Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 348

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 348
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 |  794,868 |   |     | $             | 1,512,692 |   |

NOTE 9 — STOCKHOLDERS’ EQUITY

Common stock— On October
31, 2023, the Company’s Board of Directors and shareholders increased the number of shares the Company is authorized to issue from
3,000,000 shares to 10,000,000 shares, including 9,500,000 shares of common stock and 500,000 shares of Founders Common Stock, par value
of $0.0001 per share. Subsequent to December 31, 2023, the Company is in process filing a Second Amendment to its Amended and Restated
Certificate of Incorporation to increase authorized capital to 70,000,000 shares. (See Note 16.) The key terms of the common stocks are
summarized below:

Dividends— The holders of common stock
and Founders Common Stock are entitled to receive dividends if declared by the Board of Directors. No dividends have been declared since
the inception of the Company.

Voting rights— The holders of Founders
Common Stock are entitled to four votes for each share of Founders Common Stock and general common stockholders are entitled to one vote
for each share of general common stock.

Upon approval of this increase in authorized shares,
the 2022 and 2023 Convertible Notes were exchanged (contingent upon the consummation of this offering) for 3,312,148 additional shares
of common stock and 507,394 prepaid warrants; The actual unconditional exchange of the Convertible Notes and reclassification of the aggregate
fair value of exchanged notes (of $36,283,891 as of December 31, 2023) will be reclassified from Convertible Notes to equity (of Common
Stock Par Value of $331 and Paid-in-capital of $36,283,560) under the terms of the Subscription Exchange Agreement will occur upon the
effectiveness of the Company’s anticipated IPO — which is the remaining prerequisite for the unconditional exchange of the
2022 and 2023 Convertible Notes for equity. (See Note 5.) As of December 31, 2023, the Company had 381,484 shares of common stock issued
and outstanding. As of December 31, 2023, including the 3,312,148 shares of common stock related to the conversion of the 2022 and 2023
Convertible Notes