Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 72

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 72
---
 35,500 shares was from a related party, of which, one other investor subscription of $100,000 or 10,000 shares included a negotiated 327,868 prepaid warrants to purchase common stock at $0.001 per share).The Series B Preferred Stock has a liquidation preference equal to the greater of (i) 110% of the sum of (a) the Series B Preferred Stock Stated Value, plus (b) the amount of the aggregate dividends then accrued on such share of Series B Preferred Stock and not previously paid, or (ii) such amount per share as would have been payable had all shares of Series B Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution or winding up. Accordingly, the Series B Preferred Stock liquidation preference as of June 30, 2025 (with 744,354 shares outstanding and a stated value of $8,932,248) was $10,072,005, or 20,737,012. shares of common stock based on the respective Conversion Prices with a high of $1.12, a low of $0.4736, and a weighted average of $0.49. Subsequent to June 30, 2025, the Series B Preferred liquidation preference (with 756,854 shares outstanding and a stated value of $9,082,248) was $10,405,553.  Subsequent to June 30, 2025, 56,462 shares of Series B Preferred Stock converted into 1,521,175 shares of common stock.In conjunction with, and contingent upon, the August 11, 2025 Subscription Agreement discussed in Note 14,  629,873 shares of Series B Preferred Stock that would have been eligible to be converted into 17,897,336 shares of common stock will be exchanged for: 894,856 shares of common stock; 8,948,676 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $1.50 per share or higher during a regular trading day or (ii) on the 3 month anniversary of the warrant issuance date; and, 8,053,804 prepaid warrants with an exercise price of $0.01 per share that are exerciseable for common stock at the earlier of (i) when the common stock closes at $2.00 per share or higher during a regular trading