Company: BLNE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023462
Chunk: 48

Company: Beeline Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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49 

The
aggregate intrinsic value of options outstanding as of September 30, 2025 was $0 and all options had vested.

The
Company uses the Black-Scholes valuation model to measure the grant-date fair value of stock options. The grant-date fair value of stock
options issued to employees is recognized on a straight-line basis over the requisite service period. Stock-based awards issued to nonemployees
are recorded at fair value on the measurement date and are subject to periodic market adjustments as the underlying stock-based awards
vest.

To
determine the fair value of stock options using the Black-Scholes valuation model, the calculation takes into consideration the effect
of the following:

    ●
    Exercise
    price of the option

    ●
    Fair
    value of the common stock on the date of grant

    ●
    Expected
    term of the option

    ●
    Expected
    volatility over the expected term of the option

    ●
    Risk-free
    interest rate for the expected term of the option

The
calculation includes several assumptions that require management’s judgment. The expected term of the options is calculated using
the simplified method described in GAAP. The simplified method defines the expected term as the average of the contractual term and the
vesting period. Estimated volatility 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 stock options during the nine months ended September 30, 2025.

Warrants

During
the nine months ended September 30, 2025, the Company sold shares of Series G Preferred Stock and in conjunction issued warrants to purchase
a total of 320,862 shares of common stock. The Company recorded offering costs of $6,270 as of September 30, 2025. In addition, the Company’s
Chief Executive Officer converted his $0.7 million bridge loan into $0.7 million of units comprised of 1,372,549 shares of Series G Preferred
Stock and five-year5 Warrants to purchase a total of 68,628 shares. The Warrants have a term of five years from issuance and are exercisable
at an exercise price of $6.50 per share.

In
July