Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 426

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 426
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$ 120Warrants”) (of which 16,051of the $ 120Warrants were issued to a related party). In September 2024, the 25,515$ 120Warrants (including 16,051$ 120Warrants from a related party) were exchanged for 93,789shares of Series A Preferred Stock that did not include any related warrants (including 59,001shares of Series A Preferred Stock that did not include any related warrants for a related party). The value assigned to the $ 120Warrants exchanged for Series A Preferred Stock that did not include any warrants was negotiated to be $ 937,959(including $ 590,045from a related party), or $ 36.76per $ 120Warrant using a Black -ScholesValuation model with a then estimated IPO stock price of $ 100per share and exercise price of $ 120per share. The Company allocated the net proceeds between the warrants and the Series A Preferred Stock using the relative fair value method. In connection with the $ 4,948,478of Series A Preferred Stock, the Company also issued 9,850warrants to purchase common stock at the lesser of $ 100per share or the price per share at which the common stock is sold in the Company’s initial public offering (of which 3,028of the $ 100Warrants were issued to a related party). Upon the November 25, 2024 initial public offering at $ 80.00per share, the 9,850warrants at $ 100per share were recalculated and reissued as 12,313warrants at $ 80.00per share (and the 3,028related party warrants at $ 100per share were recalculated and reissued as 3,785warrants at $ 80.00per share). The Series A Preferred Stock has a liquidation preference equal to the greater of (i) 110% of the sum of (a) the Series A Preferred Stock Stated Value, plus (b) the amount of the aggregate dividends then accrued on such share of Series A Preferred Stock and not previously paid, or (ii) such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution or winding up. Accordingly, the Series A Preferred Stock liquidation preference as of December 31, 2024 (with 494,840shares