Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 314

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 314
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 party) when the 10 - Trading-DayVWAP of the common stock reaches 300% of the $4.00 per share initial public offering price (or $12 per share), and that will expire on the 42 -monthanniversary of the Company’s initial public offering (the “$12 Contingent Legacy Shareholder Warrants”); and, •Tranche 3 — for up to 1,906,220shares of common stock (of which up to 320,895 were to a related party) when the 10 - Trading-DayVWAP of the common stock reaches 500% of the $4.00 per share initial public offering price (or $20 per share), and that will expire on the 60 -monthanniversary of the Company’s initial public offering (the “$20 Contingent Legacy Shareholder Warrants”). The Company recorded a value of $8,828 for the Contingent Legacy Shareholder Warrants as of the October 30, 2024 grant date based on a Black Scholes option pricing model. The assumptions used in the Black -Scholesoption pricing model for the Contingent Legacy Shareholder Warrants were as follows:

| Weighted Average Expected Volatility                                         |     |             70% |
| Expected Dividends                                                           |     |              —% |
| Weighted Average Expected Term (in years)                                    |     |               5 |
| Risk-Free Interest Rate                                                      |     |           4.22% |
| Probability Scenarios of meeting contingencies                               |     |                 |
| Shareholder holds shares owned on May 31, 2023 through warrant exercise date |     |      95% to 75% |
| Common stock attains a specified 10-Trading-Day VWAP price before expiring   |     | 0.025% to 2.25% |

As of June 30, 2025, there were outstanding and exercisable: 625,446 $8 Contingent Legacy Shareholder Warrants; 1,250,892 $12 Contingent Legacy Shareholder Warrants; and 1,563,615 $20 Contingent Legacy Shareholder Warrants, (of which 0; 0; and0, respectively were to a related party) with weighted -averageremaining contractual terms of 1.33 years, 2.83 years, and 4.59 years, respectively. Whiskey Note Shareholder W