Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 401

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 401
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 reaches 300% of the $4.00 per share initial public offering price (or $12 per share), and that will expire on the 42 -monthanniversary of the Company’s initial public offering (the “$12 Contingent Legacy Shareholder Warrants”); and, •Tranche 3 — for up to 1,906,220shares of common stock (of which up to 320,895 were to a related party) when the 10 - Trading-DayVWAP of the common stock reaches 500% of the $4.00 per share initial public offering price (or $20 per share), and that will expire on the 60 -monthanniversary of the Company’s initial public offering (the “$20 Contingent Legacy Shareholder Warrants”).

F-86

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 — STOCKHOLDERS’ EQUITY / (DEFICIT) (cont.) The Company recorded a value of $8,828 for the Contingent Legacy Shareholder Warrants as of the October 30, 2024 grant date based on a Black Scholes option pricing model. The assumptions used in the Black -Scholesoption pricing model for the Contingent Legacy Shareholder Warrants 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% |     |    — |
| Probability Scenarios of meeting contingencies                               |     |                     |     |      |
| Shareholder holds shares owned on May 31, 2023 through warrant exercise date |     |          95% to 75% |     |      |
| Common stock attains a specified 10-Trading-Day VWAP price before expiring   |     |     0.025% to 2.25% |     |      |

As of December 31, 2024 there were outstanding and exercisable: 725,608 $8 Contingent Legacy Shareholder W