Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1034

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 6
Chunk 1034
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 securities
purchase agreement (“Purchase Agreement”) with accredited investors (“Subscribers”) for their purchase of up to
$3.3 million of principal amount of 6% secured convertible promissory notes of Eastside (“Note” or “Notes”), which
notes were convertible into shares (“Conversion Shares”) of Eastside’s common stock, par value $0.0001 per share pursuant
to the terms and conditions set forth in the Notes with an initial conversion price of $440.00. In connection with the purchase of such
Notes, each Subscriber received a warrant (“Existing Warrant”), to purchase a number of shares of common stock (“Warrant
Shares”) equal to 60% of the principal amount of any Note issued to such Subscriber divided by the conversion price of the Note
issued to such Subscriber, at an exercise price equal to $520.00. In connection with the Purchase Agreement, Eastside entered into a Security
Agreement under which it granted the Subscribers a security interest in certain assets of Eastside (the “Security Agreement”)
and a Registration Rights Agreement under which Eastside agreed to register for resale the Conversion Shares and the Warrant Shares. Concurrently
therewith, Eastside and the investors closed $3.3 million of the private offering.

Roth Capital, LLC acted as placement agent in the
private offering, and Eastside paid the Placement Agent a cash fee of five percent (5%) of the gross proceeds therefrom. Eastside received
$3.1 million in net proceeds from the closing, after deducting the fee payable to the Placement Agent and the legal fees of the Subscribers
in connection with the transaction. Eastside used the proceeds to repay prior outstanding notes payable and for working capital and general
corporate purposes.

Interest on the Notes accrued at a rate of 6% per
annum and was payable either in cash or in shares of Eastside’s common stock at the conversion price in the Note on each of the
six and twelve month anniversaries of the issuance date and on the maturity date of October 18, 2022.

All amounts due under the Notes are convertible at
any time after the issuance date, in whole or in part (subject to rounding for fractional shares), at the option of the holders into Eastside’s
common stock at a fixed conversion price, which is subject to adjustment as summarized below. The Notes were initially convertible into
Eastside’s common stock at an initial fixed conversion price of $440.00 per share