Company: IPST
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001641172-25-009684
Chunk: 8

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-05-12
Form: 424B3
Chunk 8
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 compliant system. In March 2024, we ended that relationship           
 and began migrating to LiquidRails, a third-party, three-tier compliant platform that relies       
 on delivery to consumers via licensed retailers. This new platform expands our DtC outreach        
 to 45 states and the District of Columbia and eliminates our shipping costs to the consumer,       
 which will help us to both increase net margin and expand our sales opportunities. Prior           
 to March 2023, we shipped directly to consumers in only nine states. We also recently added        
 our offerings from our Salute Series line on to the Seelbach’s DtC platform,                       
 a third-party, three-tier compliant DtC platform that is well known to whiskey enthusiasts         
 around the country, which expanded our reach to a new whiskey-focused DtC audience. This           
 sales method allows us to collect high-margin sales and consumer data to drive future sales        
 and to support the growth of our traditional spirits through the three-tier wholesale system.      
 The future ability to accept bitcoin as a form of payment, upon the future adoption of a           
 final Bitcoin Treasury Policy, for select online sales further differentiates us in the space      
 among our competitors and opens up our products to a broader market of consumers and clientele.    |
| ● | In                                                                                                 
 our Cask Club® program, consumers join as members and work with our                                
 distilling team to develop their own 10-liter barrel batches, which are custom aged, flavored,     
 bottled, proofed and labeled in our retail locations. Over the last ten years we have demonstrated 
 that this program creates repeat customer foot traffic in our tasting rooms and encourages         
 members to bring friends and family to the locations to sample products, enjoy cocktails           
 and purchase products of their own. It also serves as an innovation laboratory that provides       
 us with an opportunity to develop and test new products and concepts with the goal of bringing     
 the strongest performers to the market.                                                            |
| ● | In                                                                                                 
 our Spirits Club®, a DtC subscription service, we offer members the opportunity                    
 to purchase three or four selections of spirits per year, which are automatically shipped          
 to their homes or are available for pick up in our tasting rooms.                                  |

| 3 |

| ● | Wholesale.                                                                                         
 We have distribution agreements with the two largest spirits distributors in the U.S.,             
 Southern Glazer’s Wine and Spirits (“SGWS”) and Republic National Distributing                     
 Company (“RNDC”), each of which has a dedicated sales force in our core states                     
 of Washington, Oregon