Company: IPST
Filing Date: 2025-06-04
Form Type: POS AM
Source: 0001641172-25-013501
Chunk: 123

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-04
Form: POS AM
Chunk 123
---
. The covenants and tests have since been deleted as part of the October 1, 2024 and November 19, 2024 loan modifications.

| 81 |

As discussed above, in the past, we had violated various financial and other debt covenants in the Silverview Loan agreement, including our failure to timely furnish to Silverview our consolidated financial statements for the months of 2024 prior to the completion of our IPO and for the year ended December 31, 2023. Because we had reached an agreement in principal with Silverview in June 2024 on the treatment of such waivers and the elimination of certain reporting requirements and covenants leading up to the IPO and we were working to paper those modifications while working on the IPO, we determined that the Silverview Loan should be classified as a current liability as of the date of our IPO. As of the date of our IPO the outstanding principal balance on the Silverview Loan was $12,250,000, with approximately $1,568,000 having been paid towards principal and interest subsequent to the closing of the IPO through December 31, 2024 leaving an outstanding balance of the Silverview Loan of approximately $10,382,000 as of March 31, 2025.

The modification, first executed by the parties on October 1, 2024 and further modified on November 19, 2024, became effective upon the closing of our initial public offering in November 2024, contained the following provisions:

| 2) | recast                                                                                         
 the amortization schedule to reduce the amount paid each quarter to allow us to preserve       
 cash, as follows: $300,000 due December 31, 2024, $700,000 due June 30, 2025 and then $500,000 
 due every six months thereafter;                                                               |

| 3) | increased                                                                                        
 the per annum interest rate from 15% to 16.5% commencing in December 2024, with monthly interest 
 payments remaining in effect but allowing us at our election to pay 100% of each interest        
 payment in cash or to pay approximately 73.7% of such interest payment in cash and to add        
 the balance of such interest payment to the principal amount of the loan through the end         
 of December 2025;                                                                                |

| 4) | waived                                 
 any past missed amortization payments; |

| 5) | waived                    
 any past covenant faults; |

| 6)