Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 100

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 terms, unless terminated by Beeline Financial or the lender upon 60 days’ notice. The line was renewed
on September 30, 2023 with a reduction in available funding from $10.0 million to $5.0 million. The line has subsequently been renewed
with the latest renewal through September 21, 2025 at the current $5.0 million limit subject to lender discretion. The interest rate
is the greater of interest on the underlying loan or 4.25% - 5.50%, depending on how many loans Beeline Financial closes per month. Beeline
Financial is required to provide the lender with annual audited financial statements, quarterly unaudited financial statements, and monthly
interim unaudited financial statements if requested. Beeline Financial is also subject to loan repurchase provisions as defined in the
agreement and certain non-financial covenants. Beeline Financial grants to the lender a security interest in and to all of Beeline Financial’s
right, title, and interest in and to each mortgage loan in which the lender has acquired a warehouse interest. As of March 31, 2025,
the warehouse line of credit and accrued interest outstanding balance was $4.5 million. Interest expense on the warehouse line of credit
was $0.1 million for the three months ended March 31, 2025.

12.
NOTES PAYABLE

Notes
payable consisted of the following:

 SCHEDULE OF NOTES PAYABLE

    (Dollars in thousands) 
    March 31, 2025  
    December 31, 2024 
  
    Note payable - 2023 
    $500  
    $500 
  
    Term loan agreement 
     250  
     275 
  
    Total 
     750  
     775 
  
    Accrued interest 
     69  
     70 
  
    Debt discount 
     (4) 
     (5)
  
    Notes payable, net 
    $815  
    $840 

During
2023, Beeline Financial issued a note payable for proceeds of $0.5 million, net of offering costs. However, this balance is not included
in the 2023 consolidated balance sheet due to the Merger closing October 7, 2024. Interest accrues at 18.0% per annum and interest-only
payments are made monthly. This loan matured December 2024