Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 276

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 276
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 party convertible notes and warrant liabilities was $ 8,783,749and $ 367,401, respectively. As of December 31, 2023, the fair value of the related party convertible notes and warrant liabilities was $ 17,220,203and $ 340,918, respectively. In October 2023, the related party agreed to exchange its then held 2022 and 2023 Convertible Promissory Notes for 1,717,559shares of common stock. (See Note 5 — Exchange of 2022 and 2023 Convertible Promissory Notes.) As of September 30, 2024, $ 3,247,425of Whiskey Special Ops 2023 Notes were held by the related party, plus 254,562warrants to purchase common stock, calculated using a then estimated IPO price of $ 5.00per share. As of December 31, 2023, $ 800,000in principal of the Whiskey Special Ops 2023 Notes were held by the related party, plus 91,200warrants to purchase common stock, calculated using a then estimated IPO price of $ 5.00per share. On February 29, 2024, the related party agreed to exchange its then held Whiskey Notes and related warrants for 1,203,783shares of common stock under the terms of the most recent round of 2023 Convertible Notes and the aforementioned warrants were terminated. (See 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 the Company’s initial public offering) 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. 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