Company: IPST
Filing Date: 2025-12-19
Form Type: S-1/A
Source: 0001213900-25-123872
Chunk: 214

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-12-19
Form: S-1/A
Chunk 214
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 more production capacity coming online, prices for barrels of premium -qualityKentucky bourbon are falling. We now have access to our pick of premium -agedKentucky bourbon that we use to supplement for our Salute Seriesline of whiskey. Just as we are increasing volume and sales of the Salute Seriesline, our biggest input cost — premium Kentucky bourbon — is coming down significantly. We believe this represents a significant arbitrage opportunity in our favor and we do not yet see signs of the falling prices for barrels of premium -qualityKentucky bourbon finding a floor. Regulatory Matters Along with our distributors, retail accounts and ingredients and packaging suppliers, we are subject to extensive regulation in the United States by federal, state and local government authorities with respect to registration, production processes, product attributes, packaging, labeling, storage and distribution of the craft spirits, RTD canned cocktails and other products we produce. When we work with tribes, we are also subject to certain tribal requirements. 124 We are subject to state and local tax requirements in all states in which our products are sold, as well as federal excise taxes on spirits we remove from bond. We monitor the requirements of relevant jurisdictions to maintain compliance with all tax liability and reporting matters. In states in which we maintain distilleries and tasting rooms, we are subject to several governmental authorities, including city and county buildings, land use, licensing and other codes and regulations. We have contracted with a third party to manage our regulatory licensing and renewal activities. We maintain licenses that enable us to distribute our craft spirits and RTD pre -mixedcocktails in multiple states and we work with third -partyretailers that sell a cross -sectionof our premium spirits directly to consumers in 46 states via a three -tiercompliant third -partyfirm. We currently utilize software tools that are generally available to the industry and work with our license compliance service provider to navigate and manage the complex state -by-statetax and other regulations that apply to our operations in the alcoholic beverage industry. This has enabled us to expand our operations and to grow our revenue while reducing the administrative burden of tax compliance, reporting and product registration. We plan to leverage our expertise and relationships with third -partyservice providers in this area to assist tribes participating in the TBN. Alcohol-related regulation We are subject to extensive regulation in the United States by federal, state and local laws and regulations regulating the production, distribution and sale of consumable food items, and specifically alcoholic beverages, including by the Alcohol and Tobacco Tax and Trade Bureau (the