Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1143

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1143
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A, LLC. The SPV was a special purpose
vehicle whose equity is shared 50% by Bigger and District 2 and 50% by Aegis and LDI.

Pursuant to the DSA, on September 29, 2023, Eastside
issued to the SPV 29,672 shares of Eastside’s common stock and 200,000 shares of its Series C Preferred Stock, and executed a Registration
Rights Agreement providing that Eastside will register for public resale that common stock and the common stock issuable upon conversion
of the Series C Preferred Stock. In exchange for that equity, Eastside’s debts to the members of the SPV were reduced by a total
of $6.5 million and Eastside recognized a loss on the conversion of $1.3 million for the year ended December 31, 2023. Specifically, the
debt was reduced as follows:

    ●
    the principal balance of the Secured Promissory Note issued by Eastside to Aegis on October 6, 2022 was reduced by $1.9 million;

    ●
    Eastside’s debt to LDI of $1.4 million arising from advances made by LDI to Eastside during the past 10 months was eliminated;

    ●
    the aggregate principal balance of the Secured Convertible Promissory Notes issued by Eastside to Bigger in April and May of 2021 was reduced by $1.6 million; and

    ●
    the aggregate principal balance of the Secured Convertible Promissory Notes issued by Eastside to District 2 in April and May of 2021 was reduced by $1.6 million.

    F-29

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

Further pursuant to the DSA:

    ●
    the maturity date of the secured debt listed above as well as unsecured notes issued by Eastside and held by Bigger and District 2 in the aggregate amount of $7.4 million was deferred to March 31, 2025 and the interest rate on all such debt was increased to 8% per annum;

    ●
    Eastside, Aegis, Bigger and District 2 entered into an Intercreditor Agreement, pursuant to which the remaining secured debt obligations of Eastside to Aegis, Bigger and District 2 were made pari passu;

    ●