Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 337

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 337
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 Equity (in the form of an aggregate of 1,527,820 warrants) with the remaining $1,124,889 to be recognized in the then current period (third quarter) statement of operations in the respective expense accounts to which the expenses were originally recorded. ELOC Agreement— Subsequent to June 30, 2025, an aggregate of 10,525,357shares of common stock had been sold to the investor under the ELOC Purchase Agreement for aggregate gross proceeds to the Company of $4,087,161. Exercise of Common Warrants and Prepaid Warrants —Subsequent to June 30, 2025, 100,000 prepaid warrants and 18,796 common warrants were exercised for $1,188, leaving 0 prepaid warrants outstanding and 0 common warrants outstanding (including 0 common warrants outstanding of the related party). Litigation — CFGI— On January 31, 2025, CFGI, LLC (“CFGI”) 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 contends 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 alleges further that, while the Company made some payments under the amended agreement, CFGI was then owed approximately $730,000, plus interest. On July 30, 2025, the parties entered into a settlement agreement whereby the Company paid $500,000 in exchange for closing out the balance owed and ending the litigation. (See Note 10.) See also Negotiated Restructurings and Settlement Agreements and with Outstanding Secured Notes and Unsecured Payables above for additional details. 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 $470,000 under 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