Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 306

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 306
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authorizing up to 2,500,000 shares of common stock to be issued) (the “2024 Plan”) was approved
by the Board of Directors and stockholders, and became effective upon the Company’s November 25, 2024 initial public offering.

Under the terms of the February 21, 2024 TTS acquisition,
the Company paid the shareholders of TTS $670,686 using common stock of the Company at a negotiated price of $13.16 per share (or 50,972
shares), subject to a true-up provision (to the price per share of the common stock in the Company’s anticipated IPO, if lower —
estimated at $5.00 as of September 30, 2024, or 134,137 shares of common stock) that expired on August 31, 2024. ASC 480 requires a financial
instrument to be classified as a liability if such financial instrument contains a conditional obligation that the issuer must or may
settle by issuing a variable number of its equity securities if, at inception, the monetary value of the obligation is predominantly based
on a known fixed monetary amount. In September 2024, the Company extended the true-up provision under the terms of the TTS stock sale
from August 31, 2024 to the date of settlement of the Thinking Tree Spirits Dissenters Rights Process, resulting in the delay in reclassifying
the TTS purchase price liability to equity (under ASC-480). (See also Note 10). Once the final determination is made on the amount owed
to dissenters, if any, that amount will be deducted from the true-up amount and the resulting number of shares of common stock will be
issued at the price per share of the common stock in the Company’s initial public offering (which was consummated subsequent to
September 30, 2024, upon the November 25, 2024 initial public offering at $4.00 per share, which will result in the $670,686 being paid
by 167,671 shares of common stock, an increase of 116,699 shares over the 50,972 shares previously paid, subject to reductions for any
payments made to dissenters).

<div align='center'>F-40

Heritage Distilling Holding Company, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)</div>

NOTE 16 — SUBSEQUENT EVENTS (cont.)

Subsequent to November 25, 2024