Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 168

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 168
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 to 100 proof. Future releases could also include barrel-strength releases to be priced at the high
end of the super-premium range. Each barrel is bottled, hand labeled, and hand numbered with sequentially-numbered bottles. All whiskeys
under this brand are aged at least four years and are selected based on stringent tasting protocols we developed. We are working with
Julia Nourney, an international whiskey expert, on additional blending and maturation protocols for the selection of barrels qualified
for bottling under the brand. We also plan to build up our inventory of aging whiskey in barrels to increase product availability over
time. Aged whiskeys are priced at super-premium prices and are frequently supply-constrained due to market demand and the time required
to produce these products. As of September 30, 2024, we had 1,172 barrels of aged spirits in our warehouse that are aging for ourselves
and others. In addition we had another 525 barrels of aged bourbon and rye whiskey in our inventory as part of the proceeds of our Series
A Preferred Stock offering, bringing our total barrel inventory to 1,697 barrels through that date. Subsequent to September 30, 2024 all
of the new 525 barrels were housed in licensed and bonded warehouses in Indiana and Kentucky, range in age from two to five years, and
were transferred in bond to our warehouse in Gig Harbor, Washington. Our original barrel inventory prior to the addition of the new 525
barrels was comprised primarily of aged whiskeys but also included barrels of rum and brandy. The prices at which we sell a barrel ranges
from a low of $5,500 when product is bottled for sale through the wholesale channel to a high of approximately $20,000 or more if the
contents are sold by the bottle through our own retail channels. Since the launch of Stiefel’s Select, we have already been
awarded a Double Gold Medal, Gold Medal and Best of Category for our first releases by some of the most prestigious spirits competitions
in the world.

In late 2022, we also launched Florescence Vodka,
a bold and clean vodka flavored with pomelo and grapefruit and made in collaboration with cookbook author and celebrity chef, Danielle
Kartes. The product flavor and label of this product is geared toward female consumers, and through Ms. Kartes’s strong media presence,
this product has already received significant media placement. It was recently approved for sale by Total Wine