Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 30

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 30
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 be able to sustain profitability consistently. We expect to continue to incur substantial losses
and negative cash flow from operations for the foreseeable future. Our financial statements included in this prospectus have been prepared
assuming that we will continue as a going concern. However, we have concluded that, absent access to additional working capital, substantial
doubt about our ability to continue as a going concern exists and our auditors have referred to this in their audit report on our audited
consolidated financial statements for the years ended December 31, 2023 and 2022. As a result, it may be more difficult for
us to attract investors. Our future is dependent upon our ability to obtain financing and upon future profitable operations from the
sale of our products and services.

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Our ability to obtain additional financing will
be subject to many factors, including market conditions, our operating performance and investor sentiment. If we are unable to raise
additional capital when required or on acceptable terms, we may have to significantly delay or scale back our operations or obtain funds
by entering into agreements on unattractive terms, which would likely have a material adverse effect on our business, stock price and
our business relationships with third parties, at least until additional funding is obtained. If we do not have sufficient funds to continue
operations, we could be required to seek bankruptcy protection or other alternatives, including selling some or all of our aging barreled
spirits inventory or equipment. The sale of such assets could impact our operations and our ability to produce products for sale and
diminish future revenue opportunities. Any of these actions would likely result in our stockholders losing some or all of their investment
in us.

We do not have any credit facilities as a source
of future funds, and if we need additional financing other than from the Equity Line of Credit, 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