Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 403

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1B
Chunk 403
---
 31, 2025. Eastside pledged substantially all of its assets to secure its obligations to Aegis under the
Aegis Note.

On September 29, 2023, Eastside entered into a Debt
Satisfaction Agreement with Aegis and other creditors, pursuant to which the Aegis Note was amended and restated. Principal and interest
of $1.9 million were exchanged for equity issued to the SPV, in which Aegis held a 29% interest. See Note 19 - Stockholders’
Equity: 2023 Debt Satisfaction Agreement. Subsequently in 2024, these notes were further converted or exchanged as part of the Debt
Exchange Agreement, further described above in Note 5 - Debt Exchange Agreement.

    F-28

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

December 31, 2024 and 2023

18. LEASE OBLIGATIONS

Beeline leases office space under various operating
lease agreements, including an office for its headquarters, for branch location and licensing purposes under non-cancelable lease arrangements
that provide for payments on a graduated basis with various expiration dates. Bridgetown Spirits has an operating lease for its warehouse.
Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary
by lease. The Company has leased approximately 27,381 square feet of space in Rhode
Island, Australia and Oregon that expires at various dates through 2030. The Company does not have any financing leases.

As the rate implicit in each lease
is not readily determinable, the Company uses its incremental borrowing rate of 6.1% based on information available at commencement
to determine the present value of the lease payments. Right-of-use assets and lease liabilities are recognized at commencement date
based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less
(“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease
term. As of December 31, 2024, the amount of right-of-use assets and lease liabilities were $1.7
million and $1.9
million, respectively. Lease expense for operating leases is recognized on a straight-line basis over the lease term. Aggregate
lease expense for the year ended December 31, 2024 was $0.3
million.

Maturities of lease liabilities