Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 179

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 179
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 competitors, including: a complete and end-to-end experience and
product positioning; superior production methods resulting in award-winning products; a savvy and experienced team; an on-ramp for national
distribution growth; a unique go-to-market growth route through the TBN; and creative marketing strategies. We believe few participants
in the craft spirits segment can point to a similar collection of assets and opportunities.

Regulatory Matters

Along with our distributors, retail accounts and
ingredients and packaging suppliers, we are subject to extensive regulation in the United States by federal, state and local government
authorities with respect to registration, production processes, product attributes, packaging, labeling, storage and distribution of the
craft spirits, RTD canned cocktails and other products we produce. When we work with tribes, we are also subject to certain tribal requirements.

We are subject to state and local tax requirements
in all states in which our products are sold, as well as federal excise taxes on spirits we remove from bond. We monitor the requirements
of relevant jurisdictions to maintain compliance with all tax liability and reporting matters. In states in which we maintain distilleries
and tasting rooms, we are subject to several governmental authorities, including city and county buildings, land use, licensing and other
codes and regulations.

We have contracted with a third party to manage
our regulatory licensing and renewal activities. We maintain licenses that enable us to distribute our craft spirits and RTD pre-mixed
cocktails in all 50 states plus Washington, D.C., and to sell directly to consumers in 46 states via a three-tier compliant third-party
firm. We currently utilize software tools available to the industry and work with our license compliance service provider to navigate
and manage the complex state-by-state tax and other regulations that apply to our operations in the alcoholic beverage industry. This
has enabled us to expand our operations and to grow our revenue while reducing the administrative burden of tax compliance, reporting
and product registration. We plan to leverage our expertise and relationships with third-party service providers in this area to assist
tribes participating in the TBN.

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Alcohol-related regulation

We are subject to extensive regulation in the United States
by federal, state and local laws and regulations regulating the production, distribution and sale of consumable food items, and specifically
alcoholic beverages, including by the Alcohol and Tobacco Tax and Trade Bureau (the “TTB”) and the Food and Drug Administration
(the “FDA”). The TTB is primarily responsible for