Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 279

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 279
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2024, the Company purchased 50barrels of premium aged whiskey from the related party for $ 110,600, or $ 2,212per barrel (comprised of $ 495per barrel and $ 1,717of spirits, for an aggregate total of $ 24,750to fixed assets and $ 85,850to inventory). The $ 110,600was paid by the Company in the form of 11,060shares of Series A Preferred Stock and 5,530related warrants to purchase common stock at the lesser of $ 5.00per share or the price per shares at which the Company’s 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 5,530warrants at $ 5.00per share were recalculated and reissued as 6,913warrants at $ 4.00per share. (See Note 16.) In October 2024, the Company sold 250barrels of aged whiskey to the related party for $ 166,667. Under the terms of the sale, in the event the related party resells the barrels back to the Company, the resell prices shall be the price paid per barrel under the agreement plus a 15% simple annual interest rate of 1.25% per month from the date the related party purchased the barrels from the Company. The Company also agreed to store the barrels for the related party at no fee until the related party sells the barrels to either the Company or a third party. On November 22, 2024 (Subsequent to September 30, 2024, and prior to the Company’s initial public offering on November 25, 2024), the related party exchanged 250,000shares of common stock for 250,000prepaid warrants to purchase common stock.

NOTE 15 — BASIC AND DILUTED NET LOSS PER SHARE

The Company computes basic net income (loss) per
share by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. The
Company computes diluted net income (loss) per share by dividing net income (loss) for the period by the weighted-average number of common
shares outstanding during the period, plus the dilutive effect of the stock options, RSU awards and exercisable common stock warrants,
as