Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 126

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 126
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,417,159 shares of Series G Preferred Stock and five-year5 Warrants to purchase
a total of 320,862 shares of common stock for total gross proceeds of $3.3 million. The Company incurred offering costs of $6,270 related
to the offering. In addition, the Company’s Chief Executive Officer converted his $0.7 million bridge loan into $0.7 million of
units comprised of 1,372,549 shares of Series G Preferred Stock and five-year Warrants to purchase a total of 68,628 shares of common
stock.

    27

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

On
March 25, 2025 (“the trigger date”), the Company sold common shares under the ELOC Agreement at $1.67 per share, which was
less than the Series G Preferred Stock original conversion price of $5.10 per share, resulting in the reduction of the conversion price
of the Series G Preferred Stock to $1.67 per share as a result of the price protection adjustment related to the conversion of the Series
G Preferred Stock. The Company recorded a deemed dividend related to the Series G Preferred Stock price protection of $1.5 million. The
deemed dividend was computed as the fair value of the embedded conversion option with the reduced conversion price of $1.67 less the
fair value of the embedded conversion option with the original conversion price of $5.10 as computed on the trigger date. See below for
the warrant related deemed dividend allocation and assumptions used in the Black-Scholes model.

During
the nine months ended September 30, 2025, 4,745,371 shares of Series G Preferred Stock were converted into 534,945 shares of common stock.

In
January 2025, the Company issued a consultant 245,098 shares of Series G Preferred Stock as payment for past legal services of $0.1 million
included in stock to be issued on the consolidated balance sheets as of December 31, 2024, and 19,698 shares of Series G Preferred Stock
as payment in 2025.

Stock-Based
Compensation

On
September 8, 2016, the Company adopted the 2016 Equity Incentive Plan (the “2016 Plan”). As of September 30, 2025, there
were 29
options under the 2016 Plan