Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 34

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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holders’ Equity,
and (iii) permitted two investors to receive a number of shares of Series F equal to 50% of their investment amount, or $0.1 million
each, using the stated value of the Series F, which is $0.50 per share, to determine the number of shares of Series F. As of March 31,
2025, debt issuance costs related to the side letters were fully amortized.

Senior secured debentures

During
2024, Beeline Financial issued senior secured debentures of $3.6
million maturing September
5, 2025 with payments made in nine equal monthly installments of $0.4
million beginning January 2025. As of March 31, 2025, the principal balance was $2.6
million and unamortized debt discount were $0.3
million.

15.
LEASE OBLIGATIONS

Beeline
Financial 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. Beeline Financial 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 10% 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 March 31, 2025, the amount of right-of-use assets and lease liabilities were $1.3 million and $1.5 million, respectively. Lease
expense for operating leases is recognized on a straight-line basis over the lease term. Aggregate lease expense for the three months
ended March 31, 2025 was $0.1 million.

Maturities
of lease liabilities