Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 344

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 344
---
 at $ 6.00per share in conjunction with July 2024 accounts receivable factoring agreement; 84,377Underwriter Warrants in conjunction with the Company’s initial public offering; and, 197,013warrants to purchase common stock, (of which, 60,563were to a related party) in connection with the issuance of Series A Preferred Stock. Upon the November 25, 2024 initial public offering at $ 4.00per share, the 197,013warrants at $ 5.00per share were recalculated and reissued as 246,267warrants at $ 4.00per share (and the 60,563related party warrants at $ 5.00per share were recalculated and reissued as 75,705warrants at $ 4.00per share.). For the year ended December 31, 2023 the Company issued zerowarrants. During the years ended December 31, 2024 and 2023, the assumptions used in the Black-Scholes option pricing model were as follows:

|                                           |     | For the Years Ended  December 31, |      |   |     |      |   |
|                                           |     |                              2024 |      |   |     | 2023 |   |
| Weighted Average Expected Volatility      |     |                                   |   70 | % |     |      | — |
| Expected Dividends                        |     |                                   |    — | % |     |      | — |
| Weighted Average Expected Term (in years) |     |                                   |    5 |   |     |      | — |
| Risk-Free Interest Rate                   |     |                                   | 4.22 | % |     |      | — |

As of December 31, 2023, 35,720fixed warrants were exchanged for previously issued variable warrants. As of December 31, 2024 and 2023, in addition to the Contingent Legacy Shareholder Warrants discussed above, there were outstanding and exercisable warrants to purchase 796,176and 116,928, respectively, shares of common stock, As of December 31, 2024, the weighted-average remaining contractual term was 1.85years for the outstanding and exercisable warrants.

The Underwriting Agreement and the related warrants granted to the Underwriter equal 5% of the total proceeds raised in the Company’s November 25, 2024