Company: BLNE
Filing Date: 2025-01-17
Form Type: PRE 14A
Source: 0001493152-25-002779
Chunk: 180

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-17
Form: PRE 14A
Chunk 180
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center'>Eastside Distilling, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2024

(Unaudited)</div>

To determine the fair value of stock options using the Black-Scholes valuation model, the calculation takes into consideration the effect of the following:

| ● | Exercise                                                 
 price of the option                                      |
| ● | Fair                                                     
 value of the Company’s common stock on the date of grant |
| ● | Expected                                                 
 term of the option                                       |
| ● | Expected                                                 
 volatility over the expected term of the option          |
| ● | Risk-free                                                
 interest rate for the expected term of the option        |

The calculation includes several assumptions that require management’s judgment. The expected term of the options is calculated using the simplified method described in GAAP. The simplified method defines the expected term as the average of the contractual term and the vesting period. Estimated volatility is derived from volatility calculated using historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the options. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the options.

The Company did not issue any additional options during the three and nine months ended September 30, 2024.

Warrants

On May 16, 2024, the Company entered into a Loan Agreement with the SPV, Aegis, Bigger, District 2, and LDI. With each 2024 Secured Note, the Company issued a Warrant to purchase a share of the Company’s common stock for $5.00exercisable for five years after December 2, 2024 if on November 29, 2024 the 2024 Secured Note issued to the Warrant-holder remains unsatisfied. LDI received a Warrant to purchase 598,021shares and each of Bigger and District 2 received a Warrant to purchase 299,011shares. The Company recorded debt issuance costs of $0.3million as of September 30, 2024.

The estimated fair value of the new warrants issued was based on a combination of closing market trading price on the date of issuance for the public offering warrants, and the Black-Scholes option-pricing model, using the assumptions below:

Schedule of Fair Value of Warrants

| Volatility           
 Risk-free            
 interest rate        
 Expected             
 term (in years)      
 Expected