Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 37

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 accrue from day to day, whether or not declared,
and shall be cumulative. Dividends are payable at the Company’s option either in cash or “in kind” in shares of common
stock; provided, however that dividends may only be paid in cash following the fiscal year in which the Company has net income (as shown
in its audited financial statements contained in its Annual Report on Form 10-K for such year) of at least $0.5
million. For “in-kind” dividends, holders will
receive that number of shares of common stock equal to (i) the amount of the dividend payment due such stockholder divided by (ii) the
volume weighted average price of the common stock for the 90 trading days immediately preceding a dividend date (“VWAP”).
For both the three months ended March 31, 2025 and 2024, the Company accrued $37,500
of preferred dividends.

Issuance
of Series C Preferred Stock

In January 2025,
the Certificate of Designation was withdrawn for the Series C Preferred Stock.

Issuance
of Series D Preferred Stock

Each
share of Series D Preferred Stock has a stated value of $10.00 and is convertible into shares of the Company’s common stock pursuant
to the terms and conditions set forth in a Certificate of Designation establishing Series D Preferred Stock with an initial conversion
price of $18.00 per share. In the event that the Company declares a dividend payable in cash or stock to holders of any class of the
Company’s stock (including the Series B Preferred Stock), the holder of a share of Series D Preferred Stock will be entitled to
receive an equivalent dividend on an as-converted basis. In the event of a liquidation of the Company, the holders of Series D Preferred
Stock will share in the distribution of the Company’s net assets on an as-converted basis equally with the Series C Preferred Stock
and Series E Preferred Stock, subordinate only to the senior position of the Series B Preferred Stock. The number of shares of common
stock into which a holder may convert Series D Preferred Stock is limited by a beneficial ownership limitation of 9.99%. The Series D
Preferred Stock conversion price and the floor price will be subject to equitable adjustment in the event of stock splits, reverse splits
and similar events. The Series D Preferred Stock is non-voting.

    24

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March