Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 234

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 234
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 the 2022 and 2023 Convertible Notes were exchanged (contingent upon the consummation of the Company’s initial public offering, which occurred subsequent to September 30, 2024, on November 25, 2024) for 3,312,148shares of common stock and 507,394prepaid warrants; The actual unconditional exchange of the Convertible Notes and reclassification of the aggregate September 30, 2024 fair value of $ 19,338,967in Convertible Notes to equity under the terms of the Subscription Exchange Agreement will occur upon the effectiveness of the Company’s IPO (which occurred subsequent to September 30, 2024, on November 25, 2024) — which is the remaining prerequisite for the unconditional exchange of the 2022 and 2023 Convertible Notes for equity. Until such time, the Convertible Notes will remain on the Company’s balance sheet and the change in their fair value will also continue to be recognized as Other Income/(Expense) in the Company’s Statement of Operations. F-16 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 5 — CONVERTIBLE NOTES (cont.) 2022 Convertible Promissory Notes During April 2022 through December 2022, the Company issued multiple unsecured convertible promissory notes (the “2022 Notes”) with aggregate net cash proceeds of approximately $ 10,740,000and aggregate principal sum of $ 14,599,523to various new and existing investors, including $ 4,675,000in cash proceeds and $ 6,311,250in principal to a related party (See Note 14). In February 2023, the Company issued oneconvertible note to an existing investor under the terms of the 2022 Notes with net cash proceeds of $ 260,000and a principal sum of $ 351,000. In May 2023, the Company agreed with one investor to transfer their 2022 Note with a principal sum of $ 135,000to instead be included under their 2023 Round 3 Note (for a total Round 3 Note of $ 2,160,000for said investor). Aggregate cash proceeds and principal sum of the 2022 Notes totaled $ 10,900,000and $ 14,815,523, respectively, including $ 4,675,000of cash proceeds and $ 6,311,250