Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 412

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 412
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 significant estimates and assumptions used as inputs in the PWERM and MCS valuation techniques impacting the fair value of the warrant liabilities until their unconditional conversion at the initial public offering price of $ per share on November 25, 2024, are the timing and probability of IPO, deSPAC Merger and default scenario outcomes (see the table below). The most significant estimates and assumptions used as inputs in the PWERM and MCS valuation techniques impacting the fair value of the warrant liabilities are those utilizing certain weighted average assumptions such as expected stock price volatility, expected term of the warrants, and risk-free interest rates.

Upon the consummation of the Company’s initial public offering on November 25, 2024, the 2022 Convertible Promissory Notes warrant liabilities were exchanged and reclassified into equity (see Note 5), and were $ as of December 31, 2024. The significant unobservable inputs that were included in the valuation of the 2022 Convertible Promissory Notes warrant liabilities as of December 31, 2023, include:

|                                 |     | December 31, 2023 |     |          |
|:--------------------------------|:----|:------------------|:----|:---------|
| Significant Unobservable Input  |     | Input             
 Range             |     | Weighted 
 Average  |
| Expected Term (in years)        |     | 0.122 – 1.081     |     |          |
| Volatility                      |     | 70%               |     | 70%      |
| Risk-free Rate                  |     | 74%               |     | 74%      |
| Probability scenarios           |     |                   |     |          |
| IPO                             |     | 70%               |     |          |
| deSPAC                          |     | 0%                |     |          |
| Default/Dissolution/Liquidation |     | 20%               |     |          |
| Held to Maturity                |     | 10%               |     |          |

Upon the consummation of the Company’s initial public offering on November 25, 2024, the Whiskey Special Ops 2023 Notes warrant liabilities were exchanged and reclassified into equity (see Note 5), and were $ as of December 31, 2024, The significant unobservable inputs that were included in the valuation of the Whiskey Special Ops 2023 Notes warrant liabilities as of December 31, 2023, include: