Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 322

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 322
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 stock and prepaid warrants effective as of June 30, 2023. (See Note 5.) Through November 25, 2024, the $ 21,005,722decrease in fair value of the 2022 and 2023 Convertible Notes in 2024, was included as a gain in the change in fair value of convertible notes in the Company’s 2024 consolidated statement of operations. As further discussed below, such valuation reflecting 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 share value of $ 4.00per share, upon the November 25, 2024 initial public offering at $ 4.00per share.

As of June 30, 2024, the then outstanding $ 13,978,467in aggregate fair value, of the Whiskey Notes and related Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of the Company’s initial public offering) for a total of 2,399,090shares of common stock and 546,927prepaid warrants to purchase common stock. Through November 25, 2024, the $ 6,977,656increase in fair value of the Whiskey Notes in 2024, was included as a loss in the change in fair value of convertible notes in the Company’s 2024 consolidated statement of operations. As further discussed below, such valuation reflecting 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 share value of $ 4.00per share, upon the November 25, 2024 initial public offering at $ 4.00per share.

As further discussed in Note 7, the Convertible Notes (and related Warrant Liabilities) remained as liabilities on the balance sheet, and the change in their fair value continued to be recognized as Other Income/(Expense) in the Statement of Operations, until November 25, 2024 (the date of the Company’s initial public offering — which was the remaining prerequisite for the