Company: IPST
Filing Date: 2025-04-28
Form Type: 10-K
Source: 0001788230-25-000048
Chunk: 45

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-04-28
Form: 10-K
Item: Item 1A
Chunk 45
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 any credit facilities as a source of future funds, and if we need additional financing, there can be no assurance that we will be able to raise sufficient additional capital on acceptable terms, or at all. We may seek additional capital through a combination of private and public equity offerings, debt financing and strategic collaborations. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders could be significantly diluted, and these newly-issued securities may have rights, preferences or privileges senior to those of existing stockholders. Debt financing, if obtained, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, which could increase our expenses and require that our assets secure such debt. Moreover, any debt we incur must be repaid regardless of our operating results.

Our future capital needs are uncertain, and we may need to raise additional funds to support those needs.

We believe we will need to raise additional capital in 2025 to cover our expenses and meet our growth objectives for the remainder of the year. We have the ability to draw down on the equity line of credit (ELOC) we put in place in February 2025, and we have an open private placement in the form of our Series B Preferred Stock offering. However, we may need to seek such additional financing through the offering of other instruments or securities, namely to:

•fund operations or fulfill previously existing commitments; 

•develop or acquire additional brands or products;

•expand our sales and marketing efforts to further commercialize our products and TBN-related services;

•hire additional personnel;

•add operational, financial and management information systems;

•pay increased expenses as a result of operating as a public company; and

•expand our research and development efforts to expand and improve our product offerings and to successfully launch new products.

Our future funding requirements will depend on many factors, including:

•the trading price and volumes of our common stock in the public market;

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•market acceptance of our products and services;

•the cost and timing of establishing additional sales, marketing and distribution capabilities;

•our ability to expand the TBN and to generate royalty revenues therefrom;

•the cost of our research and development activities;

•the success of our existing distribution and marketing arrangements and our ability to enter into additional arrangements in the future; and

•how competing products and market developments in our industry impact our position in the market and how consumers view us and our products.

There can be no