Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 72

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 72
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. The burdens
imposed by the CCPA and other similar laws that have been or may be enacted at the federal and state level may require us to modify our
data processing practices and policies and to incur additional expenditures to comply.

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Compliance with these and any other applicable privacy
and data protection laws and regulations is a rigorous and time-intensive process, and we may be required to put in place additional
mechanisms ensuring compliance with the new privacy and data protection laws and regulations. Our actual or alleged failure to comply
with any applicable privacy and data protection laws and regulations, industry standards or contractual obligations, or to protect such
information and data that we processes, could result in litigation, regulatory investigations, and enforcement actions against us, including
fines, orders, public censure, claims for damages by employees, customers and other affected individuals, public statements against us
by consumer advocacy groups, damage to our reputation and competitive position and loss of goodwill (both in relation to existing customers
and prospective customers) any of which could have a material adverse effect on our business, financial condition, results of operations,
and cash flows. Additionally, if third parties that we work with, such as vendors or developers, violate applicable laws or our policies,
such violations may also place personal information at risk and have an adverse effect on our business. Even the perception of privacy
concerns, whether or not valid, may harm our reputation, subject us to regulatory scrutiny and investigations, and inhibit adoption of
our spirits and other products by existing and potential customers.

Contamination of our products and/or counterfeit or confusingly similar products could harm the image and integrity of, or decrease customer support for, our brands and decrease our sales.

The success of our brands depends upon the positive
image that consumers have of them. Contamination, whether arising accidentally or through deliberate third-party action, or other events
that harm the integrity or consumer support for our brands, could affect the demand for our products. Contaminants in raw materials purchased
from third parties and used in the production of our products or defects in the distillation and fermentation processes could lead to
low beverage quality as well as illness among, or injury to, consumers of our products and could result in reduced sales of the affected
brand or all of our brands. Also, to the extent that third parties sell products that are either counterfeit versions of our brands or
brands that look like our brands, consumers of our brands could confuse our products with