Company: IPST
Filing Date: 2025-02-04
Form Type: 424B3
Source: 0001213900-25-010139
Chunk: 35

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-02-04
Form: 424B3
Chunk 35
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 rooms of any of the tribes in our TBN, could result in a significant decrease in guest traffic in all of our tasting rooms
or the tasting rooms of the tribes in our TBN, and could have a material adverse effect on our results of operations. Furthermore, similar
publicity or occurrences with respect to other tasting rooms or restaurants could also decrease our guest traffic and have a similar
material adverse effect on our results of operations and financial condition.

COVID-19 did not have a material impact on our
operations, supply chain, liquidity or capital resources in 2023 as all state restrictions were lifted in 2022. However, future shutdowns
related to additional or increased outbreaks could have a negative impact on our operations, including voluntary or mandatory temporary
closures of our facilities or offices; interruptions in our supply chain, which could impact the cost or availability of raw materials;
disruptions or restrictions on our ability to travel or to market and distribute our products; reduced consumer demand for our products
or those of our customers due to bar and restaurant closures or reduced consumer traffic in bars, restaurants and other locations where
our products or those of our customers are sold; and labor shortages. Because of our industry, we were deemed an “essential business”
in the states in which we operate (Washington and Oregon), which allowed us to remain open during the COVID-19 pandemic. In the event
of future shutdowns related to additional or increased outbreaks of COVID-19 or any other health crises, we expect that we would qualify
for the same “essential business” designation, which would allow us to remain operational and limit the impact to our business
of any such shutdowns.

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Furthermore, our facilities and those of our customers
and suppliers have been required to comply with additional regulations and may be required to comply with new regulations imposed by
state and local governments in response to the COVID-19 pandemic, including COVID-19 safety guidance for production and manufacturing
facilities. Compliance with these measures, or new measures, may cause increases in the cost, or delays or a reduction in the volume
of products produced at our facilities or those of the TBN partners of suppliers. The COVID-19 outbreak has also disrupted credit markets
and may continue to disrupt or negatively impact credit markets, which could adversely affect the availability and cost of capital. Such
impacts could limit our ability to fund our operations and satisfy our obligations.

The extent of the impact on our business, financial
condition,