Company: BLNE
Filing Date: 2025-04-28
Form Type: 10-K/A
Source: 0001641172-25-006441
Chunk: 17

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-28
Form: 10-K/A
Chunk 17
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 and 50% by Aegis
and LDI.

Patrick Kilkenny is the
principal owner of LDI and of Aegis. Mr. Kilkenny is the spouse of Stephanie Kilkenny, a then member of our Board. Stephanie Kilkenny
is the Manager of TQLA, LLC, which is owned jointly by Stephanie Kilkenny and Patrick Kilkenny. Patrick Kilkenny is also a control person
of the SPV.

Pursuant to the Debt
Satisfaction Agreement, on September 29, 2023, the Company issued 29,672 shares of the Company’s common stock and 200,000 shares
of its Series C to the SPV, and later registered the public resale of that common stock and the common stock issuable upon conversion
of the Series C as required by a Registration Rights Agreement. In exchange for that equity, the Company’s indebtedness to the members
of the SPV were reduced by a total of $6.5 million and the Company recognized a loss on the conversion of $1.3 million for the year ended
December 31, 2023. Specifically with respect to related parties, the debt was reduced as follows:

| ● | the principal balance of the Secured Promissory Note issued by the Company to Aegis on October 6, 2022 was reduced by $1.9 million; and |
| ● | the Company’s debt to LDI of $1.4 million arising from advances made by LDI to the Company during the past 10 months was eliminated;    |

Further pursuant to the
Debt Agreement:

2024 Secured Notes

On May 16, 2024, the
Company entered into a Loan Agreement with the SPV, Aegis, Bigger, District 2 and LDI. Pursuant to the Loan Agreement, Bigger, District
2 and LDI (the “Subscribers”) loaned the Company for $1,100,000 and received promissory notes in the aggregate principal amount
of $1,100,000 (the “2024 Secured Notes”). The 2024 Secured Notes could be satisfied by payment of 105% of principal on or
before July 31, 2024, by payment of 110% of principal on or before November 29, 2024, by payment of 130% of principal on or before March
30, 2025 or by payment of 140% of principal