Company: IPST
Filing Date: 2025-10-16
Form Type: S-1/A
Source: 0001213900-25-099309
Chunk: 365

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-10-16
Form: S-1/A
Chunk 365
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 Notes and Unsecured Payables above for additional details. Litigation — Thinking Tree Dissenter— On April 16, 2025, Kaylon McAlister, a former co -founderof Thinking Tree Spirits, filed suit in the Circuit Court of Oregon against Thinking Tree Spirits and the Company seeking $ 470,000under the Oregon dissenter rights statute, plus interest. While we are reviewing the matter, we believe the amount being sought is without merit and grossly overinflates the value of the enterprise, and we intend to vigorously defend this matter. Further, we believe we have counterclaims against the plaintiff for actions taken by him before, during and after the closing of the acquisition transaction that adversely effected the valuation of the acquisition and the Company’s investment in Thinking Tree Spirits. The parties reached agreement dated August 4, 2025, whereby the dissenter relinquished his claims in exchange for $ 140,000, ending the matter. (See also Note 10.) Deferred Compensation— Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such time as the Company completed a successful public registration of its stock (which occurred on November 25, 2024). (See Note 5.) Subsequent to June 30, 2025, the Company paid $ 236,907of the deferred compensation, leaving a balance of $ 233,547remaining to be paid. During the six months ended June 30, 2025 certain senior level employees elected to defer an additional $ 79,275of their salary, resulting in $ 470,454remaining to be paid as of June 30, 2025. Subsequent to June 30, 2025, the Company paid $ 236,907of the deferred compensation, leaving a balance of $ 233,547remaining to be paid. (See also Note 7.) Results of Special Shareholder Meeting— At a Special Meeting of Stockholders held on September18, 2025, the Company’s stockholders approved all of the proposals on the agenda related to the Company’s previously announced private placement financing transaction, and other actions, including: •the issuance of pre -fundedwarrants and shares of common stock upon the exercise of pre -fundedwarrants issued pursuant to subscription agreements between certain accredited or institutional investors and the Company related to the PIPE discussed above; •the issuance of shares of common stock, restricted stock unit awards, and shares of common stock upon the exercise of