Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 363

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 363
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ells the barrels back to the Company, the resell prices shall be the price paid per barrel under the agreement plus a 15%simple annual interest rate of 1.25%per month from the date the related party purchased the barrels from the Company. The Company also agreed to store the barrels for the related party at no fee until the related party sells the barrels to either the Company or a third party.

On November 22, 2024 (prior to the Company’s initial public offering on November 25, 2024), the related party exchanged 250,000shares of common stock for 250,000prepaid warrants to purchase common stock.

Subsequent to December 31, 2024, through April 28, 2025, the related party exercised 1,117,559prepaid warrants (with an exercise price of $ 0.001each) cashlessly for 1,115,909shares of common stock, leaving 1,203,783prepaid warrants outstanding.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 15 — RELATED-PARTY TRANSACTIONS(cont.)

Related Party Contingent Legacy Shareholder Warrants(See also Note 9) — On October 30, 2024 the Company issued warrants to purchase common stock that became contingently exercisable upon the closing of an initial public offering (which occurred on November 25, 2024), at the price per share of the Company’s initial public offering (or $ 4.00per share) to its common shareholders of record as of May 31, 2023 (the “Contingent Legacy Shareholder Warrants”), that will be exercisable, if at all, provided / contingent upon: the warrant holder continuously holds the shares such holder owned on May 31, 2023 through the date the warrant is exercised; and the common stock attains a specified volume weighted average price per share (“VWAP”) over a 10-trading-day period (the “ 10-Trading-Day VWAP”) before expiring:

| ● | Tranche                                                                                       
 1 - for up to 762,488 shares of common stock (of which up to 128,358 were to a related party) 
 when the 10-Trading-Day VWAP of the common stock reaches 200% of the $4.00 per share initial  
 public offering price (or $8 per share), and that will expire on the