Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 257

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 257
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As a service to its clients, Beeline administers escrow deposits representing undisbursed amounts received for payment of settlement and title services. Cash held by Beeline was $375,765.12 as of December 31, 2022, and $574,012.33 as of December 31, 2023. Nimble Title held $23,446.78 in escrow as of December 31, 2023. These amounts are not considered assets of Beeline and, therefore, are excluded from the Consolidated Balance Sheet. Beeline remains contingently liable for the disposition of these deposits.

| F-102 |

<div align='center'>BEELINE FINANCIAL HOLDINGS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENT

September 30, 2024

(Unaudited)</div>

NOTE 12 - SUBSEQUENT EVENTS

Subsequent Events

2024 Convertible Notes Amendment

In October 2024, the 2024 Convertible Notes (See
Note 8) were amended to i) increase the principal balance by $300,000 to $3,600,000, ii) to remove the conversion feature, and to extend
the maturity date through and until September 5, 2025, and payments shall be made in nine equal consecutive monthly installments of $440,328.
In accordance with ASC 470-50, Debt Modifications and Extinguishments, in October 2024, in connection with the amendments to the 2024
Convertible Notes, discussed above (the “Amendments”), the Company performed an assessment of whether the Amendments were
deemed to be new debt, a modification of existing debt, or an extinguishment of existing debt. The Company evaluated the Amendments for
debt modification and concluded that the debt qualified for debt extinguishment. The Company determined the transaction was considered
a debt extinguishment because the removal of the conversion terms was substantial. Upon extinguishment, the Company had approximately
$1,000,000 of unamortized debt discount recorded which will be written off to loss on debt extinguishment. Additionally, the Company
will expense the $300,000 increase in principal balance and record a loss on debt extinguishment.

Sale of Common Stock

Subsequent to September 30, 2024 through the date of this report, Beeline sold 327,880 shares of common stock for proceeds of $491,761, or $1.50per share.

Merger Agreement