Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 23

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 23
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 Stock for net
proceeds of $1.6 million. The notes have a maturity date of 120 days following issuance and include a 20% original issue discount and
do not bear interest until event of default, and thereafter at a rate of 18% per annum. If the note remains outstanding as of May
14, 2025 the note requires a special one-time interest payment of 30% which will increase the principal of each note accordingly.
Upon the occurrence of an Event of Default, each investor also has the right to require the Company to pay all or any portion of the
note at a 25% premium. Further, the Company is required to prepay the notes in connection with certain sales of securities or assets
at each Investor’s election in an amount equal to 35% of the gross proceeds from such sales. The Company also has the right to
prepay all, but not less than all, of the outstanding amounts under the notes, at its election. The notes contain certain
restrictive covenants, including covenants precluding the Company and its subsidiaries from incurring indebtedness, transferring
assets, changing the nature of its business, and engaging in certain other actions, subject to certain exceptions.

In March 2025, the Company and certain of the holders agreed to an extension of the maturity date to April 14, 2025 in
exchange for an increase to the principal of the notes by 10%, and two lenders were each paid their principal balance plus 2.5% interest of $0.3 million.

On April 14, 2025, the Company and the remaining Note holders entered into
an agreement for a second extension of the maturity dates of the Notes held by such holders to May 14, 2025. The terms of the recent extension
are as follows: (i) if the Notes are paid off on or before April 29, 2025, then there will be no additional principal payment required;
and (ii) if the principal of the applicable Notes are not paid off on or before April 29, 2025 but are paid on or before May 13, 2025,
then an additional payment in an amount equal to 5% of the outstanding principal of the applicable Notes will be due.

The warrants have a term of five years from
issuance and are exercisable at an exercise price of $5.00 per share (of which all but $0.001 per share was pre