Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 412

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 412
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 Monte Carlo Simulation. The fair value of the warrant liabilities at the issuance dates in the years ended December 31, 2024 and December 31, 2023 was approximately $ 302,020and $ 1,621,527, respectively, of which $ 111,112and $ 436,041, respectively, was associated with the related party warrant liabilities. The fair value of the warrant liabilities at the issuance dates in April 2024 was approximately $ 48,889, of which $ 26,706was associated with the related party warrant liabilities. The warrant liabilities are subsequently remeasured to fair value at each reporting date with changes in fair value recognized as a component of total other income (expense) in the consolidated statements of operations. The Company recorded a net gain of $ 1,814,712(of which $ 406,774was to a related party) resulting from the change in fair value of the warrant liabilities to $ 0(of which $ 0was to a related party) for the year ended December 31, 2024. The Company recorded a net gain of $ 108,835(of which $ 29,267was to a related party) resulting from the change in fair value of the warrant liabilities to $ 1,512,692(of which $ 406,774was to a related party) for the year ended December 31, 2023. In April 2024, the Whiskey Notes (including 37,795related warrants) were exchanged (contingent upon the consummation of the Company’s initial public offering) for common stock. The then outstanding $ 23,311,063in aggregate fair value ($ 8,678,433of principal amount, including accrued interest; $ 6,630,870of proceeds) of the Whiskey Notes and related Warrants (Warrant Liability) in accordance with a Subscription Exchange Agreement, exchanged for a total of 119,954shares of common stock and 27,346prepaid warrants to purchase common stock. The Whiskey Notes and related warrants were exchanged (contingent upon the consummation of the Company’s initial public offering) for common stock; however, the Whiskey Notes and related Warrant Liabilities remained on the Company’s balance sheet until the closing of the Company’s IPO (which occurred on November 25, 2024) — which was the remaining prerequisite for the unconditional exchange of the outstanding indebtedness and related warrants for equity). As of November