Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024441
Chunk: 33

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 33
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 prepayment of $1,000,000 made to the Company in January 2023. In March 2024, the agreement was amended to 600 barrels for $500,000, with the then $500,000 excess prepayment used to purchase a Whiskey Note in the principal amount of $672,500, which was subsequently exchanged (upon the consummation of the Company’s initial public offering on November 25, 2024) under the terms of a Subscription Exchange Agreement for common stock in conjunction with the February 29, 2024 exchange of Whiskey 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 June 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 is determined using Level 3 inputs during the six months ended June 30, 2025:

|                               |     | 2022 and 2023  Convertible  Notes |             |   |     | Whiskey  Special Ops  Notes |            |     | 2022  Notes  Warrant  Liabilities |         |     | Whiskey  Special Ops  Notes Warrant  Liabilities |            |   |     | Acquisition Contingency Liabilities |          |   |
|:------------------------------|:----|:----------------------------------|------------:|:--|:----|:----------------------------|-----------:|:----|:----------------------------------|--------:|:----|:-------------------------------------------------|-----------:|:--|:----|:------------------------------------|---------:|:--|
| Balance as of January 1, 2024 |     | $                                 |  36,283,890 |   |     | $                           |  1,452,562 |     | $                                 | 794,868 |     | $                                                |  1,512,692 |   |     | $                                   |        — |   |