Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 264

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 264
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.25 | % |     |      |   |

| F-37 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 9 — STOCKHOLDERS’ EQUITY / (DEFICIT)(cont.)

As of December 31, 2024 there were outstanding and exercisable: 725,608$ 8Contingent Legacy Shareholder Warrants; 1,451,216$ 12Contingent Legacy Shareholder Warrants; and 1,814,020$ 20Contingent Legacy Shareholder Warrants, (of which 115,456; 230,912;and 288,640, respectively were to a related party) with weighted-average remaining contractual terms of 1.89years, 3.39years, and 4.9years, respectively.

Other equity classified warrants — In addition to the Contingent Legacy Shareholder Warrants discussed above, during the year ended December 31, 2024, the Company issued a total of 413,971equity classified warrants, including: 83,333warrants at $ 6.00per share in conjunction with July 2024 accounts receivable factoring agreement; 84,377Underwriter Warrants in conjunction with the Company’s initial public offering; and, 197,013warrants to purchase common stock, (of which, 60,563were to a related party) in connection with the issuance of Series A Preferred Stock. Upon the November 25, 2024 initial public offering at $ 4.00per share, the 197,013warrants at $ 5.00per share were recalculated and reissued as 246,267warrants at $ 4.00per share (and the 60,563related party warrants at $ 5.00per share were recalculated and reissued as 75,705warrants at $ 4.00per share.). For the year ended December 31, 2023 the Company issued zerowarrants. During the years ended December 31, 2024 and 2023, the assumptions used in the Black-Scholes option pricing model were as follows:

|                                           |     | For the Years Ended  December 31, |      |   |     |      |   |
|                                           |     |                              2024 |      |   |     | 2023 |   |
| Weighted Average Expected Volatility      |