Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 420

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 420
---
 $ 110,600was paid by the sale of and transfer to the Company by a related party of an aggregate of 50barrels of premium aged whiskey (with an average value of $ 2,212per barrel and with $ 24,750allocated to barrel fixed assets and $ 85,850allocated to whiskey inventory); and, $ 719,919was paid by the cancellation of outstanding indebtedness (factoring agreements) (of which $ 296,619was from a related party). In addition, the Series A Preferred Stockholders who were issued Series A Preferred Stock in July through September 2024 received an additional 510,315warrants with an exercise price of $ 6.00per share as part of the Series A Preferred Stock subscriptions (the “$ 6.00Warrants”) (of which 321,026of the $ 6.00Warrants were issued to a related party). In September 2024, the 510,315$ 6.00Warrants (including 321,026$ 6.00Warrants from a related party) were exchanged for 93,789shares of Series A Preferred Stock that did not include any related F-83 Heritage Distilling Holding Company, Inc.
Notes to Consolidated Financial Statements NOTE 9 — STOCKHOLDERS’ EQUITY/(DEFICIT) (cont.) warrants (including 59,001shares of Series A Preferred Stock that did not include any related warrants for a related party). The value assigned to the $ 6.00Warrants exchanged for Series A Preferred Stock that did not include any warrants was negotiated to be $ 937,959(including $ 590,045from a related party), or $ 1.838per $ 6.00Warrant using a Black -ScholesValuation model with a then estimated IPO stock price of $ 5.00per share and exercise price of $ 6.00per share. The Company allocated the net proceeds between the warrants and the Series A Preferred Stock using the relative fair value method. In connection with the $ 4,948,478of Series A Preferred Stock, the Company also issued 197,013warrants to purchase 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 (of which 60,563of the $ 5.00Warrants were issued to a related party). Upon the November