Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 41

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 equal to the stated value of the Series A Preferred
Stock share divided by the Series A Preferred Stock conversion price. The Series A Preferred Stock is entitled to vote with the Company’s
common stock on an as-converted basis, subject to the 4.99% beneficial ownership limitation.

During
the nine months ended September 30, 2025, 2,000,000 shares of Series A Preferred Stock were converted into 571,428 shares of common stock.

    25

Beeline
                                            Holdings, Inc.

Notes
to Consolidated Financial Statements

September
30, 2025

(Unaudited)

Issuance
of Series B Preferred Stock

On
October 19, 2021, the Company entered into a securities purchase agreement (“Purchase Agreement”) with an accredited investor
for its purchase of 2.5 million shares (“Preferred Shares”) of Series B Convertible Preferred Stock (“Series B Preferred
Stock”) at a purchase price of $1.00 per Preferred Share, which Preferred Shares are convertible into shares of the Company’s
common stock pursuant to the terms and conditions set forth in a Certificate of Designation Establishing Series B Preferred Stock of
the Company with an initial conversion price of $620.00 per share. 4,250 shares of common stock were reserved for issuance in the event
of conversion of the Preferred Shares. The holder of Series B has voting rights on an as-converted basis.

The
Series B Preferred Stock accrues dividends at a rate of 6%
per annum, payable annually on the last day of December of each year. Dividends shall accrue from day to day, whether or not
declared, and shall be cumulative. Dividends are payable at the Company’s option either in cash or “in kind” in
shares of common stock; provided, however that dividends may only be paid in cash following the fiscal year in which the Company has
net income (as shown in its audited financial statements contained in its Annual Report on Form 10-K for such year) of at least
$0.5
million. For “in-kind” dividends, holders will receive that number of shares of common stock equal to (i) the amount of
the dividend payment due such stockholder divided by (ii) the volume weighted average price of the common stock for the 90 trading
days immediately preceding a dividend date (“VWAP”). For both the nine months ended September 30, 2025 and 2024