Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 282

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 282
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encies disclosed above related to the accounting treatment recognizing the conversion of debt to equity for the following
private transactions were lifted as a result of the IPO (see Notes 5, 6, 7 and 8):

| a) | The 2022 and 2023 Convertible                                                                                                         
 Promissory Notes which were previously exchanged for 3,312,148 shares of common stock and 507,394 prepaid warrants to purchase common 
 stock (See Notes 5 and 14);                                                                                                           |

| b) | The 2023 Series — Convertible                                                                                                        
 Whiskey Special Ops 2023 Notes and related warrants which were previously exchanged for 2,399,090 shares of common stock and 546,927 
 prepaid warrants to purchase common stock (See Notes 5 and 14);                                                                      |

| c) | The $399,667 received from                                                                                                               
 the two separate investors under the terms of the May 2024 and July 2024 factoring agreements, including accrued fees and 66,549 related 
 warrants, which was exchanged for an aggregate of 44,291 shares of Series A Preferred Stock and 24,979 warrants to purchase shares of    
 common stock at $4.00 per share (including $266,667 received from a related party, which was exchanged for 29,661 shares of Series A     
 Preferred Stock, and 16,667 warrants). (See Notes 6 and 14.)                                                                             |

| d) | The $250,000 received from                                                                                                                 
 an investor under the terms of a July 2024 accounts receivable factoring agreement, including accrued fees, which was exchanged for 27,700 
 shares of Series A Preferred Stock, including 15,625 warrants to purchase shares of common stock at $4.00 per share. (See Notes 6 and      
 14.)                                                                                                                                       |

In addition to the Common Warrants discussed above,
pursuant to the Underwriting Agreement dated November 21, 2024, by and between the Company and the underwriters named therein (the “Representative”),
we issued of Representative’s Warrants to the Representative with an initial exercise date on or after May 24, 2025, an exercise
price of $ per share, and an expiration date of November 21, 2029.

Subsequent to September 30, 2024, the Company’s
2024 Equity Incentive Plan (authorizing up to shares of common stock to be issued) (