Company: IPST
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001788230-25-000126
Chunk: 2

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 3
Chunk 2
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 Spirits and our company seeking $470,000 under the Oregon dissenter rights statute, plus interest. While we are reviewing the matter, we believe the amount being sought is without merit and grossly overinflates the value of the enterprise, and we intend to vigorously defend this matter. Further, we believe we had counterclaims against the plaintiff for actions taken by him before, during and after the closing of the acquisition transaction that adversely effected the valuation of the acquisition and our investment in Thinking Tree Spirits. The parties reached agreement on August 4, 2025 whereby the dissenter relinquished his claims in exchange for $140,000, ending the matter.

Item 1A. Risk Factors

As a “smaller reporting company,” we are not required to provide the information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered Securities

During the quarter ended June 30, 2025, the Company issued and sold an aggregate of 576,373 shares of its Series B Convertible Preferred Stock (the “Preferred Stock”) and warrants to purchase up to 733,192 shares of the Company’s common stock (the “Warrants”) to accredited investors for aggregate gross proceeds of approximately $5,763,747. The Preferred Stock and Warrants were issued in reliance upon exemptions from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D promulgated thereunder, as the transactions did not involve any public offering.

In conjunction with, and contingent upon, a private placement of common stock anticipated to close in August 2025:  629,873 shares of Series B Preferred Stock will be exchanged for: 894,856 shares of common stock; and 17,002,480 prepaid warrants with an exercise price of $0.01 per share 

No underwriters were engaged in connection with these sales, and no underwriting discounts or commissions were paid. The shares of Preferred Stock and the Warrants contain restrictions on transfer and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the Securities Act and applicable state securities laws.

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