Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 359

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 359
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,614 |   |
| 2026                    |     |         |  1,187,039 |   |
| 2027                    |     |         |  1,199,467 |   |
| 2028                    |     |         |  1,227,821 |   |
| thereafter              |     |         |  1,892,919 |   |
| Total lease payments    |     | $       |  8,202,364 |   |
| Less: Interest          |     |         | (3,825,734 | ) |
| Total Lease Liabilities |     | $       |  4,376,630 |   |

NOTE 12 — COMMITMENTS AND CONTINGENCIES

As an inducement to obtain financing in 2022 and
2023 through convertible notes, the Company agreed to pay a portion of certain future revenues we may receive from the sale of FBLLC or
the Flavored Bourbon brand to the investors in such financings in the amount of 150% of their subscription amount for an aggregate of
approximately $24,495,000. See Note 5 — Payment Upon Sale of Flavored Bourbon, LLC.

The Company maintains operating leases for various
facilities. See Note 11, Leases, for further information.

Litigation —From time to
time, the Company may become involved in various legal proceedings in the ordinary course of its business and may be subject to third-party
infringement claims.

In the normal course of business, the Company may
agree to indemnify third parties with whom it enters into contractual relationships, including customers, lessors, and parties to other
transactions with the Company, with respect to certain matters. The Company has agreed, under certain conditions, to hold these third
parties harmless against specified losses, such as those arising from a breach of representations or covenants, other third-party claims
that the Company’s products when used for their intended purposes infringe the intellectual property rights of such other third
parties, or other claims made against certain parties. It is not possible to determine the maximum potential amount of liability under
these indemnification obligations due to the Company’s limited history of prior indemnification claims and the unique facts and
circumstances that are likely to be involved in each claim.

As of December 31, 2023 and 2022, the Company
has not been subject to any pending litigation claims.

Management Fee —The Company