Beeline Holdings, Inc.

Good day, and welcome to the Beeline Holdings, Inc. second quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch-tone phone. To withdraw your question, please press star, and then two. Please note this event is being recorded. I would now like to turn the conference over to Tiffany Milton, Chief Accounting Officer. Please go ahead.

Thank you. Good evening, everyone, and thank you for joining us today to discuss Beeline's results for the second quarter of 2026. I'm Tiffany Milton, Beeline's Chief Accounting Officer, and joining us on today's call to discuss these results is Nick Laiusa, our Chief Executive Officer, Jess Kennedy, Chief Operating Officer, and Chris Moe, our Chief Financial Officer. Following our remarks, we will open the call to your questions. Now, before we begin with prepared remarks, we submit for the record the following statement. This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding Beeline Holdings' expected future growth of its core business, increased revenue, growth of fee-based revenue streams, including Beeline equity, operating priorities and plans, goals and expectations for future operating results and expenditures, for the remainder of 2026 and beyond, plans and expectations for potential merger with TYTL, and the opportunities and benefits offered by such a transaction. Forward-looking statements are typically identified by words such as believe, expect, anticipate, plan, intend, seek, estimate, will, would, could, may, continue, forecast, target, potential, project, undertake, and similar expressions. These statements are based on management's current assumptions, beliefs, and expectations and are not guarantees of future performance. Actual results may differ materially from those described in forward-looking statements due to various risks and uncertainties. These include, without limitation, the risk factors we provided in our 2025 Form 10-K and prospective supplement dated March 10, 2026, which was filed with the SEC. We caution investors not to place undue reliance on any forward-looking statements made during this call. All forward-looking statements speak only as of the date of this presentation and are based on information available to Beeline as of today. We undertake no obligation to publicly update or revise these statements to reflect events or circumstances occurring after today's date, except as required by law. Now, with that said, I'd like to turn the call over to Nick Lausa. Nick, please proceed.

Hello, shareholders, investors, and friends of Beeline. Before discussing the quarter, I want to highlight that yesterday, I personally invested an additional $500,000 in the Beeline which will automatically convert next Wednesday into common stock at a minimum price of $1.50 per share. I made that investment because I believe strongly in the direction of the company, the progress we are making, and the opportunity that lies ahead for all of us. Our strategy is straightforward. Generate more revenue per transaction, require less incremental operating expense to grow our business, and become increasingly less dependent on the traditional mortgage cycle while continuing to improve the unit economics of our core business. With that said, let's turn to Q2. Q2 was another quarter of meaningful progress. Revenues increased 57% year over year. Our net loss declined by 24% from the previous quarter. Our quarterly cash burn decreased to $1.7 million. June expenses dropped by $369,000 versus May. Our product mix continues shifting toward the higher margin non-qualified mortgage products. We completed the acquisition of Magic Blocks, an important component of our AI strategy. And subsequent to the quarter end, we announced the proposed acquisition of TYTL. The mortgage environment remains challenging. Interest rates, capital markets, and geopolitical uncertainty continue to weigh on traditional mortgage and refinance activity. Against that backdrop, we're focused on what we can control. Last quarter, we discussed our increased focus on two higher demand, higher margin products, our Bank Statement Loan and our DSC Loan. We're now beginning to see the impact of that shift. In July, our margins reached their highest level in the company's history. Revenues reached its highest level of the year, and monthly cash burning fell to its lowest level in years. We certainly have a long way to go, but considering the headwinds, we're happy with the progress. Our objective is simple, grow revenues faster than expenses and create increasing operating leverage as Beeline scales. Chris will talk through the financial results in greater detail. During Q2, we completed the acquisition of Magic Blocks. Magic Blocks provides AI-driven sales and workflow technology already integrated into Beeline's customer acquisition and conversion process. Bringing that technology fully in-house gives us greater control and allows us to deploy it across all of our products, including Beeline Equity, which is supported by TYTL. This was a key consideration in completing the transaction. Objectives are straightforward. Increase conversion, reduce customer acquisition costs, and automate customer communications at very low cost. For Beeline, AI is not simply about the technology. It's about improving the economics of the business. Every improvement in conversion and every workflow we automate has the potential to increase operating leverage as we scale our business. As mentioned, we entered into a non-binding LOI for a proposed all-stock transaction with TYTL. TYTL provides the underlying infrastructure supporting B-line equity. During the quarter, we continued advancing B-line equity, our fractional home equity offering, developed in partnership with TYTL. The transactions are recorded in the public record with details logged on the blockchain and represented by a Reg D digital security. U.S. homeowners currently hold approximately $17 trillion of home equity. And based on TYTO's underwriting criteria, we estimate an initial addressable market of approximately $1 trillion. This represents a significant opportunity to drive new revenues for Beeline. As we mentioned, the LOI is non-binding. We continue to work with TYTL toward a closing, which is subject to shareholder approval, a fairness opinion, and evaluation analysis. If we can close a transaction with TYTL, then there are three key elements to the transaction. First, a unique product offering. TYTL's residential equity product provides qualified homeowners access to their home equity without monthly payments or a maturity date. and with economics that are not directly tied to interest rates. Second, higher revenue per transactions. Based on the economics, we currently anticipate a TYTO transaction could generate approximately three times the revenue of a traditional B-line mortgage transaction. That has the potential to accelerate our path toward cash flow positive operations while maturely increasing the revenue potential of the platform. Third, a digital asset treasury. The combined companies expect to retain Regulation D digital securities equal to approximately 5% of each TYTL transaction, creating the potential to build a growing balance sheet portfolio backed by ownership interest and prime residential real estate. Over time, that portfolio could become a strategic asset and potentially support non-dilutive initiatives, including acquisitions or share repurchases. The companies are in the process of engaging an investment banker to assist with the sale of TYTL digital securities to institutional investors to fund transactions and to potentially provide access to capital on more attractive terms. If we can execute successfully, Belon can evolve from primarily a mortgage lender into a broader residential finance and real-world asset platform, combining mortgage origination, title, AI-driven technology, fractional home equity, and digital securities on a common infrastructure. We believe that creates a substantially larger, longer-term opportunity for Beeline. To summarize, we're improving the economics of our core mortgage business. We're shifting toward higher margin products. We're reducing our cost and our cash burn. We're using AI to improve conversions and operational leverage. We're expanding into products that are less dependent on interest rates. We're building B-line equity into a different growth platform. Our strategy is straightforward. Generate more revenue per transaction, require less incremental operating expenses to grow, become increasingly less dependent on the traditional mortgage cycle. Q2 demonstrated meaningful progress toward the objectives, and I believe the opportunities ahead of us are substantially greater than they were at the beginning of the year. This is why I invested an additional $500,000 of my own capital in Beeline at $1.50 per share. We have more work ahead, but Beeline is becoming stronger, it's becoming different and better. It's positioned for much higher scalable growth. With that, I'll turn it over to Jess.