Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 1146

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 7
Chunk 1146
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6.5 million.

Preferred Stock

The Company has 100 million shares of preferred stock authorized.

Issuance of Series B Preferred Stock

On October 19, 2021, Company
entered into a securities purchase agreement (“Purchase Agreement”) with an accredited investor for its purchase of 2.5 million shares (“Preferred Shares”) of Series B Convertible Preferred Stock (“Series B Preferred
Stock”) at a purchase price of $1.00 per Preferred Share, which Preferred Shares are convertible into shares of the Company’s
common stock pursuant to the terms and conditions set forth in a Certificate of Designation Establishing Series B Preferred Stock of Eastside
with an initial conversion price of $620.00 per share. 4,250 shares of common stock were reserved for issuance in the event of conversion
of the Preferred Shares. The holder of Series B has voting rights on an as-converted basis.

The Series B Preferred Stock accrues dividends at
a rate of 6% per annum, payable annually on the last day of December of each year. Dividends shall accrue from day to day, whether or
not declared, and shall be cumulative. Dividends are payable at Eastside’s option either in cash or “in kind” in shares
of common stock; provided, however that dividends may only be paid in cash following the fiscal year in which Eastside has net income
(as shown in its audited financial statements contained in its Annual Report on Form 10-K for such year) of at least $0.5 million. For
“in-kind” dividends, holders will receive that number of shares of common stock equal to (i) the amount of the dividend payment
due such stockholder divided by (ii) the volume weighted average price of the common stock for the 90 trading days immediately preceding
a dividend date (“VWAP”). For the year ended December 31, 2024, Eastside issued dividends of 17,773 shares of common stock
at $8.44 per share to its Series B Preferred stockholders. For the year ended December 31, 2023, Eastside issued dividends of 9,296 shares
of common stock at a VWAP of $16.14 per share to its Series B Preferred stockholders. For both the years ended December 31, 2024 and 2023,
Eastside accrued $0.2 million of preferred dividends.

Issuance of Series C Preferred Stock

Pursuant to the terms of