Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 476

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1C
Chunk 476
---
imble
Texas Title”), and Nimble Settlement Services, LLC (“Nimble Settlement Services”).

USE OF ESTIMATES

Preparing financial statements in conformity with
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses.
Significant estimates and assumptions in these consolidated statements include: the fair value of mortgage loans held for sale, valuation
of inventory, valuation of investments, valuation of accounts receivable, valuation of derivative instruments, valuation of software,
valuation of intangible assets, valuation of goodwill, valuation of purchase price in the business combination, valuation of the fair
value of the assets acquired and liabilities assumed in the business combination, valuation of lease liabilities and related right of
use assets, contingent liability for loan repurchases, and valuation of non-cash equity grants and issuances. Actual results and outcomes
may differ from management’s estimates and assumptions due to risks and uncertainties.

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

Beeline considers highly liquid investments purchased
with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include money market accounts
that are readily convertible into cash.

The Company maintains certain cash balances that are
restricted under warehouse and/or master repurchase agreements, broker margin accounts associated with its derivative instruments and
other restrictions. The restricted cash balance as of December 31, 2024 was $0.8 million, see Note 15 – Notes Payable-Related
Parties.

    F-10

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

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