Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 54

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 54
---
, in excess of the Exchange Cap, regardless of whether our common stock remains listed on Nasdaq or other national securities exchange in the future, which requires such approval notwithstanding any limitations on conversion or exercise set forth in such Securities.

| 44 |

Interests of Executive Officers and Directors in the Proposals

Certain directors and officers of the Company have interests in the Merger Share Issuance Proposal, including because they hold certain of the Securities being voted on. These interests are outlined as follows:

Nicholas Liuzza

Mr. Nicholas Liuzza, Beeline’s Chief Executive Officer, beneficially owns 18,189,172 shares of Series F, 135,543 shares of Series F-1, 1,960,784 shares of Series G and 980,392 G Warrants, all of which become convertible or exercisable, as applicable, upon shareholder approval of Proposal 1. In addition, Mr. Liuzza is expected to be appointed as Chief Executive Officer of Eastside following shareholder approval of the Proposal 1 in accordance with Nasdaq rules.

In addition, on December 31, 2024, Mr. Liuzza, loaned $700,000 to Beeline Loans Inc. (“Beeline Loans”), an indirect subsidiary of the Company, and in exchange Beeline Loans issued Mr. Liuzza a demand promissory note in the aggregate principal amount of $700,000, which accrues interest at the rate of 8% per annum and is payable within 15 days of demand notice made by Mr. Liuzza. The funds were lent to permit Beeline Loans to increase its ability to make real estate loans and are being held in a restricted account and are not being used for operations.

Joseph Freedman

Joseph Freedman was appointed by Beeline as a director of Eastside in connection with the Merger. Mr. Freedman beneficially owns 534,201 shares of Series F, 3,981 shares of Series F-1, 238,418 shares of Series G and 119,209 G Warrants, all of which become convertible or exercisable, as applicable, upon shareholder approval of Proposal 1.

See also “Related Party Transactions” at page 96.

Anticipated Accounting Treatment

After careful review of ASC 805, we have determined that the Merger should be treated as a forward merger. In a forward merger, the accounting treatment typically involves the “purchase method” under U.S. generally accepted accounting principles (GAAP), where