Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 324

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 324
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 sensitive to the equity value of the Company at payment by using annualized discount rates that were applied across valuation dates from issuance dates of the Convertible Notes to their unconditional conversion at the initial public offering price of $ 4.00per share on November 25, 2024. The discount rates were based on certain considerations including time to payment, an assessment of the credit position of the Company, market yields of companies with similar credit risk at the date of valuation estimation, and calibrated rates based on the fair value relative to the original issue price from the Convertible Notes.

Upon the consummation of the Company’s initial public offering on November 25, 2024, the 2022 and 2023 Notes in the following table were exchanged and reclassified into equity (see Note 5), and were $ 0as of December 31, 2024, The significant unobservable inputs that were included in the valuation of the 2022 and 2023 Convertible Notes as of December 31, 2023 include:

SCHEDULE OF UNOBSERVABLE INPUTS

|                                        |     | December 31, 2023 |               |   |     |                   |               |   |
|:---------------------------------------|:----|:------------------|--------------:|:--|:----|:------------------|--------------:|:--|
| Significant Unobservable Input         |     | Input  Range      |               |   |     | Weighted  Average |               |   |
| Discount Rate                          |     |                   |          48.5 | % |     |                   |          48.5 | % |
| Expected Term (in years)               |     |                   | 0.122 – 1.081 |   |     |                   | 0.122 – 1.081 |   |
| Probability Scenarios                  |     |                   |               |   |     |                   |               |   |
| IPO                                    |     |                   |            70 | % |     |                   |               |   |
| deSPAC                                 |     |                   |             0 | % |     |                   |               |   |
| Default/Dissolution/Forced Liquidation |     |                   |            20 | % |     |                   |               |   |
| Held to Maturity                       |     |                   |            10 | % |     |                   |               |   |

Upon the consummation of the Company’s initial public offering on