Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 333

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 333
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 Notes”, respectively)
with an aggregate principal sum of $1,120,000 with a maturity date of December 31, 2021. The outstanding amounts plus accrued and
unpaid interest could be converted into shares of the Company’s common stock at the conversion price. Unless earlier converted into
shares, the August 2020 Notes could automatically convert if upon the closing of a private offering of common stock or one of its
subsidiaries of at least $5,000,000, the note plus any accrued and unpaid interest could automatically convert into common stock at the
lesser of $143.20, or a 20% discount off the price per share of common stock sold in private offering. In 2021, all but one of the notes
were converted into shares of the Company at a discounted conversion price of $75.00 per share. As of December 31, 2021, the Company
had one investor that did not elect to convert, with a convertible note balance of $450,000 and accrued interest of $49,425. This remaining
note plus accrued interest were paid in full in 2022.

2022 Convertible Promissory Notes

During April 2022 through December 2022,
the Company issued multiple unsecured convertible promissory notes (the “2022 Notes”) with aggregate net cash proceeds of
approximately $10,740,000 and aggregate principal sum of $14,599,523 to various new and existing investors, including $4,675,000 in cash
proceeds and $6,311,250 in principal to a related party (See Note 14). In February 2023, the Company issued one convertible
note to an existing investor under the terms of the 2022 Notes with net cash proceeds of $260,000 and a principal sum of $351,000. In
May 2023, the Company agreed with one investor to transfer their 2022 Note with a principal sum of $135,000 to instead be included
under their 2023 Round 3 Note (for a total Round 3 Note of $2,160,000 for said investor). As of December 31, 2023, the cash proceeds and
principal sum of the 2022 Notes totaled $10,900,000 and $14,815,523, respectively, including $4,675,000 of cash proceeds and $6,311,250
of principal to a related party. The 2022