Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 259

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 259
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culated and reissued as 75,705warrants at $ 4.00per share.). During three months ended March 31, 2025, and the year ended December 31, 2024, the assumptions used in the Black-Scholes option pricing model were as follows:

|                                           |     |     |                          For 
 the Three Months Ended March 
                     31, 2025 |   |     |     |                     For 
 the Year Ended December 
                31, 2024 |   |
|:------------------------------------------|:----|:----|-----------------------------:|:--|:----|:----|------------------------:|:--|
| Weighted Average Expected Volatility      |     |     |                           70 | % |     |     |                      70 | % |
| Expected Dividends                        |     |     |                           —% |   |     |     |                      —% |   |
| Weighted Average Expected Term (in years) |     |     |                            5 |   |     |     |                       5 |   |
| Risk-Free Interest Rate                   |     |     |                         4.12 | % |     |     |                    4.22 | % |

As of March 31, 2025 and December 31, 2024, in addition to the Contingent Legacy Shareholder Warrants discussed above, there were outstanding and exercisable warrants to purchase 915,383and 796,176, respectively, shares of common stock, As of March 31, 2025, the weighted-average remaining contractual term was 1.52years for the outstanding and exercisable warrants.

The Underwriting Agreement and the related warrants granted to the Underwriter equal 5% of the total proceeds raised in the Company’s November 25, 2024 initial public offering at an exercise price equal to the offering price, or warrants for 84,377shares at $ 4.00per share (the “Underwriter Warrants”). The number of Underwriter Warrants may increase by up to 15% (to warrants for 97,034shares at $ 4.00per share) if the Underwriter elects to utilize the overallotment rights of the Offering. As of May 19, 2025, the underwriter has not exercised any Underwriter Warrants.

Deferred Compensation —Beginning in May 2023, certain senior level employees elected to defer a portion of their salary until such