Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 153

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 153
---
 arrangements as of September 30, 2024 or for the periods presented. We do not participate in transactions
that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which
would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered any off-balance sheet
financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any
non-financial assets.

Recent Accounting Pronouncements

A discussion of recent accounting pronouncements
is included in Note 2 to our audited consolidated financial statements for the years ended December 31, 2023 and 2022 included
elsewhere in this prospectus.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks from fluctuations
in interest rates, which may adversely affect the results of operations and our financial condition. We seek to minimize these risks through
regular operating and financing activities.

Inflation Risk

We do not believe that inflation had a significant
impact on our results of operations for any periods presented in our consolidated financial statements. Nonetheless, if our costs were
to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs, and our inability or failure
to do so could harm our business, financial condition and results of operations.

Critical Accounting Estimates

Our consolidated financial statements are prepared
in accordance with generally accepted accounting principles in the U.S. The preparation of our consolidated financial statements
and related disclosures requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, costs and
expenses, and the disclosure of contingent assets and liabilities in our consolidated financial statements. We base our estimates on historical
experience, known trends and events and various other factors that we believe are reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions
or conditions.

While our significant accounting policies are
described in more detail in the notes to our consolidated financial statements, we believe that the following accounting policies are
those most critical to the judgments and estimates used in the preparation of our consolidated financial statements.

<div align='center'>93</div>

Valuation of Convertible Notes

The fair value of the convertible notes at issuance
and at each reporting period is estimated based on