Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 344

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 344
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 using the Black-Scholes option-pricing model on the date of issuance with Monte Carlo simulations to determine the probability of warrants being exercisable.

Contingent Legacy Shareholder Warrants— On October 30, 2024 the Company issued warrants to purchase common stock that became contingently exercisable upon the closing of an initial public offering (which occurred on November 25, 2024), at the price per share of the Company’s initial public offering (or $ 4.00per share) to its common shareholders of record as of May 31, 2023 (the “Contingent Legacy Shareholder Warrants”), that will be exercisable, if at all, provided / contingent upon: if the warrant holder continuously holds the shares such holder owned on May 31, 2023 through the date the warrant is exercised; and if the common stock attains a specified volume weighted average price per share (“VWAP”) over a 10-trading-day period (the “10-Trading-Day VWAP”) before expiring:

| ● | Tranche                                                                                       
 1 - for up to 762,488 shares of common stock (of which up to 128,358 were to a related party) 
 when the 10-Trading-Day VWAP of the common stock reaches 200% of the $4.00 per share initial  
 public offering price (or $8 per share), and that will expire on the 24-month anniversary     
 of the Company’s initial public offering (the “$8 Contingent Legacy Shareholder               
 Warrants”);                                                                                   |

| ● | Tranche                                                                                            
 2 - for up to 1,524,976 shares of common stock (of which up to 256,716 were to a related           
 party) when the 10-Trading-Day VWAP of the common stock reaches 300% of the $4.00 per share        
 initial public offering price (or $12 per share), and that will expire on the 42-month anniversary 
 of the Company’s initial public offering (the “$12 Contingent Legacy Shareholder                   
 Warrants”); and,                                                                                   |

| ● | Tranche                                                                                            
 3 - for up to 1,906,220 shares of common stock (of which up to 320,895 were to a related           
 party) when the 10-Trading-Day VWAP of the common stock reaches 500% of the $4.00 per share        
 initial public offering price (or $20