Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 164

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 164
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holders’ equity/(deficit) as the aggregate par value and additional paid in capital related to the Series B Preferred Stock is reclassified to a same aggregate amount of par value and additional paid in capital related to the common stock and warrants. In conjunction with the sale of our Pre -FundedWarrants, in July 2025, we negotiated terms with a number of our secured and unsecured creditors, whereby, contingent and effective only upon the occurrence of the closing of a financing transaction with third -partyprivate investors in excess of $75 million dollars and involving a tradable cryptocurrency, token or other similar digital asset (the “Trigger Date”), we agreed to pay a negotiated amounts of cash or equity in settlement of the amounts owed to such obligees. The result of the negotiated settlements with the secured and unsecured creditors was (i) $12,620,345 of our secured notes payable as of August 7, 2025 (including settlement fees and expenses of $937,500 and additional accrued interest of $90,161) was negotiated and settled for $7,046,094 in cash and $2,963,624 of warrants with the remaining $2,610,627 recognized as a gain on settlement in the three months ended September30, 2025 statement of operations; and (ii) an aggregate of $3,792,767 of our unsecured accounts payable was settled for $1,816,250 in cash, $837,914 payable in equity with the remaining $1,138,603 was recognized in the three months ended September30, 2025 statement of operations. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non -GAAPfinancial measures, as described below, to understand and evaluate our core operating performance. These non -GAAPfinancial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted Gross Profit excluding unabsorbed overhead and Adjusted Gross Margin excluding unabsorbed overhead:Adjusted gross profit excluding unabsorbed overhead represents GAAP gross profit adjusted for (excluding) unabsorbed overhead. Adjusted Gross Margin excluding unabsorbed overhead represents Adjusted Gross Profit excluding unabsorbed overhead as a percentage of total net sales. We use these measures (i