Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 322

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 322
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 exercise price equal to the lesser of $5.00 or the price per share at which the common stock is sold in the Company’s Initial Public Offering (the “Exercise Price”), subject to splits, combinations or other like adjustments.Upon the November 25, 2024 initial public offering at $ 4.00per share, the exercise price of the 197,013warrants was fixed at $ 4.00per share. The Warrants expire June 15, 2029. At any time after June 15, 2027, the Warrants shall automatically exercise on a cashless basis if the common stock has traded for 5consecutive trading days at or above 125% of the Exercise Price.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 8 — FAIR VALUE MEASUREMENT

Upon the consummation of the Company’s initial public offering on November 25, 2024, the Notes Payable and Warrant Liabilities in the following table were exchanged and reclassified into equity (see Note 5), and were $ 0as of December 31, 2024. The following table presents information about the Company’s financial liabilities that were previously measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation as of December 31, 2023 under Level 3.

SCHEDULE OF FAIR VALUE HIERARCHY OF THE VALUATION

|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
|:----------------------------------------------------|:----|:------------------------------|:--|:----|:------------------|-----------:|
|                                                     |     | Fair Value  Measurement as of |   |     |                   |            |
|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
| 2022 and 2023 Convertible Notes                     |     | $                             | — |     | $                 | 36,283,891 |
| Whiskey Special Ops 2023 Notes                      |     |                               | — |     |                   |  1,452,562 |
| Warrant Liabilities 2022 and 2023 Convertible Notes |     |                               | — |     |                   |    794,868 |
| Warrant Liabilities Whiskey Special Ops             |     |                               | — |