Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 220

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 220
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ishment. The Company determined the transaction was considered a debt extinguishment
because the removal of the conversion terms was substantive. 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

During 2024, the Company issued 1,605,935shares of its common stock for cash proceeds of $ 2,408,902.

On October 7, 2024, immediately after the closing under the Debt Agreement, a closing was held pursuant to the Merger Agreement (the “Merger Closing”). Beeline merged into Merger Sub and became a wholly-owned subsidiary of Eastside, with the name of the surviving subsidiary being changed to Beeline Financial Holdings, Inc. In the Merger, the shareholders of Beeline gained the right to receive a total of 69,482,229shares of Eastside’s Series F Preferred Stock and a total of 517,771shares of Eastside’s Series F-1 Preferred Stock. In addition, each option to purchase shares of Beeline common stock outstanding at the time of the Merger was converted into an option to purchase shares of Eastside’s common stock measured by the same ratio.

Investment in Equity Method Investee

On February 7, 2024, MagicBlocks, Inc., a Delaware
corporation, was incorporated by a third party. On July 31, 2024, the Company was issued 4,285,000 shares of Magic Blocks which represents
47.6% of MagicBlocks common shares outstanding. The Company has determined that its investment in MagicBlocks is subject to the equity method of accounting in accordance with ASC 825-10, Financial Instruments (“ASC 825-10”). In accordance with ASC 825-10,
the Company shall include this equity method investment in “Other assets” within the consolidated balance sheets, and the
Company’s portion of any gains or losses shall be included in the consolidated statements of operations. In September 2024, the
Company invested $96,500 in MagicBlocks.

Series B Preferred Stock

On June 4, 2024, Beeline designated 3,110,636shares of Series B Preferred Stock at a par value of $ 0.00001with the following rights:

Dividends

Subject to the