Company: IPST
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001788230-25-000175
Chunk: 207

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-11-18
Form: 10-Q
Item: Part II, Item 8
Chunk 207
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 Agreement for common stock in conjunction with the February 29, 2024 exchange of promissory notes for common stock. 

NOTE 6 — FAIR VALUE MEASUREMENT

Upon the consummation of the Company’s initial public offering on November 25, 2024, the 2022 and 2023 Convertible Notes; Warrant Liabilities - 2022 and 2023 Convertible Notes; Whiskey Special Ops 2023 Notes; and Warrant Liabilities - Whiskey Special Ops 2023 Notes were all exchanged and reclassified from liabilities to equity. Accordingly, the respective fair values of those liabilities as of both September 30, 2025 and December 31, 2024 was $0, The following table provides a roll forward of the aggregate fair values of the Company’s financial instruments described above, for which fair value was determined using Level 3 inputs during the nine months ended September 30, 2024:2022 and 2023Convertible NotesWhiskey Special Ops Notes2022Notes Warrant LiabilitiesWhiskey Special Ops Notes Warrant LiabilitiesAcquisition Contingency LiabilitiesBalance as of January 1, 2024$36,283,891 $1,452,562 $794,868 $1,512,692 $— Issuances— 3,353,850 — 302,020 584,203 Change in Fair Value(17,801,538)9,477,340 61,746 (1,796,054)(457,127)Balance as of September 30, 2024$18,482,353 $14,283,752 $856,614 $18,658 $127,076 There were no financial instruments for which fair value is determined using Level 3 inputs for the nine months ended September 30, 2025.As of September 30, 2025, the fair value of the Company’s $IP Token intangible digital assets was based on the closing market price of the $IP Token as reported publicly on Coinbase as of September 30, 2025 of $8.54 per $IP Token.

NOTE 7 — PRIVATE PLACEMENT OF COMMON STOCK (PRIVATE INVESTMENT IN PUBLIC EQUITY (“PIPE”) AND INTANGIBLE DIGITAL ASSETS

Private Placement of Common Stock (Private Investment in Public Equity (“PIPE”)) — On August 15, 2025, the