Company: IPST
Filing Date: 2025-06-23
Form Type: 424B3
Source: 0001641172-25-015954
Chunk: 234

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-23
Form: 424B3
Chunk 234
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NOTE 6 — FAIR VALUE MEASUREMENT

Upon the consummation of the Company’s initial public offering on November 25, 2024, the 2022 and 2023 Convertible Notes; Warrant Liabilities - 2022 and 2023 Convertible Notes; Whiskey Special Ops 2023 Notes; and Warrant Liabilities - Whiskey Special Ops 2023 Notes were all exchanged and reclassified from liabilities to equity. Accordingly, the respective fair values of those liabilities as of March 31, 2025 and December 31, 2024 was $0,

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 FINANCIAL INSTRUMENTS

|                                                     |     | 2022                       
 and 2023 Convertible Notes |             |   |     | Whiskey Special 
 Ops Notes       |            |     | 2022 Notes Warrant Liabilities |           |     | Whiskey Special     
 Ops Notes           
 Warrant Liabilities |            |   |
|:----------------------------------------------------|:----|:---------------------------|------------:|:--|:----|:----------------|-----------:|:----|:-------------------------------|----------:|:----|:--------------------|-----------:|:--|
| Balance as of January 1, 2024                       |     | $                          |  36,283,890 |   |     | $               |  1,452,562 |     | $                              |   794,868 |     | $                   |  1,512,692 |   |
| Fair value measurement liability, beginning balance |     | $                          |  36,283,890 |   |     | $               |  1,452,562 |     | $                              |   794,868 |     | $                   |  1,512,692 |   |
| Issuances                                           |     |                            |           — |   |     |                 |  2,813,850 |     |                                |         — |     |                     |    302,020 |   |
| Change in Fair Value                                |     |                            | (16,275,433 | ) |     |                 | 16,846,522 |     |                                |   817,454 |     |