Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 236

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 236
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 and fees through, and effective as of, June 30, 2023. In October 2023, in accordance with the Subscription Exchange Agreement, and upon approval of an increase in authorized capital to accommodate such exchange, an aggregate fair value of $ 33,849,109in convertible notes was exchanged (contingent upon the consummation of the Company’s initial public offering, which occurred subsequent to September 30, 2024, on November 25, 2024) for an aggregate of 3,312,148shares of common stock (with a previous fair value of $ 30,344,094as of September 30, 2023 and a principal amount of $ 24,795,755, including accrued interest) and 507,394prepaid warrants to purchase common stock (with a previous fair value of $ 3,505,015as of September 30, 2023 and a principal amount of $ 1,714,574, including accrued interest). As of September 30, 2024, the aggregate fair value of the convertible notes had decreased to $ 18,482,353(with $ 16,057,069attributable to the 3,312,148shares of common stock, and $ 2,425,284attributable to the 507,394prepaid warrants to purchase common stock.) As of September 30, 2024, the change in fair value of the 2022 and 2023 Convertible Notes, is included in the change in fair value of convertible notes in the Company’s condensed consolidated statement of operations for the nine months ended September 30, 2024. As further discussed below (See Note 8 — Fair Value Measurement), such valuation reflects the fixed number of shares and prepaid warrants exchanged for the convertible notes as impacted by the valuation methodologies and inputs, including an estimated common stock share value of $ 7.50($ 13.16post split) per share as of March 31, 2024 as compared to a subsequent assumed share value of $ 5.00per share as of September 30, 2024. The aggregate fair value of the exchanged notes will be reclassified from Convertible Notes to equity under the terms of the Subscription Exchange Agreement upon the closing of the Company’s IPO (which occurred subsequent to September 30, 2024, on November 25, 2024) — which is the remaining prerequisite for the unconditional exchange of the 2022 and