Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 58

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 58
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 our business. The loss of either officer could
adversely affect our business, financial condition and results of operations. We do not maintain key-person insurance for members of our
management team beyond those two executive officers because it is cost prohibitive to do so at this point. If we lose the services of
any senior management, we may not be able to locate suitable or qualified replacements and may incur additional expenses to recruit and
train new personnel, which could severely disrupt our business and prospects.

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Our success in the future may depend on our ability to establish and maintain strategic alliances, and any failure on our part to establish and maintain such relationships would adversely affect our market penetration and revenue growth.

Due to the regulated nature of the alcoholic beverage
industry, we must establish strategic relationships with third parties. Our ability to establish strategic relationships will depend on
many factors, many of which are outside our control, such as the competitive position of our product and marketing plan relative to our
competitors. We may not be able to establish other strategic relationships in the future. In addition, any strategic alliances that we
establish may subject us to several risks, including risks associated with sharing proprietary information, loss of control of operations
that are material to developed business and profit-sharing arrangements. Moreover, strategic alliances may be expensive to implement and
subject us to the risk that the third party will not perform its obligations under the relationship, which may subject us to losses over
which we have no control or expensive termination arrangements. As a result, even if our strategic alliances with third parties are successful,
our business may be adversely affected by factors outside of our control.

Our strategy may include acquiring companies or brands, which may result in unsuitable acquisitions or failure to successfully integrate acquired companies or brands, which could lead to reduced profitability.

We may embark on a growth strategy through acquisitions
of companies or operations that complement our existing product lines, customers or other capabilities, such as our recent acquisition
of Thinking Tree Spirits. We may be unsuccessful in identifying suitable acquisition candidates or may be unable to consummate desired
acquisitions. To the extent any acquisitions are completed, we may be unsuccessful in integrating acquired companies or their operations,
or if integration is more difficult than anticipated, we may experience disruptions that could have a material adverse impact on future
profitability. Some of the risks that may affect our ability to integrate, or realize any anticipated benefits from, acquisitions include:

| ● | unexpected losses of key employees or customers of the acquired