Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 320

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 320
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 of total other income (expense) in the consolidated statements of operations. The Company recorded a net gain of $ 108,835(of which $ 29,267was to a related party) resulting from the change in fair value of the warrant liabilities to $1,512,692 (of which $ 406,774was to a related party) for the year ended December 31, 2023. Subsequent to December 31, 2023 and through April 26, 2024, the Whiskey Notes (including 884,116related warrants) were exchanged (contingent upon the consummation of this offering) for common stock. The then outstanding $ 26,797,284in aggregate fair value ($ 8,678,433of principal amount, including accrued interest; $ 6,630,870of proceeds) of the Whiskey Notes and related Warrants (Warrant Liability) in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of this offering) for a total of 2,399,090shares of our common stock and 546,927prepaid warrants to purchase our common stock. The Whiskey Notes and related warrants were exchanged (contingent upon the consummation of this offering) for common stock; however, the Whiskey Notes and related Warrant Liabilities remain on our balance sheet until subsequent to December 31, 2023 (upon the effectiveness of the Company’s anticipated IPO — which is the remaining prerequisite for the unconditional exchange of the outstanding indebtedness and related warrants for equity). (See Note 16.) The following table presents information about the Company’s financial liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation as of December 31, 2023 and 2022 under Level 3. F-64 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements

NOTE 8 — FAIR VALUE MEASUREMENT

| 2022 and 2023 Convertible Notes         |     | Fair Value        
 Measurement as of 
 December 31,      
 2023              | 36,283,891 |     | December 31, 
 2022         | 8,041,000 |
|:----------------------------------------|:----|:------------------|-----------:|:----|:-------------|----------:|
| Whiskey Special Ops 2023 Notes          |     |                   |  1,452,562 |