Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 251

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 251
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 Value        
 Measurement as of 
 2024              | September 30, |     | 2023 | December 31, |
|:----------------------------------------|:----|:------------------|--------------:|:----|:-----|-------------:|
| 2022 and 2023 Convertible Notes         |     | $                 |    18,482,353 |     | $    |   36,283,891 |
| Whiskey Special Ops 2023 Notes          |     |                   |    14,283,752 |     |      |    1,452,562 |
| Warrant Liabilities 2022 and  2023      |     |                   |       856,614 |     |      |      794,868 |
| Warrant Liabilities Whiskey Special Ops |     |                   |        18,658 |     |      |    1,512,692 |
| Acquisition Contingency Liabilities     |     |                   |       127,076 |     |      |            — |
| Total Liabilities at Fair Value         |     | $                 |    33,768,453 |     | $    |   40,044,013 |

In November of 2023, the Convertible Notes were exchanged (contingent upon the consummation of the Company’s initial public offering) for common stock and prepaid warrants effective as of June 30, 2023. (See Note 5.) As of September 30, 2024, the $ 415,265decrease in fair value of the 2022 and 2023 Convertible Notes, is included as a gain in the change in fair value of convertible notes in the Company’s condensed consolidated statement of operations. As further discussed below, such valuation reflecting the fixed number of shares and prepaid warrants exchanged for the convertible notes as impacted by the valuation methodologies and inputs, including an estimated common stock share value of $ 7.50($ 13.16post split) per share as of March 31, 2024; as compared to a subsequent share value of $ 5.00per share as of September 30, 2024; and, subsequent to September 30, 2024, $ 4.00per share, upon the November 25, 2024 initial public offering at $ 4.00per share.

As of June 30, 2024, the then outstanding $ 13,978,