Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 325

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 325
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 November 25, 2024, the Whiskey Special Ops 2023 Notes in the following table were exchanged and reclassified into equity (see Note 5), and were $ 0as of December 31, 2024, The significant unobservable inputs that were included in the valuation of the Whiskey Special Ops 2023 Notes as of December 31, 2023 include:

|                                        |     | December 31, 2023 |               |   |     |                   |               |   |
|:---------------------------------------|:----|:------------------|--------------:|:--|:----|:------------------|--------------:|:--|
| Significant Unobservable Input         |     | Input  Range      |               |   |     | Weighted  Average |               |   |
| Discount Rate                          |     |                   |            54 | % |     |                   |          91.3 | % |
| Expected Term (in years)               |     |                   | 0.125 – 0.667 |   |     |                   | 0.125 – 0.667 |   |
| Probability Scenarios                  |     |                   |               |   |     |                   |               |   |
| IPO                                    |     |                   |            70 | % |     |                   |               |   |
| deSPAC                                 |     |                   |             0 | % |     |                   |               |   |
| Default/Dissolution/Forced Liquidation |     |                   |            20 | % |     |                   |               |   |
| Held to Maturity                       |     |                   |            10 | % |     |                   |               |   |

| 187 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 8 — FAIR VALUE MEASUREMENT(cont.)

Valuation of Warrant Liabilities— The fair value of the warrant liabilities as of November 25, 2024 (the date of the Company’s initial public offering — which was the remaining prerequisite for the unconditional conversion of the warrant liabilities into equity) was based on the Company’s initial public offering price of $ 4.00per share. The fair value of the warrant liabilities at issuance and at each reporting period (through November 25, 2024) was estimated based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The warrants are free-standing