Company: IPST
Filing Date: 2025-01-27
Form Type: S-1
Source: 0001213900-25-006695
Chunk: 29

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-01-27
Form: S-1
Chunk 29
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 uncertainties not presently known to us or that we currently deem immaterial may also impair our business operations and stock price. Risks Related to Our Financial Position and Capital Needs We have a history of losses, anticipate increasing our operating expenses in the future and may not achieve or maintain profitability in the future. We have a history of operating losses, including operating losses of $6,604,653, $11,264,559 and $11,827,342 for the nine months ended September 30, 2024 and the years ended December 31, 2023 and 2022, respectively, and have incurred net losses in each year since our inception other than in 2021, the year in which we sold a controlling interest in our B S B — B rown S ugar B ourbon (“ Flavored Bourbon”) brand. We had an accumulated deficit of $69,418,067 at September 30, 2024 ($63,695,540 pro forma, after taking into account all convertible note conversions and the recognition of the associated fair value changes), and there can be no assurance if or when we will produce sufficient revenue from our operations to support our costs. We must generate and sustain higher revenue levels in future periods to become profitable, and, even if we do, we may not be able to maintain or increase our profitability. We expect to continue to incur losses for the foreseeable future as we expend substantial financial and other resources on, among other things:

| ● | sales and marketing, including expanding our direct sales organization                                           
 and marketing programs, particularly for larger customers and for expanding our Tribal Beverage Network efforts; |

| ● | investments in our distillation and production team, and the             
 development of new formulations and enhancements of our existing brands; |

| ● | expansion of our ready-to-drink canned cocktails into national 
 distribution;                                                  |

| ● | hiring additional personnel to add to our production teams if 
 we can successfully increase our wholesale sales; and         |

| ● | general administration, including legal, accounting and other 
 expenses related to being a public company.                   |

These expenditures may not result in additional revenue or the growth of our business. Accordingly, we may not be able to generate sufficient revenue to offset our expected cost increases and achieve and sustain profitability. If we fail to achieve and sustain profitability, the market price of our common stock could decline. As we have incurred recurring operating losses and negative cash flows from operations since our inception, there is no assurance that we will be able to continue as a