Company: IPST
Filing Date: 2025-12-12
Form Type: S-1/A
Source: 0001213900-25-121277
Chunk: 429

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-12
Form: S-1/A
Chunk 429
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’ EQUITY/(DEFICIT) (cont.) Warrants may increase by up to 15% (to warrants for 4,851shares at $ 80.00per share) if the Underwriter elects to utilize the overallotment rights of the Offering. As of April 28, 2025, the underwriter has not exercised any Underwriter Warrants. Deferred Compensation— Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such time as the Company completed a successful public registration of its stock (which occurred on November 25, 2024). Upon success of the Company’s initial public offering, each employee was then to be paid their deferred salary plus a range of matching dollars in RSUs (under the new 2024 Plan noted above) for every 1dollar of deferred salary. As of December 31, 2024, the Company recorded $ 848,908of such deferred payroll expense, including $ 457,730paid in cash in December 2024, and $ 391,179remaining to be paid which is included in accrued liabilities as of December 31, 2024. Accordingly, as of December 31, 2024 the Company has also committed to issue approximately $ 1,894,615in equity compensation (in the form of RSUs or stock options) related to the deferred compensation. NOTE 10 — ACQUISITION OF THINKING TREE SPIRITS Business Combinations— On February 21, 2024, the Company purchased all the outstanding stock of Thinking Tree Spirits, Inc. (“TTS”), which was accounted for as a business combination, requiring assets and liabilities assumed to be measured and recorded at their acquisition date fair values as of the acquisition date. The resolution of the contingent earn out payments will be reviewed at each subsequent reporting period, and any increases or decreases in fair value will be recorded in the income statement as an operating gain or loss. Under the terms of the stock sale, the Company paid the shareholders of TTS $ 670,686($ 720,686, net of $ 50,000held back for post -closingaccounting true -ups) using shares of common stock of the Company. The $ 670,686was paid using common stock of the Company at a negotiated price of $ 263.20per share (or 50,958shares), subject to a true -upprovision (to the price per share of the Company’s anticipated