Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 391

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 391
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,425. This remaining note plus accrued interest were paid in full in 2023. 2022 Convertible Promissory Notes During April 2022 through December 2022, the Company issued multiple unsecured convertible promissory notes (the “2022 Notes”) with aggregate net cash proceeds of approximately $ 10,740,000and aggregate principal sum of $ 14,599,523to various new and existing investors, including $ 4,675,000in cash proceeds and $ 6,311,250in principal to a related party (See Note 15). In February 2023, the Company issued one convertible note to an existing investor under the terms of the 2022 Notes with net cash proceeds of $ 260,000and a principal sum of $ 351,000. In May 2023, the Company agreed with one investor to transfer their 2022 Note with a principal sum of $ 135,000to instead be included under their 2024 Round 3 Note (for a total Round 3 Note of $ 2,160,000for said investor). As of December 31, 2024, the cash proceeds and principal sum of the 2022 Notes totaled $ 10,900,000and $ 14,815,523, respectively, including $ 4,675,000of cash proceeds and $ 6,311,250of principal to a related party. The 2022 Notes have a maturity date of July 31, 2024. The 2022 Notes were convertible, in whole or in part, into shares of common stock at a conversion price of $ 157.89per share at the option of the convertible noteholders, at any time and from time to time. If the Company were to complete an IPO or a merger with a SPAC (a “deSpac merger”), the unpaid and accrued balances of the 2022 Notes and the associated interest would have converted into common stock at a discounted conversion price from either the price per share at which common stock was sold in the IPO or the redemption price per share under a deSPAC merger. The 2022 Notes also contained certain other covenants that, among other things, imposed certain restrictions on indebtedness and investments. The 2022 Notes were to be used for general corporate purposes, including working capital needs, capital expenditures, and the share repurchase program. In October and November 2023, the holders of the 2022 Notes