Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 270

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 270
---
 due the earlier of: within 3 days of receipt of payment under the factored accounts receivable; the achievement of certain fundraising milestones; or June 15, 2024. As of June 30, 2024 the factoring agreement remained unpaid. In July 2024, the investor agreed to exchange his interest in the factoring agreement of $ 113,285into a subscription for the purchase of 11,328shares of Series A Preferred Stock and 5,000warrants to purchase shares of common stock at the lesser of $ 5.00per share or the price per shares at which the Company’s common stock is sold in the Company’s initial public offering (the “$ 5.00Warrants”), and 29,705warrants at $ 6.00per share (the “$ 6.00Warrants”) and related warrants. Upon the November 25, 2024 initial public offering at $ 4.00per share, the 5,000warrants at $ 5.00per share were recalculated and reissued as 6,250warrants at $ 4.00per share.

As of July 1, 2024, the Company raised an additional aggregate of $ 299,667between two separate investors under the terms of a July 2024 accounts receivable factoring arrangement with fees of 10% (or $ 29,966) and $ 1,000(separately, to each of the two investors) for every 2 weeks payment remains overdue. Additionally, the two investors received five yearwarrants to purchase an aggregate of 66,549shares of common stock at $ 6.00per share (or cashlessly following a standard cashless exercise formula). Of the total July 2024 accounts receivable factoring agreement, $ 166,667and 44,333of the warrants are with the related party. Payment under the factoring is due the earlier of: within 3 days of receipt of payment under the factored receivable; the achievement of certain fundraising milestones; or August 15, 2024. Effective July 31, 2024, the investors agreed to exchange their interests in the factoring agreement of $ 329,633, including accrued fees and related warrants, for an aggregate of 32,963shares of Series A Preferred Stock, 14,983warrants to purchase shares of common stock at the lesser of $ 5.00per share or the