Company: BLNE
Filing Date: 2025-01-08
Form Type: S-1/A
Source: 0001493152-25-001415
Chunk: 175

Company: Beeline Holdings, Inc.
Filing Date: 2025-01-08
Form: S-1/A
Chunk 175
---
 is derived from volatility calculated using historical closing prices of common shares of similar entities whose share prices are publicly available for the expected term of the options. The risk-free interest rate is based on the U.S. Treasury constant maturities in effect at the time of grant for the expected term of the options.

The Company did not issue any additional options during the three and nine months ended September 30, 2024.

Warrants

On May 16, 2024, the Company entered into a Loan Agreement with the SPV, Aegis, Bigger, District 2, and LDI. With each 2024 Secured Note, the Company issued a Warrant to purchase a share of the Company’s common stock for $ 5.00exercisable 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 598,021shares and each of Bigger and District 2 received a Warrant to purchase 299,011shares. The Company recorded debt issuance costs of $ 0.3million as of September 30, 2024.

The estimated fair value of the new warrants issued 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 assumptions below:

Schedule of Fair Value of Warrants

| Volatility           
 Risk-free            
 interest rate        
 Expected             
 term (in years)      
 Expected             
 dividend yield       |     |   |  100 
  4.4 
  5.0 
    - | % 
 % |
|:---------------------|:----|:--|-----:|:--|
| Fair value of common 
 stock                |     | $ | 0.55 |   |

On March 21, 2022, the Company entered into a promissory note with TQLA LLC to accept a one year loan of $ 3.5million. In addition, the Company issued a common stock purchase warrant to TQLA covering the loan amount with an exercise price of $ 24.00per 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