Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 47

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 47
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, equipment, raw ingredients and/or finished ingredients or goods may not be readily available for licensed partners at any given 
 time, which could negatively impact the cash flow and deliverability of an operation, the licensed partners and/or our brand.            |

| ● | Cross Sales into Distribution Channels — Our                                                                                                 
 Tribal partners might attempt to directly sell into the market in violation of our distribution agreements, or attempt to compete with       
 us in distribution outside the context of a formal company-wide distribution plan, which could disrupt our contractual or legal obligations, 
 undercut us in the market, flood the market with product or cause confusion within distribution channels.                                    |

| ● | Change of leadership — Tribal organizations                                                                                                 
 have regular elections for leadership positions. It is almost certain that at some point during the negotiation, design, construction       
 or operation of a location that a change in Tribal governance will conflict with the operation of the business to the detriment of us.      
 This could result in our decision to seek early termination of a contract to avoid disruptions in other parts of our business or to protect 
 the integrity of our brand and reputation if the relationship with a Tribal partner materially deteriorates.                                |

| ● | Failure to resell the concept — The initial                                                                                             
 Tribes with which we work may not inspire other Tribes to join the TBN, thereby impacting the future number of TBN locations and future 
 anticipated growth plans. Accordingly, an insufficient number of Tribal partners may decide to join the TBN, or such licensees may have 
 an insufficient level of sales to justify or sustain continued operations.                                                              |

| ● | Failure to take our management input into account — Tribal                                                             
 partners may not consider our desire or input with respect to production, branding, marketing, sales and distribution. |

| ● | Failure to have adequate oversight over employees, personnel,                                                                        
 product — As the actual employer of employees operating the new locations, Tribes may not consider our hiring input                  
 or guidance as it relates to customer service, technical and quality assurance, documentation and compliance, among other issues. In 
 such an event, we would have little recourse to remove Tribal employees from key positions.                                          |

| ● | Failure to have access to the books and records — Tribal                                                                                  
 partners might withhold financial information from us such that we cannot adequately determine sales, costs and net revenues, among other 
 financial metrics.                                                                                                                        |

| ● | Interpretation of federal or state law; failure to follow                                                                                   
 the law — We are one of the first entities attempting to license