Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 266

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 266
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, the Company issued and warrants, respectively, (of which,
and were to a related party) to purchase common stock. As of September 30, 2024 and December 31, 2023, there were outstanding
and exercisable warrants to purchase and , respectively, shares of common stock. As of September 30, 2024, the weighted-average
remaining contractual term was years for the outstanding and exercisable 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 subsequent to September 30, 2024, on November 25, 2024). Upon success of the
Company’s initial public offering, each employee will then be paid their deferred salary plus $ dollars in RSUs or stock options
(under the new 2024 Plan noted above) for every $ dollar of deferred salary. As of September 30, 2024, the Company recorded approximately
$ including employer tax obligation of such deferred payroll expense, in accrued liabilities. Accordingly, as of September 30,
2024 the Company has also committed to issue approximately $ in equity compensation related to the deferred compensation.

F-31 Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited) NOTE 10 — 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 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(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 50,972shares), subject to a true-up provision (to the price per share of the Company’s anticipated IPO, if lower — as of September 30, 2024: $ 5