Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 117

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 convert Series D Preferred Stock beginning on April 7, 2025, see Note 15 – Stockholders’ Equity,
and (iii) permitted two investors to receive a number of shares of Series F equal to 50% of their investment amount, or $0.1 million
each, using the stated value of the Series F, which is $0.50 per share, to determine the number of shares of Series F. As of September
30, 2025, debt issuance costs related to the side letters were fully amortized.

On
June 26, 2025, the Company amended the 120-day promissory note $0.4 million by making it convertible into shares of the Company’s
common stock at a conversion price of $1.32 per share. This note was subsequently converted to common stock, see Note 15 – Stockholders’
Equity.

Senior
secured debentures

During
2024, Beeline Financial issued senior secured debentures of $3.6 million maturing September 5, 2025 with payments made in nine equal
monthly installments of $0.4 million beginning January 2025. During September 2025, the principal balance and accrued interest was fully
repaid. As of September 30, 2025, the debt discount was fully amortized.

14.
LEASE OBLIGATIONS

Beeline
Financial leases office space under various operating lease agreements, including an office for its headquarters, for branch location
and licensing purposes under non-cancelable lease arrangements that provide for payments on a graduated basis with various expiration
dates. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs,
and vary by lease. Beeline Financial has leased approximately 9,809 square feet of space in Rhode Island and Australia that expires at
various dates through 2030. The Company does not have any financing leases.

As
the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate of 10% based on information
available at commencement to determine the present value of the lease payments. Right-of-use assets and lease liabilities are recognized
at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less
(“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term.
As of September 30