Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 42

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 42
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 There can be no assurance that our distributors will continue to effectively
market and distribute our products. The loss of any distributor or the inability to replace a poorly-performing distributor in a timely
fashion, or our inability to expand our distribution network into states in which we do not currently have distribution, could slow our
growth and have a material adverse effect on our business, financial condition and results of operations. Furthermore, no assurance can
be given that we will successfully attract new distributors as we increase our presence in their existing markets or expand into new markets.

We incur significant time and expense in attracting and maintaining key distributors.

Our marketing and sales strategy depends largely
on our independent distributors’ availability and performance. We currently do not have, nor do we anticipate in the future that
we will be able to establish, long-term contractual commitments or agreements from some of our distributors and some of our distributors
may discontinue their relationship with us on short notice. Some distributors handle several competitive products. In addition, our products
are a small part of our distributors’ business. We may not be able to maintain our current distribution relationships or establish
and maintain successful relationships with distributors in new geographic distribution areas. Moreover, there is the additional possibility
that we may have to incur additional costs to attract and maintain key distributors in one or more of our geographic distribution areas
to profitably exploit our geographic markets.

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The marketing efforts of our distributors are important
for our success. If our brands prove to be less attractive to our existing distributors and/or if we fail to attract additional distributors,
and/or our distributors do not market and promote our products above the products of our competitors, our business, financial condition
and results of operations could be adversely affected.

It is difficult to predict the timing and amount of our sales because our distributors and their accounts are not required to place minimum orders with us.

Our independent distributors and their accounts
are not required to place a minimum of monthly or annual orders for our products. To reduce their inventory costs, independent distributors
typically order products from us on a “just in time” basis in quantities and at such times based on the demand for the products
in a particular distribution area. For products in higher demand, there is typically a minimum par level held in distributors’ warehouses,
and only once the inventory falls below that par level will a reorder be triggered. Accordingly, we cannot predict the timing or quantity
of purchases by any of our independent distributors or whether any of our distributors will continue