Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 452

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 452
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4. Effective July 31, 2024, the investors agreed to exchange their interests in the factoring agreement of $ 329,633, including accrued fees and related warrants, for an aggregate of 32,963shares of Series A Preferred Stock, 749 warrants to purchase shares of common stock at the lesser of $ 100per share or the price per share at which the Company’s common stock is sold in the Company’s initial public offering (the “$ 100Warrants”), and 4,343warrants at $ 120per share (the “$ 120Warrants”). (Including $ 166,667received from the related party, which was exchanged for 18,333shares of Series A Preferred Stock, 8,333related $ 100Warrants, and 48,073related $ 120Warrants.) Upon the November 25, 2024 initial public offering at $ 80.00per share, the 749warrants at $ 100per share were recalculated and reissued as 18,728 warrants at $ 80.00per share, and the 8,333related party warrants at $ 100per share were recalculated and reissued as 10,416warrants at $ 80.00per share. In September 2024, the $ 120Warrants discussed above and in Note 9 (including 16,051$ 120Warrants from the 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 an estimated IPO stock price of $ 100per share and exercise price of $ 120per share. In September 2024, the Company purchased 50barrels of premium aged whiskey from the related party for $ 110,600, or $ 2,212per barrel (comprised of $ 495per barrel and $ 1,717of spirits, for an aggregate total of $ 24,750to fixed assets and $ 85,850to inventory). The $ 110,