Company: BLNE
Filing Date: 2025-01-03
Form Type: S-1/A
Source: 0001493152-25-000284
Chunk: 217

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-03
Form: S-1/A
Chunk 217
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 carryforward that may not be utilized or expires prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.

The Company does not have any uncertain tax positions or events leading to uncertainty in a tax position. The Company’s 2021, 2022 and 2023 Corporate Income Tax Returns are subject to Internal Revenue Service examination.

NOTE 14 - SUBSEQUENT EVENTS

Subsequent Events

The Company’s management has evaluated subsequent events up to December 13, 2024, the date these consolidated financial statements were issued, pursuant to the requirements of ASC 855 and has determined to disclose the following subsequent events:

Sale of 2022 Convertible Notes

During 2024, i ) the Company received cash proceeds from the sale of 2022 Convertible Notes of $ 3,442,219, ii) Series A preferred shares investors exchanged 75,700shares of Series A preferred stock for 2022 Convertible Notes having principal amounts totaling $ 1,750,079, iii) the Company issued a Convertible Note in the amount of $150.000 for future services to be rendered, and iv) the Company issued a Convertible Note in the amount of $10,000 for accrued interest.

Exchange of Debt for Equity

On June 4, 2024, the Company issued 1,646,157shares of Series B preferred stock and 7,333,207shares of common stock for the conversion of all the convertible notes with a principal balance of $ 23,228,052and accrued interest payable amounting to $ 1,585,958for an aggregate amount of $ 24,814,011and in exchange for all warrants issued with the convertible notes. The common shares were valued at $ 1.50per share based on recent sales of common stock and the Series B shares were valued at $ 1.50per share since the Series B shares are convertible into an equal amount of common shares. In connection with the conversion of the debt and accrued interest and surrender of the warrants, the Company recorded a gain on extinguishment of debt of $ 11,344,207.

2024 Convertible Notes

On June 5, 2024, Beeline engaged in Debenture agreements with Gunnar and issued convertible notes in the amount of $ 3,300,000and received cash of $ 2,519,000, after deducting original issue discount and fees of $ 781,000., which was reflected as a