Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 283

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 283
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 the related party. Payment under the factoring is due the earlier of: within 3 days of receipt of payment under the factored receivable; the achievement of certain fundraising milestones; or August 15, 2024. Effective July 31, 2024, the investors agreed to exchange their interests in the factoring agreement of $ 329,633, including accrued fees and related warrants, for an aggregate of 32,963shares of Series A Preferred Stock, 14,983warrants to purchase shares of common stock at the lesser of $ 5.00per share or the price per share at which the Company’s common stock is sold in the Company’s initial public offering (the “$ 5.00Warrants”), and 86,864warrants at $ 6.00per share (the “$ 6.00Warrants”). (Including $ 166,667received from the related party, which was exchanged for 18,333shares of Series A Preferred Stock, 8,333related $ 5.00Warrants, and 48,073related $ 6.00Warrants.) Upon the November 25, 2024 initial public offering at $ 4.00per share, the 14,983warrants at $ 5.00per share were recalculated and reissued as 18,728warrants at $ 4.00per share, and the 8,333related party warrants at $ 5.00per share were recalculated and reissued as 10,416warrants at $ 4.00per share.

In September 2024, the $ 6.00Warrants discussed above and in Note 9 (including 321,026$ 6.00Warrants from the related party) were exchanged for 93,789shares of Series A Preferred Stock that did not include any related warrants (including 59,001shares of Series A Preferred Stock that did not include any related warrants for a related party). The value assigned to the $ 6.00Warrants exchanged for Series A preferred Stock that did not include any warrants was negotiated to be $ 937,959(including $ 590,045from a related party), or $ 1.838per $ 6.00Warrant, using a Black-Scholes Valuation model with an estimated IPO stock price of $ 5.00per share and exercise price of $ 6.00per share.

In September 2024