Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 36

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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5. On June 26,
2025, the Company amended $0.5 million of the Notes by making them convertible into shares of the Company’s common stock at a conversion
price of $1.32 per share. These Notes were subsequently converted to common stock at the fair of common stock and therefore no gain or
loss on the conversion, see Note 15 – Stockholders’ Equity. Additionally, these same lenders extinguished an extension
fee of $0.1 million.

On
May 14, 2025, the Company entered into an agreement with the two other Note holders to extend the maturity date of each Note to May 26,
2025 after the Company paid 50% of the outstanding principal balance of $0.5 million. In June 2025, the Company repaid the remaining
the balance of $0.5 million.

The
Company also entered in three forms of side letters with the investors which (i) permitted one investor which along with an affiliate
invested $0.4 million to exchange that amount of stated value of shares of Series F Preferred Stock (the “Series F”) for
a $0.4 million 120-day promissory note to another affiliate, which note was issued immediately prior to the closing of the Offering and
has substantially identical terms to the Notes issued therein, except it is subordinated with respect to its security interest, (ii)
permitted two investors to 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, 202