Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 142

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 142
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 Sophisticated Investor Status

Nothing in this Addendum constitutes legal, tax, accounting, investment or other professional advice. Each Investor represents that it is a sophisticated party, has consulted with its own advisers to the extent it has deemed appropriate and is able to bear the economic risk of its investment, including a total loss thereof.

3. Risk Factors

The following risk factors, which are not exhaustive, should be read in conjunction with (i) the Company’s filings with the Commission, (ii) any private placement memoranda or supplements delivered to Investor, and (iii) applicable authoritative accounting and regulatory guidance.

Regulatory, Securities Law, and Investment Company Act Risks

| 1.                                                 | $IP                                                                                                                                        
 could be deemed a “security”; our strategy could become unlawful or impracticable. The legal status of many digital                        
 assets remains unsettled. We believe that $IP is not a security but neither Congress nor the Commission has yet formulated clear           
 guidance as to how digital assets should be classified with respect to U.S. federal securities laws. Therefore, while we have concluded    
 that $IP is not a “security” within the meaning of the U.S. federal securities laws, and registration of the Company                       
 under The Investment Company Act of 1940, as amended (the “1940 Act”) is therefore not required under the applicable                       
 securities laws, we acknowledge that a regulatory body or federal court may determine otherwise.                                           |
| 2.                                                 | Risk                                                                                                                                       
 of being deemed an “investment company.” Under Sections 3(a)(1)(A) and (C) of the 1940 Act, a company generally will                       
 be deemed to be an “investment company” if (i) it is, or holds itself out as being, engaged primarily, or proposes to                      
 engage primarily, in the business of investing, reinvesting, or trading in securities or (ii) it engages, or proposes to engage,           
 in the business of investing, reinvesting, owning, holding, or trading in securities and it owns or proposes to acquire investment         
 securities having a value exceeding 40% of the value of its total assets (exclusive of certain cash items) on an unconsolidated basis.     
 If the Commission determined that we were an unregistered investment company, there would be a risk that we would be subject to monetary   
 penalties and injunctive relief in an action brought by the Commission, that we would potentially be unable to enforce contracts           
 with third parties and that third parties could