Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 443

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 443
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5. 2023 Barrel Production Contract During 2023, the Company entered into a distilled spirits barreling production agreement with the related party for production of 1,200barrels of distilled spirits over time. There was a prepayment of $ 1,000,000made in January 2023. In March 2024, the agreement was amended to 600 barrels for $ 500,000, with the then $ 500,000 F-97 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 15 — RELATED-PARTY TRANSACTIONS (cont.) excess prepayment used to purchase a Whiskey Note in the principal amount of $ 672,500and subsequently exchanged (contingent upon the consummation of this offering, which occurred 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 in conjunction with the February 29, 2024 exchange of Whiskey Notes for common stock. (See Note 5.) Factoring Agreement(s) In May 2024, the Company raised $ 100,000under the terms of an accounts receivable factoring arrangement with the related party, with fees of 10% (or $ 10,000) and $ 1,000for every 2 weeks payment remains overdue. Payment under the factoring agreement is due the earlier of: within 3 days of receipt of payment under the factored accounts receivable; the achievement of certain fundraising milestones; or June 15, 2024. As of June 30, 2024 the factoring agreement remained unpaid. In July 2024, the investor agreed to exchange his interest in the factoring agreement of $ 113,285into a subscription for the purchase of 11,328shares of Series A Preferred Stock and 5,000 warrants to purchase shares of common stock at the lesser of $ 5.00per share or the price per shares at which the Company’s common stock is sold in the Company’s initial public offering (the “$ 5.00Warrants”), and 29,705warrants at $ 6.00per share (the “$ 6.00Warrants”) and related warrants. Upon the November 25, 2024 initial public offering at $ 4.00per share, the 5,000warrants at $ 5.00per