Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 336

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 336
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 As of December 31, 2023, the fair value of the related party convertible notes and warrant liabilities was $ 17,220,203and $ 340,918, respectively. 2023 Series — Convertible Whiskey Special Ops 2023 Notes As of December 31, 2023, $ 800,000in principal of the Whiskey Special Ops 2023 Notes were held by the related party, plus 106,667warrants to purchase common stock, calculated using an estimated IPO price of $ 7.50per share. Subsequent to December 31, 2023, the Company issued an additional $ 1,433,000of Whiskey Special Ops 2023 Notes with a similarly calculated 191,067warrants to the same related party. On February 29, 2024, the related party agreed to exchange its then held Whiskey Notes and related warrants for equity under the terms of the most recent round of 2023 Convertible Notes and the aforementioned warrants were terminated. (See Note 16.) 2023 Barrel Production Contract During 2023, the Company entered into a distilled spirits barreling production agreement with Tiburon Opportunity Fund, L.P. This agreement is for production of 1,200barrels of distilled spirits over time. There was a prepayment of $ 1,000,000made in January 2023. Subsequent to December 31, 2023, this agreement was amended in March 2024 to a reduced number of 600barrels for $ 500,000. The then $ 500,000excess prepayment was then used to purchase a Whiskey Note in the principal amount of $ 672,500and subsequently exchanged (contingent upon the consummation of this offering) under the terms of a Subscription Exchange Agreement for common stock in conjunction with the February 29, 2024 exchange of Whiskey Notes for common stock. (See Note 16.). F-74 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements

NOTE 15 — BASIC AND DILUTED NET LOSS PER SHARE

The Company computes basic net income (loss) per
share by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. The
Company computes diluted net income (loss) per share by dividing net income (loss) for the period by the weighted-average number of common
shares outstanding during the period, plus the