Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 300

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 300
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4. As of June 30,
2024 the factoring agreement remained unpaid. In July 2024, the investor agreed to exchange his interest in the factoring agreement of
$113,285 into a subscription for the purchase of 11,328 shares of Series A Preferred Stock and 5,092 warrants to purchase shares of common
stock at the lesser of $5.00 per share or the price per shares at which the Company’s common stock is sold in the Company’s
initial public offering (the “$5.00 Warrants”), and 29,705 warrants at $6.00 per share (the “$6.00 Warrants”)
and related warrants. (See Note 16.) Subsequent to September 30, 2024, upon the November 25, 2024 initial public offering at $4.00 per
share, the 5,092 warrants at $5.00 per share were recalculated and reissued as 6,366 warrants at $4.00 per share. (See Note 16.)

As of July 1, 2024, the Company raised an
additional aggregate of $299,667 between two separate investors under the terms of a July 2024 accounts receivable factoring arrangement
with fees of 10% (or $29,966) and $1,000 (separately, to each of the two investors) for every 2 weeks payment remains overdue. Additionally,
the two investors received five year warrants to purchase an aggregate of 66,549 shares of common stock at $6.00 per share (or cashlessly
following a standard cashless exercise formula). (See Note 16.) Of the total July 2024 accounts receivable factoring agreement, $166,667
and 44,333 of the warrants are with the related party, Payment under the factoring is due the earlier of: within 3 days of receipt
of payment under the factored receivable; the achievement of certain fundraising milestones; or August 15, 2024. Effective July 31,
2024, the investors agreed to exchange their interests in the factoring agreement of $329,633, including accrued fees and related warrants,
for an aggregate of 32,963 shares of Series A Preferred Stock, 14,891 warrants to purchase shares of common stock at the lesser of $5.00
per share or the price per share at which the Company’s common stock is sold in the Company’s initial