Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 396

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 396
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 warrants). The then outstanding $ 23,311,063in aggregate fair value, (including $ 8,723,321which was with a related party); $ 8,678,433of principal amount, including accrued interest (including $ 3,247,425which was with a related party); $ 6,630,870of proceeds, (of which $ 2,233,000was with a related party) of the Whiskey Notes and related Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of the Company’s initial public offering, which occurred on November 25, 2024) for a total of 2,399,090shares of common stock and 546,927prepaid warrants to purchase common stock (of which 1,203,783shares were with a related party). Such prepaid warrants will be eligible for exercise without the payment of additional consideration (except the $ 0.001per share exercise price) at any time that the respective holder beneficially owns a number of shares of common stock that is less than 4.99% of the Company’s outstanding shares of common stock for a number of shares that would cause the holder to beneficially own up to 4.99% of the Company’s outstanding shares of common stock, and having no expiration date. Upon the effectiveness of the Company’s initial public offering (on November 25, 2024, the fair value of such convertible promissory notes and related warrant liabilities decreased and was reclassified from a liability to equity in the aggregate amount of $ 11,784,068(representing the 2,399,090shares of common stock and 546,927prepaid warrants for which the Convertible Notes were exchanged multiplied by the $ 4.00price per share of common stock in the Company’s November 25, 2024 initial public offering, with the remaining $ 5,162,944recorded as a gain for F-71

Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 5 — CONVERTIBLE NOTES (cont.)

the decrease in fair value of those convertible notes and related warrant liabilities for the period from December 31, 2023 to the date of the Company’s initial public offering (November 25, 2024), which is the date on which the contingent treatment of the liability associated with such convertible notes was relieved and they were reclassified to equity.

The