Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 260

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 260
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 time as the Company completed a successful public registration of its stock (which occurred on November 25, 2024). Upon success of the Company’s initial public offering, each employee was then to be paid their deferred salary plus a range of matching dollars in RSUs (under the new 2024 Plan noted above) for every $1 dollar of deferred salary. As of December 31, 2024, the Company recorded $ 848,908of such deferred payroll expense, including $ 457,730paid in cash in December 2024, and $ 391,179remaining to be paid which is included in accrued liabilities as of March 31, 2025. Accordingly, as of March 31, 2025, upon the expiration of the 6 month post-IPO lockup period (in May 2025) the Company has also committed to issue approximately $ 1,894,615in equity compensation (in the form of RSUs or stock options) related to the deferred compensation.

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Heritage Distilling Holding Company, Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

NOTE 8 — ACQUISITION OF THINKING TREE SPIRITS

Business Combinations— On February 21, 2024, the Company purchased all the outstanding stock of Thinking Tree Spirits, Inc. (“TTS”), which was accounted for as a business combination, requiring assets and liabilities assumed to be measured and recorded at their acquisition date fair values as of the acquisition date. The resolution of the contingent earn out payments will be reviewed at each subsequent reporting period, and any increases or decreases in fair value will be recorded in the income statement as an operating gain or loss.

Under the terms of the stock sale, the Company paid the shareholders of TTS $ 670,686($ 720,686, net of $ 50,000held back for post-closing accounting true-ups) using shares of common stock of the Company. The $ 670,686was paid using common stock of the Company at a negotiated price of $ 13.16per share (or 50,958shares), subject to a true-up provision (to the price per share of the Company’s anticipated IPO, if lower — which, as of September 30, 2024, was $ 5.00per share or 134,137shares) that expired on August 31, 2024, but which was subsequently extended by the Parties to after the conclusion of the dissenters