Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 252

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 252
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) was $ 8,814,351.

In consideration of purchases of Series B Preferred Stock by certain Series A Preferred Stock holders subsequent to March 31, 2025, on May 1, 2025, certain shareholders agreed to exchange an aggregate of 284,140shares of Series A Preferred Stock at a negotiated aggregate value of $ 4,092,560of Series A Preferred Stock (at Stated Value of $ 12per share and including accrued dividends) and 116,263related warrants to purchase common stock at $ 4.00per share into 409,256shares of Series B Preferred Stock (including $ 2,640,430or 183,122shares of Series A Preferred Stock and 75,702warrants to purchase common stock at $ 4.00per share converted into 264,043shares of Series B Preferred Stock of a related party). The value of Series A Preferred Stock and related warrants exchanged for Series B Preferred Stock was negotiated based upon: the related Stated Value of the Series A Preferred Stock (or 284,140shares at $ 12Stated Value = $ 3,409,680) and accrued dividends thereon (of $ 343,392) through May 1, 2025; plus the value of the related warrants to purchase common stock (calculated using a Black Scholes valuation model). Subsequent to the exchange, there were outstanding: 659,437shares of Series B Preferred Stock; 210,700shares of Series A Preferred Stock; and, 129,998warrants to purchase common stock at $ 4.00per share related to the Series A Preferred Stock, (See also Note 14.)

Stock options— The Company’s 2018 Equity Incentive Plan was approved by the HDC Board and the HDC shareholders in March 2018. On April 27, 2019, in anticipation of the Company’s reorganization on May 1, 2019, the HDHC Board and the HDHC sole stockholder approved HDHC’s 2019 Equity Incentive Plan (the “2019 Plan”). Upon the closing of the Company’s initial public offering (which occurred on November 25, 2024), the 2024 Equity Incentive Plan (the “2024 Plan”) became effective, authorizing the issuance of up to 2,500,000shares of common stock. As of March 31, 2025, the Company had made nogrants under