Company: IPST
Filing Date: 2025-06-13
Form Type: S-1
Source: 0001641172-25-015121
Chunk: 125

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-06-13
Form: S-1
Chunk 125
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 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) | added                                        
 a 1% additional exit fee due at loan payoff; |

| 8) | eliminated                                                 
 the EBITDA coverage and interest coverage ratio tests; and |

| 9) | reduced                                                                                  
 and simplified the reporting requirements to match the reporting we must make to the SEC 
 as a public company.                                                                     |

With these changes and the net proceeds we received from our initial public offering, we expect to remain in compliance with all financial covenants in the Silverview Loan agreement. We used approximately $2,375,000 of the net proceeds of our initial public offering to repay a portion of the principal and accrued interest of the Silverview Loan.

In April 2020, we were granted a loan under the Paycheck Protection Program (“PPP”) offered by the Small Business Administration (the “SBA”) under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), section 7(a)(36) of the Small Business Act for $3,776,100. The proceeds from the PPP loan could only be used to retain workers and maintain payroll or make mortgage interest, lease and utility payments and all or a portion of the loan could be forgiven if the proceeds are used in accordance with the terms of the program within the eight or 24-week measurement period. The loan terms required the principal balance and 1% interest to be paid back within two years of the date of the note. In June 2021, our bank approved forgiveness of the loan of $3,776,100. During the year ended of December 31, 2021, the forgiveness