Company: BLNE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024044
Chunk: 29

Company: Beeline Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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LOC Agreement to reduce the maximum amount under the ELOC Agreement from $35 million
to $10 million. During the six months ended June 30, 2025, the Company sold and issued a total of 5,018,437 shares of common stock for
an aggregate purchase price of $6.3 million to the Purchaser. The Company recorded offering costs related to the ELOC of $0.4 million
as of June 30, 2025.

Preferred
Stock

The
Company has 100 million shares of preferred stock authorized.

    23

Beeline Holdings, Inc.

Notes to Consolidated Financial Statements

June 30, 2025

(Unaudited)

Issuance
of Series B Preferred Stock

On
October 19, 2021, the 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
the Company 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 the Company’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 the Company 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 both the six