Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 103

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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ertain of the holders agreed to an extension of the maturity date to April 14, 2025 in exchange for an increase to the principal of
the notes by 10%, and two lenders were each paid their principal balance plus 2.5% interest of $0.3 million.

On
April 14, 2025, the Company and the remaining Note holders entered into an agreement for a second extension of the maturity dates of
the Notes held by such holders to May 14, 2025. The
terms of the recent extension are as follows: (i) if the Notes are paid off on or before April 29, 2025, then there will be no
additional principal payment required; and (ii) if the principal of the applicable Notes are not paid off on or before April 29,
2025 but are paid on or before May 13, 2025, then an additional payment in an amount equal to 5% of the outstanding principal of the
applicable Notes will be due. The Notes were partially repaid and further extended subsequent to March 31, 2025, see Note 21
– Subsequent Events.

    21

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

The
Notes had a maturity date of 120 days from issuance, were issued with a 20% original issue discount and do not bear interest unless and
until one or more of the customary events of default set forth therein occurs, whereupon each Note will bear interest at a rate of 18%
per annum. If the Notes remained outstanding as of May 14, 2025, the Notes also required a special one-time interest payment of 30% which
would increase the principal of each Note accordingly. Upon the occurrence of an event of default, each investor also has the right to
require the Company to pay all or any portion of the Note at a 25% premium. Further, the Company was required to prepay the Notes in connection
with certain sales of securities or assets at each investor’s election in an amount equal to 35% of the gross proceeds from such
sales. The Company also had the right to prepay all, but not less than all, of the outstanding amounts under the Notes, at its election.
The Notes contained certain restrictive covenants, including covenants precluding the Company and its subsidiaries from incurring indebtedness,
transf