Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 13

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 13
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 – October 7 th. See “The Merger” under Proposal 1 beginning on page 29.

As a result of the Merger, Eastside’s current corporate structure is as follows:

Anticipated Accounting Treatment

After careful review of ASC 805, we have determined that the Merger should be treated as a forward merger. In a forward merger, the accounting treatment typically involves the “purchase method” under U.S. generally accepted accounting principles (GAAP), where the acquiring company records the target company’s assets and liabilities at their fair market value on the acquisition date, resulting in the recognition of goodwill if the purchase price exceeds the net fair value of identifiable assets acquired, effectively “absorbing” the target company and reflecting its assets and liabilities on the acquirer’s balance sheet. See “Anticipated Accounting Treatment” on page 45 for more information.

Merger Shares (page 39)

Series F Convertible Preferred Stock

The Company issued former Beeline shareholders a total of 69,482,229 shares of Series F in the Merger. Presently, there are 69,085,562 shares of Series F outstanding following certain cancellations and new issuances of the Series F following the Merger. Each share of Series F votes and converts into common stock on a 1-for-1 basis, subject to shareholder approval.

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Series F-1 Convertible Preferred Stock

The Company issued former Beeline shareholders a total of 517,775 shares of Series F in the Merger, all of which remain outstanding. Each share of Series F votes and converts into common stock on a 1-for-1 basis.

Special Adjustment Provisions

Each of the Series F and Series F-1 contain special adjustment provisions providing that the number of underlying shares will be subject to potential adjustment to maintain a percentage of 82.5% of the Company’s common stock on a fully-diluted basis, subject to certain exceptions and limitations, including a maximum increase limitation on the resulting increase in underlying shares of 70 million shares. See “Description of Securities – Series F and F-1 Special Adjustment Feature” at page 99 for more information.

Subsequent Transactions and Subsequent Securities (page 41)

November 2024 PIPE – Notes and Warrants

On November 14, 2024, the Company sold $1,938,000 in aggregate principal amount of Notes and Warrants (the “Note Warrants”) and received gross proceeds of $1,615,000 in connection