Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 40

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 Company recorded offering costs related to the ELOC Agreement of $0.5
million as of September 30, 2025.

Preferred
Stock

The
Company has 100 million shares of preferred stock authorized.

Issuance
of Series A Preferred Stock

On
July 23, 2025, the Company entered into an agreement with a holder of and effected the exchange of 8,356,151 shares of Series F Preferred
Stock and 68,951 shares of Series F-1 Preferred Stock of the Company in exchange for the issuance to the holder of 8,425,102 shares of
a newly designated Series A Convertible Redeemable Preferred Stock (the “Series A Preferred Stock”).

On
July 23, 2025, the Company filed a Certificate of Designation, Preferences and Rights of the Series A Convertible Redeemable Preferred
Stock of the Company (the “Certificate of Designations”) with the Nevada Secretary of State designating and authorizing the
issuance of up to 8,425,102 shares of Series A Preferred Stock. Each share of Series A Preferred Stock has a stated value of $0.50. Beginning
on the initial issuance date of the Series A Preferred Stock, the holder may convert up to $1.0 million in stated value of Series A Preferred
Stock (the “Special Conversion Amount”) at a conversion price of $1.75 per share, subject to adjustment as provided therein
and subject to beneficial ownership limitations. The conversion price is subject to customary adjustments including for reverse stock
splits, forward stock splits, and similar corporate events, and is also subject to price protection adjustment in connection with subsequent
sales or issuances of securities at a per-share price that is lower than the conversion price, subject to certain exceptions and limitations.

Beginning
on the issuance date of the Series A Preferred Stock on July 23, 2025 and for a period of one-year thereafter, the Company has the right
to redeem the shares of Series A Preferred Stock, other than the Special Conversion Amount, at a redemption price of $2.00 per underlying
share of common stock (based on the $1.75 per share conversion price, subject to adjustment). At the end of the one-year redemption period,
all remaining shares of Series A Preferred Stock (in addition to the Special Conversion Amount) will become convertible at the option
of the holder.

Each
share of Series A Preferred Stock is convertible into common stock by a conversion ratio