Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 353

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 353
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 related to funding purposes. The warrants are exercisable, in whole or in part, into shares
of the Company’s common stock at an exercise price of $90 per share at the option of the warrant holders, at any time. The Company
determined that warrants are equity instruments in accordance with ASC 815 — Derivatives and Hedging. The fair
value of the warrants at the date of the issuance was $303,000 and was recorded as part of “General and Administrative” expense
in the consolidated statements of operations and an increase in additional paid in capital in the consolidated balance sheets.

<div align='center'>F-69

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

NOTE 9 — STOCKHOLDERS’ EQUITY (cont.)

The Company estimates the fair values of equity
warrants using the Black-Scholes option-pricing model on the date of issuance. During the year ended December 31, 2023, the Company did
not issue any warrants to purchase the Company’s common stock. During the years ended December 31, 2023 and 2022, the assumptions
used in the Black-Scholes option pricing model were as follows:

|                                           |     | For the Years Ended 
        December 31, |   |     |      |       |   |
|                                           |     |                2023 |   |     | 2022 |       |   |
| Weighted Average Expected Volatility      |     |                     | — |     |      | 44.32 | % |
| Expected Dividends                        |     |                     | — |     |      |  0.00 | % |
| Weighted Average Expected Term (in years) |     |                     | — |     |      |  5.00 |   |
| Risk-Free Interest Rate                   |     |                     | — |     |      |  2.14 | % |

As of December 31, 2023, 35,720 warrants were
added for previous variable warrants. As of December 31, 2023 and 2022, there were outstanding and exercisable warrants to purchase 116,928
and 81,208, respectively, shares of the Company’s common stock, As of December 31, 2023, the weighted-average remaining contractual
term was 1.56 years for the outstanding and exercisable warrants.

Deferred Compensation — Beginning
in May 202