Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 296

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 296
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      | 6.2 |   |
| Weighted-average discount rate – operating leases                   |     |               |  22 | % |     |      |  22 | % |

The Company’s ROU assets and liabilities
for operating leases were $3,446,225 and $4,102,077, respectively, as of September 30, 2024. The ROU assets and liabilities for operating
leases were $3,658,493 and $4,376,630, respectively, as of December 31, 2023. The ROU assets for operating leases were included in
“Operating Lease Right-of-Use Assets, net” in the accompanying consolidated balance sheets. The liabilities for operating
leases were included in the “Operating Lease Liabilities, Current” and “Operating Lease Liabilities, net of Current
Portion” in the accompanying consolidated balance sheets.

Maturities of lease liabilities for the remainder
of 2024 and the years through 2028 and thereafter are as follows:

| Years Ending            |     | Amounts |            |   |
|:------------------------|:----|:--------|-----------:|:--|
|                         |     | $       |    353,212 |   |
| 2025                    |     |         |  1,313,344 |   |
| 2026                    |     |         |  1,254,722 |   |
| 2027                    |     |         |  1,237,902 |   |
| 2028                    |     |         |  1,225,327 |   |
| thereafter              |     |         |  1,887,780 |   |
| Total lease payments    |     | $       |  7,272,287 |   |
| Less: Interest          |     |         | (3,170,210 | ) |
| Total Lease Liabilities |     | $       |  4,102,077 |   |

<div align='center'>F-35

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

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