Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 43

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 and five-year5
Warrants to purchase a total of 68,628
shares. The Warrants have a term of five years from issuance
and are exercisable at an exercise price of $6.50 per share.

On
March 25, 2025, the Company sold shares under the ELOC at $1.67 per
share, which was less than the exercise price of the Warrants issued in the Company’s Series G Preferred Stock offering, resulting
in the reduction of the exercise price of the warrants to $1.67 per share and an increase in common shares issuable upon
exercise of 1,774,986 under the full price protection adjustment of the Warrants.
The Company recorded a deemed dividend related to the Warrants price protection of $3.1
million.

The
estimated fair value of the deemed dividend relating to the price protection adjustment is computed as the fair value of the warrants with the reduced exercise price of $1.67 less the fair value of the
warrants at the original exercise price of $6.50 as computed on the trigger date. The Black-Scholes option-pricing model
used the assumptions below:

 SCHEDULE OF FAIR VALUE OF WARRANTS

    Volatility 
     131%
  
    Risk-free interest rate 
     4.07%
  
    Expected term (in years) 
     5.00 
  
    Expected dividend yield 
     - 
  
    Fair value of common stock 
    $1.88 

    27

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

A
summary of all Warrant activity as of and for the three months ended March 31, 2025 is presented below:

 SUMMARY OF WARRANT ACTIVITY

    Warrants  
    Weighted-Average Remaining Life (Years)  
    Weighted-Average Exercise Price  
    Aggregate Intrinsic Value (in millions) 
  
    Outstanding as of December 31, 2023 
     20,167  
     3.8  
    $348.70  
    $- 
  
    Granted 
     414,494  
     4.6  
     18.90  
     1.0 
  
    Expired 
     (119,605) 
     4.3  
     50.00