Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 172

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 172
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 and additional paid in capital related to the Series B Preferred Stock is reclassified to a same aggregate amount of par value and additional paid in capital related to the common stock and warrants; and (vi)$66,039,843 (which was recorded to paid in capital on our balance sheet) representing: the 20% discount from the closing price of $IP tokens on August 8, 2025 (as reported by CoinMarketCap.com ) in the case of the Story Core Contributors (as defined in the subscription agreements for the Pre-Funded Warrants); $14,271,353 representing gain from the August 18, 2025 purchase of $35,271,353 of $IP tokens for $21,000,000 in cash subsequent to the offering of Pre-Funded Warrants at a price per $IP token of $3.40 compared to the market price of $5.7106 per $IP token as discussed under (1)(iii) above; and $40,692,647 representing gain from the August 18, 2025 purchase of $99,692,647 of $IP tokens for $59,000,000 in USDC tokens subsequent to the offering of Pre-Funded Warrants at a price per $IP token of $3.40 compared to the market price of $5.745 per $IP token as discussed under (1)(iv) above. Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non -GAAPfinancial measures, as described below, to understand and evaluate our core operating performance. These non -GAAPfinancial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted Gross Profit excluding unabsorbed overhead and Adjusted Gross Margin excluding unabsorbed overhead:Adjusted gross profit excluding unabsorbed overhead represents GAAP gross profit adjusted for (excluding) unabsorbed overhead. Adjusted Gross Margin excluding unabsorbed overhead represents Adjusted Gross Profit excluding unabsorbed overhead as a percentage of total net sales. We use these measures (i) to compare operating performance on a consistent basis for the raw inputs, direct labor and direct overhead to a produce a product removing unused production capacity or overhead, (ii) for planning purposes, including the preparation