Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 363

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 363
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.) In conjunction with the August 15, 2025 Offering discussed above, the Company also negotiated restructurings and settlement agreements with outstanding secured notes and unsecured payables as discussed in more detail below. Negotiated Restructurings and Settlement Agreements with Outstanding Secured Notes and Unsecured Payables —In July 2025, the Company negotiated terms with its secured notes payable creditor and a number of its unsecured creditors (the “Negotiated Settlements”), whereby, contingent and effective only upon the occurrence of: a) the closing of a financing transaction between the Company and third party private investors in excess of $ 75million dollars and involving a tradable cryptocurrency, token or other similar digital asset (the “Trigger Date”); b) the approval of Company’s stockholders of such transaction at a duly called Special Meeting; and c) effectiveness of a registration statement related to such transaction filed with the Securities and Exchange Commission in accordance with the Securities Act of 1933, as amended, that the Company will pay agreed upon cash amounts due to the respective obligees, as agreed, in cash and or equity, in settlement of amounts owed to such obligees. The equity portion of the Negotiated Settlements is in the form of warrants to purchase common stock at $ 0.01per share, exercisable at the earlier of (i) 6 -monthsor (ii) the day following the issue date of the respective warrants on which the closing price of the common stock equals or exceeds $ 1.50per share, which were valued based on a Black Scholes valuation (the “Settlement Equity”). The result of the Negotiated Settlements with the secured and unsecured creditors was: a) $ 10,382,438of the Company’s secured notes payable as of June 30, 2025 ($ 12,620,345as of August 7, 2025, including settlement fees and expenses and additional accrued interest) was negotiated to be settled for $ 7,046,094in cash and $ 2,963,624of warrants with the remaining $ 2,610,627recognized as a gain on settlement in the (third quarter) statement of operations; and, b) an aggregate of $ 3,792,767of Settlement Equity (in the form of 4,000,000warrants) with the remaining $ 2,635,507to be recognized as a gain on settlement in the statement of operations; and, c) an aggregate