Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 316

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 316
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 Partners Loan matured and was paid off in full on October
5, 2024. During its term the 2023 Channel Partners Loan accrued interest at a fixed rate of 13.34%, and had payments of $16,944, principal
plus interest was payable monthly. The Company had an option to prepay the 2023 Channel Partners Loan with a prepayment discount of 5.0%.
As of December 31, 2024 and 2023, the outstanding balance of the 2023 Channel Partners Loan was $0 and $149,824, respectively.

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Heritage Distilling Holding Company, Inc.

Notes to Consolidated Financial Statements

NOTE 6 — BORROWINGS(cont.)

In February 2024, the Company acquired the debt of Thinking Tree Spirits with City of Eugene in the amount of $ 389,875. The City of Eugene loan will mature on May 1. 2028 with an interest rate of 0% through July 31, 2025, beginning August 1, 2025 the City of Eugene loan begins accruing interest at the rate of 5%. Monthly payments are scheduled to began September 1, 2025 in the amount of $ 6,714, including accrued interest.

In May 2024, the Company raised $ 100,000under the terms of an accounts receivable factoring arrangement with a related party. (See Note 15.)

As of July 1, 2024, the Company raised an additional aggregate of $ 299,667between two separate investors under the terms of a July 1, 2024 accounts receivable factoring arrangement, including $ 166,667from the related party. The Company issued an aggregate of 66,549 five yearwarrants to purchase common stock at $ 6.00per share in conjunction with the July 1, 2024 accounts receivable factoring agreements. (See Note 15.)

In August 2024, the aggregate of $ 399,667received from the two separate investors under the terms of the May 2024 and July 2024 factoring agreements, including accrued fees and 66,549related warrants was exchanged for an aggregate of 44,291shares of Series A Preferred Stock and 19,983warrants to purchase shares of common stock at the lesser of $ 5.00per share or the price per share at which the common stock is sold in the Company’s initial public offering