Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 48

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 48
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 the operation of the business to the detriment of us.      
 This could result in our decision to seek early termination of a contract to avoid disruptions in other parts of our business or to protect 
 the integrity of our brand and reputation if the relationship with a Tribal partner materially deteriorates.                                |

| ● | Failure to resell the concept — The initial                                                                                             
 Tribes with which we work may not inspire other Tribes to join the TBN, thereby impacting the future number of TBN locations and future 
 anticipated growth plans. Accordingly, an insufficient number of Tribal partners may decide to join the TBN, or such licensees may have 
 an insufficient level of sales to justify or sustain continued operations.                                                              |

| ● | Failure to take our management input into account — Tribal                                                             
 partners may not consider our desire or input with respect to production, branding, marketing, sales and distribution. |

| ● | Failure to have adequate oversight over employees, personnel,                                                                        
 product — As the actual employer of employees operating the new locations, Tribes may not consider our hiring input                  
 or guidance as it relates to customer service, technical and quality assurance, documentation and compliance, among other issues. In 
 such an event, we would have little recourse to remove Tribal employees from key positions.                                          |

| ● | Failure to have access to the books and records — Tribal                                                                                  
 partners might withhold financial information from us such that we cannot adequately determine sales, costs and net revenues, among other 
 financial metrics.                                                                                                                        |

| ● | Interpretation of federal or state law; failure to follow                                                                                   
 the law — We are one of the first entities attempting to license spirits manufacturing. There is a risk that federal,                       
 state and/or local regulators may view this activity as a violation of applicable laws, rules or regulations, such that we and our licensed 
 partners must adapt our business plans and strategies, or to abandon our TBN plans altogether. There is also a risk that a member tribe     
 in our TBN may not follow the law.                                                                                                          |

| ● | Community backlash — Before, during or                                                                                                
 after our partnerships, Tribal or non-Tribal members might accuse us of engaging in activities that enhance or promote alcoholism and 
 our impact on Indian communities. Such a campaign could tarnish our brand and put pressure on us or our Tribal partners to terminate  
 our arrangements.                                                                                                                     |

| ● | Failure to be perceived as authentically “local”                                                          
 — Some consumers may not view the idea of licensed distilleries