Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 155

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 155
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 in the use of the assets. When such an event occurs, future cash
flows expected to result from the use of the asset and its eventual disposition are estimated. If the undiscounted expected future cash
flows are less than the carrying amount of the asset, an impairment loss is recognized for the difference between the asset’s fair
value and its carrying value. We did not record any impairment losses on long-lived assets for the nine months ended September 30, 2024
and 2023.

Emerging Growth Company Status

The JOBS Act permits an “emerging growth
company” such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable
to public companies until those standards would otherwise apply to private companies. We have elected to use this extended transition
period for complying with new or revised accounting standards that have different effective dates for public and private companies until
the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the
extended transition period provided in the JOBS Act. As a result, we will not be subject to the same new or revised accounting standards
as other public companies that are not emerging growth companies, and our financial statements may not be comparable to other public companies
that comply with new or revised accounting pronouncements as of public company effective dates. We may choose to early adopt any new or
revised accounting standards whenever such early adoption is permitted for private companies.

We will cease to be an emerging growth company
on the date that is the earliest of (i) the last day of the fiscal year in which we have total annual gross revenues of $1.235 billion
or more, (ii) the last day of our fiscal year following the fifth anniversary of the date of the closing of our IPO, (iii) the
date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years or (iv) the
date on which we are deemed to be a large accelerated filer under the rules of the SEC.

Further, even after we no longer qualify as an
emerging growth company, we may still qualify as a “smaller reporting company,” which would allow us to take advantage of
many of the same exemptions from disclosure requirements, including reduced disclosure obligations regarding executive compensation in
our periodic reports and proxy statements. We cannot predict if investors will find our common stock less attractive because we may rely