-15

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Transactions denominated in foreign currencies are
translated into the functional currency at the exchange rates prevailing on the transaction dates with any transaction gains and losses
that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency