Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 144

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 144
---
 receive from the sale of ELOC Shares and our cash generated from our sales and services, will enable us to fund
our operations, including our near-term expansion plans, for the next twelve months. However, we will continue seeking additional financing
from time to time to meet our working capital requirements, make continued investment in research and development and make capital expenditures
needed for us to maintain and expand our business. We do not have any credit facilities as a source of future funds, and there can be
no assurance that we will be able to raise sufficient additional capital on acceptable terms, or at all. We may not be able to obtain
additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory
to us when we require it, or if we expend capital on projects that are not successful, our ability to continue to support our business
growth and to respond to business challenges could be significantly limited, or we may have to cease our operations. These factors, among
others, raise substantial doubt about our ability to continue as a going concern. If we raise additional funds through further issuances
of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we
issue could have rights, preferences and privileges superior to those of holders of our common stock.

Line of Credit and Debt Agreements

In March 2021, we entered into a secured term
loan agreement with Silverview Credit Partners, L.P. (the “Silverview Loan”) for a secured term loan of up to $15,000,000.
The Silverview Loan originally matured on April 15, 2025, but was extended to October 25, 2026 in the October 1, 2024 Silverview
Loan modification. The Silverview Loan initially accrued interest through the 18-month anniversary of the closing date at (i) a fixed
rate of 10.0% per annum, which portion was payable in cash, and (ii) a fixed rate of 6.5% per annum, which portion was payable in
kind and added to the outstanding obligations as principal. Commencing in October 2022, the Silverview Loan began accruing interest at
a fixed rate of 15.0% per annum through maturity. We had an option to prepay the Silverview Loan with a prepayment premium up to 30.0%
of the outstanding obligations during the first 24 months of the