Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 930

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 930
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 received
$3.1 million in net proceeds from the closing, after deducting the fee payable to the Placement Agent and the legal fees of the Subscribers
in connection with the transaction. Eastside used the proceeds to repay prior outstanding notes payable and for working capital and general
corporate purposes.

Interest on the Notes accrued at a rate of 6% per
annum and was payable either in cash or in shares of Eastside’s common stock at the conversion price in the Note on each of the
six and twelve month anniversaries of the issuance date and on the maturity date of October 18, 2022.

All amounts due under the Notes are convertible at
any time after the issuance date, in whole or in part (subject to rounding for fractional shares), at the option of the holders into Eastside’s
common stock at a fixed conversion price, which is subject to adjustment as summarized below. The Notes were initially convertible into
Eastside’s common stock at an initial fixed conversion price of $440.00 per share. This conversion price is subject to adjustment
for stock splits, combinations, or similar events, among other adjustments. On April 1, 2022, Eastside and the holders agreed to a reduction
of the conversion price of the 6% secured convertible promissory notes to $260.00 per share in connection with Eastside’s issuance
of a common stock purchase warrant to TQLA covering its loan amount of $3.5 million with a common stock value of $240.00 per share.

The Notes contained customary triggering events including
but not limited to: (i) failure to make payments when due under the Notes; and (ii) bankruptcy or insolvency of Eastside. If a triggering
event occurs, each holder may require Eastside to redeem all or any portion of the Notes (including all accrued and unpaid interest thereon),
in cash.

The Notes are secured by a subordinated security interest
in Eastside’s assets pursuant to the terms of a Security Agreement entered into between Eastside and the Subscribers.

On October 13, 2022, Eastside entered into an Amendment
Agreement with the holders of the 6% Secured Convertible Promissory Notes. The Amendment Agreement changed the Maturity Date of the Notes
from October 18, 2022 to November 18, 2022. In consideration of the extension, Eastside issued 481 shares of its common stock to each
of the Subscribers.