Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 66

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 66
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 measures. If we are unable to efficiently and effectively maintain and
upgrade our system safeguards, we may incur unexpected costs and certain of our systems may become more vulnerable to unauthorized access.
In the event of a ransomware or other cyber-attack, the integrity and safety of our data could be at risk, or we may incur unforeseen
costs impacting our financial position. If the IT systems, networks or service providers we rely upon fail to function properly, or if
we suffer a loss or disclosure of business or other sensitive information due to any number of causes ranging from catastrophic events,
power outages, security breaches, unauthorized use or usage errors by employees, vendors or other third parties and other security issues,
we may be subject to legal claims and proceedings, liability under laws that protect the privacy and security of personal information
(also known as personal data), litigation, governmental investigations and proceedings and regulatory penalties, and we may suffer interruptions
in our ability to manage our operations and reputational, competitive or business harm, which may adversely affect our business, results
of operations and financial results. In addition, such events could result in unauthorized disclosure of material confidential information,
and we may suffer financial and reputational damage because of lost or misappropriated confidential information belonging to us or to
our employees, stockholders, customers, suppliers, consumers or others. In any of these events, we could also be required to spend significant
financial and other resources to remedy the damage caused by a security breach or technological failure and the reputational damage resulting
therefrom, to pay for investigations, forensic analyses, legal advice, public relations advice or other services, or to repair or replace
networks and IT systems. Even though we maintain cyber risk insurance, this insurance may not be sufficient to cover all our losses from
any future breaches or failures of our IT systems, networks and services.

We are testing the use of Artificial Intelligence (AI) in our marketing, branding and other efforts, which could create several risks for our operations.

We are testing various AI tools and efforts to achieve
multiple objectives, including but not limited to, creating new creative material to support our brands and marketing efforts, creating
new designs for packaging and marketing, creating content for social media and other uses, streamlining the placement of paid advertising
via streaming services or social media to maximize efficacy, speed up development of such efforts or to cut costs associated with these
efforts. Such efforts may not yield the results we want or provide a satisfactory return on investment.

In addition