Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 343

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 343
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 model. The assumptions used in the Black-Scholes option pricing model for the Contingent Legacy Shareholder Warrants were as follows:

SCHEDULE OF VALUATION ASSUMPTIONS

|                                                                              |     | For the Years Ended  December 31, |           |   |     |      |   |
|                                                                              |     |                              2024 |           |   |     | 2023 |   |
| Weighted Average Expected Volatility                                         |     |                                   |        70 | % |     |      | — |
| Expected Dividends                                                           |     |                                   |         — | % |     |      | — |
| Weighted Average Expected Term (in years)                                    |     |                                   |         5 |   |     |      | — |
| Risk-Free Interest Rate                                                      |     |                                   |      4.22 | % |     |      | — |
| Probability Scenarios of meeting contingencies                               |     |                                   |           |   |     |      |   |
| Shareholder holds shares owned on May 31, 2023 through warrant exercise date |     |                                   | 95% to 75 | % |     |      |   |
| Common stock attains a specified 10-Trading-Day VWAP price before expiring   |     |                                   |    0.025% 
   to 2.25 | % |     |      |   |

| 196 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 9 — STOCKHOLDERS’ EQUITY / (DEFICIT)(cont.)

As of December 31, 2024 there were outstanding and exercisable: 725,608$ 8Contingent Legacy Shareholder Warrants; 1,451,216$ 12Contingent Legacy Shareholder Warrants; and 1,814,020$ 20Contingent Legacy Shareholder Warrants, (of which 115,456; 230,912;and 288,640, respectively were to a related party) with weighted-average remaining contractual terms of 1.89years, 3.39years, and 4.9years, respectively.

Other equity classified warrants — In addition to the Contingent Legacy Shareholder Warrants discussed above, during the year ended December 31, 2024, the Company issued a total of 413,971equity classified warrants, including: 83,333warrants