Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 77

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 77
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may object to our brand positioning under our Salute Series or related spirits lines or to our use of certain terms, marks, images
or logos. While we have successfully navigated this issue over the past seven years with our 1 Special Forces Group Whiskey
honoring the 1 Special Forces Group at Joint Base Lewis McChord, another branch of the military may take issue with our brand
positioning related to that branch or to a particular product or its packaging. Likewise, there is no guarantee that the Federal Alcohol
and Tobacco Tax and Trade Bureau (the “TTB”) will approve our label designs for any such branch or that after approval by
the TTB that such approval may later be rescinded. Such results would require us to rethink our branding or designs for one or more branches
or products. Any successful challenge to our effort around this line of products could diminish our ultimate future growth opportunities
from this product concept.

Likewise, people who have served in specific branches
or units of the military or as first responders tend to be very protective and parochial about their history. If we develop a product,
line or image in which we do not have a company founder or employee with specific ties to a branch, unit or group, we could be attacked
in public or in social media by members of such group that think we are trying to position ourselves in this brand at the expense of others,
even though we will endeavor to advance this line with honor and respect and in partnership with select non-profits that will benefit
from the sales of products under this line. Successful attacks on our brand or efforts in this way could diminish the value of our efforts,
the value of the brand and ultimately sales to the public.

Risks Related to Regulation

We are subject to extensive government regulation and are required to obtain and renew various permits and licenses; changes in or violations of laws or regulations or failure to obtain or renew permits and licenses could materially adversely affect our business and profitability.

Our business of marketing and distributing craft
spirits and other alcoholic beverages in the United States is subject to regulation by national and local governmental agencies.
These regulations and laws address such matters as licensing and permit requirements, regarding the production, storage and import of
alcoholic products; competition and anti-trust matters; trade and pricing practices; taxes; distribution methods and relationships; required
labeling and packaging; advertising; sales promotion; and relations with wholesalers and retailers. Loss of production capacity due to
regulatory issues can negatively affect our sales and increase