Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 15

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 15
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 to consumers.                                                                                                        |

| ● | Continue to Innovate Marketing Through the Adoption of                                                                 
 Artificial Intelligence (“AI”). We plan to continue testing new AI technology, methods, and tools focused on the       
 creation of content, designs, themes, and audience identification to maximize the efficiency of our marketing efforts. |

Recent Developments Acquisition of Thinking Tree Spirits.On February 21, 2024, we completed the acquisition of Thinking Tree Spirits for a purchase price equal to $670,686 plus the assumption of $365,000 of indebtedness. We paid the purchase price by initially issuing 50,972 shares of our common stock at the negotiated value of $13.16 per share, which was subject to adjustment to the price per share at which our common stock is sold in our initial public offering in November 2024, subject to an offset for the amount, if any, we were obligated to pay to former stockholders who exercised dissenter’s rights. As a result, we plan to issue to the sellers an additional 83,407 shares of common stock after taking into account the settlement of claims of former stockholders who have exercised dissenter’s rights, subject to any further claims they may make. We believe the Thinking Tree Spirits brands will be valuable supplements to our existing product offerings and we intend to complete the roll out the Thinking Tree Spirits product offerings through our DtC and wholesale distribution channels in 2025. We also intend to co-brand the Thinking Tree Spirits tasting rooms with our Heritage tasting room and plan to open this combined location as our first co-branded tasting room in Eugene, Oregon late in the first quarter of 2025. We will be working to co-locate the production and retail tasting spaces of Thinking Tree Spirits in Eugene, Oregon with our current Eugene properties in the coming months, with the goal of earning higher-margin revenue from the core activities associated with producing and selling premium spirits as we transition away from low-margin contract production work. The recorded fair value of the acquisition was reviewed as of June 30, 2024, with a decrease in valuation for the contingent earn out payments to $127,076 and decrease in fair value recorded in the income statement as an operating gain of $457,127. As of September 30, 2024, the recorded value of the acquisition was reviewed, with no further change in the fair value. Private Placement of Securities.Between June 15, 2024 and September 27, 2024, we completed a private placement to nine accredited investors of an aggregate