Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 246

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 246
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per share in conjunction with the July 2024 accounts receivable factoring arrangement (which remain outstanding). As of September 2024, the Company recorded a total liability of $ 277,000(including $ 27,000of fees) related to this July 2024 factoring agreement, which was exchanged for 27,700shares of Series A Preferred Stock, including 12,500warrants to purchase shares of common stock at the lesser of $ 5.00per share or the price per share at which the common stock is sold in the Company’s initial public offering. Subsequent to September 30, 2024, upon the November 25, 2024 initial public offering at $ 4.00per share, the 12,500warrants at $ 5.00per share were recalculated and reissued as 15,625warrants at $ 4.00per share. (See Note 16.)

As of September 30, 2024, the principal repayments of the Company’s debt measured on an amortized basis of $ 14,965,147will be due within five years from the issuance of these condensed consolidated financial statements. The outstanding principal of $ 14,805,817and $ 14,270,956, respectively, net of debt issuance costs of $ 159,330and $ 398,324, respectively, was classified as a current liability on the Company’s consolidated balance sheets as of September 30, 2024 and December 31, 2023. The outstanding principal of $ 389,874was classified as a long-term liability on the Company’s consolidated balance sheet as of September 30, 2024.

| Years Ending |     | Amount |            |
|:-------------|:----|:-------|-----------:|
| 2024         |     | $      | 14,575,272 |
| 2025         |     |        |     20,466 |
| 2026         |     |        |     63,539 |
| 2027         |     |        |     66,789 |
| 2028         |     |        |    239,081 |
| thereafter   |     |        |          — |
|              |     | $      | 14,965,147 |

Liabilities for Deferred Revenue— During 2023, the Company entered into a distilled spirits barreling production agreement with a related party for production of