Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 360

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 360
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2024, the aggregate fair value of the Company’s 2022 and 2023 Convertible Notes and related warrant liabilities, as well as the Whiskey Special Ops 2023 Notes and related warrant liabilities (including that portion held by the related party) were reclassified from a liability to equity based upon the $ 4.00price per share of common stock in the Company’s November 25, 2024 initial public offering, See also Note 5.

2023 Barrel Production Contract

During 2023, the Company entered into a distilled spirits barreling production agreement with the related party for production of 1,200barrels of distilled spirits over time. There was a prepayment of $ 1,000,000made in January 2023. In March 2024, the agreement was amended to 600barrels for $ 500,000, with the then $ 500,000excess prepayment used to purchase a Whiskey Note in the principal amount of $ 672,500and subsequently exchanged (contingent upon the consummation of this offering, which occurred on November 25, 2024) under the terms of a Subscription Exchange Agreement for common stock in conjunction with the February 29, 2024 exchange of Whiskey Notes for common stock in conjunction with the February 29, 2024 exchange of Whiskey Notes for common stock. (See Note 5.)

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 15 — RELATED-PARTY TRANSACTIONS(cont.)

Factoring Agreement(s)

In May 2024, the Company raised $ 100,000under the terms of an accounts receivable factoring arrangement with the related party, with fees of 10%(or $ 10,000) and $ 1,000for every 2 weeks payment remains overdue. Payment under the factoring agreement is due the earlier of: within 3 days of receipt of payment under the factored accounts receivable; the achievement of certain fundraising milestones; or June 15, 2024. As of June 30, 2024 the factoring agreement remained unpaid. In July 2024, the investor agreed to exchange his interest in the factoring agreement of $ 113,285into a subscription for the purchase of 11,328shares of Series A Preferred Stock and 5,000warrants to purchase shares of common stock at the lesser of $ 5.00per share