Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 316

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 316
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 102,437 and 0 were to a related party); 884,159 and 0 Whiskey Note Shareholder Warrants to purchase common stock at $4.00 per share; and, 67,162 and 0 Commitment Warrants to purchase common stock at $0.001 per share issued in connection with the ELOC Agreement (that were exercised in February, 2025). In addition to the Contingent Legacy Shareholder Warrants discussed above, during the year ended December 31, 2024, the Company issued a total of 413,971 equity classified warrants, including: 83,333 warrants at $6.00 per share in conjunction with July 2024 accounts receivable factoring agreement; 84,377 Underwriter Warrants in conjunction with the Company’s initial public offering; and, 197,013 warrants to purchase common stock, (of which, 60,563 were to a related party) in connection with the issuance of Series A Preferred Stock. Upon the November 25, 2024 initial public offering at $4.00 per share, the 197,013 warrants at $5.00 per share were recalculated and reissued as 246,267 warrants at $4.00 per share (and the 60,563 related party warrants at $5.00 per share were recalculated and reissued as 75,705 warrants at $4.00 per share.). During six months ended June 30, 2025, and the year ended December 31, 2024, the assumptions used in the Black -Scholesoption pricing model were as follows:

|                                           |     |       For the 
    Six Months 
         Ended 
 June 30, 2025 |     |      For the 
   Year Ended 
 December 31, 
         2024 |
|:------------------------------------------|:----|--------------:|:----|-------------:|
| Weighted Average Expected Volatility      |     |           70% |     |          70% |
| Expected Dividends                        |     |            —% |     |           —% |
| Weighted Average Expected Term (in years) |     |             5 |     |            5 |
| Risk-Free Interest Rate                   |     | 3.88% – 4.66% |     |        4.22% |

As of June 30, 2025 and December 31, 2024, in addition