Beeline Holdings, Inc. (BLNE) is a small-cap fintech mortgage originator, title services provider, and fractional real estate equity facilitator. Under a liquidation lens, the company presents deeply negative recovery to equity. MFFAIS reports a cash liquidation value of approximately -$13.9M, liquid liquidation value of -$13.9M, and operating liquidation value of -$13.9M as of March 31, 2026. The filing does not separately disclose balance sheet totals in the truncated XBRL provided, but the narrative and TAG_CONTEXT are sufficient to confirm the structural insolvency posture. The primary balance-sheet recovery drivers are adverse. The asset base is dominated by mortgage loans held for sale at fair value (warehouse-funded, short-duration), goodwill and intangibles from acquisitions (zero recovery under liquidation), and internally-developed software (capitalized, 5-year life, nominal salvage value). On the liability side, warehouse lines of credit totaling up to $25M aggregate capacity are collateralized by LHFS and extinguish on loan sale, but any drawn balance at liquidation would claim the underlying loan collateral first. The company self-discloses it does not have sufficient cash to meet working capital needs for the next 12 months and estimates it needs approximately $6M in additional capital. As of May 8, 2026, cash on hand was approximately $1.2M including $0.9M raised post-quarter. Cash burn from operations was $3.6M for Q1 2026, up from $1.4M in Q1 2025. The operating loss for Q1 2026 was $5.2M against total net revenues of $2.7M, a revenue-to-expense coverage ratio of approximately 34%. The company is funding operations through equity dilution via ELOC and ATM agreements and small-scale warrant exercises. The filing discloses an unquantified antitrust class action (Mendez v. Optimal Blue) in which Beeline Loans remains a named defendant after an amended complaint. No liability accrual is disclosed. The filing also discloses a related-party advance of $0.2M to TYTL (CEO-affiliated cryptocurrency entity), CEO-guaranteed, and a $0.2M deferred revenue liability to TYTL under a consulting MSA. Key intangible and goodwill balances are discussed in MD&A (impairment policy, 5-year software amortization, annual goodwill test) but specific dollar values for these line items are not separately tagged in the XBRL provided. Filing does not separately tag goodwill, intangible assets, loans held for sale, warehouse line of credit balances, operating lease liabilities, or total assets/liabilities in the TAG_CONTEXT provided, precluding a full bottom-up liquidation build from XBRL alone. Disclosure controls were assessed as not effective as of March 31, 2026.
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