Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 310

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 310
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 of a “cashless exercise.” The
Company recorded a debt discount related to the warrants of $24,372
as of December 31, 2024, see Note 16 – Secured Credit Facilities.

On May 16, 2024, Eastside entered into a Loan Agreement
with the SPV, Aegis, Bigger, District 2, and LDI. With each 2024 Secured Note, Eastside issued a Warrant to purchase a share of the Company’s
common stock for $50.00 exercisable 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 59,802 shares and each of Bigger and District 2 received a Warrant
to purchase 29,901 shares. Eastside recorded a debt discount of $0.3 million as of December 31, 2024. These warrants were cancelled as
part of the Debt Exchange Agreement, see Note 5 - Debt Exchange Agreement.

The
estimated fair value of the new warrants issued in 2024 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 weighted average assumptions
below:

SCHEDULE
OF FAIR VALUE OF WARRANTS

    Volatility 
     100%
  
    Risk-free interest rate 
     4.29%
  
    Expected term (in years) 
     4.83 
  
    Expected dividend yield 
     - 
  
    Fair value of common stock 
    $4.76 

On March 21, 2022, Eastside entered
into a promissory note with TQLA LLC to accept a one year loan of $3.5
million. In addition, Eastside issued a common stock purchase warrant to TQLA covering the loan amount to purchase up to 14,583
shares of common stock at an exercise price of $240.00
per share. The note payable was fully repaid in October 2022. The common stock purchase warrant expires in March 2027. The warrants
were amended pursuant to the Debt Satisfaction Agreement (see discussion above) to prevent any exercise that would result in
the warrant-holder and affiliates acquiring cumulative voting power in excess of 9.99%.
This Benef