Company: BLNE
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011724
Chunk: 33

Company: Beeline Holdings, Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 paid off on or before April 29,
2025 but are paid on or before May 13, 2025, then an additional payment in an amount equal to 5% of the outstanding principal of the
applicable Notes will be due. The Notes were partially repaid and further extended subsequent to March 31, 2025, see Note 21
– Subsequent Events.

    21

Beeline
Holdings, Inc.

Notes
to Consolidated Financial Statements

March
31, 2025

(Unaudited)

The
Notes had a maturity date of 120 days from issuance, were issued with a 20% original issue discount and do not bear interest unless and
until one or more of the customary events of default set forth therein occurs, whereupon each Note will bear interest at a rate of 18%
per annum. If the Notes remained outstanding as of May 14, 2025, the Notes also required a special one-time interest payment of 30% which
would increase the principal of each Note accordingly. Upon the occurrence of an event of default, each investor also has the right to
require the Company to pay all or any portion of the Note at a 25% premium. Further, the Company was required to prepay the Notes in connection
with certain sales of securities or assets at each investor’s election in an amount equal to 35% of the gross proceeds from such
sales. The Company also had the right to prepay all, but not less than all, of the outstanding amounts under the Notes, at its election.
The Notes contained 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 (the “Series F”) 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)
permitted two investors to convert Series D Preferred Stock beginning on April 7, 2025, see Note 16 – Stock