Company: BLNE
Filing Date: 2025-01-03
Form Type: S-1/A
Source: 0001493152-25-000284
Chunk: 244

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-03
Form: S-1/A
Chunk 244
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 paid by the investors for the shares issued in such Non-Qualified Financing, and (y) the Valuation Cap PPS.

On June 4, 2024, the Company issued 1,646,157shares of Series B preferred stock and 7,333,207shares of common stock for the conversion of all the convertible notes with a principal balance of $ 23,228,052and accrued interest payable amounting to $ 1,585,958for an aggregate amount of $ 24,814,011and in exchange for all warrants issued with the convertible notes.The common shares were valued at $ 1.50per share based on recent sales of common stock and the Series B shares were valued at $ 1.50per share since the Series B shares are convertible into an equal amount of common shares. In connection with the conversion of the debt and accrued interest and surrender of the warrants, the Company recorded a gain on extinguishment of debt of $ 11,344,207, which is reflected in other income on the accompanying unaudited consolidated statement of operations and comprehensive loss.

As of September 30, 2024 and December 31, 2023, interest of $ 0and $ 965,378has accrued on all these notes, respectively. As of September 30, 2024 and December 31, 2023, the balance due on these notes was $ 0and $ 17,875,754, respectively.

2024 Convertible Notes

On June 5, 2024, Beeline engaged in Debenture agreements with Gunnar and issued convertible notes in the amount of $ 3,300,000and received cash of 2,519,000, after deducting original issue discount and fees of $ 781,000., which was reflected as a debt discount to be amortized over the note term. Additionally, in connection with the 2024 Convertible Notes, the Company issued 740,496Series B preferred shares to the 2024 convertible note holders. These series B preferred shares were valued at $ 770,843based on the relative fair value of such shares, which was reflected as a debt discount to be amortized over the note term. The notes bear interest at 10% per annum and due on June 5, 2025. In October 2024, these 2024 Convertible Notes were amended (See Note 12).

During the nine months ended September 30, 2024,