Company: BLNE
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004793
Chunk: 139

Company: Beeline Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 139
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 the right to prepay all, but not less than
all, of the outstanding amounts under the Notes, at its election. The Notes contain certain restrictive covenants, including covenants
precluding the Company and its subsidiaries from incurring indebtedness, transferring assets, changing the nature of its business, and
engaging in certain other actions, subject to certain exceptions.

The Company also entered in three forms of side letters
with the Investors which (i) permitted one Investor which along with an affiliate invested $0.4 million to exchange that amount of stated
value of shares of Series F Preferred Stock for a $0.4 million 120-day promissory note to another affiliate, which note was issued immediately
prior to the closing of the Offering and has substantially identical terms to the Notes issued therein, except it is subordinated with
respect to its security interest, (ii) permit two Investors to convert Series D Preferred Stock beginning on April 7, 2025, and (iii)
permit 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 Preferred Stock, which is $0.50 per share, to determine the number of shares of Series F Preferred Stock.
As of December 31, 2024, debt issuance costs related to the side letters were $0.4 million. The exchange of Series F Preferred Stock for
a 120-day promissory note resulted in a gain of $44,833, which is included in gain on extinguishment of debt in the consolidated statements
of operations.

In March 2025, the Company and certain of the holders agreed to an extension
of the maturity date to April 14, 2025 in exchange for an increase to the principal of the notes by 10%, and two lenders were each paid
their principal balance plus 2.5% interest of $0.3 million. On April 14, 2025, the Company and the remaining Note holders entered into
an agreement for a second extension of the maturity dates of the Notes held by such holders to May 14, 2025. The terms of the recent extension
are as follows: (i) if the Notes are paid off on or before April 29, 2025, then there will be no additional principal payment required;
and (ii) if the principal of the applicable Notes are not paid off on or before