Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 346

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 346
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 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 at $ 6.00per share in conjunction with July 2024 accounts receivable factoring agreement; 84,377Underwriter Warrants in conjunction with the Company’s initial public offering; and, 197,013warrants to purchase common stock, (of which, 60,563were to a related party) in connection with the issuance of Series A Preferred Stock. Upon the November 25, 2024 initial public offering at $ 4.00per share, the 197,013warrants at $ 5.00per share were recalculated and reissued as 246,267warrants at $ 4.00per share (and the 60,563related party warrants at $ 5.00per share were recalculated and reissued as 75,705warrants at $ 4.00per share.). For the year ended December 31, 2023 the Company issued zerowarrants. During the years ended December 31, 2024 and 2023, the assumptions used in the Black-Scholes option pricing model were as follows:

|                                           |     | 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 | % |     |      | — |

As of December 31, 2023, 35,720fixed warrants were exchanged for previously issued variable warrants. As of December 31, 2024 and 2023, in addition to the Contingent Legacy Shareholder Warrants discussed above, there were outstanding and exercisable warrants to purchase