Company: IPST
Filing Date: 2025-05-07
Form Type: POS AM
Source: 0001641172-25-009076
Chunk: 276

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-07
Form: POS AM
Chunk 276
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1,257,726 |   |
| 2027                    |     |         |  1,240,392 |   |
| 2028                    |     |         |  1,225,327 |   |
| 2029                    |     |         |  1,203,001 |   |
| thereafter              |     |         |    684,779 |   |
| Total lease payments    |     | $       |  6,885,099 |   |
| Less: Interest          |     |         | (2,943,539 | ) |
| Total Lease Liabilities |     | $       |  3,941,560 |   |

| F-44 |

Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 13 — 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 the Company 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 12, 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.

Litigation— CFGI— On January 31, 2025, CFGI, LLC (“CFGI”) commenced a litigation against the