Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 338

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 338
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 the Whiskey Notes
into equity.

Subsequent to December 31, 2023, through April 26,
2024 the Whiskey Notes (including 884,116 related Warrants based on a $7.50 per share exercise price) agreed to exchange for common stock.
The then outstanding $26,797,284 (including $10,895,111 which was with a related party) in aggregate fair value ($8,678,433 of principal
amount, including accrued interest; $6,630,870 of proceeds), of which $3,247,425 was with a related party) of the Whiskey Notes and related
Warrants (Warrant Liability), in accordance with a Subscription Exchange Agreement, exchanged (contingent upon the consummation of this
offering) for a total of 2,399,090 shares of our common stock and 546,927 prepaid warrants to purchase our common stock (of which 2,111,900
shares were with a related party). The aggregate fair value of the exchanged Whiskey Notes and related Warrants will be reclassified from
liabilities to equity under the terms of the Subscription Exchange Agreement upon the effectiveness of the Company’s anticipated
IPO — which is the remaining prerequisite for the unconditional exchange of the Whiskey Notes for equity.

Convertible Notes at fair value consisted of the
following:

| 2022 Convertible Promissory Notes                 |     | December 31, 
 2023         |  18,801,206 |   |     | December 31, 
 2022         | 8,041,000 |
|:--------------------------------------------------|:----|:-------------|------------:|:--|:----|:-------------|----------:|
| 2023 Convertible Promissory Notes                 |     |              |  17,482,685 |   |     |              |         — |
| Whiskey Special Ops 2023 Notes                    |     |              |   1,452,562 |   |     |              |         — |
| Total Convertible Notes Payable                   |     | $            |  37,736,453 |   |     | $            | 8,041,000 |
| Less: Convertible Notes Payable, Current          |     |              | (36,283,891 | ) |     |              |         — |
| Convertible Notes Payable, net of Current Portion |     | $            |   1