Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 219

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 219
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shares of Series B preferred stock and 7,333,207shares of common stock for the conversion of all the convertible notes with a principal balance of $ 23,228,052and accrued interest payable amounting to $ 1,585,958for an aggregate amount of $ 24,814,011and in exchange for all warrants issued with the convertible notes. The common shares were valued at $ 1.50per share based on recent sales of common stock and the Series B shares were valued at $ 1.50per share since the Series B shares are convertible into an equal amount of common shares. In connection with the conversion of the debt and accrued interest and surrender of the warrants, the Company recorded a gain on extinguishment of debt of $ 11,344,207.

2024 Convertible Notes

On June 5, 2024, Beeline engaged in Debenture agreements with Gunnar and issued convertible notes in the amount of $ 3,300,000and received cash of $ 2,519,000, after deducting original issue discount and fees of $ 781,000., which was reflected as a debt discount to be amortized over the note term. Additionally, in connection with the 2024 Convertible Notes, the Company issued 740,496Series B preferred shares to the 2024 convertible note holders. These series B preferred shares were valued at $ 770,843based on the relative fair value of such shares, which was reflected as a debt discount to be amortized over the note term. The notes bear interest at 10% per annum and due on June 5, 2025.

In October 2024, these convertible notes were
amended to i) increase the principal balance by $300,000 to $3,600,000, ii) to remove the conversion feature, and to extend the maturity
date through and until September 5, 2025, and payments shall be made in nine equal consecutive monthly installments of $440,328. In accordance
with ASC 470-50, Debt Modifications and Extinguishments, in October 2024, in connection with the amendments to the 2024 Convertible Notes,
discussed above (the “Amendments”), the Company performed an assessment of whether the Amendments were deemed to be new debt,
a modification of existing debt, or an extinguishment of existing debt. The Company evaluated the Amendments for debt modification and
concluded that the debt qualified for debt extingu