Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 88

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 88
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 same new or revised accounting standards as other public companies that are not emerging growth companies.

We will incur significant costs from operating as a public company, and our management expects to devote substantial time to public company compliance programs.

As a public company, we incur significant legal,
accounting and other expenses due to our compliance with regulations and disclosure obligations applicable to us, including compliance
with the Sarbanes-Oxley Act, as well as rules implemented by the SEC and Nasdaq. Stockholder activism, the current political
environment and the current high level of government intervention and regulatory reform may lead to substantial new regulations and disclosure
obligations, which may lead to additional compliance costs and impact, in ways we cannot currently anticipate, the way we operate our
business. Our management and other personnel devote, and likely will continue to devote, a substantial amount of time to these compliance
programs and monitoring of public company reporting obligations and as a result of the new corporate governance and executive compensation
related rules, regulations and guidelines prompted by the Dodd-Frank Act and further regulations and disclosure obligations
expected in the future, we will likely need to devote additional time and costs to comply with such compliance programs and rules. These
rules and regulations will cause us to incur significant legal and financial compliance costs and will make some activities more time-consuming and
costlier.

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To comply with the requirements of being a public
company, we may need to undertake various actions, including implementing new internal controls and procedures and hiring new accounting
or internal audit staff. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures
and internal control over financial reporting. We are continuing to develop and refine our disclosure controls and other procedures that
are designed to ensure that information required to be disclosed by us in the reports that we file with the SEC is recorded, processed,
summarized and reported within the time periods specified in SEC rules and forms, and that information required to be disclosed in reports
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is accumulated and
communicated to our principal executive and financial officers. Our current controls and any new controls that we develop may become inadequate
and weaknesses in our internal control over financial reporting may be discovered in the future. Any failure to develop or maintain effective
controls when we become subject to this requirement could negatively impact the results of periodic management evaluations and annual
independent registered public accounting firm attestation reports regarding the effectiveness of