Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 327

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 327
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/Dissolution/Liquidation |     |                   |            20 | % |     |                   |    |   |
| Held to Maturity                |     |                   |            10 | % |     |                   |    |   |

Upon the consummation of the Company’s initial public offering on November 25, 2024, the Whiskey Special Ops 2023 Notes warrant liabilities were exchanged and reclassified into equity (see Note 5), and were $ 0as of December 31, 2024,The significant unobservable inputs that were included in the valuation of the Whiskey Special Ops 2023 Notes warrant liabilities as of December 31, 2023, include:

|                                 |     | December 31, 2023 |               |   |     |                   |      |   |
|:--------------------------------|:----|:------------------|--------------:|:--|:----|:------------------|-----:|:--|
| Significant Unobservable Input  |     | Input  Range      |               |   |     | Weighted  Average |      |   |
| Expected Term (in years)        |     |                   | 0.125 – 4.667 |   |     |                   |      |   |
| Volatility                      |     |                   |            70 | % |     |                   |   70 | % |
| Risk-free Rate                  |     |                   |          3.87 | % |     |                   | 3.87 | % |
| Probability scenarios           |     |                   |               |   |     |                   |      |   |
| IPO                             |     |                   |            70 | % |     |                   |      |   |
| deSPAC                          |     |                   |             0 | % |     |                   |      |   |
| Default/Dissolution/Liquidation |     |                   |            20 | % |     |                   |      |   |
| Held to Maturity                |     |                   |            10 | % |     |                   |      |   |

| 188 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 8 — FAIR VALUE MEASUREMENT(cont.)

The following table provides a roll forward of the aggregate fair values of the Company’s financial instruments described above, for which fair value is determined using Level 3 inputs:

SCHEDULE OF AGGREGATE FAIR VALUE OF FIN