Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 26

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 26
---
 an agreement with the two other Note holders to extend the maturity date of each Note to May 26,
2025 after the Company paid 50% of the outstanding principal balance of $0.5 million. In June 2025, the Company repaid the remaining
the balance of $0.5 million.

The
Company also entered in three forms of side letters with the investors which (i) permitted one investor which along with an affiliate
invested $0.4 million to exchange that amount of stated value of shares of Series F Preferred Stock (the “Series F”) for
a $0.4 million 120-day promissory note to another affiliate, which note was issued immediately prior to the closing of the Offering and
has substantially identical terms to the Notes issued therein, except it is subordinated with respect to its security interest, (ii)
permitted two investors to convert Series D Preferred Stock beginning on April 7, 2025, see Note 15 – Stockholders’ Equity,
and (iii) permitted two investors to receive a number of shares of Series F equal to 50% of their investment amount, or $0.1 million
each, using the stated value of the Series F, which is $0.50 per share, to determine the number of shares of Series F. As of June 30,
2025, debt issuance costs related to the side letters were fully amortized.

On
June 26, 2025, the Company amended the 120-day promissory note $0.4 million by making it convertible into shares of the Company’s
common stock at a conversion price of $1.32 per share. This note was subsequently converted to common stock, see Note 15 – Stockholders’
Equity.

Senior
secured debentures

During
2024, Beeline Financial issued senior secured debentures of $3.6 million maturing September 5, 2025 with payments made in nine equal
monthly installments of $0.4 million beginning January 2025. As of June 30, 2025, the principal balance was $1.3 million and the debt
discount was fully amortized.

14.
LEASE OBLIGATIONS

Beeline
Financial leases office space under various operating lease agreements, including an office for its headquarters, for branch location
and licensing purposes under non-cancelable lease arrangements that provide for payments on a graduated basis with various expiration
dates. Terms of these leases include, in