Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 316

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 316
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ants regarding its failure to comply with the financial covenants and to timely furnish its consolidated financial statements
for the year ended December 31, 2023. As the chance of meeting the same or more restrictive covenants at subsequent compliance measurement
dates within the following year is remote, the Company determined that the Silverview Loan should be classified as a current liability
as of December 31, 2023. As of both December 31, 2023 and 2022, the outstanding balance of the Silverview Loan was $. The lender
had previously agreed to waive any existing covenant compliance matters as of December 31, 2022 and to forbear exercising its rights and
remedies under the loan agreement through December 31, 2023.

In April 2020, the Company was 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 $.
The proceeds from the PPP loan may 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 may be forgiven if the proceeds are used in accordance with the terms of the program within the 8 or
24-week measurement period. The loan terms require the principal balance and % interest to be paid back within two years of the
date of the note. In June 2021, the Company’s bank approved forgiveness of the loan of $. During the year ended of
December 31, 2021, the forgiveness was partially rescinded by the SBA and the Company recognized $ as other income in the
consolidated statements of operations, resulting in $ in debt. Under the terms of the PPP loan, the Company has also recorded
interest on the PPP loan at the rate of %, for a total of $ as of December 31, 2023. The Company is currently in the process of
disputing a portion if not all of the difference. The terms of the agreement state that the Company has 18-24 months to repay
the PPP loan. Following the date of the forgiveness, the remaining balance of the PPP loan of $ is expected to be repaid in the
next 12 months with the Company’s general assets.

F-62 Heritage Distilling Holding Company, Inc.
Notes to Consolidated