Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 318

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 318
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 of the Company’s initial public offering on November 25, 2024, the Notes Payable and Warrant Liabilities in the following table were exchanged and reclassified into equity (see Note 5), and were $0 as of December 31, 2024. The following table presents information about the Company’s financial liabilities that were previously measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation as of December 31, 2023 under Level 3.

SCHEDULE OF FAIR VALUE HIERARCHY OF THE VALUATION

|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
|:----------------------------------------------------|:----|:------------------------------|:--|:----|:------------------|-----------:|
|                                                     |     | Fair Value  Measurement as of |   |     |                   |            |
|                                                     |     | December 31, 2024             |   |     | December 31, 2023 |            |
| 2022 and 2023 Convertible Notes                     |     | $                             | — |     | $                 | 36,283,891 |
| Whiskey Special Ops 2023 Notes                      |     |                               | — |     |                   |  1,452,562 |
| Warrant Liabilities 2022 and 2023 Convertible Notes |     |                               | — |     |                   |    794,868 |
| Warrant Liabilities Whiskey Special Ops             |     |                               | — |     |                   |  1,512,692 |
| Total Liabilities at Fair Value                     |     | $                             | — |     | $                 | 40,044,013 |

In November of 2023, the 2022 and 2023 Convertible Notes were exchanged (contingent upon the consummation of the Company’s initial public offering) for common stock and prepaid warrants effective as of June 30, 2023. (See Note 5.) Through November 25, 2024, the $21,005,722 decrease in fair value of the 2022 and 2023 Convertible Notes in 2024, was included as a gain in the change in fair value of convertible notes in the Company’s 2024 consolidated statement of operations. As further discussed below, such valuation reflecting the fixed number of shares and prepaid warrants exchanged for the convertible notes as