Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 301

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 301
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 public offering (the
“$5.00 Warrants”), and 86,864 warrants at $6.00 per share (the “$6.00 Warrants”). (Including $166,667 received
from the related party, which was exchanged for 18,333 shares of Series A Preferred Stock, 8,241 related $5.00 Warrants, and 48,073 related
$6.00 Warrants.) (See Note 16.) Subsequent to September 30, 2024, upon the November 25, 2024 initial public offering at $4.00 per share,
the 14,891 warrants at $5.00 per share were recalculated and reissued as 18,614 warrants at $4.00 per share, and the 8,241 related party
warrants at $5.00 per share were recalculated and reissued as 10,301 warrants at $4.00 per share. (See Note 16.)

<div align='center'>F-37

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

NOTE 14 — RELATED-PARTY TRANSACTIONS (cont.)

In September 2024, the $6.00 Warrants discussed
above and in Note 9 (including 321,026 $6.00 Warrants from the related party) were exchanged for 93,789 shares of Series A Preferred Stock
that did not include any related warrants (including 59,001 shares of Series A Preferred Stock that did not include any related warrants
for a related party). The value assigned to the $6.00 Warrants exchanged for Series A preferred Stock that did not include any warrants
was negotiated to be $937,959 (including $590,045 from a related party), or $1.838 per $6.00 Warrant, using a Black-Scholes Valuation
model with an estimated IPO stock price of $5.00 per share and exercise price of $6.00 per share.

In September 2024, the Company purchased 50 barrels
of premium aged whiskey from the related party for $110,600, or $2,212 per barrel (comprised of $495 per barrel and $1,717 of spirits,
for an aggregate total of $24,750 to fixed assets and $85,850 to inventory). The $110,600 was paid by the Company in the form of 11