Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 408

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 408
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| 2022 and 2023 Convertible Notes                     |     | Fair Value        
 Measurement as of 
 December 31,      
 2024              | — |     | December 31, 
 2023         | 36,283,891 |
|:----------------------------------------------------|:----|:------------------|:--|:----|:-------------|-----------:|
| Whiskey Special Ops 2023 Notes                      |     |                   | — |     |              |  1,452,562 |
| Warrant Liabilities 2022 and 2023 Convertible Notes |     |                   | — |     |              |    794,868 |
| Warrant Liabilities Whiskey Special Ops             |     |                   | — |     |              |  1,512,692 |
| Total Liabilities at Fair Value                     |     | $                 | — |     | $            | 40,044,013 |

In November of 2023, the 2022 and 2023 Convertible Notes were exchanged (contingent upon the consummation of the Company’s initial public offering) for common stock and prepaid warrants effective as of June 30, 2023. (See Note 5.) Through November 25, 2024, the $ decrease in fair value of the 2022 and 2023 Convertible Notes in 2024, was included as a gain in the change in fair value of convertible notes in the Company’s 2024 consolidated statement of operations. As further discussed below, such valuation reflecting the fixed number of shares and prepaid warrants exchanged for the convertible notes as impacted by the valuation methodologies and inputs, including an estimated common stock share value of $ ($ post-split) per share as of March 31, 2024; as compared to a subsequent share value of $ per share, upon the November 25, 2024 initial public offering at $ per share.

As of June 30, 2024, the then outstanding $ in aggregate fair value, of the Whiskey Notes and related Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of the Company’s initial public offering) for a total of shares of common stock and prepaid warrants to purchase common stock. Through November 25, 2024, the $ increase in fair value of the Whiskey Notes in 2024, was included as a loss in the change in fair value of convertible notes