Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 32

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 32
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 Any of these factors could have a material adverse effect on our financial condition, operating results,
and general business operations.

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We may continue to have limited capital depending on the amount of net proceeds we receive from this offering, how our funds are managed and how well our products and services continue to be received in the marketplace.

There can be no assurance that we can timely realize
our business plan, if at all, to reach sustainable revenues to cover future operational costs or new obligations that we may incur to
expand our operations. Any material deviation from our business plan timetable could require us to seek additional capital. There can
be no assurance that such capital would be available at reasonable cost, or that it would not materially dilute the investment of our
stockholders if it were obtained.

Our senior secured lender may accelerate our indebtedness and foreclose on our assets.

In the past, we have not met certain financial
covenants required pursuant to the terms of our loan agreement with our senior secured lender. These covenants include semi-annual minimum
liquidity tests, semi-annual minimum interest coverage ratios and semi-annual minimum EBITDA ratios. In addition, in the past, we have
missed certain reporting deadlines required pursuant to the terms of such loan agreement. While we have secured a waiver of those past
covenant defaults, and have entered into a loan modification agreement that reduces our reporting requirements and our financial covenants,
there is no guarantee that our senior secured lender will continue to waive future defaults, if any. If our senior secured lender were
to declare a default and accelerate our indebtedness under those circumstances, or were to seize our assets, it would be very difficult,
if not impossible, for us to continue normal operations. Such a result would likely have a material adverse effect on our business, liquidity,
financial condition and results of operations and result in our stockholders losing some or all of their investment in us.

Sustained or increasing inflation could adversely impact our operations and our financial condition.

The inflation rate could remain high or increase
in the foreseeable future. This could put cost pressure on our company faster than we can raise prices on our products. In such cases,
we could lose money on products, or our margins or profits could decline. In other cases, consumers may choose to forgo making purchases
that they do not deem to be essential, thereby impacting our growth plans. Likewise, labor pressures could continue to increase as employees
become increasingly focused on