Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 321

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 321
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 fixed at $ 4.00per share. The Warrants expire June 15, 2029. At any time after June 15, 2027, the Warrants shall automatically exercise on a cashless basis if the common stock has traded for 5consecutive trading days at or above 125% of the Exercise Price.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 8 — FAIR VALUE MEASUREMENT

Upon the consummation of the Company’s initial public offering on November 25, 2024, the Notes Payable and Warrant Liabilities in the following table were exchanged and reclassified into equity (see Note 5), and were $ 0as of December 31, 2024. The following table presents information about the Company’s financial liabilities that were previously measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation as of December 31, 2023 under Level 3.

SCHEDULE OF FAIR VALUE HIERARCHY OF THE VALUATION

|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
|:----------------------------------------------------|:----|:------------------------------|:--|:----|:------------------|-----------:|
|                                                     |     | Fair Value  Measurement as of |   |     |                   |            |
|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
| 2022 and 2023 Convertible Notes                     |     | $                             | — |     | $                 | 36,283,891 |
| Whiskey Special Ops 2023 Notes                      |     |                               | — |     |                   |  1,452,562 |
| Warrant Liabilities 2022 and 2023 Convertible Notes |     |                               | — |     |                   |    794,868 |
| Warrant Liabilities Whiskey Special Ops             |     |                               | — |     |                   |  1,512,692 |
| Total Liabilities at Fair Value                     |     | $                             | — |     | $                 | 40,044,013 |

In November of 2023, the 2022 and 2023 Convertible Notes were exchanged (contingent upon the consummation of the Company’s initial public offering) for common