Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 295

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 295
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 certain that the
Company will exercise that option in the measurement of its operating lease ROU assets and liabilities. The Company considers contractual-based
factors such as the nature and terms of the renewal or termination, asset-based factors such as the physical location of the asset and
entity-based factors such as the importance of the leased asset to the Company’s operations to determine the operating lease term.
The Company generally uses the base, non-cancelable lease term when determining the operating lease ROU assets and lease liabilities.
The ROU asset is tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully
recoverable in accordance with Accounting Standards Codification Topic 360, Property, Plant, and Equipment.

The following table presents the consolidated
lease cost for amounts included in the measurement of lease liabilities for leases for the nine months ended September 30, 2024
and 2023, respectively:

| Lease Cost:                                   |     | Nine Months Ended 
 September 30,     
 2024              |           |     | 2023 |           |
|:----------------------------------------------|:----|:------------------|----------:|:----|:-----|----------:|
| Amortization of Right-of-Use Assets (finance) |     | $                 |    18,441 |     | $    |    22,147 |
| Interest on Finance Lease Liabilities         |     |                   |         — |     |      |       275 |
| Operating lease cost(1)                       |     |                   | 1,103,053 |     |      | 1,119,356 |
| Total lease cost                              |     | $                 | 1,121,494 |     | $    | 1,141,778 |

| (1) | Included in “Cost of sales”,                                                                                   
 “Sales and Marketing” and “General and Administrative “expenses in the accompanying consolidated statements of 
 operations.                                                                                                    |

The following table presents weighted-average
remaining lease terms and weighted-average discount rates for the consolidated operating leases as of September 30, 2024 and 2023,
respectively:

|                                                                     |     | September 30, |     |   |     |      |     |   |
|                                                                     |     |          2024 |     |   |     | 2023 |     |   |
| Weighted-average remaining lease term – operating leases (in years) |     |               | 5.5 |   |     |