Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 146

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 146
---
 upon the closing of our initial public offering in
November 2024:

| 2) | recast the amortization schedule                                                                                                       
 to reduce the amount paid each quarter to allow us to preserve cash, as follows: $974,729 due December 25, 2024, $700,000 due June 30, 
 2025 and then $500,000 due every six months thereafter;                                                                                |

| 3) | increased the per annum interest                                                                                                       
 rate from 15% to 16.5% commencing in December 2024, with monthly interest payments remaining in effect but allowing us at our election 
 to pay 100% of each interest payment in cash or to pay approximately 73.7% of such interest payment in cash and to add the balance of  
 such interest payment to the principal amount of the loan through the end of December 2025;                                            |

| 4) | waived any breach relating                        
 to past missed amortization or interest payments; |

| 5) | waived any breach relating     
 to any past covenant defaults; |

| 6) | added a 1% additional exit 
 fee due at loan payoff;    |

| 8) | eliminated the EBITDA coverage         
 and interest coverage ratio tests; and |

| 9) | reduced and simplified the                                                                 
 reporting requirements to match the reporting we must make to the SEC as a public company. |

With these changes and the net proceeds we received
from our initial public offering and expect to receive from the sale of ELOC Shares, we expect to remain in compliance with all financial
covenants in the loan agreement. We used approximately $1,500,000 of the net proceeds of our initial public offering to repay a portion
of the principal amount of the Silverview Loan.

In April 2020, we were granted a loan under
the Paycheck Protection Program (“PPP”) offered by the Small Business Administration (the “SBA”) under the Coronavirus
Aid, Relief and Economic Security Act (the “CARES Act”), section 7(a)(36) of the Small Business Act for $3,776,100. The
proceeds from the PPP loan could only be used to retain workers and maintain payroll or make mortgage interest, lease and utility payments
and all or a portion of the loan could be forgiven if the proceeds are used in accordance with the terms of the program within the eight
or 24-week measurement period. The loan terms required