Company: IPST
Filing Date: 2025-05-21
Form Type: 424B3
Source: 0001641172-25-011934
Chunk: 28

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-21
Form: 424B3
Chunk 28
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, 2024 exchange of Whiskey Notes for common stock.

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Table of Contents

<div align='center'>Heritage Distilling Holding Company, Inc.

Notes to Condensed Consolidated Financial Statements
(unaudited)</div>

NOTE 6 — FAIR VALUE MEASUREMENT

Upon the consummation of the Company’s initial public offering on November 25, 2024, the 2022 and 2023 Convertible Notes; Warrant Liabilities - 2022 and 2023 Convertible Notes; Whiskey Special Ops 2023 Notes; and Warrant Liabilities - Whiskey Special Ops 2023 Notes were all exchanged and reclassified from liabilities to equity. Accordingly, the respective fair values of those liabilities as of March 31, 2025 and December 31, 2024 was $0,

The following table provides a roll forward of the aggregate fair values of the Company’s financial instruments described above, for which fair value is determined using Level 3 inputs:

|                      |     | 2022        
 and 2023    
 Convertible 
 Notes       |             |     | Whiskey     
 Special Ops 
 Notes       |            |     | 2022        
 Notes       
 Warrant     
 Liabilities |           |     | Whiskey       
 Special Ops   
 Notes Warrant 
 Liabilities   |            |
|:---------------------|:----|:------------|------------:|:----|:------------|-----------:|:----|:------------|----------:|:----|:--------------|-----------:|
| Balance as of        
 January 1, 2024      |     | $           |  36,283,890 |     | $           |  1,452,562 |     | $           |   794,868 |     | $             |  1,512,692 |
| Issuances            |     |             |           — |     |             |  2,813,850 |     |             |         — |     |               |    302,020 |
| Change               
 in Fair Value        |     |             | -16,275,433 |     |             | 16,846,522 |     |             |   817,454 |     |               | -1,247,662 |
| Balance              
 as of March 31, 2024 |     | $           |  20,008,457 |     | $           | 21