Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 294

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 294
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 been agreed upon for the Thinking
Tree Spirits acquisition, and the remaining amount due to the remaining Thinking Tree Spirits shareholders, if any, will be then paid
in Heritage shares at the agreed upon transaction price per share in the original transaction. Any unused Heritage shares will be returned
to the treasury and will not be considered outstanding. So long as these shares are held in escrow they will not be eligible for trading
or voting.

Subsequent to November 25, 2024 we settled with
one of the three TTS dissenters and we sent the remaining two dissenters the statutorily required payment offers and documentation to
attempt to wind down the dissenters process. The statutorily required thirty (30) day review period for those offers passed on January
6, 2025 with one objection from one of the remaining dissenters. Nevertheless, we believe the matter to be concluded, but there is a risk
either or both of the late responding dissenters could attempt to extract more value than the offer that was sent to them. It is unclear
under Oregon law how successful they would be in such attempts since the review period has passed. As a result of netting out the amount
paid to such dissenters from the makeup provisions of our acquisition agreement with the remaining TTS shareholders, we assume we will
issue the remaining TTS shareholders an additional 83,407 shares of our unregistered common stock which will be subject to lockup agreements
that do not allow such shares to be sold until after the one hundred and eighty (180) day anniversary of the date of their grant. The
granting of such shares shall occur after this offering becomes effective after we have been advised by outside counsel that the risk
of a dissenter reopening the matter has passed or is nonmaterial.

<div align='center'>F-34

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)</div>

NOTE 11 — LEASES

The Company adopted ASC Topic 842 on January 1,
2022 using the modified retrospective approach. Comparative information has not been restated and continues to be reported under ASC Topic 840,
Leases, which was the accounting standard in effect for those periods. The Company has operating leases for corporate offices,
warehouses, distilleries, tasting rooms and certain equipment which have been accounted for using the adopted standard. The Company’s
operating lease terms include periods under options to extend or terminate the operating lease when it is reasonably