Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 51

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 51
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 brand because of the co-ownership and marketing support
of such actor, such investor may never realize such returns, or the value of such investor’s investment in us could decrease materially.

In addition, if any celebrity associated with the
brand is accused of making comments or engaging in any activity that is offensive, dangerous or illegal, it could materially impact the
value of the Flavored Bourbon brand and an investor’s expectation of returns from the possible sale of such brand.

Some of our future earnings from any sale of FBLLC have been pledged as inducements to secure past financings, which could reduce or eliminate our receipt of gains from the future sale of FBLLC for the benefit of our company or our investors.

As an inducement to obtain financing in 2022 and
2023 through the sale of convertible notes, we agreed to pay to the investors in such financings a portion of the proceeds we may receive
from the sale of FBLLC or the Flavored Bourbon brand in the amount of 150% of their subscription amounts. For additional information
regarding such payment obligation, see Note 5 to our unaudited interim condensed consolidated financial statements for the nine month
periods ended September 30, 2024 and 2023 included elsewhere in this prospectus. As a result of such payment obligation, purchasers of
our common stock in this offering who may anticipate a certain return, or expect to share in our proceeds, from the growth or sale of
FBLLC or the Flavored Bourbon brand may never realize such returns, or the value of such purchasers’ investment in us could
decrease materially after required payments to our creditors are made.

Our interest in FBLLC or any future brand or entity in which we invest could be subject to dilution if there is a capital call in which we do not participate.

As a minority owner in FBLLC, we do not control
the budget, spending or planning associated with the Flavored Bourbon brand, nor do we control whether there is a capital call,
nor the terms of any offering that would result from a capital call. A capital call by FBLLC for which we do not have the resources to
participate in full, or at all, could lead to dilution of our ownership in the Flavored Bourbon brand. A capital call by FBLLC
could also have terms that put us in a less favorable financial position regarding any future potential earnings of the brand if we do
not or cannot participate in such capital