Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 113

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 113
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 Treasury constant maturities in effect at the time of grant for the expected term of the options.

The
Company did not issue any additional stock options during the three months ended March 31, 2025 and 2024.

Warrants

During
the three months ended March 31, 2025, the Company sold shares of Series G Preferred Stock and in conjunction issued warrants to purchase
a total of 320,862
shares of common stock.  The Company recorded offering costs of $6,270
as of March 31, 2025. 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-year5
Warrants to purchase a total of 68,628
shares. The Warrants have a term of five years from issuance
and are exercisable at an exercise price of $6.50 per share.

On
March 25, 2025, the Company sold shares under the ELOC at $1.67 per
share, which was less than the exercise price of the Warrants issued in the Company’s Series G Preferred Stock offering, resulting
in the reduction of the exercise price of the warrants to $1.67 per share and an increase in common shares issuable upon
exercise of 1,774,986 under the full price protection adjustment of the Warrants.
The Company recorded a deemed dividend related to the Warrants price protection of $3.1
million.

The
estimated fair value of the deemed dividend relating to the price protection adjustment is computed as the fair value of the warrants with the reduced exercise price of $1.67 less the fair value of the
warrants at the original exercise price of $6.50 as computed on the trigger date. The Black-Scholes option-pricing model
used the assumptions below:

 SCHEDULE OF FAIR VALUE OF WARRANTS

    Volatility 
     131%
  
    Risk-free interest rate 
     4.07%
  
    Expected term (in years) 
     5.00 
  
    Expected dividend yield 
     - 
  
    Fair value of common stock 
    $1.88 

    27

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

A
summary of all Warrant activity