Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 170

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 170
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 share or higher during a regular trading day or (ii) the six -month anniversary of the warrant issuance date, all of which were exchanged in connection with the closing of our offering of Pre -funded Warrants. The exchange of Series B Preferred Stock for common stock and warrants is included in the pro forma balance sheet data below, with no net impact to total stockholders equity/(deficit) as the aggregate par value and additional paid in capital related to the Series B Preferred Stock is reclassified to a same aggregate amount of par value and additional paid in capital related to the common stock and warrants; and (vi)$62,581,599 representing: the 20% discount from the closing price of $IP Tokens on August 8, 2025 as reported by CoinMarketCap.com) in the case of the Story Core Contributors (as defined in the subscription agreements for the Pre -Funded Warrants); and $14,271,353 representing gain from the August [18], 2025 purchase of $35,271,353 of $IP Tokens for $21,000,000 in cash subsequent to the offering of Pre -Funded Warrants at a price per $IP Token of $3.40 compared to the market price of $5.7106 per $IP Token as discussed under (1)(iii) above. 101 Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non -GAAPfinancial measures, as described below, to understand and evaluate our core operating performance. These non -GAAPfinancial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted Gross Profit excluding unabsorbed overhead and Adjusted Gross Margin excluding unabsorbed overhead:Adjusted gross profit excluding unabsorbed overhead represents GAAP gross profit adjusted for (excluding) unabsorbed overhead. Adjusted Gross Margin excluding unabsorbed overhead represents Adjusted Gross Profit excluding unabsorbed overhead as a percentage of total net sales. We use these measures (i) to compare operating performance on a consistent basis for the raw inputs, direct labor and direct overhead to a produce a product removing unused production capacity or overhead, (ii) for planning purposes, including the preparation of our internal annual operating budget, and (iii)