Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 44

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 44
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 like ours which then must compete for shelf space with larger,
more established or better funded brands. If we are successful in growing our brand approval and sales in control states and one or more
of those control states privatizes its liquor system, our sales, revenue and profitability derived from sales in those states may be disrupted.

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Substantial disruption to production at our distilleries and distribution facilities, or at a facility with which we contract or partner for production, could occur.

A disruption in production at our distilleries or
third-party production facilities could have a material adverse effect on our business. In addition, a disruption could occur at any of
our other facilities or those of our suppliers, bottlers, co-packers or distributors. The disruption could occur for many reasons, including
a full production schedule, fire, natural disasters, weather, water scarcity, manufacturing problems, disease, strikes, transportation
or supply interruption, government regulation, cybersecurity attacks or terrorism. Alternative facilities with sufficient capacity or
capabilities may not be available, may cost substantially more or may take a significant time to start production, each of which could
negatively affect our business and financial performance.

Disruption within our supply chain, contract manufacturing or distribution channels could have an adverse effect on our business, financial condition and results of operations.

The prices of ingredients, other raw materials,
packaging materials, aluminum cans, glass bottles and other containers fluctuate depending on market conditions, governmental actions,
climate change and other factors beyond our control, including the COVID-19 pandemic. Substantial increases in the prices of our ingredients,
other raw materials, packaging materials, aluminum cans and other containers, to the extent they cannot be recouped through increases
in the prices of finished beverage products, could increase our operating costs and reduce our profitability. Increases in the prices
of our finished products resulting from a higher cost of ingredients, other raw materials, packaging materials, aluminum cans and other
containers could affect affordability in some markets and reduce our sales. In addition, some of our ingredients as well as some packaging
containers, such as aluminum cans and glass bottles, are available from a limited number of suppliers. We and our suppliers and co-packers
may not be able to maintain favorable arrangements and relationships with these suppliers, and our contingency plans may not be effective
in preventing disruptions that may arise from shortages of any ingredients that are available from a limited number of suppliers. Adverse
weather conditions may affect the supply of other agricultural commodities from