Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 175

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 175
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 sell to consumers on their lands, which allows tribes to generate strong profitability. |

| ● | Tribal land is sovereign land, so tribes control their own                                                                           
 zoning and permitting, which enables them to substantially reduce the time and expense required to begin construction as compared to 
 building on non-tribal land.                                                                                                         |

| ● | Tribes pay no sales tax on purchases of equipment or construction                                   
 of distilleries and tasting rooms, which lowers start-up costs as compared to non-tribal locations. |

| ● | Tribes also pay no state or county property tax, inventory                                                                           
 tax, personal property tax or ad valorem tax, which lowers their overall cost of operations compared to operations set up outside of 
 the tribal land.                                                                                                                     |

In addition to the revenue generated by spirits
produced on-site, we plan to create a member-based rebate for each tribe participating in the TBN based upon the production and sale of
products on tribal lands and the overall growth of the brands produced on tribal lands and benefitting from marketing support at tribal
casinos and entertainment districts. We believe this rebate will encourage more tribes to enter the TBN and will enable participating
tribes to share in the overall growth. In addition, by aligning with our nationwide branding and marketing efforts, TBN member tribes
will receive support for the promotion of their own spirits production and associated events and activities. We believe that tribes that
choose to locate a TBN distillery and our branded tasting room on, in or near a gaming and hospitality property will find the refined
presentation of our locations adds a sophisticated, appealing experience to a dynamic space. The addition of this new customer amenity
to a casino resort can highlight certain programs, thereby driving customer loyalty and repeat visits, while increasing margins through
beverage sales via on-site restaurants and bars.

Under the TBN model, the participating tribes will
fund the construction of their own distilleries and production and storage facilities and will pay all of the operating expenses of those
facilities while we provide support for the tribe’s operations, marketing, new product development and regulatory compliance functions.
Heritage will provide tasting room managers to ensure consistency of operations, training and product and brand integrity. The recovery
of the cost to Heritage associated with these employees comes off the top of retail revenue generated in the TBN tasting rooms. To facilitate
the efficient construction of tribal distilleries, we have a strategic relationship with Haskell Corporation (“Haskell”),
a leading architectural, design and