Beeline Holdings, Inc. Segments Disclosure

7. BUSINESS SEGMENTS

 

The Company’s CODM, the Chief Executive Officer, evaluates how the Company views and measures its performance. ASC 280, Segment Reporting establishes the standards for reporting information about segments in financial statements. After consideration of these criteria, the CODM has determined that there are three reportable segments, consisting of Beeline Loans, Beeline Title Holdings and Corporate.

 

Beeline Loans is an AI-driven fintech mortgage lender that develops proprietary software in the form of major enhancements and new developments in its lending platform, including Beeline’s Chatbot “Bob.” Corporate allocates a portion of compensation and benefits, and general and administrative expenses to Beeline Loans, which is included in the segments’ financial data below.

 

Beeline Title Holdings provides title and loan closing services for Beeline’s mortgage origination business. It is providing similar services with respect to the Company’s BeelineEquity product.

 

Corporate primarily consists of general corporate expenses, including public company costs, executive compensation, legal and regulatory compliance, and other administrative functions that support the overall business. This segment also includes holding company expenses, such as financing costs, accounting, legal, insurance, investor relations, and strategic corporate initiatives that are not directly attributable to any operating segment.

 

The Company measures segment performance to allocate resources primarily based on revenues of Beeline Loans and Beeline Title Holdings and the general and administrative costs related to corporate. Total asset information by segment is not provided to, or reviewed by, the CODM as it is not used to make strategic decisions, allocate resources or assess performance. The accounting policies of the segments are the same as those described for the Company in Note 3 - Summary of Significant Accounting Policies.

 

Segment information was as follows:

 SCHEDULE OF SEGMENT INFORMATION

Beeline Loans

(Dollars in thousands)		2025				October 8, 2024- December 31, 2024
Gain on sale of loans, net		$	5,384			$	757
Loan origination fees			1,019				214
Interest income (expense)
Interest income			406				86
Interest expense			(432	)			(141	)
Interest income (expense), net			(26	)			(55	)
Other revenues			14				2
Total net revenues			6,391				918
Compensation, commissions and benefits			6,660				1,012
General and administrative expenses			874				253
Depreciation and amortization			3,216				736
Marketing and advertising			2,671				409
Other operating expenses			2,130				422
Total operating expenses			15,551				2,832
Loss from operations			(9,160	)			(1,914	)
Interest expense			(36	)			(11	)
Gain on extinguishment of debt			34				-
Other income (expense), net			(83	)			-
Net loss from continuing operations		$	(9,245	)		$	(1,925	)

 

 

Beeline Title Holdings
(Dollars in thousands)		2025				October 8, 2024- December 31, 2024
Title fees		$	1,379			$	192
Total net revenues			1,379				192
Compensation and benefits			1,244				197
General and administrative expenses			192				3
Marketing and advertising			124				10
Other operating expenses			509				45
Total operating expenses			2,069				255
Loss from operations			(690	)			(63	)
Other income (expense), net			(2	)			-
Net loss from continuing operations		$	(692	)		$	(63	)

 

Corporate		Years Ended December 31,
(Dollars in thousands)		2025				2024
Compensation and benefits		$	3,540			$	1,312
General and administrative expenses			5,429				1,804
Depreciation and amortization			100				22
Marketing and advertising			205				11
Other operating expenses			417				58
Total operating expenses			9,691				3,207
Interest income			-				4
Interest expense			(2,231	)			(2,225	)
Gain (loss) on extinguishment of debt			(644	)			591
Gain on troubled debt restructuring			-				4,483
Loss on equity method investment			(266	)			(58	)
Other income (expense), net			103				8
Net loss from continuing operations		$	(12,729	)		$	(404	)
Consolidated net loss from continuing operations		$	(22,666	)		$	(2,392	)