Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 337

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 337
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 price of $ 6.00per share. The Company allocated the net proceeds between the warrants and the Series A Preferred Stock using the relative fair value method.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

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

In connection with the $ 4,948,478of Series A Preferred Stock, the Company also issued 197,013warrants to purchase common stock at the lesser of $ 5.00per share or the price per share at which the common stock is sold in the Company’s initial public offering (of which 60,563of the $ 5.00Warrants were issued to a related party). 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).

The Series A Preferred Stock has a liquidation preference equal to the greater of (i) 110% of the sum of (a) the Series A Preferred Stock Stated Value, plus (b) the amount of the aggregate dividends then accrued on such share of Series A Preferred Stock and not previously paid, or (ii) such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution or winding up. Accordingly, the Series A Preferred Stock liquidation preference as of December 31, 2024 (with 494,840shares outstanding and a stated value of $ 5,938,080) was $ 6,943,830.

Preferred stock — Series B— Subsequent to December 31, 2024, by written consent dated January 23, 2025 (pursuant to authority conferred upon the Board of Directors by the Company’s second amended and restated certificate of incorporation), the Board of Directors designated 750,000shares of authorized but unissued Preferred Stock as Series B Convertible Preferred Stock (the “Series B Preferred Stock”). The shares of Series B Preferred Stock, par value $ 0.0001per share have a Subscription Price of $