Company: IPST
Filing Date: 2025-08-26
Form Type: S-1
Source: 0001213900-25-080839
Chunk: 317

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-26
Form: S-1
Chunk 317
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 to the Contingent Legacy Shareholder Warrants discussed above, there were outstanding and exercisable warrants to purchase 2,304,327 and 796,176, respectively, shares of common stock, As of June 30, 2025, the weighted -averageremaining contractual term was 3.91 years 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 $4.00 per share (the “Underwriter Warrants”). The number of Underwriter Warrants may increase by up to 15% (to warrants for 97,034shares at $4.00 per share) if the Underwriter elects to utilize the overallotment rights of the Offering. To date, 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 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 $848,908 of such deferred payroll expense, including $457,730 paid in cash in December 2024, and $391,179 remaining to be paid which is included in accrued liabilities as of June 30, 2025. Accordingly, as of June 30, 2025, upon the expiration of the 6month post -IPOlockup period (in May 2025) the Company issued approximately $1,894,615 in equity compensation (in the form of 473,652 RSUs) in settlement of the deferred compensation liability. During the six months ended June 30, 2025 certain senior level employees elected to defer an additional $79,275 of their salary, resulting in $470,454 remaining to be paid as of June 30, 2025. Subsequent to June 30, 2025, the Company paid $236,907 of the deferred compensation, leaving a balance of $233,