Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 305

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 305
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 to 9.99%. The Series E Preferred Stock is non-voting.

Pursuant to the terms of the Debt Exchange Agreement on October 7, 2024, the Company issued
a total of 200,000 shares of Series E Preferred Stock to Bigger and District 2, and they released Eastside from liability for $2.0 million
of unsecured debt. See Note 5 – Debt Exchange Agreement.

Issuance of Series F and F-1 Preferred Stock

The Merger that closed on October 7,
2024, was structured as an all-stock transaction. The stockholders of Beeline Financial received 69,482,229
million preferred shares of Series F and 517,775
million preferred shares of Series F-1. Each share of Series F and F-1 Preferred Stock has a stated value of $0.50
and is convertible only upon shareholder approval into shares of the Company’s common stock pursuant to the terms and conditions
set forth in a Certificate of Designation establishing Series F and F-1 Preferred Stock with an initial conversion price of $5.00
per share. The number of shares of Common Stock into which a holder may convert Series F and F-1 Preferred Stock will be limited by a
beneficial ownership limitation, which restricts the number of shares of the Company’s common stock that the holder and its affiliates
may beneficially own after the conversion to 4.99%. That beneficial ownership limitation does not, however, apply to holders who are
subject to Section 16 of the Exchange Act by virtue of being an executive officer or director of the Company which presently only applies
to the Company’s Chief Executive Officer.

The Series F and F-1 Preferred Stock was valued at $48.2
million, see Note 4 - Merger. The conversion of Series F and F-1 Preferred Stock was approved at a special meeting of
stockholders on March 7, 2025, see Note 25 – Subsequent Events.

In conjunction with the Senior Secured
Notes entered into on November 14, 2024, the Company entered in a side letters which permitted an affiliate who invested $0.4
million to exchange that amount of stated value of shares of Series F Preferred Stock for a $0.4
million 120-day promissory note and has substantially identical terms to the Senior Secured Notes, except it is subordinated with
respect to its security interest. This affiliate exchanged 896,