Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 284

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 284
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 recalculated and reissued as 75,705 warrants at $4.00 per share.).

The Series A Preferred Stock has a liquidation
preference equal to the greater of (i) 110% of the sum of (a) the 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 September 30, 2024 (with 494,840 shares outstanding and a stated value of $5,938,173)
was $6,669,697.

Stock options— The Company’s
2018 Equity Incentive Plan was approved by the HDC Board and the HDC shareholders in March 2018. On April 27, 2019, in anticipation
of the Company’s reorganization on May 1, 2019, the HDHC Board and the HDHC sole stockholder approved HDHC’s 2019 Equity
Incentive Plan (the “2019 Plan”). Subsequent to September 30, 2024, upon the closing of the Company’s initial public
offering (which occurred on November 25, 2024), the 2024 Equity Incentive Plan (the “2024 Plan”) became effective, authorizing
the issuance of up to 2,500,000 shares of common stock.

The 2019 Plan allows for the grant of incentive
stock options (“ISOs”), nonqualified stock options (“NQSOs”), stock appreciation rights (“SARs”),
restricted stock, RSU awards, performance shares, and performance units to eligible participants for ten (10) years (until April 2029).
The cost of awards under the 2019 Plan generally is based on the fair value of the award on its grant date. The maximum number of shares
that may be utilized for awards under the 2019 Plan is 256,500.

<div align='center'>F-29

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

NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

The following sets forth the outstanding ISOs
and related activity under the 2019 Plan for the nine months