Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 405

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 405
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 dates of the 2022 Notes issued in 2022 was approximately $ 581,364, of which $ 300,059was associated with the related party warrant liabilities. The fair value of the warrant liabilities at the issuance dates of the 2022 Notes issued in February 2023 was approximately $ 12,874. The warrant liabilities are subsequently remeasured to fair value at each reporting date with changes in fair value recognized as a component of total other income (expense) in the consolidated statements of operations. The Company recorded a net loss of $ 1,078,132and a net loss of $ 348,994resulting from the change in fair value of the warrant liabilities for the years ended December 31, 2024 and 2023, respectively, of which $ 462,410and $ 149,710, respectively, was related to the change in value of the related party warrant liabilities. As of December 31, 2024 and 2023, the fair value of the warrant liabilities was $0and $ 794,868, respectively of which $ 0and $ 340,918were associated with the related party warrant liabilities. In April of 2024, under a Securities Exchange Agreement, the strike price of the warrants became fixed at a negotiated fixed, non -adjustableprice of $ 6.00per share (as opposed to the previous pricing which was contingent on the IPO price), whereas these 908,334warrants now have a fixed price and include a cashless exercise provision,

F-75 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 7 — WARRANT LIABILITIES (cont.) and no longer qualify to be classified as liabilities in accordance with ASC 480, and their fair value that had previously been recorded as warrant liabilities was reclassified to equity upon the Company’s November 25, 2024 initial public offering. 2023 Series — Convertible Whiskey Special Ops 2023 Notes Warrants From August 2023 to April 2024, the Company issued warrants to purchase common stock to the Whiskey Note holders, including the related party, in an amount equal to the cash proceeds divided by the exercise price. (see Note 5 and Note 15). These warrants are exercisable on or after the earlier of (i) occurrence of an IPO, or (ii) August 29, 2024, and expire on August 29, 2028. The warrant exercise price was equal