Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 302

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 302
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,060
shares of Series A Preferred Stock and 5,530 related warrants to purchase common stock at the lesser of $5.00 per share or the price per
shares at which the Company’s common stock is sold in the Company’s initial public offering. Subsequent to September 30, 2024,
upon the November 25, 2024 initial public offering at $4.00 per share, the 5,530 warrants at $5.00 per share were recalculated and reissued
as 6,913 warrants at $4.00 per share. (See Note 16.)

In October 2024, the Company sold 250 barrels
of aged whiskey to the related party for $166,667. Under the terms of the sale, in the event the related party resells the barrels back
to the Company, the resell prices shall be the price paid per barrel under the agreement plus a 15% simple annual interest rate of 1.25%
per month from the date the related party purchased the barrels from the Company. The Company also agreed to store the barrels for the
related party at no fee until the related party sells the barrels to either the Company or a third party.

On November 22, 2024 (Subsequent to September
30, 2024, and prior to the Company’s initial public offering on November 25, 2024), the related party exchanged 250,000 shares of
common stock for 250,000 prepaid warrants to purchase common stock.

NOTE 15 — BASIC AND DILUTED NET LOSS PER SHARE

The Company computes basic net income (loss) per
share by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. The
Company computes diluted net income (loss) per share by dividing net income (loss) for the period by the weighted-average number of common
shares outstanding during the period, plus the dilutive effect of the stock options, RSU awards and exercisable common stock warrants,
as applicable pursuant to the treasury stock method, and the convertible notes, as applicable pursuant to the if-converted method. The
following table sets forth the computation of basic and diluted net loss per share:

| Basic earnings per share of common stock:                   |     | For the Nine Months Ended September 30, 
 2024                                    |             |   |     | 2023 |             |   |
|:------------------------------------------------------------|:----|:----------------------------------------