Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 349

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 349
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”) commenced a litigation against the Company in the Superior Court, Suffolk County, Massachusetts asserting claims arising under a November 1, 2022 written engagement letter agreement whereby CFGI agreed to provide financial, accounting and tax consulting services to the Company. CFGI contended that it fully performed its obligations under such agreement, but that the parties amended the agreement on or about May 22, 2023 when the Company fell behind in its payments. CFGI alleged further that, while the Company made some payments under the amended agreement, CFGI was currently owed approximately $ 730,000, plus interest. The Company’s response to the complaint was due on or before April 21, 2025 but was extended to May 12, 2025. The Company filed an answer to that complaint on May 12 and answers to interrogatories on June 10 to stay current with the litigation process while it worked to negotiate a settlement. As of December 31, 2024 the Company had accrued the entire amount payable to CFGI and the Company was in negotiations with CFGI on alternate payment terms that would have allowed the Company to pay the amounts due to CFGI over time. On July 30, 2025 the parties entered into a settlement agreement whereby the Company paid $ 500,000in full settlement of all amounts claimed by the plaintiff in the litigation and the litigation was terminated. (See also Note 14.) Litigation — Thinking Tree Dissenter— On April 16, 2025, Kaylon McAlister, a former co -founderof Thinking Tree Spirits, filed suit in the Circuit Court of Oregon against Thinking Tree Spirits and the Company seeking $ 470,000under the Oregon dissenter rights statute, plus interest. While we are reviewing the matter, we believe the amount being sought is without merit and grossly overinflates the value of the enterprise, and we intend to vigorously defend this matter. Further, we believe we have counterclaims against the plaintiff for actions taken by him before, during and after the closing of the acquisition transaction that adversely effected the valuation of the acquisition and the Company’s investment in Thinking Tree Spirits. The parties reached agreement on August 8, 2025 whereby the dissenter relinquished his claims in exchange for $ 140,000, ending the matter. (See also Note 14.) As of June 30, 2025 and December 31, 2024, the Company has notbeen subject to any other pending litigation claims. Notice from Nasdaq