Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 147

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 147
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 the principal balance and 1% interest to be paid back within two years of
the date of the note. In June 2021, our bank approved forgiveness of the loan of $3,776,100. During the year ended of December 31,
2021, the forgiveness was partially rescinded by the SBA and we recognized $1,506,644 as other income in the consolidated statements of
operations, resulting in $2,269,456 in debt. Under the terms of the PPP loan, we have also recorded interest on the PPP loan at the rate
of 1%, for a total of $101,535 as of September 30, 2024. We are currently in the process of disputing a portion if not all of the difference.
The terms of the agreement state that we have 18-24 months to repay the PPP loan. Following the date of the forgiveness, the
remaining balance of the PPP loan of $2,269,456 is expected to be repaid in the next 12 months with our general assets.

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In January 2022, we entered into an unsecured
business loan and security agreement with Channel Partners Capital, LLC (the “2022 Channel Partners Loan”) for an aggregate
borrowing capacity of $250,000. The Channel Partners Loan matured on June 26, 2023 and accrued interest at a fixed rate of 13.982%.
Principal of $16,528 plus interest is payable monthly. We had an option to prepay the Channel Partners Loan with a prepayment discount
of 5.0%. As of both September 30, 2024 and December 31, 2023, the outstanding balance of the 2022 Channel Partners Loan was $0 (having
been paid off in April 2023). In April 2023, we entered into a new secured business loan and security agreement with Channel Partners
Capital, LLC (the “2023 Channel Partners Loan”) for an aggregate borrowing capacity of $250,000, of which $47,104 of proceeds
were used to pay off the 2022 Channel Partners Loan. The 2023 Channel Partners Loan matured on October 5, 2024 and accrues interest
at a fixed rate of 13.34% per annum. A principal payment of $16,944 plus interest was payable monthly. We had an option to prepay the
2023 Channel Partners Loan with a pre